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How to Start Mining Cryptocurrencies?

Mining Crypto assets was very easy some years ago, when people started mining bitcoin with simple desktop computers, and later with the processing power of their video card’s GPUs. But nowadays these two methods produce 0 profits.

What do I need to start mining?

If you want to start mining at home, you’ll have to buy a mining rig. This is something like a specialized processor unit that has many Application-Specific Integrated Circuit chips or ASIC. This device is capable of solving incredible amounts of math problems associated with the blockchain network.

Although is very expensive, it’s the only way that people can compete with other owners of the same rig or various rigs at the same time. Each one of these rigs can attempt to solve a block about 1012 times per second.

What Rig Should I Choose?

Every year, new rigs come up on the market and their maximum capabilities grow in every new version. This means that their efficiency and stock on the market are the things that determine its price as the demand for these is very high.

If you have the opportunity to choose between two rigs you should consider the performance of the two, keeping a close look on hash rate and power consumption (in Watts) where more hashes per less watts its better. 

Also consider the profitability of each rig, since any of them could have more hashes but more power consumption. This will make some rigs less profitable, unless you live in a place with cheap electricity or make a deal with your power supplier company.

Get a place to store your crypto assets

There’s not a way to mine a coin directly. The process of mining is in any case, an assistance for the people making transactions with a crypto asset. For this, miners “look” for space to store a transaction that has been made, this space is called a “block”.

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What do you need to mine cryptocurrencies?

When miners find a block using their rigs, they are validating the transactions made by other users, thus they are granted the fees of the transactions and a reward for their service to the block chain (in the case of bitcoins they are granted 6,41 Bitcoins approximately).

To store these crypto assets miners, need to have “wallets”. These are hardware or software storage places for their cryptocurrencies.

How do I Choose a wallet?

There are different types of wallets for each situation Software online wallets like the ones on a Binance or Coinbase account are needed to start trading cryptocurrencies, but software phone-wallets are used like your pocket wallet that we use every day but we don’t store life savings.

 To store big quantities of crypto assets you’ll need a hardware wallet.

Choose a pool

The final step its sign on a pool of your preference, since no single person can compete with organized computing power, pools have been created to mine bitcoins and divide rewards, there are many different pools to choose from.

Credibility on each pool and the way they divide their earnings it’s very important when picking one of them, but in general the rookie miners should choose Slushpool and Antpool interchangeably.