How to mine crypto-currencies ?

How to mine crypto-currencies ?

You want to undermine crypto-currency, but you don’t know how to proceed. No problem, since we are going to show you how to do it step by step.

What is the mining ?

Given that crypto-currencies are payment systems decentralized, there is no central bank in order to produce new copies of this currency. However, the mining helps to ensure the production of new units. It is a paid service that requires you to make your material available to verify the transactions. Each transaction is reviewed by the juvenile before it is converted into what’s called a hash, a combination of letters and numbers. This combination is then attached to the chain blocks, which is the history of all the transactions carried out, in order to be displayed.

How miner of the crypto-currency

To undermine this crypto-currency, it is necessary to find the hash with the right combination. It is thus necessary to test all the possible combinations until you find the right one. The minor who succeeds receives a certain amount of money in crypto-currency. However, juveniles commonly face several difficulties :

  • miner would be way too complicated to do by hand. This makes for miner of the crypto-currency, it is necessary either to invest in hardware, or the rent, including through the system of cloud mining. Before miner of the crypto-currency, one must first invest his own money ;
  • only the miner who finds the hash is paid and all other didn’t touch anything. So this is a kind of race against the clock to find the right combination. This is also that it is the people who invest the most money and make the most of the ways that have the greatest chance of finding the hash.
  • some crypto-currencies, such as Bitcoin, are victims of their success and have, therefore, become very hard to undermine. In order for a minor to do so alone, it must be such an investment that it would be difficult to make profitable.

The pool of mining

To avoid all these problems, there is the solution pooled mining. The basic idea is simple : the pooling of efforts to increase its chances of finding the right hash. However, all the profits will be shared between the various contributors to this pool. This principle reminds us a bit like the lottery where, when you play more, you increase your chances of winning, but these last will be less important as they will be shared. In addition, you will need to deduct the costs that it takes for the pool to mine. They are generally located between 1 and 10% of your income.

What you must remember

  • The blasting is a paid service in which the miners have to verify the transactions. For this, they need to find the hash that corresponds to the transaction.
  • However, the mining is a complex task that often requires a large investment to acquire the equipment they need, especially for a miner who works alone. In addition, only the miner who finds the correct hash is rewarded.
  • There are also pools of blasting which allows the mutual efforts to find the hash. However, the gains are also shared.