The process of cryptocurrency mining is quite technical and mathematical. Just like it is for all daunting things, someone is always up for the challenge. What even is cryptocurrency without cryptocurrency miners? Nothing.
The process of mining is done by a machine that performs certain mathematically-fuelled tasks in order to obtain some cryptocurrency. The miners make money from the transaction fees that are paid by the traders of the cryptocurrency.
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Cloud Mining
Cloud mining takes the first place as being the most popularly used method of mining cryptocurrency. This reputation is because of the ease through which it allows for cryptocurrency mining.
The way cloud mining works is that the miner employs the services of a big corporation to rent out their mining machine to take part in the mining process. The contract made states that all the money made mining shall go to the digital wallet of the miner, minus the maintenance and electricity fees.
Cloud mining is such an attractive method as it allows for anyone with an interest and with a budget to take part in the cryptocurrency world. This form of mining can be accessed for free or through paid services as well.
Naturally, the free version has its cons, slow speed of the mining process being one of them. The paid plans could range from $500 to $5000, with some companies even allowing for the customization of plans.
There are different types of cloud mining as well. This includes hosted mining where the miner is leasing a hosting machine provided by the host. Then we have virtual hosted mining that requires the miner to install mining software to use the virtual private server. Finally, renting hash power is the most popular among the three; where you rent hashing power from the host without a physical, or for that matter virtual computer.
All good things come with certain disadvantages. Cons of cloud mining include;
- Volatility of cryptocurrencies
- High risk of fraud
- Lowered profits
- No flexibility in mining
Some of the host corporations that allow for cloud mining include Genesis mining, Hashflar.io, Hashing24 and NiceHash. These companies allow for the mining of cryptocurrencies such as Bitcoin, Ethereum and more.
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CPU mining
Just as the name suggests, CPU mining takes place through the use of processors in order to mine cryptocurrency. Although not the trendiest method of cryptocurrency mining, this method was the go-to back in the days.
CPU mining happens to be a very accessible method as anyone with a computer can do it. With the added use of certain programs, anyone can get on that cryptocurrency bandwagon.
Cons of CPU mining;
- Slow process, taking up to months
- Small revenue for greater labour and time
- Expensive due to the pay on electricity and cooling
Despite all these cons, this method is extremely beginner friendly and thus sees new miners every day.
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App Mining
If all you needed to mine cryptocurrency was to download an app, would you do it? App mining is one of the easiest methods of cryptocurrency mining. One example of these apps is Bitcoin Miner, a free app compatible with all Windows 10 PCs and other devices.
The process only involves installing the app and then filling out your virtual wallet details to begin. In this method, the amount of cryptocurrency mined is proportional to the power of the device used. Hence, mining through the desktop will earn you more than doing so on the phone.
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ASIC mining
For the truly dedicated ones, this form of mining is for you. It involves the use of an application-specific integrated circuits, also known as a mining rig.
These rigs can stay on throughout the day and are quite expensive. They consume humongous amounts of electricity and thus, it would take up to a year to start earning through mining.
Bitmain is popular brand that manufactures these rigs. But an ASIC rig needs an advanced mining software and mining pool such as Slush Pool or CGminer. If you want detailed info, visit the official website of Crypto Genuis.
Final Words
Here is a list on some of the best methods on mining cryptocurrency to get you kickstarted on the process.
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