Cryptocurrency mining is currently a hot topic in the cryptocurrency world. With the price of cryptocurrency constantly increasing, people are trying to find different ways to earn cryptocurrency. Cryptocurrency mining is the most popular method of obtaining cryptocurrency. Today’s article is about what is cryptocurrency mining and how to do it.
What is cryptocurrency mining?
Mining is the process of attaching new blocks to cryptocurrency. Every cryptocurrency transaction is recorded in a public ledger. A public ledger means one that is open to all. In the public ledger, transaction information is stored in blocks. The job of cryptocurrency mining is to verify the authenticity of each transaction and combine the transactions into blocks. Here block is a space/place. Transactions are verified by miners and placed in blocks. The data held in the block is conditionally immutable.
What is the work in cryptocurrency mining?
What is the job of a miner in cryptocurrency mining? In fact, the job of a miner (a person who mines cryptocurrency) is to set up the mining device. After that he has no work. Suppose you want to mine Ravencoin with GPU. So, all you have to do is connect your GPU to a mining pool and install and set up the necessary software. Your GPU and software will do the rest.
What actually happens in mining? Does that mean your device is working? First, when we send cryptocurrency to someone, it is not confirmed immediately. It takes a while. A transaction remains in the memory pool until it is confirmed. A mimpool is a space where all pending transactions reside. Your mining device and software verify and list those transactions, called candidate blocks. Then the block search begins. Many people are mining at the same time, so whoever finds the block first will get the mining reward. In the case of cryptocurrency mining, technically speaking, these tasks are done.
Types of Cryptocurrency Mining
Generally, there are two types of cryptocurrency mining. This is according to the process of mining, that is, according to how you are mining, there are two types of mining.
1. Solo mining
2. Pool mining
Solo mining
Solo mining refers to mining cryptocurrency by yourself. That is, you are trying to find blocks with all the hash power or power generated by your device. Since, many people are mining around the world, unless you have many mining devices, the chances of you finding a block by solo mining are very slim.
Pool mining
When you don’t have multiple mining devices, you won’t actually get anything by mining alone. So how to do mining? Of course there is an alternative solution and that is pool mining. When you don’t get any blocks with a little hash power, you can join a pool and start mining. A pool is basically a group of people from different parts of the world who want to mine with a few devices, and use all their hash power together to mine. There are many other pools including Slush Pool, Ant Pool, ViaBTC where you can mine with little hash power. And in return you will get rewards. As many block rewards as the pool you mine in the pool, the reward will be divided in proportion to your hash power. Most of the pills shared above can do Bitcoin mining. There are also many pools for altcoin mining.
Can any crypto mining be done from Bangladesh?
Since cryptocurrency is illegal in Bangladesh, there are not many ways to advance mining. You cannot import mining devices at will. The use of electricity also has various disadvantages. Currently there is no alternative to ASIC miner in Bitcoin mining. It is not at all possible to make a profit by mining Bitcoin without an Asic miner. If anyone wants to do mining from Bangladesh then they should definitely look at GPU mining. Currently the following coins can be mined for GPU mining:
1. RavenCoin
2. LiteCoin
3. Zcash
Some essential websites
Below is a list of some of the websites required for mining:
1. nicehash
Nicehash is one of the most popular sites for mining. This site has many names especially for trading hash power. You can sell your hash power there if you want and you can also mine by buying hash power from there. Also, here is calculator to see if mining is profitable or not.
2. What to mine
You will get all the information about which coin you want to mine and which device to mine or how you will profit if you use any device on this website. Here you can check with your device which coin mining with that device will give you the highest profit.
There are also many other sites including simplemining, 2cryptocalc, woolypooly, profit-mine where you can easily check which cryptocurrencies you will profit from mining or which coin you should mine with which device.
