How to mine crypto-currencies?

You want to mine cryptocurrency, but you do not know how to proceed. No problem since we will tell you how to do it step by step.

What is mining?

Since cryptocurrencies are decentralized payment systems, there is no central bank to produce new copies of this currency. However, the mining makes it possible to ensure this production of new units. It is a paid service that asks you to put your equipment to check the transactions. Each transaction is reviewed by the miners before it is converted to what is called a hash, a combination of letters and numbers. This combination is then hooked to the blockchain, which is the history of all transactions made, for display.

How to mine cryptocurrency

To undermine this cryptocurrency, you have to find the hash with the right combination. It is therefore necessary to test all possible combinations until finding the right one. The minor who gets it receives a certain amount in cryptocurrency. However, minors usually encounter several difficulties:

• Mining would be far too complicated to do by hand. This means that in order to undermine cryptocurrency, it is necessary to either invest in computer equipment or rent it, notably thanks to the cloud mining system. Before mining cryptocurrency, one must first invest one's own money;
• only the miner who finds the hash is paid and all the others do not touch anything. So it's a race against the clock to find the right combination. This also makes it the people who invest the most money and deploy the most means that are most likely to find the hash;
• some crypto-currencies, such as Bitcoin, are victims of their success and have become very hard to undermine. For a miner to achieve it alone, it takes such an investment that it would be difficult to make money.

The mining pool

To avoid all these problems, there is the solution of the mining pools. The basic idea is simple: pool efforts to increase your chances of finding the right hash. However, all the benefits will be shared between the different contributors of this pool. This principle is reminiscent of lotto where, when you play several, you increase your chances of winning, but they will be less important since they will be shared. In addition, you will have to deduct the cost of the mining pool. They are usually between 1 and 10% of your income.