Cryptocurrency Mining 101: Building Your Mining Rig and Getting Started

Beginner’s Guide, Top Software Picks, Expert Insights

If you are in crypto space, you have heard about cryptocurrency mining for sure. It is a very popular method for passive income, dating back in 2009, when the first Bitcoin block was mined. These days high level equipment is needed to mine BTC, but if you are passionate about it (and have money to invest in), it can be quite interesting since it is open source and anyone can do it. Crypto mining is the process of validating transactions on a blockchain network and adding them to the blockchain’s public ledger by solving complicated mathematical equations using computer hardware.

Discover the BEST Cryptocurrency to Mine

Cryptocurrency mining is still one of the easiest and most profitable ways to own cryptocurrencies and make money using them. However, as technology advances, there have been several changes that affected the dynamics of the cryptocurrency industry. For instance, Bitcoin halving has reduced the profitability of mining, but as the price of Bitcoin increases, the profit increases.  Moreover, as Ethereum moved to Proof of Stake with its Merge upgrade, its miners started looking for more profitable cryptocurrencies to mine. If you are also looking for other mining options, you have come to the right place. But first, a short introduction. 

Proof of Stake (PoS): Definition, How It Works

Proof of Stake (PoS) is a consensus algorithm used by many blockchains as an alternative to the more commonly known Proof of Work (PoW) algorithm. It was developed as a way to address some of the issues associated with PoW, such as the high energy consumption required to mine new blocks and the centralization of mining power among a small number of large mining pools.

The Ethereum foundation alone, before this network switched to PoS estimated that PoW continuously spent 5.13 gigawatts of energy, while most of the minders are located in China due to cheap electricity

Mastering Cloud Mining

Cloud mining is a process of mining cryptocurrencies like Bitcoin, Ethereum, and many more, by using resources of distant centres. Simply said, this type of mining allows users to rent mining hardware from a third-party provider to mine cryptocurrencies without the need for them to purchase or maintain the equipment themselves. In cloud mining miners use shared processing power that is hosted in a remote data center. Everything needed is an internet connection, without any specialized mining equipment or infrastructure, and funds in crypto (to pay for services) to start mining cryptocurrencies. 

The Basics of Merged Mining: An Overview

Merged mining allows a miner to mine on more than one blockchain at a time. The advantage is that every hash that the miner makes contributes to the total hash of two coins and therefore they are all secure. This process is the practice of using work done on one blockchain (parent) and one or more auxiliary blockchains and accepting it as valid on its own chain, using proof of work (AuxPoW). In this relationship, two blockchains need to trust each other to work as their own alone. Blockchain parents don’t need to know about the AuxPoW logic, because the blocks that are placed on it are always blocks.

The Latest in Bitcoin Mining: State and trends

Bitcoin mining is an important part of the cryptocurrency ecosystem. Without mining, new cryptocurrencies won’t be released in the market, and the transactions wouldn’t be processed. While now new-age cryptocurrencies such as Binance Coin, Solana, etc., operate on a Proof of Stake consensus algorithm, which does not require mining, the first invented cryptocurrency still operates on a Proof of Work consensus algorithm that depends heavily on mining. Due to the ongoing bear market, the crypto mining industry took a hit. But, new reports suggest that the coming weeks will provide relief to the miners. However, before understanding the current state of crypto mining, let’s first understand Bitcoin mining. 

Top Coins to Mine for Maximum Profitability

There has been a lot of speculation around Ethereum shifting to a Proof of Stake consensus algorithm and how it will affect cryptocurrency miners. While some people believe that it will be the end of mining, the truth is, it won’t. There are other coins to mine and still make decent passive income. However, to understand how the shift affects miners, we first need to understand what mining is and how the PoS shift will affect Ethereum. Ravencoin is a veteran project that forked from Bitcoin. Launched on January 3rd,2018, Ravecoin recently underwent a halving event that caused the network’s hash rate to decrease significantly. Moreover, the project has undergone three algorithm changes to move away from ASICs and FPGAs mining and is currently operating on the KawPow algorithm, which is ASIC resistant. While KawPow is power-consuming as compared to others, it can be mined using GPUs. 

Nuclear-Powered Bitcoin Mining: Feasibility Check

Ever since Bitcoin mining appeared, the number one negative characteristic everyone was pointing to was power consumption. The consequences of energy expenditure to keep the Bitcoin network up and running are always topics for long discussions, especially among its opponents. Regardless of confronted opinions, there is a need to move to renewable sources of energy. And this is something countries around the world are working on. In the previous months/years, we saw big progress towards greener sources of energy for securing blockchain networks, primarily Bitcoin’s. What is interesting is that eastern countries seem more leaned towards this movement.