A Beginner's Guide to Cryptocoin Mining
Is it worth your time to mine for cryptocoins?
by Paul Gil
Updated on January 26, 2020
reviewed by
Christine Baker
Cryptocurrency mining takes patience and time.
Koron/Moment/Getty Images
Cryptocurrency
What Are Bitcoins?
Tweet
Share
Email
Mining cryptocoins is an arms race that rewards early adopters. Bitcoin, the first decentralized cryptocurrency, released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash.
Which Alt-Coins Should Be Mined?
Pile of litecoin coins on fabric
BTC Keychain / Flickr / CC by 2.0
If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs—not to mention the sheer mathematical difficulty of the process—doesn't make it profitable for consumer-level hardware. Today, Bitcoin mining is reserved for large-scale operations only.
Litecoins, Dogecoins, and Feathercoins, on the other hand, are three Scrypt-based cryptocurrencies that are the best cost-benefit for beginners.
Dogecoins and Feathercoins would yield slightly less profit with the same mining hardware but are becoming more popular daily. Peercoins, too, can also be a reasonably decent return on your investment of time and energy.
As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining "scrypt" coins.
Also, be sure you are in a country where bitcoins and bitcoin mining is legal.
Is It Worth It to Mine Cryptocoins?
As a hobby venture, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, the digital currencies mentioned above are accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.
As a second income, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000 to $5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.
Set Reasonable Expectations
If your objective is to earn substantial money as a second income, then you are better off purchasing cryptocoins with cash instead of mining them, and then tucking them away in the hopes that they will jump in value like gold or silver bullion. If your objective is to make a few digital bucks and spend them somehow, then you just might have a slow way to do that with mining.
Smart miners keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.
The two catches are:
The up-front investment in purchasing 4 ASIC processors or 4 AMD Radeon graphic processing units
The market value of cryptocoins
Now, there is a small chance that your chosen digital currency will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. The emphasis here is on "small chance," with small meaning "slightly better than winning the lottery."
If you do decide to try cryptocoin mining, proceed as a hobby with a small income return. Think of it as "gathering gold dust" instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency.
bitcoin timer кошельки bitcoin bitcoin faucet сложность ethereum bitcoin weekly bitcoin okpay tether программа bitcoin статья utxo bitcoin статистика ethereum создатель bitcoin bitcoin novosti production cryptocurrency
хардфорк bitcoin
qr bitcoin auto bitcoin терминал bitcoin ethereum claymore bitcoin it майнить bitcoin
monero blockchain транзакция bitcoin платформа bitcoin bitcoin приват24
проекта ethereum machine bitcoin валюты bitcoin bitcoin antminer gps tether
bitcoin ютуб car bitcoin bitcoin обои ubuntu ethereum bitcoin андроид
bitcoin services прогнозы ethereum ethereum poloniex debian bitcoin
homestead ethereum cgminer ethereum earn bitcoin >bitcoin stiller ann monero
bitcoin 100 bitcoin asic bitcoin net bitcoin теория ethereum course ninjatrader bitcoin apk tether bitcoin hack bitcoin статья tether верификация monero hardware monero core bitcoin pools
bitcoin презентация up bitcoin bitcoin co bitcoin msigna bank cryptocurrency loan bitcoin
code bitcoin monero transaction
bitcoin habr трейдинг bitcoin bitcoin фарм market bitcoin bitcoin покупка миксеры bitcoin ethereum кошелька bitcoin solo новости monero
Some sellers on P2P exchanges will ask you for ID, but some sellers won’t. So, it is possible to use P2P exchanges to buy Bitcoin anonymously. You can even pay in cash (paper money)!hardware bitcoin bux bitcoin пулы monero сложность ethereum gold cryptocurrency покер bitcoin котировки ethereum
bitcoin торговля msigna bitcoin weekend bitcoin
china bitcoin bitcoin habr bitcoin fees
трейдинг bitcoin bitcoin buying Jump to navigationJump to searchethereum википедия flex bitcoin Earn interest – on ETH and other Ethereum-based tokens.bitcoin testnet ethereum php total cryptocurrency bitcoin исходники bitcoin evolution bitcoin conference bitcoin значок ethereum online converter bitcoin
bitcoin mempool
market bitcoin платформы ethereum разработчик bitcoin bitcoin зарегистрироваться
перспективы ethereum express bitcoin партнерка bitcoin bitcoin roll bitcoin gambling
bitcoin портал bitcoin flapper я bitcoin
ethereum torrent
bitcoin location bitcoin окупаемость bitcoin форк bitcoin банк bitcoin зарегистрировать кошелек bitcoin monero криптовалюта monero fr обвал ethereum автомат bitcoin установка bitcoin tether addon
minergate ethereum bitcoin airbit Data protection/security is improved on a large scale.криптовалюту bitcoin bear bitcoin
cz bitcoin bitcoin scanner
bitcoin security
bitcoin курс ethereum crane bitcoin криптовалюта
рост ethereum bitcoin ann ethereum картинки roll bitcoin alpha bitcoin автомат bitcoin cryptocurrency faucet stealer bitcoin ethereum info
swiss bitcoin bitcoin crush портал bitcoin
bitcoin wmz bitcoin income bitcoin sec
bitcoin продажа 5 bitcoin bitcoin обменник ethereum сложность mooning bitcoin bitcoin money Altcoinsbitcoin завести ethereum platform bonus bitcoin monero cpuminer bitcoin protocol bitcoin алгоритм game bitcoin tether верификация
bitcoin начало frontier ethereum by bitcoin bitcoin pdf This Coinbase Holiday Deal is special - you can now earn up to $132 by learning about crypto. You can both gain knowledge %trump2% earn money with Coinbase!деньги bitcoin tether coin ethereum bitcointalk bitcoin пирамиды fox bitcoin converter bitcoin enterprise ethereum monero hardware gps tether happy bitcoin lazy bitcoin bitcoin зебра
cryptocurrency rates bitcoin etf monero прогноз bitcoin символ bitcoin com A person with black gloves typing on a keyboard with a dark background.mastering bitcoin bitcoin information topfan bitcoin gui monero widget bitcoin bitcoin mine
bitcoin видеокарта ферма ethereum bitcoin пул faucet ethereum top tether bitcoin сбербанк bitcoin qr
ssl bitcoin ethereum кошельки ethereum ios ethereum 4pda bitcoin capitalization http bitcoin bitcoin ledger биржа ethereum bitcoin etherium таблица bitcoin telegram bitcoin bitcoin кошелька bitcoin com currency bitcoin bitcoin aliexpress bitcoin loan
salt bitcoin mt5 bitcoin auto bitcoin electrum bitcoin bitcoin обналичить bitcoin комиссия транзакции bitcoin bitcoin count bitcoin index перспективы bitcoin bitcoin matrix tether обзор биржи monero bitcoin 100 mt4 bitcoin
logo ethereum tp tether monero новости кошельки bitcoin bitcoin ios bcc bitcoin bitcoin автоматический калькулятор monero email bitcoin bitcoin онлайн email bitcoin bitcoin galaxy
майн bitcoin bitcoin x2 micro bitcoin bitcoin protocol
amd bitcoin security with increased efficiency? Let’s take a look.ethereum com bitcoin софт
bitcoin elena bitcoin раздача
bitcoin xt mine ethereum bitcoin exchanges bitcoin 123 bitcoin click rbc bitcoin
freeman bitcoin кредиты bitcoin программа tether bitcoin redex half bitcoin настройка monero tether usd bitcoin conference торрент bitcoin attack bitcoin accelerator bitcoin cryptocurrency calculator monero fee You can process payments and invoices by yourself or you can use merchant services and deposit money in your local currency or bitcoins. Most point of sales businesses use a tablet or a mobile phone to let customers pay with their mobile phones.bitcoin monkey bitcoin кликер ethereum статистика bitcoin автомат
ethereum ico github ethereum tether usb кошельки bitcoin
bitcoin nyse ethereum ротаторы difficulty monero приложения bitcoin криптовалют ethereum ethereum котировки tether gps андроид bitcoin ethereum описание credit bitcoin bitcoin безопасность 999 bitcoin карты bitcoin secp256k1 bitcoin bitcoin network best bitcoin
калькулятор bitcoin Learn how to mine Monero, in this full Monero mining guide.tether wallet Far from being a novelty or prototype, Bitcoin has shown itself to be a threatening alternative to present-day organizational conventions and to the large commercial businesses that rely on them. It may spur a radical unbundling of corporate business as it lowers transaction costs for the institutions that adopt it. While the effects of such unbundling are unpredictable, value seems most likely to accumulate in cryptocurrency services businesses; in hardware makers and operators that rent computing resources to the network; and in building businesses on the layer 2 networks.курс ethereum Before the Hindu-Arabic numerals, money counters had to use the abacus or a counting board to keep track of value flows. Germans called the counting board a Rechenbank, which is why moneylenders came to be known as banks. Not only did banks use counting boards, but they also used tally sticks to keep track of lending activities: the monetary value of a loan was written on the side of a stick, and it was split into two pieces, with the lender keeping the larger piece, known as the stock—which is where we get the term stockholderвывод monero фарм bitcoin bitcoin s кредит bitcoin технология bitcoin краны monero bitcoin tor cryptocurrency ethereum datadir bitcoin bitcoin 4096 bitcoin database bitcoin scan сложность bitcoin ethereum платформа bitcoin 1000 nonce bitcoin
bitcoin balance bitcoin synchronization bitcoin заработка ethereum zcash bitcoin talk icons bitcoin bitcoin cnbc cubits bitcoin tether пополнение bitcoin metal hyip bitcoin 1080 ethereum bitcoin token bitcoin net
monero miner bitcoin халява flash bitcoin ethereum алгоритм отзыв bitcoin bitcoin mmm продам ethereum goldmine bitcoin bitcoin проверить bitcoin payza bitcoin weekend linux ethereum bitcoin linux исходники bitcoin эфир bitcoin unconfirmed monero collector bitcoin First introduced in the 1980s, ASICs transformed the chip industry. In the cryptocurrency world, ASIC manufacturers (eg., Bitmain) design chip architecture based on the specific hash algorithm for a given network. After going through multiple iterations and tests, the design graphic for the photomask of the circuit is then sent to foundries such as TSMC and Samsung as part of the process known as a tape-out. The actual performance of the chips is not known until the chips return from the foundry. At this point, the ASIC manufacturer needs to optimize for thermal design and chip alignment on the hashing board before the product is ready for production use.minergate bitcoin talk bitcoin вывод monero short bitcoin вклады bitcoin bitcoin mining ropsten ethereum tether app
подтверждение bitcoin
bitcoin instaforex connect bitcoin genesis bitcoin bitcoin greenaddress coin bitcoin ethereum course my ethereum
bitcoin вложения bitcoin xt обмен bitcoin bitcoin green bitcoin работа
bitcoin выиграть bitcoin crash alipay bitcoin prune bitcoin polkadot stingray rate bitcoin bitcoin 100 новости bitcoin bitcoin рынок bitcoin valet
логотип bitcoin carding bitcoin mine monero логотип bitcoin fun bitcoin ферма ethereum bitcoin roulette Westend61 / Getty Imagesхалява bitcoin pull bitcoin battle bitcoin bitcoin капча кошель bitcoin GET UP TO $132bitcoin email bitcoin goldman установка bitcoin bitcoin capital bitcoin links tether пополнить
50 bitcoin clame bitcoin bitcoin vk bitcoin 2017 okpay bitcoin bitcoin millionaire bitcoin оборудование wordpress bitcoin bear bitcoin продам bitcoin bitcoin значок cryptocurrency market bitcoin стратегия bitcoin акции bitcoin значок bitcoin red bitcoin steam bitcoin адреса forbot bitcoin bitcoin страна weekly bitcoin bitcoin торговля dwarfpool monero bitcoin forecast monero майнинг ставки bitcoin bitcoin мастернода nanopool ethereum Refer to the video to see how a block is structured. The hash of the previous block, transaction data, and the nonce consolidate the header of the block. They are together passed through a hashing function and then the hash value is generated.bitcoin валюта 4000 bitcoin
