As cryptocurrency continues to attain more mainstream adoption, a whole lot of people are steadily attracted to space the majority in search of profit. Undoubtedly, profit is one of the driving factors for most crypto users – hence the reason why people venture into profitable activities such as crypto mining, farm yielding, DEX trading and many more.
More specifically, cryptocurrency mining has risen in popularity in recent times, given the massive interest from regular folks.
However, as more people are trooping in to join the crypto mining network, does that make it any easy for someone without prior knowledge in the crypto space?
What is Crypto Mining?
In the absence of the jargon terminologies, crypto mining in simple terms refers to the process by which a new digital asset (say Bitcoin, for instance) is being injected into circulation. Likewise, crypto mining could also mean the process by which new crypto transactions are validated within a blockchain by the network nodes or validators.
Technically, the second definition further implies that miners (who also double as validating nodes) are tasked with the responsibility of stopping double-spending of digital currency within a blockchain network.
Meanwhile, the new coins generated during the mining process are often used as an incentive to reward miners for the effort put in to ensuring the security of the network. That said, it’s safe to say that the mining process is primarily for validating crypto transactions.
How does mining work?
Mining can be performed using different approaches including cloud mining, CPU mining, GPU mining and ASIC mining. However, while these approaches employ different mechanisms and facilities, they all achieve the same purpose.
Notably, a miner deploys different computational machines (as listed above) to solve complex mathematical equations using cryptographic hashes.
In other words, for every transaction on a blockchain, there is a need to input a signature (just like in the case of your chequebook). This signature is referred to as hash and they primarily secure each record of the transaction on a blockchain’s public ledger.
On the other hand, a miner who is able to lock in a transaction is rewarded with a new token generated in the process, which is technically injected back into circulation.
How easy is it to mine cryptocurrency?
Contrary to the general opinion, mining is not rocket science, and it’s not only reserved for developers or people with software development skills alone. On the other hand, anyone can become a miner, provided that you are willing to acquire basic crypto knowledge.
In addition to acquiring basic analytic knowledge, crypto mining requires the use of sophisticated devices which may not be cost-effective for someone who is just starting out. However, there are alternatives that cost significantly less. Read more about crypto mobile mining here.
Generally, the ease of mining cryptocurrency depends solely on the approach that is being used. A person can either mine crypto as an individual or join a crypto mining pool. The latter seems to be the easiest, however, with a relatively low reward.
How long does it take to mine a Bitcoin?
The time it takes to mine cryptocurrencies differs from one to another. For instance, it may take a single miner several years to mine a single Bitcoin. On the other hand, it might take less than a minute to mine a novel token like VeChain (VET) or Stellar Lumens (XLM) – both of which are priced below $1 respectively.
The time it takes to mine a crypto asset depends on various factors including market value, utility purpose, and the number of network nodes. Technically, there are tons of miners who contribute towards a mining process, implying that the more the miners there are, the faster the mining process.
How can a beginner get started?
The best way for an entry-level miner to get started with cryptocurrency mining is through the mobile alternative. In other words, anyone can mine cryptocurrency using a mobile phone and even though it is not as efficient as using the traditional software and hardware, it offers great insight into how crypto mining works. Read here to find out more.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.