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.
виталик ethereum claim bitcoin bitcoin видеокарты Regulationкалькулятор ethereum Talking about losing cryptocurrencies, you wouldn't want this to happen just because you chose an insecure wallet. That being said, if you decide to make a long-term investment, it's recommended to get a hardware wallet, such as Ledger Nano S and Trezor Model T.The screenshot below is taken from a blockchain explorer, a free public service which allows anyone to see all Bitcoin transactions. Note the block hash with 18 prepended zeros, required by the difficulty factor at the time this block was mined:flash bitcoin обсуждение bitcoin ethereum com monero биржи simple bitcoin bitcoin трейдинг bitcoin ixbt etf bitcoin форки bitcoin халява bitcoin homestead ethereum видеокарты ethereum bitcoin drip ethereum os bitcoin сети monero pro ethereum график l bitcoin xmr monero locals bitcoin black bitcoin теханализ bitcoin bitcoin monkey bitcoin nodes кошелек tether
платформу ethereum
buy tether
bitcoin ios лучшие bitcoin monero hardware bitcoin onecoin новости ethereum мастернода bitcoin
bear bitcoin bitcoin okpay ethereum eth
second bitcoin ethereum обозначение ethereum вики miningpoolhub ethereum se*****256k1 bitcoin bitcoin fortune динамика bitcoin bitcoin pos bitcoin виджет tether верификация
алгоритм bitcoin habrahabr bitcoin bitcoin passphrase
tether download
100 bitcoin habrahabr bitcoin
total cryptocurrency система bitcoin bitcoin значок ropsten ethereum bitcoin sportsbook
bitcoin mail
настройка ethereum картинки bitcoin bitcoin openssl bip bitcoin cryptocurrency prices bitcoin обменник bitcoin ваучер
bitcoin steam капитализация bitcoin
картинка bitcoin bitcoin автоматически bitcoin machines bitcoin online cryptocurrency capitalisation bitcoin конвектор вывести bitcoin количество bitcoin
github ethereum
bitcoin block space bitcoin автосерфинг bitcoin bitcoin проверить bitcoin email monero hardware
bitcoin баланс разделение ethereum tp tether bitcoin php flypool ethereum рубли bitcoin 2018 bitcoin сборщик bitcoin использование bitcoin bitcoin links deep bitcoin wallet tether bitcoin laundering bitcoin кошелек bitcoin betting ethereum доходность ethereum pos заработка bitcoin ethereum пулы bitcoin продажа bitcoin signals bitcoin gif bitcoin cryptocurrency bitcoin пополнить ethereum сегодня
miningpoolhub ethereum bitcoin rotators bitcoin пожертвование bitcoin иконка
bitcoin timer валюта monero ethereum проекты
go bitcoin
tether bootstrap bitcoin api форки ethereum bitcoin команды ethereum coin
bitcoin asic
mooning bitcoin cms bitcoin bitcoin xt bitcoin master скрипт bitcoin ethereum blockchain trader bitcoin doubler bitcoin Each time a transaction occurs, such as when one party sends bitcoin to another, the details of that deal, including its source, destination, and timestamp, are added to a block.bitcoin daemon monero hardware generation bitcoin
hub bitcoin cryptocurrency ethereum ферма bitcoin пул bitcoin 99 bitcoin bitcoin farm пример bitcoin
bitcoin antminer coingecko ethereum исходники bitcoin
lootool bitcoin dog bitcoin работа bitcoin ethereum проекты курсы bitcoin обменники ethereum цена ethereum
bitcoin weekly использование bitcoin lealana bitcoin download bitcoin tether 4pda пример bitcoin trade cryptocurrency r bitcoin poloniex monero bitcoin change bitcoin gold bitcoin withdraw amazon bitcoin часы bitcoin ecdsa bitcoin Other ideasLitecoin is very similar to Bitcoin, but its system makes mining easier for users who don’t have powerful computers.bitcoin blog rotator bitcoin bitcoin suisse bitcoin получить cryptocurrency wallets bitcoin 10 отзывы ethereum кошелек monero tether майнинг
Understanding cryptocurrency: Dawn of a new economyThere are a lot of similarities between Ethereum and Bitcoin. Both platforms are supported by an open-source P2P network that isn't regulated by any government or organization. Because the network is decentralized, it can never go offline. Ether and Bitcoins are cryptocurrencies that have real-world value and can be used to transfer money across the globe. There are no banks or other payment processing platforms involved.wordpress bitcoin bitcoin weekly tether coin краны monero реклама bitcoin 2018 bitcoin bitcoin hardfork bitcoin neteller bitcoin auto bitcoin приват24 bitcoin пожертвование bitcoin сбербанк bitcoin book sgminer monero bitcoin alpari dash cryptocurrency water bitcoin bitcoin usd
проекта ethereum ethereum org bitcoin checker скачать tether
bitcoin king bitcoin автоматически стоимость bitcoin яндекс bitcoin bitcoin оборудование google bitcoin bitcoin транзакция etf bitcoin bitcoin hacker ethereum transactions bitcoin laundering ethereum dark Bitcoin has not reached the mass market adoption rates that would be necessary to provide option value to large holders of the currency. кликер bitcoin bitcoin ваучер
bitcoin ваучер bitcoin bcc майнинга bitcoin goldmine bitcoin monero майнить bitcoin xt bitcoin wm bitcoin расшифровка game bitcoin habrahabr bitcoin
konvert bitcoin список bitcoin kran bitcoin bitcoin doge 0 bitcoin альпари bitcoin bitcoin прогноз magic bitcoin cryptocurrency tech bitcoin python bitcoin автоматический rates bitcoin moon bitcoin bitcoin strategy bloomberg bitcoin платформу ethereum
кошелек monero index bitcoin
bitcoin talk bitcoin script скачать bitcoin
locals bitcoin favicon bitcoin bitcoin wiki local ethereum win bitcoin ethereum ios bitcoin school bitcoin рубли кран bitcoin nova bitcoin
обменник monero tether майнинг сколько bitcoin difficulty bitcoin hit bitcoin алгоритм ethereum создатель ethereum запуск bitcoin bitcoin fund китай bitcoin source bitcoin bitcoin терминал reklama bitcoin people bitcoin
bitcoin onecoin bitcoin protocol обмен tether видеокарты bitcoin konvert bitcoin разработчик bitcoin bitcoin ваучер сборщик bitcoin monero кран bitcoin multibit Cryptocurrencybitcoin explorer bitcoin cache bank bitcoin 999 bitcoin bitcoin fpga bitcoin gift key bitcoin фонд ethereum bitcoin machine All cryptocurrencies use distributed ledger technology (DLT) to remove third parties from their systems. DLTs are shared databases where transaction information is recorded. The DLT that most cryptocurrencies use is called blockchain technology. The first blockchain was designed by Satoshi Nakamoto for Bitcoin.ethereum доходность forecast bitcoin bitcoin хешрейт bitcoin s microsoft bitcoin bitcoin alert
bitcoin зебра
криптовалюта tether
bitcoin rotators cranes bitcoin bitcoin hardfork hack bitcoin bitcoin казахстан bitcoin community etoro bitcoin kurs bitcoin bitcoin дешевеет bitcoin development ethereum contract bitcoin упал ethereum картинки валюта monero bitcoin проверить bitcoin doubler bitcoin 2018 wisdom bitcoin By taking part in a mining pool, individuals give up some of their autonomy in the mining process. They are typically bound by terms set by the pool itself, which may dictate how the mining process is approached. They are also required to divide up any potential rewards, meaning that the share of profit is lower for an individual participating in a pool.криптовалюту bitcoin bitcoin сайты kinolix bitcoin mmm bitcoin mine ethereum fire bitcoin market bitcoin
bitcoin london blockstream bitcoin
ethereum валюта майнинг tether bitcoin reklama
bitcoin index instant bitcoin cryptonator ethereum bitcoin хешрейт sec bitcoin bitcoin gif bitcoin alert bitcoin клиент habrahabr bitcoin теханализ bitcoin добыча ethereum abi ethereum bitcoin рублях dorks bitcoin bitcoin pizza usd bitcoin 2016 bitcoin андроид bitcoin bitcoin scripting bitcoin криптовалюта monero hardware bitcoin прогноз bitcoin flapper checker bitcoin 33 bitcoin tradingview bitcoin raiden ethereum ecopayz bitcoin client ethereum bitcoin books bitcoin net проверка bitcoin
bitcoin freebitcoin masternode bitcoin tx bitcoin ethereum btc
bitcoin global порт bitcoin ico monero bitcoin 5 bitcoin qiwi ethereum аналитика keystore ethereum According to research produced by Cambridge University in 2017, there are between 2.9 million and 5.8 million unique users actively using a cryptocurrency wallet, most of them using bitcoin. The number of active users has grown significantly since 2013 (there were 0.3 to 1.3 million unique users at the time).erc20 ethereum bitcoin вклады
1070 ethereum monero ico miner monero statistics bitcoin cryptocurrency trading roboforex bitcoin кости bitcoin bitcoin халява tether gps bitcoin china monero minergate charts bitcoin sportsbook bitcoin monero address bitcoin прогнозы bitcoin котировки bitcoin me dwarfpool monero decred cryptocurrency armory bitcoin monero xmr bitcoin de playstation bitcoin мастернода bitcoin
ethereum forks программа ethereum график ethereum coinmarketcap bitcoin
linux bitcoin bitcoin land bitcoin nyse bitcoin life bitcoin plugin
bitcoin wmx 4 bitcoin bitcoin завести bitcoin кошельки капитализация ethereum bitcoin waves добыча monero hack bitcoin bitcoin rotator ethereum доллар gek monero bitcoin system пример bitcoin bitcoin bitcointalk lamborghini bitcoin bitcoin pro bitcoin investment сколько bitcoin kran bitcoin bitcoin упал
проверка bitcoin bitcoin инвестирование bitcoin community bitcoin nvidia bitcoin обмена bitcoin timer лотерея bitcoin bitcoin p2p bitcoin fees erc20 ethereum bitcoin half bitcoin suisse bitcoin автоматически
