How to mine Cryptocurrency at home?
Mining Cryptocurrency at home being a newbie by May 2021, might not be the best idea. If you are still interested let’s drive into details.
Brief Story of reward from Cryptocurrency:
Mining is a process of verifying crypto transactions by solving the problem by hashing and add them to the Blockchain Ledger.
Every Cryptocurrency has its way of regarding you with the currency based on your mining potential. Some cryptocurrencies provide 10 coins per minute as a limit and some provide 12 coins per hour. The person who solves the problem by mining will be provided with coins.
4 Requirements to start Mining:
- Good Hardware devices (Large specification is required if you are doing on your own) or join a pool of miners with no investment and use your existing PC.
- Digital Wallet
- Mining Software
Hardware requirement explained:
Solo miners should have a room full of hard devices full of GPUs to solve the mining problems of Blockchain. The regard from the Blockchain will not be split between many people One person gets the reward based on the problem-solving. For Example, Bitcoin provides 12.5 bitcoin for every 15 mins and it will be paid to a person who solves the problem at that time. The remaining millions of miners will not get paid. To get the reward, you need large hardware requirements to compete will large blockchain farms. Many software companies possess acres of mining farms with the latest GPU to get rewarded. If you are not having more hardware, it is better to start mining coins for a new blockchain where competition is low. So it increases the probability of getting the rewards.
Join the pool:
To solve the mining problem for solo people, Blockchain can be mined using a pool of miners. The pool consists of many solo miners using their hardware devices to solve blockchain problems. Miners get paid based on the performance and hash rate of their machine. You can use your existing computer to mine. You can use the CPU or GPU of the machine to mine for the pool. The reward from the pool may not be transparent but you will be paid in coins and you can use the rewards transferred to your digital wallet.
The name suggests it is a place where your store all your mined or bought crypto coins. You will have an address (Like 16/32 digits), the coins will be transferred to that address. Pooling software or dashboard will have the provision to transfer the coins to the address. From the wallet, you can sell in the Blockchain market by providing a small commission fee (0.1% or fixed fee). The digital wallet will have provision to add multiple cryptocurrency coins and there are devices available in the market to protect them from hackers. Similar to online bank account, wallets should be kept safe.
Solo miners need software downloaded from the blockchain website itself and start the mining. Mining is not difficult to understand but tough to crack the code. Based on your GPU, you use the software to perform hashing. Based on your hardware capabilities problems may get solved and you will be regarded in coins by the Blockchain.
Pool miners need not require to download from the Blockchain website, instead, you need to download the application from the pool website. You just provide your hardware to run in the background and help the pool get the regard, if you contribute more for the pool to get rewarded, you will earn more coins as a reward from the pool. As mentioned before, the rewards may vary from person to person based on their hardware requirement and regards received by the pool at that moment. So you can’t always expect the same rewards every time. The process is not transparent because the administrator of the pool itself could not guess when exactly they might get rewards.
It is the final process to earn your reward from mining. You can use your digital wallet and sell your coins in the market. Similar to the stock market, Cryptocurrency has its market and you can sell the coins at any moment using platforms like Binance, Robinhood, or Coinbase.
The payout can be received in dollars or a different coin based on your needs. You need to pay a lesser commission if you get paid in Cryptocurrency. If you need to convert into dollars or your currency you might need to pay more commission to the brokers.