In simple words, cryptocurrency is digital money. It has electronic payment and gets support via a complex network of computers. Cryptocurrency employs the use of cryptography to authenticate transactions. Some cryptocurrencies can also exist as securities. It depends upon the investor’s expectations about their money-making endeavors, and how their businesses get structured. Cryptocurrencies work like traditional money when it comes to buying and selling goods and services. Cryptocurrency mining uses an online ledger with strong crypto code to secure transactions. It gets unregulated, which means that most of its use is in the sector of buying to trade for profit.
Hence, cryptocurrency is volatile. Bitcoin, the first-ever cryptocurrency, has had a rollercoaster of a ride in 2021. NerdWallet notes that,
(Bitcoin) reached $65,000 in April before losing half its value in May. By fall, the price had risen again: it hit an all-time high above $66,000 before falling back.
Many companies now generate their own cryptocurrency, which is also known as a ‘token’. Currently, there are at least 15,000 different cryptocurrencies circulating in the market. Among these 15,000, there are 8 big crypto giants, which are the strongest in their market value with respect to the US dollar. Let’s take a look at them.
Bitcoin is the most known cryptocurrency. Its value equals 8,690,873.12 Pakistani Rupees. To buy bitcoins, you need to get a bitcoin wallet first. Then you need to locate your bitcoin address and then you can choose to buy the bitcoins as per your need. We are going to talk about altcoin in more detail.
Currently 1 Ethereum equals 742,374.39 Pakistani Rupees.
It is a decentralized, open source blockchain with smart contract functionality. The native cryptocurrency of this platform is Ether. Ether is second only to bitcoin in its value and performance when it comes to market capitalization. Its creator was programmer Vitalik Buterin in 2013.
Currently, 1 XRP is equal to 154.06 Pakistani Rupees.
It is a digital asset for secure online payments. Its native digital asset on the ledger is Ripple. It is an open source, decentralized and permission-less blockchain technology. XRP has a fast speed and gets sold without needing any intermediary. This makes it a go-to tool for bridging various types of currencies in an effective manner.
Currently, 1 Tether is equal to 177.88 Pakistani Rupees.
Ethereum hosts Tether as a sister cryptocurrency to Ether. Its tokens get issued by Tether Limited. Tether Limited’s owners are those of Bitfinex. Tether is one of the most stable coins in the world of cryptocurrency because its value has always been US $1. It is a safe investment since it is not volatile. But, one can always buy dollars so it doesn’t have a strong value.
Currently, 1 Cardano is equal to 230.80 Pakistani Rupees.
It is a public blockchain platform. Cardano is decentralized and open source, where the consensus is using proof of stake. It can also help peer to peer transactions with its internal cryptocurrency called ADA. Its creator was Ethereum’s co-founder Charles Hoskinson. He also featured in Forbes 40 under 40 list.
Currently, 1 Polkadot is equal to 2336 Pakistani Rupees.
It is an open-source, blockchain-based computing platform. The unique feature of Polkadot is that it enables blockchains built on top of it to work. These chains are parachains. Their purpose is to execute atomic inter-chain transactions among themselves in a way that is trust-minimized. This way, an interconnected maze of blockchains gets created.
Currently, 1 Stellar or XLM is equal to 54.14 Pakistani Rupees.
Stellar is also known as Stellar Lumens. It is an open source, decentralized protocol of cryptocurrency to FIAT money. It is great because the transfers happening through it are low cost, which allows cross border transactions between different pairs of currencies.
Currently, 1 USDC is equal to 177.97 Pakistani Rupees.
It is a crypto stablecoin which gets joined with the US dollar and runs on the medium of Ethereum, Stellar, Solana, Algorand, Hedera Hashgraph, and Tron system. It is an excellent form of investment for traditional investors looking for low-beta investment because it can generate better returns than CDs.
Currently, 1 Dogecoin is equal to 30.71 Pakistan Rupees.
It is a digital currency which got created by software engineers Jackson Palmer and Billy Markus. They decided to create this payment system as a joke because ‘doge’ is a famous internet meme. They were taking a dig at the wild speculations in the realm of crytpocurrencies at that time. It is the first-ever meme coin, and the 1st dog coin to ever grace someone’s wallet.
Mining can is the process by which new crypto coins get entered into circulation. Crypto mining is equal to traditional money minting.
Crypto mining is a painstaking process. It is also costly. Also, one can’t always get to reap the benefits and rewards of mining because of the volatile nature of the coins. It gets done by the technologically inclined lot who are rewarded for their work with the tokens.
Three Vital Tools Used in Cryptocurrency Mining
When someone mines crypto, they can make money off of it without actually having to buy it from someone. Mining gets done with three vital tools, without which, you can’t generate cryptocurrency. They are as follows:
They hold the complete copy of a cryptocurrency blockchain as the universal ledger system.
A rig is a customized and optimized PC with an advanced graphic system or the GPU, which helps in mining cryptocurrency.
In cryptocurrency, mining pools are a pool of computer resources that share their tools with each other to mine.
Miners compete with each other to get a block of reward in return for their services. They need to prove the superiority of their computational work. Here is what you need to do to start crypto mining:
Get a mining rig or buy hash rate from a third party rig, which is also called as cloud mining
Get a crypto mining app installed on your rig. These apps are commercial and open sourced which help in mining specific cryptocurrencies.
The world is raving about cryptocurrency these days. Everyone wants to know the secrets to this world. That is why this is valuable information that people will rarely tell you or guide you about. You should note these steps to start mining and begin earning profit. This is a skill that very few people know and which is why it is rewarding for the one who knows it well.
Here are the 10 easy steps you need to follow to ensure your success in this field:
Understand Your Purpose
MIners create new blocks for cryptocurrency. 1 Miner has the ability to create every new block. Miners solve mathematical problems to do that. Those miners who manage to find solutions to the problems first, get to create the newer block. This step is as PoW which means ‘proof-of-work’. Bitcoin awards 6.25 Bitcoin per block to the user. Every 10 minutes, a new block gets created in bitcoin.
Get The Mining Hardware
This hardware goes by the name of ‘rig’. For managing PoW you need a computer with increased power. Your computer would need chips called ASIC (this means ‘application-specific integrated circuit). These chips are for mining.
Other Hardware Requirements for Mining
You need an internet connection of least 50 Kbs/Second with no limitations on uploading/downloading. Mining can take 200 Gbs per month of uploading capability.
Get the Mining Software
After placement of the right hardware, you will download and install the relevant software. This software will connect you to the cryptocurrency blockchain. Mining software is free of cost. Nice Hash Miner is one such free software. Some of the software are paid too but they provide extra features and services. You can first test yourself and practice through free software and then you can move to paid software if you like.
Join Mining Pool
When you have obtained the required hardware and software, you can start mining individually to compete with other giant groups. The mining pool offers a chance to newbies to join. There is a nominal operator fee that requires payment to enter. This fee helps to maintain the platform in a running condition and since it is very nominal, people do not mind giving it.
After the fee gets paid, you will be allowed to enter a pool. You can choose a pool for yourself. Once you are inside a pool, you will add details about yourself and start mining. It also asks whether you want to go solo or in a group. For a beginner, going in a group is fine too. This helps you learn the tricks of the trade with others.
After configuration of your rig, you can click on the option of ‘start mining’. You will see how your computer does the work to mine the bitcoin. Rigs need a minimum 6 hours of running to successfully mine. So please ensure that there is no power outage in your area. If there is a possibility of a power outage, you need to have backup power to keep your computer running.
Ensure Stable Electrical Power
For mining without any interruption, miners need to have cheap electricity supply, standard hardware, and a mining pool. For mining, one bitcoin for instance will need 600 US dollars of power consumption. So you need to keep the finances in mind when you are attempting to start mining for cryptocurrency. Start with one attempt at a time to wholly understand the process.
Watch Your Mining Rig
Mining can seem like a passive activity. But, it is not like that. You need to review what’s going on. You need to ensure that your mining is being done in the efficient possible manner. Check configuration settings where minor changes can bring bigger impacts on your profit.
You can check the profitability of mining software through calculators available online. These websites include CryptoCompare, AsicMinerValue, and Nicehash. They estimate, based on statistics, about how much profit can be earned.
Based on these guidelines, you will soon become a pro at cryptocurrency mining. With the passage of time, it will seem easier to do. The first time will be difficult. After that, it will be convenient.
Here is a list of the best cryptocurrency mining apps.
Awesome Miner’s creator was a Swedish company. It is IntelliBreeze Software AB in 2014. It is a premium and free Linux or Windows-based application for managing and overlooking the process of mining. Its features include everything that a prospect miner may need to get started. It includes the options for cloud mining, mining pools, ASIC firmware, and connecting an external ASIC rig. It also supports GPU Monitoring, native overclocking, and organizing miner groups by their tags. This app is for mining famous cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
Cudo Miner is yet another premium app that offers free mining solutions to people who want to mine cryptocurrency. It offers regular mining and cloud mining which is compatible with Windows, macOS, Linux, CudoOS, and ASICs. Cudo Miner has sophisticated features which set it a class apart from the rest of the apps. The features include auto coin switching based on benefits, advanced algorithm settings for optimized mining, and multi-factor authentication (MFA). By including these features, Cudo Miner attracts both categories of miners, personal device owners, and huge mining farms. You can mine Bitcoin, Ethereum, Raven Coin, and Monero with Cudo Miner.
ECOS is a platform that offers decentralized finance. It goes far beyond mining because it supports extra crypto investment tools for:
- Wallets and
- Portfolio management
WeboPedia says that,
ECOS offers cloud mining contracts for BTC based on the forecasted BTC price, contract term, and hash rate (TH/s) for interested miners. With instant quotes and a profitability breakdown, ECOS is best for passive miners who want to take part in BTC mining without the existing resources or expertise to manage a mining operation.
Currently, ECOS supports mining Bitcoin and Ethereum.
As the name suggests, Ethermine is more inclined towards mining the second largest digital currency, which is Ethereum. Ethermine is the successor of Ethpool. It includes more than 125,000 miners who control more than a quarter of the ETH network’s hash rate. Ethermine offers a pay-per-last-n-shares structure of payout, also known as PPLNS. It also offers instant payouts and greater security for serious investors who intend to stay long-term. It is up to the miners to choose a geographic location, such as Asia, North America, Europe. They can also choose between mining software AMD and NVIDIA for processors. When it comes to the operating systems, Ethermine supports Linus or Windows.
MinerGate was the pioneer app that opened the path of crypto mining to crypto coins other than bitcoin, also known as altcoins. Altcoins are all coins other than bitcoins. MinerGate provides you with the opportunity to mine coins from almost any device. It currently offers the mining of ten coins, which include ETH, LTC, XMR, Zcash (ZEC), Bytecoin (BCN) and more. MinerGate’s pool supports more than 300,000 active miners. It also boasts GUI applications for Android, Windows, Linus, and macOS devices. This means MineGate is suitable to run on most devices. It offers easy mining management as well, which means that users can access their tools for mining.
NiceHash is a complete cryptocurrency mining solution. It is a full-fledged app for traders, miners, and investors. Most mining apps allow the mining of one specific type of coins, but NiceHash has no restrictions on the type and value of coins. It doesn’t matter what the currency, algorithm or consensus of a coin is like, NiceHash is a marketplace for hash power for all. This app has more than 600,000 daily users. It also supports the sale of hash power to other mining pools as well. One can start using this app by choosing the GPU or linking an existing ASIC and get to mining straight away.
A study conducted in the Columbia Climate School says that,
Globally, Bitcoin’s power consumption has dire implications for climate change and achieving the goals of the Paris Accord because it translates into an estimated 22 to 22.9 million metric tons of CO2 emissions each year—equal to the CO2 emissions from the energy use of 2.6 to 2.7 billion homes for one year.
One study warned that Bitcoin could push global warming beyond 2°C. Another estimate is that bitcoin mining in China alone could generate 130 million metric tons of CO2 by 2024.
Cryptocurrency can boost the traditional currency. Since it is decentralized and completely anonymous, currently most people are investing in it for the sake of selling for profits. But, if the miners find a way to stabilize the cryptocurrency, it is very much possible that it will take over the traditional methods of payment and paper money. What will the world look like with cryptocurrency as the most used currency? With many benefits, a lot of concerns will get raised since it will be easy for criminals to commit frauds, launder money, and buy weapons without ever getting traced down due to the anonymity given by crypto.
Have you ever invested in cryptocurrency or mined it? Tell us about your experience in the comments section below. We would love to hear from you.