By | Elaine Bennett | Digital Marketing Specialist, Bizzmark Blog
The technological development allowed for people to connect on a global plain and to find alternative ways to earn money. Some make something extra on the side by online tutoring, while others become full-time remote employees for a foreign company.
The possibilities seem endless, and some jobs are better paid than others but did you know that there is a job that, besides the initial settings, neither asks for any particular skills nor for you to work actively? Yes, that kind of job exists – it’s called crypto-mining but first, let’s take a look at what crypto(currencies) are.
What are cryptocurrencies?
Bitcoin, the most popular digital currency and the most widespread one, can be used for anything from paying for coffee at a coffee shop (naturally, the one that supports BTC as a payment method) to purchasing goods online. So, when it comes to usage, cryptocurrencies can be utilized as a purchasing method just as any fiat currency, that is, currencies such as euro, dollar, etc. that have no value other than the one given to them by governments and financial institutions.
An equivalent to earning in the fiat currencies’ world is mining in the crypto world – although not all coins are ‘earned’ in this way, for the sake of simplifying, the bigger crypto coins, including BTC, are ‘earned’ by being mined. This process isn’t done by hand but via machines but we’ll get to that later. If you are intrigued by this, let’s explore what it takes to become a cryptocurrency miner.
Do your research
The world of crypto mining, even though it’s been around 10 years now, is in a way still in its infancy and many people have taken advantage of those who don’t inform themselves enough. Lack of education and practice is that which takes everything from you without even having won. You have to immerse yourself and learn as much as possible from the assets you will be investing in. Any professional guide to mining Bitcoin should be under your radar as well. For instance, if you decide to mine BTC, you need to know your role as a crypto miner. You serve as a type of auditor who verifies transactions and after 1 MB (megabyte) worth of bitcoin transactions (called a ‘block’) is verified, the reward is split.
That being said, Bitcoin is not the only cryptocurrency, there is also Ethereum (ETH), Litecoin (LTC), Dash, Dogecoin (DOGE) and numerous smaller cryptocurrencies whose value grows and decreases daily. Although exciting, this volatility is too much to handle for many miners, which is why they opt for mining BTC. There are many more pieces of information about BTC than about other crypto coins so it is only natural that beginners feel more comfortable mining BTC.
Tend to the equipment
Speaking of mining software, it is free to both download and use, and what’s best, it is available for a variety of operating systems. When it comes to mining BTC, you will soon learn that there are a number of options so you need to check out what other miners have to say about them online since there might be a slight difference in how they impact your mining operation.
Regarding the hardware part, this part is trickier because the choice is wide and so is the price range. It is best you purchase from a reliable bitcoin mining rig vendor which would ensure you get value for money. You need to also consider the amount of hash power you are willing to invest in (mega hashes, giga hashes or tera hashes per second (MH/s, GH/s, TH/s)) since the higher the hash power, the better your odds are.
Choose the right wallet
Yes, your digital money needs a wallet too – however, the choice doesn’t boil down to the size, color or material but to an entirely different set of features. Your cryptocurrency wallet comes with a unique address that allows you to receive and send BTC and you might want to start by deciding if you would like a cold (offline) or a hot (online) wallet.
There are different types of wallets: hardware, desktop, mobile, web, and paper wallets. Hardware wallets are cold which means that they offer high security but are also expensive. Desktop and mobile wallets are similar, although mobile ones are simpler to use and both are vulnerable to viruses and malware. Web wallets are convenient but can are considered less secure, while paper wallets refer more to a method of accessing your stored coins rather than to a ‘place’ where they are stored. As you can see, the choice is wide so make sure you give it some thought before you decide.
Being a cryptocurrency miner is more demanding in the initial phases of research, when you’re choosing the best hardware and software, but it gets easier once you get started. The best thing about becoming a full-time crypto miner is that you don’t have to work the typical 8-hour shift to see the results. The initial investment of time and money into research and equipment is all that it takes, so you can lean back and relax.
After you mine your coins, you can store them until their value increases so that you can trade them for fiat or for some other cryptocurrency. You can, as mentioned, also use it to purchase items online as long as those websites allow crypto as a payment method. So, after you set everything up, you can spend your 8 hours exploring what you will do with your coins.