The only thing I do is to buy the crypto currency and store up, I have never really taken out time to learn about trading it or so to say, mining. How does the mining work?
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The only thing I do is to buy the crypto currency and store up, I have never really taken out time to learn about trading it or so to say, mining. How does the mining work?
Bitcoin mining involves a network which is designed to allow computers to process bitcoin transactions. The bitcoin network is designed to produce a certain number of new bitcoins every 10 minutes. If only a few people are bitcoin mining at any given time, then the network will be generous and share bitcoins readily in order to reach the predetermined number. But now that bitcoin mining has become so widespread, the network has become much stingier about handing out bitcoins to miners. In order to control how frequently bitcoins are generated, the network requires miners to solve more and more difficult problems to confirm transactions — which means that miners must have more and more powerful equipment just to keep up. These days, in order to have a chance at being profitable, miners need to adopt one of two approaches: 1) buy specialized hardware (a bitcoin mining rig) or 2) join a cloud mining pool.
Crypto mining can generate a small income of perhaps a dollar or two per day, mining is not a reliable way to make substantial money for most people. The profit from mining Bitcoins only becomes significant when someone is willing to invest reasonable amount of money in up-front hardware costs, at which time you could potentially earn $50 per day or more. 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 need to 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. If you want more, you will need to invest in rigs prebuilt only to mine BitCoins, which can cost several thousand dollars.