How to start cryptocurrency mining for beginners from scratch


What is mining

To date, the topic of earning on bitcoin and other cryptocurrencies has become especially relevant, since the method of their extraction, cryptocurrency mining, has become known. Since I have already written several review articles of practical application on this topic, let us dive a little into terminology and theory.

Cryptocurrency mining equipment

The bottom line is to mine cryptocurrency, using the computing power of one or more electronic computers. The role of an electronic computer is a regular personal computer, or a specially designed farm for mining cryptocurrency Bitcoin. Since the farm is specialized for the extraction of cryptocurrencies, questions on the topic of comparing the performance of the farm and the personal computer should not arise.

Previously, the processor used computing power. But a little later, people noticed that when using the graphics processor of a video card, mining is faster. This is due to the fact that a video card designed to display an image on the screen, like the processor works with binary code, that is, a set of ones and zeros formed into a cipher, which is converted into information on the screen using decryption using certain system protocols.

Due to the use of binary code, the size of the hardware on the board of the video card itself is quite small.

The basis of cryptocurrency mining on a computer is the solution of mathematical problems using the computing power of a video card or processor. When Bitcoin was born, it could also be mined on the processor, as The complexity of the calculations was scanty. But the blockchain system is equipped with software that increases the complexity of computing as cryptocurrencies grow in popularity.

What units are used to measure the power of a video card during mining

The power of a video card is measured by the number of so-called hashes or cryptoheshes. A hash is a nine-digit set of digits encrypted using the SHA-256 encryption system, which also contains thousands of other calculations – blocks. A hash is the signature of a block of data calculated earlier.

This explains why, before the block is named, the computing machine needs to solve many problems by brute force for the hash name. In the hash structure, a certain number of zeros is first determined by the mining pool system. It is impossible for a simple user to find out the number of zeros.

Cryptocurrency mining: where to start

To start mining cryptocurrencies, including bitcoin, you need an electronic computer, that is, a computer or a specialized cryptocurrency mining farm with many video cards, the assembly and purchase of components for which costs a lot of money. Next, you need to determine the type of crypto coin that the user wants to mine and what to use for this: processor or video card. Everyone nowadays uses a video card, as it is more efficient and pays off faster. Read about the efficiency and payback of equipment here and here.

Further preparation is divided into the following points:

  • Choosing a graphics card manufacturer.
  • The choice of software.
  • Equipment setup.

Video cards are divided into two large brands: Nvidia and AMD. Nvidia’s graphics cards are more suitable for mining ZCash, and AMD’s graphics cards are more suitable for Ethereum.

But this fact does not mean at all that it is impossible to mine well-known bitcoin and other cryptocurrencies on video cards of these manufacturers. One option is mining on the miningpoolhub pool, I wrote about it, look for an article in the same section of the blog.

Cryptocurrency mining software can be easily found on the Internet. Some of them were considered in the article Top 5 cryptocurrency mining programs. Some software developers take a small commission from the profit of a miner using their software.

The program is configured through commands with a value incomprehensible to an ordinary user. Nevertheless, information about the commands prescribed in the console of the program for mining can be found on the Internet and writing a file with settings and commands for launching the program will not be difficult even for a beginner. Thus, it is easy to organize cryptocurrency mining on a home computer.

Since bitcoin and other crypto coins are a good source of income, it is possible that some miner from the province may someday become a millionaire. However, you can burn out in the literal and figurative sense.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Leave a Reply

Your email address will not be published. Required fields are marked *