What is Cryptocurrency Mining? What You Will Need to Start Crypto Mining?
I am sure you have heard of cryptocurrency mining. You may not know what it is or how to get started but I can tell you that this information is for all people who are interested in getting into the new age of digital currency mining. First, let us start with what cryptocurrency mining actually is.
So, you have probably heard of Bitcoin. You may have even heard of Ethereum or Litecoin or any other cryptocurrencies that are out there right now. Well, all cryptocurrencies are actually made through a process called mining.
Mining is essentially the process of verifying transactions on the blockchain (the decentralized ledger that records how much coin everyone has). There are several different types of crypto mining but I will not go into to many details about them now.
Just know that it is the process of using computer power to solve complex algorithms that are needed in order to verify transactions on their respective blockchains. You can think of it as kind of like solving a really difficult puzzle. The puzzles are really hard to solve by yourself so you need to join a mining pool (A group of people who work together to solve the puzzle).
Unfortunately, the problem with these puzzles is that they are becoming more and more difficult as time goes on. This means that you need to have faster computers in order to actually verify transactions before other people can do it.
It used to be that anyone could mine on their home computer but now, it is too difficult for them to be able to mine efficiently at all. I should probably also mention that mining cryptocurrencies can take up a lot of electricity and leave your computer running too hot so you need to consider that as well.
What You Will Need in Order to Crypto Mine
So if anyone could start mining cryptocurrencies using their computers, how is it that only the wealthy have them now? Well, this is because you need special hardware to mining. You can still mine with your computer but it will just take much longer for you to earn anything at all.
You will need to purchase a Bitcoin/Ethereum ASIC Miner which you are probably familiar with if you have ever seen a cryptocurrency mining rig. These are the specialized computers that are specifically made to mine cryptocurrencies. You can purchase them directly from China or on Amazon or many other sites for between $500 – $2,000+ depending on how powerful of a miner you want to buy.
I would recommend buying one that is more powerful because you will make your money back on electricity and it is worth the investment. You can always buy another miner if you want to mine more than one cryptocurrency at once!
Power Supply Requirements for Mining
Other things that you are going to need are a power supply for your miner, cables to hook up the miner to the power supply, a USB Thumb Drive (or SD card) to load the mining software onto, and a motherboard that can support multiple graphics cards.
This is all you will need in order to start crypto mining! It may seem like a lot but if you take it one at a time then you can get them all within a few weeks or months depending on how much money you have to invest into your crypto mining venture.