What Is Cryptocurrency Mining? How to mine crypto
Ever wonder how cryptocurrencies such as Bitcoin are created? Creating a digital currency is a lot more puzzling when compared to physical cash. Fiat currencies are regulated and operated by a central authority responsible for issuing or destroying bank printed notes.
Since cryptocurrencies cannot be printed like fiat currencies, there is a digital network where the cryptocurrency can be âminedâ in order to bring new crypto coins into circulation. This guide will take you through the basics of what is cryptocurrency mining, why it is crucial, and how you can invest in cryptocurrency with or without mining them.
What is crypto mining, and why is it done?
On the basis of how does cryptocurrency work are crypto halving and crypto mining. The latter is done through specialized computers that allow miners to bring new coins into circulation. It is the backbone of cryptocurrencies as miners ensure the transactions made on the cryptocurrency network are legitimate and secure from any sort of attacks or dysfunction.
How exactly do miners do this? Well, to mine a Bitcoin, you have to use your computer to solve a complex series of algorithms. Once a crypto coin is mined, it is added to the blockchain, and the miner is rewarded with a coin. However, the process is extremely time consuming and consumes a lot of electric power as well. Though, it is essential in order to preserve the integrity of the decentralized blockchain.
The more the currency is being mined, the more secure it will be. Crypto miners play a primary role in making a cryptocurrency network safe from attacks or alterations. The only way someone can reverse a Bitcoin transaction is by having 51% of the entire networkâs hash power. Albeit, as the hash power is spread out amongst miners worldwide, the cryptocurrency remains secure.
The primary purposes of cryptocurrency mining
- Bringing new crypto coins into circulation
- Recording or confirming transactions of each crypto coin that is mined
- Securing the crypto network
An important thing to keep in mind is that crypto mining is not the only way to obtain cryptocurrencies. Here at Zeply, we allow users to instantly purchase, sell, and secure Bitcoins with 0% cryptocurrency transaction fees. If youâre interested in cryptocurrency trading, purchasing them through a legitimate source, such as our Zeply app, could be a smoother and more accessible option for you.
How to mine cryptocurrency
Mining crypto coins is an exhausting process that demands time and a whole lot of computing energy. To put things in perspective, the carbon footprint of Bitcoin mining is said to be equal to a large South American country. Miners use specialized computers that are built and designed to mine Bitcoins considering the amount of energy they require.
It is possible for someone who wants to mine Bitcoins to do so through their computer or laptop, but it may not be profitable. Instead, you might actually end up wasting electricity and making little to no money at all. However, if youâre invested enough to purchase a specialized Bitcoin mining computer paired with the right software and hardware, you could join a mining pool and make significant profits.
In case youâre wondering what a mining pool is, itâs a group of miners that combine their computational powers to speed up the mining process. Once the group is able to mine a crypto coin, they divide the rewards amongst each other. The benefit of joining a mining group is that the likelihood of mining Bitcoins and gaining faster rewards is much higher compared to mining as a sole individual.
Is mining the fastest way to get cryptocurrencies?
How fast you can obtain a crypto coin through mining depends on how much computational power youâre investing towards it. For instance, as a solo miner, it may take much longer to mine a cryptocurrency when compared to mining in warehouses and mining pools.
In case youâre wondering what mining warehouses are, theyâre massive âhashing centresâ where tons of specialized computers are set up to mine crypto coins. These warehouses depend on computing facilities featuring high-density hardware, low-reliability electrical infrastructure and off-the-shelf enclosures. Theyâre often built in old warehouses.
The truth is that the fastest way to get your hands on crypto coins is not through mining. Instead, you can simply purchase crypto coins through a crypto exchange.
Here at Zeply, we allow users to easily buy, sell, and even store Bitcoins securely in crypto wallet using a single crypto app and account. Our website is designed in a user-friendly manner and aims towards providing the essential tools and guidance needed to make your Bitcoin trading journey as smooth as possible.
If you want to buy cryptocurrency, our crypto exchange lets you use traditional currency to get it. You can even buy crypto with credit card, and we are working to let you buy crypto with PayPal soon.
Is crypto mining profitable?
Primarily itâs important to understand that there are multiple variables to consider when mining a cryptocurrency. For someone whoâs a beginner, it might be better to simply purchase crypto coins instead.
For instance, letâs take Bitcoin as an example. Mining a Bitcoin requires specialized hardware, specific software, and a lot of electricity. If you decide to purchase the necessary equipment and tools to mine Bitcoins, youâll have to make sure that you mine enough Bitcoins to cover your ongoing costs and previous expenses.
Factors that make mining profitable
The three factors that make mining profitable for miners are cheap electricity, low cost yet efficient mining hardware, and a good mining pool.
Suppose youâre considering investing in Bitcoins through a crypto exchange rather than mining Bitcoins and bearing the expenses that tag along with it. In that case, weâre happy to offer our services as a user-friendly crypto exchange.
What makes Zeply an excellent place to buy, sell, and store Bitcoins is that we donât have any transaction fees. Secondly, we offer secure storage for your Bitcoins. And lastly, we aim to provide our users with valuable insights to make the most out of their crypto trading or investing journey through live crypto charts and the latest crypto news.
Final thoughts on crypto mining
Crypto mining plays a primary role in the stability and security of cryptocurrencies. However, the process is not as simple as it sounds. To mine Bitcoins as a solo miner, you should be prepared for the time, effort, and electricity costs that tag along with it.
Yes, you can always join a mining pool or invest in great specialized hardware to increase your chances of profiting from Bitcoins. Albeit as a beginner, the easiest and safest way to purchase and secure Bitcoin would be through a renowned crypto exchange.
Being a secure and user-friendly crypto exchange, our aim at Zeply is to make Bitcoin transactions as easy and straightforward as possible. We take pride in our website and services that are designed while keeping our userâs needs and convenience in mind.
