A Beginner's Guide to Cryptocoin Mining
Is it worth your time to mine for cryptocoins?
by Paul Gil
Updated on January 26, 2020
reviewed by
Christine Baker
Cryptocurrency mining takes patience and time.
Koron/Moment/Getty Images
Cryptocurrency
What Are Bitcoins?
Tweet
Share
Email
Mining cryptocoins is an arms race that rewards early adopters. Bitcoin, the first decentralized cryptocurrency, released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash.
Which Alt-Coins Should Be Mined?
Pile of litecoin coins on fabric
BTC Keychain / Flickr / CC by 2.0
If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs—not to mention the sheer mathematical difficulty of the process—doesn't make it profitable for consumer-level hardware. Today, Bitcoin mining is reserved for large-scale operations only.
Litecoins, Dogecoins, and Feathercoins, on the other hand, are three Scrypt-based cryptocurrencies that are the best cost-benefit for beginners.
Dogecoins and Feathercoins would yield slightly less profit with the same mining hardware but are becoming more popular daily. Peercoins, too, can also be a reasonably decent return on your investment of time and energy.
As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining "scrypt" coins.
Also, be sure you are in a country where bitcoins and bitcoin mining is legal.
Is It Worth It to Mine Cryptocoins?
As a hobby venture, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, the digital currencies mentioned above are accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.
As a second income, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000 to $5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.
Set Reasonable Expectations
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 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.
The two catches are:
The up-front investment in purchasing 4 ASIC processors or 4 AMD Radeon graphic processing units
The market value of cryptocoins
Now, there is a small chance that your chosen digital currency will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. The emphasis here is on "small chance," with small meaning "slightly better than winning the lottery."
If you do decide to try cryptocoin mining, proceed as a hobby with a small income return. Think of it as "gathering gold dust" instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency.
qtminer ethereum динамика ethereum bitcoin bazar trade cryptocurrency Digital information can be reproduced relatively easily, so with Bitcoin and other digital currencies, there is a risk that a spender can make a copy of their bitcoin and send it to another party while still holding onto the original.1pay bitcoin fee bitcoin bitcoin help сделки bitcoin bitcoin faucets bitcoin баланс payza bitcoin bitcoin bcn Bitcoin has been criticized for the amount of electricity consumed by mining. As of 2015, The Economist estimated that even if all miners used modern facilities, the combined electricity consumption would be 166.7 megawatts (1.46 terawatt-hours per year). At the end of 2017, the global bitcoin mining activity was estimated to consume between one and four gigawatts of electricity. By 2018, bitcoin was estimated by Joule to use 2.55 GW, while Environmental Science %trump2% Technology estimated bitcoin to consume 3.572 GW (31.29 TWh for the year). In July 2019 BBC reported bitcoin consumes about 7 gigawatts, 0.2% of the global total, or equivalent to that of Switzerland.эфириум ethereum mine monero карты bitcoin bitcoin экспресс autobot bitcoin bitcoin base monero хардфорк bitcoin skrill bitcoin сша cap bitcoin total cryptocurrency эфириум ethereum auto bitcoin ethereum coingecko bitcoin media cryptocurrency ico buy ethereum bitcoin аналоги byzantium ethereum прогноз ethereum токены ethereum
ethereum php
bitcoin roll homestead ethereum ethereum обменять
алгоритмы ethereum bitcoin etf bitcoin казино
difficulty ethereum bitcoin stellar bitcoin алматы bitcoin пул bitcoin get ethereum news market bitcoin обменять ethereum bitcoin lottery знак bitcoin bitcoin видеокарты платформа bitcoin
ethereum php
ethereum ios
история ethereum bitcoin arbitrage nonce bitcoin
теханализ bitcoin bitcoin venezuela сайты bitcoin bitcoin roll dwarfpool monero bitcoin приложения bitcoin банк status bitcoin bitcoin онлайн bitcoin зарегистрироваться bitcoin завести txid ethereum bitcoin котировки
bitcoin favicon
bitcoin rus bitcoin gpu auction bitcoin wifi tether эпоха ethereum bitcoin buying bitcoin проект
amazon bitcoin bitcoin froggy linux bitcoin
mine ethereum cryptocurrency calendar bitcoin разделился bitcoin play взлом bitcoin price bitcoin bitcoin registration bitcoin reklama bitcoin хабрахабр bitcoin tube the ethereum ethereum обмен multisig bitcoin bitcoin widget bitcoin футболка exchange cryptocurrency ethereum картинки bitcoin sha256 асик ethereum bitcoin значок http bitcoin Let’s compare how data is stored and shared in standard (non-blockchain) systems to how it is stored and shared in a blockchain system.рынок bitcoin вывод ethereum ethereum капитализация trading cryptocurrency оборудование bitcoin
bitcoin сборщик bitcoin sberbank 99 bitcoin bitcoin продам ethereum форум bitcoin earnings bitcoin конвектор tether пополнение monero free ethereum новости будущее ethereum bitcoin xpub bitcoin poker ad bitcoin global bitcoin bitcoin информация bitcoin руб
ethereum обменять покер bitcoin bitcoin development
golang bitcoin bitcoin python bitcoin торги monero hardware
car bitcoin значок bitcoin monero dwarfpool
bitcoin фарм tether limited bitcoin registration
ethereum game bitcoin doge ethereum txid amazon bitcoin обновление ethereum bitcoin dance bcc bitcoin ethereum обвал ethereum windows bitcoin information bitcoin markets bitcoin etf ethereum платформа ethereum algorithm What is Ethereum?The Future of Cryptocurrencyкриптовалюту monero gold cryptocurrency создатель ethereum bitcoin автосборщик bitcoin msigna monero пул ethereum network купить tether bitcoin bitrix monero transaction bitcoin рейтинг ethereum calculator kinolix bitcoin форум bitcoin bitcoin banking simplewallet monero ethereum перспективы bitcoin capital monero обмен
статистика ethereum ethereum 1070 usb tether yandex bitcoin bitcoin хайпы ethereum транзакции
купить monero bitcoin спекуляция bitcoin путин nem cryptocurrency инвестиции bitcoin chaindata ethereum bitcoin frog ethereum игра This chart gives an idea of the active user base of Bitcoin, since the ledger is public. There are about 10 million accounts (addresses) with over $100 USD worth of bitcoins and less than 1.5 million with over $10,000 USD worth of bitcoins. And users can have multiple accounts, so the total number of active users with meaningful amounts of money is probably a few million. For reference, the Bitcoin subreddit has about 1.8 million subscribers.This is how bitcoin seeks to act as gold, as property. Bitcoins and their base units (satoshis) must be unique to be owned and have value. To achieve this, the nodes serving the network create and maintain a history of transactions for each bitcoin by working to solve proof-of-work mathematical problems.bitcoin реклама monero майнер flash bitcoin alipay bitcoin доходность ethereum payeer bitcoin bitcoin доходность обменник bitcoin
bitcoin conveyor bitcoin цены bitcoin инвестирование keyhunter bitcoin
bitcoin hash bitcoin analytics minergate monero polkadot cadaver bitcoin котировки tether валюта cold bitcoin трейдинг bitcoin tether bitcointalk регистрация bitcoin
ethereum wiki charts bitcoin bitcoin hash конференция bitcoin using POS are not winning contenders against Bitcoin. We think there is nodog bitcoin android tether ethereum org майнинг ethereum bitcoin статья tether пополнение mikrotik bitcoin
wmz bitcoin платформе ethereum конвертер ethereum пул bitcoin rate bitcoin bitcoin switzerland lealana bitcoin
bitcoin сервера future bitcoin продажа bitcoin lealana bitcoin валюта bitcoin topfan bitcoin What is Blockchain Technology? A Step-by-Step Guide For Beginnersbitcoin комиссия When the blockchain and its community of volunteers are able to solve the algorithmic puzzle, the rules of cryptography state that a transaction is valid and authentic. However, different blockchains use different methods to solve the puzzle, which is known as a 'consensus mechanism'.bitcoin ротатор
monero кран fast bitcoin
accelerator bitcoin bitcoin сети ninjatrader bitcoin bestchange bitcoin отзыв bitcoin bitcoin easy bitcoin trader rise cryptocurrency chaindata ethereum bitcoin получение moneypolo bitcoin bitcoin брокеры порт bitcoin clicker bitcoin asic bitcoin bitcoin игры cryptocurrency calendar forum ethereum best bitcoin ethereum pool arbitrage bitcoin bitcoin транзакция
preev bitcoin Here are some examples of randomized hashes and the criteria for whether they will lead to success for the miner:In an interesting shift in strategy, a recent report in the South Korean press indicated that the country’s financial authorities are in talks with similar agencies in Japan and China over joint oversight of cryptocurrency investment.bitcoin puzzle Blockchainloan bitcoin bitcoin price global bitcoin flappy bitcoin monero spelunker bitcoin статистика bitcoin миксеры supernova ethereum доходность ethereum ethereum pools x2 bitcoin bitcoin qiwi казино ethereum boxbit bitcoin
оборот bitcoin опционы bitcoin
monero gpu bitcoin people bitcoin статистика bitcoin knots wallpaper bitcoin bitcoin цены ethereum forum ethereum swarm tether clockworkmod bitcoin биржи bitcoin asic
bitcoin buying bitcoin gadget играть bitcoin coinmarketcap bitcoin equihash bitcoin bitcoin торговля These are deployed by a transaction (with gas fees) onto the Ethereum blockchain, after being relayed from nodes.claim bitcoin bitcoin haqida okpay bitcoin ethereum динамика приват24 bitcoin
x bitcoin зарегистрироваться bitcoin bitcoin фото index bitcoin bitcoin delphi bitcoin grafik bitcoin mail
bitcoin обвал monero настройка сложность ethereum динамика ethereum кости bitcoin hd7850 monero delphi bitcoin bitcoin майнер обмен tether
daily bitcoin компьютер bitcoin раздача bitcoin bitcoin tracker bitcoin dance simple bitcoin bitcoin мастернода conference bitcoin майнер ethereum мониторинг bitcoin ASIC ComputersNow, let’s have a look at how the voting process would work if we used blockchain. bitcoin вывести bitcoin в There is still plenty of room for industrial companies to be blockchain pioneers. While it’s true that the sector trails only financial services as a perceived leader in the technology, the gap between the two is large: 46% of respondents in our survey said finance firms are out in front, compared with 12% for industrial manufacturing. It’s possible to avoid the common pitfalls that sabotage promising blockchain projects with intelligent planning, strong collaboration and a clear strategic vision.Ten questions every board should ask about cryptocurrenciesбиржи ethereum аккаунт bitcoin wallet cryptocurrency bitcoin future cryptonator ethereum bitcoin paypal ethereum эфир cryptocurrency top
bitcoin подтверждение bitcoin swiss bitcoin key bitcoin в ethereum addresses bitcoin status litecoin bitcoin партнерка bitcoin bitcoin робот fasterclick bitcoin
monero hardware bitcoin onecoin новости ethereum мастернода bitcoin
bear bitcoin bitcoin okpay ethereum eth
second bitcoin ethereum обозначение bitcoin loan As more people get interested in cryptocurrency, scammers are finding more ways to use it. For example, scammers might offer investment and business 'opportunities,' promising to double your investment or give you financial freedom.bitcoin халява bitcoin ммвб
Initial release18 April 2014 (6 years ago)bitcoin форумы
bitcoin отследить bitcoin blog bitcoin spinner пополнить bitcoin bitcoin nvidia bitcoin habr hd7850 monero bitcoin crash
hacking bitcoin bitcoin зебра dance bitcoin bitcoin dogecoin bitcoin wmx ethereum clix make bitcoin ethereum php 22 bitcoin 500000 bitcoin бесплатные bitcoin reklama bitcoin exchanges bitcoin алгоритм bitcoin bitcoin demo ethereum краны bitcoin system moto bitcoin рубли bitcoin byzantium ethereum nanopool ethereum
bitcoin telegram bitcoin pizza bitcoin habr ethereum charts анализ bitcoin отзыв bitcoin Where ether is stored. Users can initialize accounts, deposit ether into the accounts, and transfer ether from their accounts to other users. Accounts and account balances are stored in a big table in the EVM; they are a part of the overall EVM state.monero 1070 up bitcoin майнинг bitcoin monero cryptonote fox bitcoin bitcoin fpga bitcoin options bitcoin видеокарта opencart bitcoin ethereum проекты bitcoin loan reddit cryptocurrency bitcoin обменять loans bitcoin ферма bitcoin btc bitcoin bitcoin is шахта bitcoin bitcoin tradingview вебмани bitcoin bitcoin email sberbank bitcoin
advcash bitcoin ethereum chart значок bitcoin bitcoin project bitcoin blog bitcoin портал bitcoin plus tether gps bitcoin strategy bitcoin vizit расчет bitcoin zebra bitcoin ethereum заработать bitcoin скачать заработок ethereum forecast bitcoin clame bitcoin json bitcoin 50000 bitcoin bitcoin это окупаемость bitcoin bitcoin armory tails bitcoin блок bitcoin bitcoin express
bitcoin 4000 bitcoin скрипт кошельки bitcoin amazon bitcoin
segwit bitcoin цены bitcoin ethereum linux bitcoin бесплатные bitcoin monkey tp tether Many find that it is easiest to purchase it through an exchange, like Kraken.bitcoin вконтакте bitcoin average avalon bitcoin ethereum перевод polkadot stingray tether mining майнер bitcoin bitcoin magazin bitcoin multiplier rocket bitcoin ethereum покупка
bitcoin видеокарты 22 bitcoin konvert bitcoin покупка bitcoin bitcoin обозреватель monero github bitcoin investment