Not everybody who indulges in the world of cryptocurrency knows that cryptocurrencies which they are buying can be created at home. Yes, what you have read is absolutely correct. Some of you might have heard about it previously but keep yourself away from it.
But people are also there spending a lot of time and money just in mining more crypto coins. If anyhow you get success in mining coins then a big question arises. Can it give a greater profit than buying and selling coins?
Well, if we consider and coin. Suppose bitcoin then its current price is $41,323. And if anyhow you successfully mined 0.5% of a bitcoin then still you will get $200. Now you can understand the value of mining.
Before we dig a little deeper into the process and profit. Let’s know how popular is cryptocurrency mining? China is the biggest cryptocurrency mining country, followed by the US, Russia and so many other countries.
What exactly is bitcoin & crypto mining?
For suppose, if you have a bitcoin and you want to sell it to someone. The moment you sell the coin to some and the transaction completed. That transaction needs to be verified by someone.
This transaction is actually a completion problem. A huge calculation is needed to solve it. Now, so many people having machines like a supercomputer and all to solve this complex problem. The person behind the solving of this problem is the ‘miner’. When the person successfully verified the transaction by solving the problem then as a reward that person get some coins. This whole process is called mining.
Need and Expenses
For mining, you need to have the hardware. So, if you considering your laptop then it will be very difficult. You need a laptop which have the capacity to take the load and need a very expensive graphics card.
Your electricity consumption also matters in this process.
The fact is that the more popular the cryptocurrency is the more you need electricity supply and tools to do mining. Because, it’s not only you. so many people around the globe are trying to get rewards from mining for the most popular coin.. And the chance of getting the opportunity to solve the problem is a lottery decision.
But if you have machines like ‘Rig’ then your chances of getting crypto reward will be more. But if you are thinking about doing it on your laptop then your time and efforts will be more than the reward you will get. And forget about doing it on your smartphone, it does not matter how smart it is.
Before you close the window of this page and order a machine for mining. Let me tell you. Think twice, you have to decide which coin you want to mine. Because you can mine only a single type of coins with a single machine. Coding for different coins is different. For example, you cannot mine Etherium with the machine you bought for mining Bitcoin. And the machines are also expensive. They cost you around $2000- $2500 minimum.
What will be a better choice?
For a beginner , crypto currency mining is not a good choice. Because if you want to end your day with some profits then you surely need to invest some amount in the machines and electricity bills. But it will be better if you use that amount or less in trading and investing in the crypto market.
Because it’s sure that if you invest in some top crypto coin then it will increase in some days. ‘Or if it will not increase’ this also a probability. But you too know that crypto is is market of risk. Which you will also be going to take if your choosing mining as an option.
Think twice! Do wise!