Despite the fact that the crypto currency has appeared eightyears ago, it acquired the greatest popularity in the post-Soviet space at the beginning of this year. Around it an unprecedented rush broke out, and many Internet users literally rushed to study what is blockade, pool, bitcoin. And they also began to learn how to start crypto currency. To date, a lot of films about this phenomenon have already been filmed, which have been translated into Russian and are in the public domain. They can hardly be called a guide for mining (mining) bitcoin or any other virtual currency. That is why we will tell you today what is the mining of crypto-currency in simple words.
What is a crypto currency?
If we talk more intelligently, then the crypto currency -These are digital banknotes that have cryptographic protection. A new unit appears in the process of solving complex mathematical algorithms and consists of one hundred million parts, each of which carries a unique cryptographic code (signature). At once I want to note the fact that it is impossible to forge a digital currency, since information about each unique cryptographic signature has been copied and stored on all computers involved in mining (crypting) of crypto currency.
Crypto currency has only a digital form.It is impossible to touch, put in a purse or safe in the bank. The main advantage of such money is that they are decentralized and are not under the control of any state or institution.
The number of coins created is strictly limited,it can not be changed. Everyone can know for certain when the last bitcoin will be produced, for example. Controllable emissions gradually complicate and slow down the process of mining, and also exclude such problematic phenomena as inflation.
The value of digital money depends ondemand. The more investors show interest in this or that crypto currency, investing in its development a substantial amount, the more expensive it will be. State money is supported by gold reserves, and crypto currency - by investments.
What is the mining of crypto currency in simple words?
We have already mentioned that the crypto currency appears inthe result of solving complex mathematical algorithms. It is impossible for an ordinary person to cope effectively with such tasks, that's why computer processing power was used for this purpose, and the process was called mining.
During the mining of the crypto currency on the PC, whichis connected to the Internet and is involved in the crypto-currency system, information comes in the form of blocks (lock-ups). In such blocks contains a huge number of algorithms that need to be processed and get the only correct solution. Each solution is a digital signature for a specific information cell in the block. And also it is the very cryptographic protection against hacking.
The blocks themselves appear as a result of committingtransactions using a certain type of crypto currency. For example, if someone paid for a purchase in an online store using Bitcoin, and your equipment is configured for mining the crypto currency, bitcoin, then it immediately determines the transaction and contributes to its completion, solving all the same algorithms. And you will receive a reward in the form of several hundred Satosh (1 Bitcoin = 100 million Satosh).
The first steps in the mining
We hope that we could explain by simplewords, what is the crypto-currency mining. If you decide to engage in mining, for example, Ethereum or Bitcoin, it will be enough to have an idea of how the system is arranged. Let's move on to the technical part and find out how to begin crypto currency mining.
The most effective way to extract digitalcurrency - mining using a video card. Just a few years ago it was possible to earn several thousand bitcoins per day, using for this purpose a weak video adapter and a simple processor. However, the process of mining of any popular crypto currency is constantly becoming more complicated. And in order to get profit today from this kind of activity, it is necessary to think about assembling the "farm".
"Farm"
The most profitable crypto currency for mining -bitcoin, etherium and litcloin. It is on their production that the main capacities of the miners around the world are directed. Day by day getting these coins becomes more difficult. In order to speed up the process, the miners began to collect "farms" that have a lot in common with a conventional computer, but significantly outperform it in performance.
To build a farm, you need to acquire the following components:
- motherboard with the ability to connect multiple graphics adapters;
- a hard disk with a small volume;
- high-frequency processor;
- one lath of RAM (4-8 GB);
- 4-8 video cards with video memory from 2 GB;
- a powerful power supply (from 750 W);
- Risers (adapters, extensions from the video card to the motherboard);
- additional cooling;
- launch button;
- frame.
Video cards for the farm
The best graphics cards for miningCryptocurrencies in 2017 are considered Radeon RX 470. With impressive characteristics, they are much cheaper than their closest competitors from Nvidia. However, giving preference to the Radeon, you will have to think carefully about the system of additional cooling, since these video adapters heat up much more strongly than the same Nvidia. The average cost of a semi-professional "farm" working with four video cards is $ 2300-2700, which is quite expensive for the budget of an average Russian. However, with proper setup and continuous work, such a “farm” will pay for itself within 6–9 months and will start bringing you income.
Step-by-step instruction of mining cryptocurrency
After the equipment was purchased,fixed in the frame and connected, you need to install all the necessary software. The step-by-step instruction for cryptocurrency mining is as follows:
- installation of the operating system;
- register the wallet and get the address;
- installation and configuration of the client;
- pool selection.
OS and cryptocurrency wallets
We install an operating system in our "farm".Then we set up access to the Internet and set up a special wallet for digital currency. You can make a wallet for specific coins, for example, Bitcoin. But we recommend using a universal one in which you can store absolutely any cryptocurrency.
Among those engaged in cryptocurrency mining, the following multicurrency wallets have extremely positive reviews:
- MultiCoinWallet.
- HolyTransaction.
- NoobWallet.
- Cryptonator
- S-seks.kom.
Client software for mining cryptocurrency
Selecting one of the services where aftera unique address-invoice will be assigned to your registration; To find out which program is better for cryptocurrency mining, we will be helped by a rating based on the popularity of this or that client, which looks like this:
- 50Miner. This program will not take much space on the harddrive. With a fairly small "weight", it has all the necessary functionality, and a simple and pleasant interface will make setting up a client simple, even for a beginner.
- BFGMiner. The most popular program in the post-Sovietspace, as it has the Russian language interface. Setting up a client does not take much time, since everything is very clear. A distinctive feature of many other programs is the ability to control the cooling system. You can set the optimal parameters of rotation coolers.
- Cgminer. This client is perfect for those whoknows perfectly well how the mining of cryptocurrencies works, and also has an idea about the MS Dos OS. Using this utility, you can create your own pools, configure them, as well as increase the performance of video cards installed in the farm by overclocking them. In order to use the program, you must have high-performance graphics cards.
- Diablominer. This program is popular withexperienced miners who know MS Dos. To use the client, you must equip the "farm" with a high-speed processor and powerful graphics cards. In the process of mining, you can use the computing power of the processor and video adapters. Works with operating systems such as Mac, Linux, Windows.
- Bitminer. In terms of functionality, it is very similar to the 50Miner.In order to start earning your first satoshi, you do not need to install the program on your computer, you just need to run the “exe” file from the downloaded folder. A serious disadvantage of this client and 50Miner is the consumption of large amounts of RAM.
Pool selection
In our article we have already talked aboutis mining cryptocurrency. In simple terms, this is the earnings of digital currency by using the computing power of your equipment. They also said that this process is constantly becoming more complicated. In order to make mining more effective, people are combined into groups (pools).
After installing one of the programs for the extraction of cryptocurrency, you will have the opportunity to join the work of one of the pools, which at the moment there are already about two thousand.
Choosing the right pool can introduce a newbie todelusion. After all, there are both simple groups that extract only one type of digital currency, and multipools, which offer the opportunity to earn several cryptocurrencies at once, for example, Bitcoin and ethereum.
Before you connect to this or that pool,better spend some time studying it. Give preference to those resources that have been working steadily for more than one year and have the most positive feedback. Also pay attention to the way in which payments of accumulated coins occur. In total, there are about thirteen, but the following are the most popular:
- PPLNS - all miners in the pool make a profit, the amount of which directly depends on the last number of embedded shares.
- PPS - the resource determines the share of each participant in the pool and pays for it according to the contract.
- PROP - the amount of payments is proportional to your share of power in a particular pool.
Top pools in 2017
From the moment the cryptocurrency turned on itselfattention of millions of people, pools began to appear like mushrooms after rain. However, most services, unable to withstand the competition, cease to exist. Many of them have not returned their earnings to people who used the computing power of their PCs in their pools. In order not to lose your own money, we recommend that you use only proven and most reliable platforms. Rating pools today looks like this:
- F2Pool.
- AntPool.
- MTC China.
- BW Pool.
- Bitfury.
Cryptocurrency Cranes
Not everyone has the opportunity to highlight fromfamily budget of about $ 3000 to build a "farm". But this is not a reason to think that you will never become a miner. Today, there is a way that makes cryptocurrency mining without investments becomes real. This is the opportunity provided by sites that are called miners' cryptocurrency cranes among miners.
The principle of operation of such resources is quite simple.You enter the site and perform one of the actions for which you receive a reward. For example, you may be asked to enter a captcha, play a game, assemble puzzles, or watch a video sequence, after which a certain amount of coins will go to your account. It may seem to you that the owner of the resource is a rich and very generous person, but this is not so. Webmaster receives revenue from advertising that was posted on the site. The more visitors per day on its resource, the more the advertiser will pay for a place for a banner.
Earn a lot on these "cranes" is notit turns out, however, the collected funds can be reinvested in the purchase of facilities at the resources offering cloud mining services. Such a scheme may be useful to people who do not know where to start mining cryptocurrency.
Cryptocurrency cranes top
In order not to waste time, we invite you to familiarize yourself with the list of the most reliable and generous "cranes":
- Cryptoblox.
- Getmyfaucet
- Cryptospout.
Today there are a lot of similar resources, but most of them are insolvent.
