What is cryptocurrency and how to earn it through mining?

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What is cryptocurrency and how to earn it through mining?
What is cryptocurrency and how to earn it through mining?
Anonim

Today, almost every active Internet user has heard about cryptocurrency, bitcoins, miners, etc. However, few have a clear idea of ​​what cryptocurrency is and how to earn it. The article you are reading now was written specifically to bring you up to date, as well as to tell you in as much detail as possible about all the nuances associated with this issue.

What is cryptocurrency

what is cryptocurrency and how to earn it

Cryptocurrency is a digital (virtual) currency that is based on cryptographic protection. In simple words, this is a coin (coin), consisting of 100 million parts (satoshi), each of which carries encrypted information (crypts). Such a system provides the cryptocurrency with maximum protection not only from hacking and theft, but also from various kinds of fakes.

It is a high level of protectionriveted the attention of most investors who bet on bitcoin before it began to rise in price. Pricing policy, in turn, depends on the level of confidence of currency holders.

A type of cryptocurrency

It is not surprising that after the phenomenal success of Bitcoin, which is the first cryptocurrency in the world, new coins began to appear. They strive to repeat the achievement of their older brother. Before we learn how to earn bitcoin cryptocurrency from scratch, let's look at the top ten, and also pay attention to the cost of these coins.

View

Unit Price (USD)

Capitalization (dollars)

Bitcoin (BTC)

2500

18.98 billion

Ethereum (ETH)

11.84

1.3 billion

Monero (XMR)

18.68

255.7 million

Litecoin (LTC)

4.89

240.5 million

Ripple (XRP)

0.0064

233.9 million

Ethereum Classic (ETS)

1.85

161.7 million

Dash (DASH)

16.5

115.5 million

Augur (REP)

5.16

56.78 million

MaidSafeCoin (MAID)

0.11

49.6 million

Steem (STEEM)

0.18

41.9 million

Miners

how to earn bitcoin cryptocurrency from scratch

As we already know, Bitcoin was the first digital currency. It appeared in 2009, and the history of its creation is still shrouded in mystery. After the debut of BTC, the so-called miners began to appear, which use the performance of the processor and video cards, mining cryptocurrency. To date, there are many ways to start earning cryptocurrency, which we will definitely tell you about.

Mining

After bitcoin was in the public domain, the only way to get it was mining. This is a unique process that allows you to receive satoshi (one hundred millionth of a bitcoin), and collect them into blocks, which later create the coin itself. Let's learn more about how to earn cryptocurrency on mining and what you need for this.

Due to the fact that the mining process becomes more difficult, people began to collect "farms". Each consists of a high-frequency processor, a motherboard, a powerful power supply and cutting-edge video adapters, the total number of which (on one equipment) varies from 4 to 8. It is worth noting that along with the demand for cryptocurrency, the cost of video cards, for example, the GTX 1080, has increased dramatically. costs about $1000. One such card can bring about$5, which means that it will pay for itself within 7-8 months, subject to the deduction of the cost of electricity consumed.

Which graphics cards are best for mining

Most people, even those who know what cryptocurrency is and how to earn it, make gross mistakes when choosing video adapters for assembling "farms". At the moment, you can find a lot of ads that absolutely new, high-quality farms are for sale, which will definitely bring you an unprecedented income. However, do not rush to part with your money and buy a "pig in a poke".

First of all, pay attention to the model of video cards sold. If they belong to an outdated line, then there is no point in such an acquisition, since their profitability at any time can decrease so much that you will not even be able to recoup the equipment. You should always remember that mining is a process that gets more and more difficult. If in 2009 it was realistic to mine up to 10,000 bitcoins per day with the simplest video adapter or processor, today, having a good farm, you will mine about 0.01 BTC ($24).

how to make money on the cryptocurrency exchange

Let's look at the main characteristics that modern video cards used for mining should have:

  • Video memory size. Everything is extremely simple here - the larger the volume, the better. In order to mine, for example, ethereum, video adapters with a capacity of 2 GB or more are ideal.
  • Memory speed. Looking for a video card for further use in productioncryptocurrencies, pay attention to the standard of the installed memory. The best option is DDR5, which consumes significantly less power than its predecessors and also has more processing power.
  • Possibility of overclocking. This is not the most important detail. When overclocking a video card, you can achieve an increase in its power, sometimes up to 40%. But it is worth noting the fact that when using the wrong settings in the mining client, the profitability of the overclocked video card may even decrease, and the power consumption may increase.
  • Cooling. This is perhaps the most important item, even though it is at the very end of our list. The stable operation of all video card systems, as well as its durability, directly depend on the cooling system. The least prone to overheating are modern video adapters from Radeon.

Top 5 graphics cards for mining in 2017

You already know what cryptocurrency is and how to earn it with the help of a “mining farm”. We have prepared for you the TOP 5 video cards that are best suited for mining digital currency:

GPU

GPU Clock

(Mhz)

TP

(Nm)

TDP

(W)

Memory frequency (Mhz)

Type

memory

Memory capacity

Shader

processes

Radeon

RX 470

926

14

120

1650

GDDR5

4-8 GB (256 bit)

2048

Radeon

RX 480

1120

14

150

2000

GDDR5

4-8 GB (256 bit)

2304

GeForce GTX 1060

1506

16

120

2002

GDDR5

3-6 GB (192 bit)

1152-1280

GeForce GTX 1070

1506

16

150

2002

GDDR5

8 GB (256 bit)

1152-1280

GeForce GTX 1080

1050

28

275

500

NVM

4 GB (4096 bit)

4096

Bitcoin faucets

bitcoin cryptocurrency how to earn

After calculating the approximate cost of the "farm", many people start looking for a way to earn bitcoin cryptocurrency from scratch, without any investment. One of the options for getting freebies in the form of Satoshi are services called Bitcoin faucets. These are special Internet resources that offer their visitors to perform some action, for example, enter a captcha,and then get your reward. In a couple of clicks, you can earn from 100 to 1,000,000 Satoshi randomly.

The amount of remuneration directly depends on the popularity of the resource: the more unique users, the higher the cost of advertising, which is the main type of income for organizers of bitcoin faucets.

Cloud mining

This method is perfect for those who do not want to waste time purchasing and installing mining equipment, which also consumes quite a lot of electricity. All you need to do is to choose a suitable and reliable resource that provides the possibility of cloud mining, and then rent a certain amount of power.

Some services that rent out power provide a one-time bonus for registration, and also have a referral system. Many users, as a rule, from the post-Soviet countries, use the provided bonuses as a start-up. And then the money received from mining is reinvested in renting new capacities, increasing income. This is another way to earn cryptocurrency from scratch.

Best cloud mining services

how to earn cryptocurrency from scratch

Before entrusting your money to any service, you need to make sure of its reliability and solvency. Otherwise, there is a risk not only to be left without income, but also to lose your own savings. Here is a list of seven "cloud farms" that are popular among miners:

  1. Hashflare -offers the highest income from the production of ether (ETH), which is 200% of the value of the purchased package (contract).
  2. Hashing24 is an analogue of the above service, however, only bitcoins are mined here. A regular in the list of the best cloud farms.
  3. Minerjet is one of the most popular resources that offers to mine several digital currencies at once: ethereum, monero, litecoin, etc. You can earn up to 200% per year without investment!
  4. Ilivion is a recently launched bitcoin mining service. Estimated profit - 3% per day from the cost of the package.
  5. Bit-hit - most experienced users who know what cryptocurrency is and how to earn it choose this "cloud". Here you can not only mine BTC, LTC, ETH and other types of digital currency, but also withdraw earned money daily, which is sometimes very convenient.
  6. Speedmine is the most stable service with an attractive and user-friendly interface. Profit reaches 4% per day.
  7. Cryptomonitor is a trusted site that has been around for two years. The profit from the purchased contract is 200%.

How to make money on the cryptocurrency exchange

In order to master this type of earnings, you need to understand the specifics of the exchanges. Their main task is to provide their own platforms for transactions using digital currencies (sell, exchange, buy). As a rule, people who know where to earn cryptocurrency and do it successfully convert the accumulated coins intofamiliar to us rubles or dollars. It was the emergence of such exchanges that saved millions of people from a number of problems associated with cashing out and exchanging one currency for another.

The main advantages of modern sites include a high-quality and intuitive interface, the ability to access from anywhere in the world, as well as a huge number of offers for the exchange and withdrawal of money. Even a person who has never encountered such resources, and who does not know how to make money on the cryptocurrency exchange, will quickly be able to navigate and understand the basic principles. First of all, you need to determine for yourself the optimal platform, which will not only be rich in internal functionality, but also have a reputation as a reliable service.

how to start earning cryptocurrency

Today, there are a huge number of exchanges where you can make not only transactions using, for example, ether (ETH), but also make good money on the difference in cryptocurrencies. Among those, there are Russian-language resources, but the most profitable offers are found on Chinese exchanges. The main disadvantages of services located in China or Korea include:

  • Inconvenient interface for CIS residents, which is usually in Chinese or English.
  • Reliability is below average.

Highlights while trading on the stock exchange

Assume that you have already found a suitable exchange, fully understood the specifics of its work, studied all the functionality. Now it's time to make a profitbut how to earn cryptocurrency, bitcoin or your first dollar?! The easiest way is the history of prisoner operations and graphics. Analyzing the chart, you will be able to observe how the exchange rate of BTC to other currencies changed during a certain time period. As a rule, experienced traders use Japanese candlesticks, which display the dynamics of growth or decline. Remember that success will largely depend on how well you learn to read candles.

The characteristics of Japanese candlesticks are as follows:

  • The location of the body of the candle always indicates the current state of the course. In the event that you entered the exchange at the time of the opening of trading, and the cryptocurrency rate is quite low, and before the end of trading it has risen noticeably, then the body of the candle will have a red or black color.
  • The shadow of the candle always indicates the maximum high or low of the rate during trading.

There are times when a candlestick's shadow is displayed on the chart, but the body is missing. Among traders, this is called "dodge". You also need to know how Sell and Order buy work, which form a glass. If translated into a language understandable to a beginner, then this is a complete list of requests collected from all users who put up for sale or want to buy digital currency. The order book provides the seller with the opportunity to choose the best offer and then execute the deal.

Afterword

how to earn cryptocurrency on mining

Now you know how to earn cryptocurrency (bitcoins, ETH, LTC) and can applyacquired knowledge in practice. However, you should not trust people, sites and viral advertisements that will promise you exorbitant rewards in exchange, for example, for a money transfer. Recently, a lot of fraudulent schemes have appeared, with the help of which attackers are trying to clean the pockets of gullible users.

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