How To Make Money With Cryptocurrency Mining

In this article you will see a guide for beginners on cryptocurrency mining or mining. Here's what you need to do to start earning your first money as a miner.

mining

Cryptocurrencies saw one huge rise in their exchange rate with the dollar, from last December to April. Popular currencies, especially Bitcoin, have reached incredible levels of performance, breaking records one after the other. This led to an increase in mining as people tried to take advantage of the boom and make money from the process required for their operation.

However, if you are someone who does not understand what mining is, what is cryptocurrency etc, then you are in the right place. We have created a guide to help you understand what mining is and what you need to do to make money.

What is cryptocurrency?

Before we move on to mining, let's first understand the meaning of cryptocurrency. The cryptocurrency is a digital asset which acts as a medium of exchange, just like the euro, where a user transfers ownership of currency in exchange for goods or services.

Ο Satoshi Nakamoto was the first person to create the decentralized Bitcoin currency, to fill the gaps in the traditional or fiat money.

No one knows who Satoshi Nakamoto is, but like himself explains in his written statements The currency was designed to be decentralized to the state, which means that no central authority has an ownership relationship with it, so it is completely transparent as all transactions are stored in a public "ledger" called the Blockchain. block) and at the same time anonymous.

Blockchain

Read about:  How Blockchain technology works. Beginner's guide.

After the release of Bitcoin, several developers began working on its basic principle and so the world soon saw other cryptocurrencies with small or large variations in their operation. Most of them are designed to solve real problems as well as for future use. From the beginning of 2021, there are over 4.000 cryptocurrencies !.

What is mining and how does it work?

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Now that the concept of encryption is clear, let's move on to mining and what role it plays. In simple terms, mining is the validation of encryption transactions.

Mining is the process that creates the ενός υπολογιστή (computer hardware) για to do mathematical calculations ώστε το δίκτυο ενός κρυπτονομίσματος να επιβεβαιώσει τις συναλλαγές και να αυξήσει την ασφάλεια. Ως αμοιβή για τις υπηρεσίες τους, οι (ανθρακωρύχοι) συλλέγουν τα τέλη συναλλαγών για τις συναλλαγές που επιβεβαιώνουν. Τα τέλη αυτά δεν παρακρατούνται από κάποιον χρήστη αλλά αποτελούν νέα κρυπτονομίσματα, πρόσφατα δημιουργημένα.

This is why it is called mining since with the process of confirming the transactions, new cryptocurrencies are created (mined) as a reward. Mining is a specialized job where the fees are divided according to how much has been calculated by each machine.

How much will you earn? The benefits of bitcoin mining are halved every four years. When bitcoin first appeared in 2009, mining a block would yield 50 BTC. In 2012, it was halved to 25 BTC. By 2016, this was halved to 12,5 BTC. On May 11, 2020, the reward was again halved to 6,25 BTC. Today, in May 2021, the price of Bitcoin is around 30.800 euros per Bitcoin, which means that you will earn 192.500 euros (6.25 x 30.800) for completing a block.

But let's look at it in a little more detail. Since cryptocurrencies are not controlled by a state authority (they are decentralized), there is no central authority, such as a bank, to verify transactions. Here comes the extraction. Pay some attention to why strange accounting and cryptographic terms are involved:

Most of the first cryptocurrencies used the concept of cryptography called "proof of work”(Proof-of-work = POW), which is a cryptographic "proof of zero knowledge”(Zero-knowledge proof), where one party (the nominator) proves to the other party (the verifier) ​​that some transaction work has been done.

Accordingly, Bitcoin is based on this logic and in particular is based on a distributed public ledger called Blockchain and records every transaction that occurs on the network. The blockchain organizes all transactions in sequences, to prevent it double cost by users.

Parenthesis: If a malicious user tries to spend their bitcoins on two different recipients at the same time, this is double cost. Bitcoin mining and the blockchain are there to build a general consensus on the network as to which of the two trades will be confirmed and considered valid.

In addition, the blockchain is distributed to all miners to avoid fraudulent assignments, as a modified version of a block can be verified or rejected by other miners, so the system is transparent and at the same time almost inviolable since 51% those who hold the blockchain will have to agree on each transaction.

In fact, each block (block = part of the blockchain that contains and validates many transactions - about every 10 minutes, on average, a new block is created) is assigned a hash, which is a large number of alphanumeric characters, for verification. of the transaction. Miners who help verify blockchain transactions are paid for their efforts and contributions to the network.

While this system works well for Bitcoin and other currencies, it also creates huge demand for computer hardware needed to verify transactions. In addition, it also generates a lot of heat and requires constant power to operate.

How can you mine cryptocurrencies?

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You will need a helmet, a pickaxe, a shovel κάνουμε we make fun. Now that you understand what cryptocurrency mining is, we will talk about how to mine it.

Warning before proceeding. Mining adds a steady load to your GPU (or CPU) and increases power consumption. Both are bad if operated in the long run, as they can significantly increase your electricity bill and cause irreparable damage to your components. If you decide to go it cheap and risk the low bandwidth you are only fooling yourself. I or anyone else at iGuRu will not be liable for any damage that may occur during mining or due to incorrect GPU configuration.

Now that we have clarified this, let's talk about what you need to extract. First you need one (or more) good computer machine.

The power computer you need to extract can be your CPU or GPU. Prefer the GPU as they are more efficient for this job. Although there is no minimum requirement for mining, we suggest you get a relatively new GPU.

We recommend that you get a GPU 30 series if you can, otherwise go for a state-of-the-art GPU RTX. The same goes for AMD GPUs. The newer the GPU, the better hashrate you will have and the more money you can earn. The hashrate refers to the total computing power used to extract cryptocurrencies. The higher the hashrate, the more you can earn through mining.

If you find the latest generation GPUs expensive (which they really are), you might want to consider buying a used one. Be careful what you buy as used GPUs may have a very good price, but there is a high risk that you will end up with a GPU that was previously used for bitcoin mining and thus be quite stressed.

Now, let's talk about software that will be needed to mine cryptocurrencies. There is a lot of software available. The following suggestions are indicative. You can search and try many more.

But before that, We highly recommend it download MSI Afterburner, as you will need to change the GPU settings for optimal use. This program will also allow you to reduce the power it uses and extend the life of the GPU. Works on any graphics card, even if it is not MSI.

msi afterburner

Δυστυχώς, δεν μπορούμε να σας πούμε ποιες ρυθμίσεις θα πρέπει να χρησιμοποιήσετε στο MSI Afterburner, καθώς υπάρχουν πολλές GPU στην αγορά και ο έλεγχος κάθε GPU δεν είναι ίδιος για όλες. Μπορείτε να συνδεθείτε στο και να ελέγξετε τις ρυθμίσεις που χρησιμοποιούν οι άλλοι ανθρακωρύχοι και να τις αναπαραγάγετε ή να τις ρυθμίσετε χειροκίνητα.

Note that you should ideally reduce the power limit from 100% while increasing the memory clock. At the same time, you can also reduce the GPU core and set your GPU fans to maximum to cool it down. Your goal should be to increase hashrate while maintaining thermosin control and using as little power as possible. Again, the exact settings can be found on Reddit and will vary by GPU model.

Mining software required:
1. Digital Wallet
2. Mining software

Digital wallet
Now that you have set up your GPU, let's talk about it Digital Wallet. Every mining software requires a wallet address, which is something like a bank account number for receiving coins. To obtain a wallet address, you must create an account with an exchange. Popular cryptocurrency exchanges are Binance, Huobi Global, Coinbase Exchange, Kraken, KuCoin, Bitfinex and Gate.io.

You should check if the exchange you choose is allowed to operate in your country. Binance, for example, was banned by the US, so people living in the US will have to open an account at one of the other exchanges. In addition, you must make sure that the exchange you choose allows credit from mining. For each one you can contact their customer support if you want more information.

Once you have opened an account, go to the wallet section and find the deposit address for the currency you want to purchase. Make sure you choose the right grid, otherwise your coins will be lost. Again, you can contact exchange support if you want help choosing the right network.

binance bitcoin exchange

Extraction software
Next is the mining software. There is a lot of software that you just install, tell them what your wallet is and let them "run" in the background. You do nothing. What you will see is the money you earn going into your account. These softwares talk to the network of each cryptocurrency and when required start calculating transaction confirmation.

Here you can see a list to from them. Alternatively to these softwares you can use a mining operating system (Mining OS) and create a computer dedicated only to mining.

For Bitcoin mining, we will recommend This makes it a perfect choice for people with diabetes and for those who want to lose weight or follow a balanced diet. Nicehash. It is a reliable software that has been available for quite some time and allows users to extract from their main system. Installing the software is simple. Just go to the Nicehash website and download the software. Once downloaded, follow the steps to install and set up your Nicehash account.

Nicehash also provides QuickMiner, which is CUI-based software. However, for beginners, we would recommend using the GUI miner, as it is easier to configure your preferences.

Continuing, if you are interested in mining other currencies then you can use a tool called Unminable. Unmineable allows users to mine cryptocurrencies that are not readily available. Includes currencies such as ADA, Doge, BTT, Ethereum, Uniswap, Dash etc. Unmineable also provides users with an easy-to-use GUI software that you can use to configure everything. You can download the software from their website and set it for the encryption you want to set. Once you are done, click on the beginning to start mining the desired cryptocurrency. Unmineable will automatically transfer coins once you reach a certain limit, but you can turn it off if you want to manually transfer coins to your wallet. For experienced miners, Unmineable also supports PhoenixMiner, lolMiner, NBMiner, and T-Rex, so you can use them if you prefer a command line view.

In conclusion

Cryptocurrency mining can yield a decent extra income, ONLY if you can get a decent GPU and spend time configuring it.

Although Bitcoin has recently suffered a huge drop, after the announcement of Musk, by reducing transactions, many may stop mining, which could reduce the difficulty of mining, allowing you to make more money.

However, mining comes with its own set of risks and you should always keep these in mind when mining. Never attempt to push the GPU to the edges, as this may cause serious damage to the GPU and other components.

Γενικότερα, μην περιμένετε να γίνετε πλούσιοι με την εξόρυξη. Τα χρήματα που θα χαλάσετε για την πρωταρχική αγορά των μηχανημάτων, τα χρήματα που θα ξοδέψετε μηνιαίως σε ενέργεια, καθώς και η απομείωση της αξίας του μηχανήματός σας (ξέχωρα τυχόν βλάβες) δεν θα έχουν μεγάλη διαφορά από τα κέρδη. Αν μάλιστα δεν δώσετε αρκετά δεν θα κερδίσετε και αρκετά, οπότε με ένα μόνο μηχάνημα μεσαίας κατηγορίας και με μικρή σύνδεση στο διαδίκτυο να το ξεχάσετε.

As for the future, mining may cease to exist as developers move towards an idea proof-of-stake = POS (proof of bet) that does not require mining to validate the blocks. Instead, cryptocurrency holders can bet their currencies to verify transactions and receive a fee.

Ethereum is the first major cryptocurrency to take a step in the right direction. However, the future where all cryptocurrencies use the concept of Proof of Stake is far away.

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Written by Dimitris

Dimitris hates on Mondays .....

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