Do you hear a lot about bitcoin mining, but have no idea where to even begin finding out what it is, let alone how you can benefit from it? Are you worried that you'll fall for a scam and lose all your wealth online? Let us dispel all your worry and get you started on what bitcoin is, how it works, and how you can be part of the cryptocurrency craze today.
Let's get down to brass tacks; what is cryptocurrency exactly to begin with? The word itself sounds like it comes from a spy movie, but it's actually a pretty simple breakdown of cryptography and currency. The latter is pretty simple, so let's focus on the former.
Cryptography as it relates to online currency basically means that no one can tamper with it, no one but the owner can view it, and that both receiver and sender of cryptocurrency can confirm or authenticate their transactions.
Like ordinary cash, cryptocurrency is something with a mutually agreed upon value. Bitcoin is one cryptocurrency, just like the dollar is one physical currency. With us so far? Good.
The primary advantage of bitcoin is that it's not regulated by any one body or authority. This means that it doesn't follow the rules of traditional currency. Rules like paying a large fee for sending money to relatives who live abroad, or heavy taxation on a gift somebody gives you. It also means that if you're a charity, you can generate funds from all around the world now; this opens a huge number of possibilities. Can I Wear a Blockchain?
Now that we've established what the thing is, we need to ask how does it work, and what technologies enable it? Blockchain is the name for the core technology that enables all cryptocurrencies to function.
It's the equivalent of hundreds and thousands of accountants standing over a financial ledger, keeping watch over every transaction that takes place and verifying and agreeing on it. In this analogy, the accountants are computers linked by a peer to peer network, and the ledger being the blockchain, except that it is incorruptible, and extremely secure, and changed irrevocably with each transaction.
What's more, thousands of people can access this ledger simultaneously, unlike a physical ledger that would have to be passed around; this versatility and security makes blockchain a super powerful technology that enables a multitude of new financial possibilities unheard of till today.
Having established all of this, how do you start your own journey to mine as much bitcoin as you can? Well, like physical currency, you need a wallet first. Unlike physical currency, it's not optional. There are a ton of services that offer bitcoin wallets, but we suggest sticking with known quantities, who you know are secure and won't rob you of your hard-earned cryptocurrency. Wallets are secure and can be linked to your cloud mining pool or hardware for easy collection (More on that in a bit). Also do your research on packages your mining company provides, and whether you want a full-service mining + wallet service, or one that just provides you with a wallet to store your bitcoin.
So here we are, the final step. The choice in front of you now is threefold. The first one is actually a set of choices; you can choose to buy bitcoin from an exchange, have businesses pay you back in bitcoin, or join a service like ours to have a friend donate it to you.
The second option is cloud mining through a service that will link to your wallet. There's too much variation in types of services to cover here, but in a nutshell, choose the most reputable one and find the package that's best for you. Cloud mining means you don't have to use your own hardware, and everything is done for you. All you have to do is choose a mining pool, which essentially means that a group of you will be mining together for higher chances of rewards.
The third option is the most hardcore, get your own monster computer, with a great graphics card, and get into the nitty gritty of mining software and how much hashing power your rig has. This is only for people who are really comfortable with mining, so we'd suggest do this when you're really experienced. It's important to get the right mix of software, that work in tandem without costly crashes. Also keep in mind your electricity bills! You don't want to lose more than you make.
Once you've gotten the hang of all of this, it's time to invest in our bitcoin matrix to really up your bitcoin game and make serious financial gains!