Crypto Mining

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How Bitcoin Works

How Bitcoin works

The main purpose of extracting any cryptocurrency, such as Bitcoin, Etherea or Litecoin, is to make a profit. To maximize profit, you need to find the ideal balance in a mining assembly between performance and power consumption. To find such a balance, you need to select specific components. What hardware do you need, and what do you need to know before you can break into the world of virtual currency?

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Secure Virtual Money - Cryptocurrency

Cryptocurrency, such as Bitcoin, is gaining more and more supporters and one of the main reasons is its security and transparency.

Uses complex encryption so it can not be falsified or forged.
Is not controlled and regulated by any government or other organization.
All executed transactions and accounts are generally transparent.
Transparency and complex verification of all transactions can not be misused.

Bitcoin Security and Transaction History

For Bitcoin, each virtual coin is associated with the public key of its owner. If you send Bitcoin to someone, it works as follows:

  • You create a Bitcoin transaction.
  • You attach the public key (address) of the recipient and enter the amount.
  • Your signature in the message confirms the validity of the Bitcoin transaction.
  • The history of all Bitcoin transactions is available to anyone in the network (blockchain). It is not difficult to verify who owns a particular group of coins.

Bitcoin Today And Other Cryptocurrencies

Does Bitcoin Mining Pay?

Bitcoin, as the first cryptocurrency, broke out and started a worldwide frenzy. However, today even with a stacked assembly you may not make a profit. Specialised hardware in the form of ASIC chips are now being used to extract bitcoins. Although they deliver enormous computing power, their disadvantage is that they are expensive and highly specialised - aside from the extraction of Bitcoins, this hardware can not be used for anything else.

Which cryptocurrencies should be focused on today?

Cryptocurrencies With Potential for Profit

With a graphics card, it is possible to exploit many types of currencies, many which are experiencing even more rapid growth than Bitcoin. One of these is Litecoin - the first currency to use an improved scrypt algorithm. Another digital currency on the rise is Ethereum, also known as Bitcoin 2.0.

Zencash is one of the youngest virtual currencies to offer even better security than Bitcoin. In addition, its value has risen very quickly. The last digital currency worth mentioning is Dash. It is a virtual currency offering instant transactions and has long been one of the most popular virtual currencies.

What Do I Need To Start Crypto Mining?

The whole process for beginning mining can be summarised as follows:

  1. Make the decision you want to start mining cryptocurrency.
  2. Ensure you have the best mining hardware - we'll advise you below.
  3. Download free software in order to start extraction.

During extraction, we further recommend:

  1. Engage with a group of miners, in a so-called mining pool. For a certain fee, the total profit of the group is divided among the members according to the merits of the crypto mining.
  2. Install a wallet to store the cryptocurrency. Safest is the purchase of a hardware wallet.
  3. Track exchange rates and news about the latest developments.

Graphics Cards for Cryptocurrency Mining

The most important component for cryptocurrency mining is today a powerful graphics card. Each type and brand of graphics card can be used to mine. A key parameter when selecting a suitable GPU is the so-called Hash Rate: the higher, the better.

Mining Processors

Processors for mining may not be powerful, but economical - today's computing power is extracted from the old graphics card.

Motherboards for Cryptocurrency Extraction

When selecting a motherboard for mining, it is especially important to increase the number of PCI-E 3.0 x16 ports and support for AMD CrossFireX or NVIDIA SLI in order to plug in multiple graphics cards.

Resources for Mining Assemblies

Kits for cryptocurrency extraction require a high-performance energy source with enough PCI-E connectors to plug in multiple graphics cards - they also need the most power consumption.

Hardware Wallets and Safes

The safest solution for storing digital currency is a hardware wallet. It connects to your computer via a USB port and protects your cryptocurrency from hacker attacks and keyloggers (malware that scans keystrokes). All transactions require confirmation by a hardware button from the owner.

Backup Sources and Overvoltage Protection

Back-up power supplies and overvoltage protection ensure continued mining during power outages and protect the assembly from spikes and surges in the power grid. Given that the cryptocurrency extraction kit is a relatively costly investment, it pays to invest in these elements.

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Crypto Mining

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