One thing I like about the cryptocurrency world is that it gives a chance for everyone to make money, cryptocurrencies provide ways for almost everyone to become entrepreneurs and at the same time work at their own pace.
Just in case you don’t have the basic understanding of how cryptocurrencies work, I wrote a comprehensive guide to help you get started, you can check it out by clicking the link to the article below.
There are so many ways to make money in cryptocurrencies without any boundary, and this is why it has become an unstoppable global movement.
The traditional way to invest in cryptocurrencies involves staking your fiat currencies into your prefered coin via a crypto exchange such as Binance, but there are several other ways to make money in cryptocurrencies without staking a dime into the system and this is called Cryptocurrency Mining.
What is Cryptocurrency Mining?
Crypto mining refers to the process of obtaining cryptocurrencies by resolving cryptographic equations with the use of high-power computers.
The solving process comprises verifying data blocks and adding transaction records to a public record (ledger) known as a blockchain. That is secured by applying complex encryption techniques.
Putting in all in layman’s terms Cryptocurrencies are designed in such a way that they are decentralized this makes it a multiple man business.
There are various cryptocurrencies transaction going about every second and a certain group of people needs to verify the authenticity of this transaction to be added to the blockchain ledger, this group of people are called Miners.
In a centralized setting, a singular entity would be assigned to do this, but because cryptocurrencies are decentralized, just anyone with the right tools and software can get started in minutes, also note that mining cryptocurrencies come with a reward.
As the outcome of this work, the miners receive pay with cryptocurrency. This method is called mining as it allows new coins into circulation.
How To Start Mining Cryptocurrencies.
The main purpose behind mining is to be able to crack cryptographic codes and authorize the necessary transaction so that they can be added to the public blockchain ledger.
In this section, I am going to be spelling out steps to help you get started with mining cryptocurrencies.
1. Get Equipped With The Right Tools.
Your success as a cryptocurrency mining depends on how setup and equipped you are. Just before getting started with cryptocurrency mining, you need to get the right tools in place.
One of these tools include a powerful Computer to start with, also make sure this is your spare computer because mining will fry the chip of that computer, I recommend you get an extra computer for this.
You should not make use of your personal computer for mining purposes.
2. Own a Cryptocurrency Wallet.
Crypto wallets keep your private keys – the passwords that give you access to your cryptocurrencies – safe and accessible, allowing you to send and receive cryptocurrencies like Bitcoin and Ethereum.
They come in many designs, from hardware wallets like Ledger (which looks like a USB stick) to mobile apps, which makes using crypto as easy as shopping with a credit card online.
Unlike a normal wallet, which can hold actual cash, crypto wallets technically are designed to hold all your cryptocurrency assets.
Your holdings live on the blockchain, but can only be accessed using a private key. Your keys prove your ownership of your digital money and allow you to make transactions.
If you lose your private keys, you lose access to your money. This is why I recommend you keep all confidential details of your wallets as safe as possible.
The next tool you need is a cryptocurrency wallet, and you can set it up for free. A cryptocurrency wallet helps you get paid when you mine successfully.
If you don’t already own a cryptocurrency wallet, I recommend you get on on Binance.