Starting to mine your own cryptocurrency is on the surface quite simple as it only takes a computer, internet and a mining software to begin doing so. If you dig a little deeper however, you will find out that it is not anywhere near easy to mine coins, as they are using sophisticated algorithms for the coins mining process, which makes it harder and harder to mine coins the more that has already been mined.
While we are not experts in mining ourself, we do understand the process of optimizing the mining procedure and make it a little more worth your time than it otherwise would be. There are different aspects to take into consideration before mining, the main one being that your electricity bill may increase a lot while mining.
Mining is a long term investment and can pay of quite well if you do it right, but first you need to look at some of the things you should consider before starting to mine:
First thing to do is to find the mining software for the cryptocurrency you want to mine. Most cryptocurrencies will only have one mining client, which is part of the wallet where you can hold the coins, while the big ones like Bitcoin may have different clients to mine through. So once you have found out which mining client you want to use, you will need to register your details with the client and synchronize with the network. This may take everything from a few minutes and up to several hours, all depending on the amount of blocks that the system have calculate before you are completely synchronized.
From there you have to go to the mining part of the software and enter the values you wish to mine for. If you don’t know what to enter, then you can simply use the default settings and start mining that way. Last thing to do is to press the start mining button and you are mining for coins. The result however will vary a lot based on the mining hardware you are using and if you are part of a mining pool or not. You can read more about that later on in this article.
The next thing you need to focus on is the hardware which you are using to mine the cryptocurrency with. Using a regular computer’s CPU to mine with will work, but it is nowhere near as effective as if you decide to buy equipment that is made to help you mine coins faster.
So if you are serious about your mining, you will need to go out and invest in specific mining hardware in other for you to be able to compete with other miners and eventually score a large amount of coins for your efforts. There are several sites that specializes in the mining hardware for cryptocurrencies, who can show you exactly what performance you will get out of buying specific hardware for your computer. What you will need to look for is how many millions of hashes it will do per second and how much electricity it will be using, so you can calculate the costs contra profit from your mining.
The best mining hardware is currently ASIC, which can provide you with up to 1,000 more hashes per second than any other type of equipment. The hashes is what will release blocks that you can mine and is the most difficult part of the mining. Therefore the more hashes your equipment can go through, the higher is your chances of actually getting any blocks to mine and thus get coins.
The last thing you should know before you start to mine is the importance of joining a mining pool. Mining alone can be done, but it will not reward you the same way as if you join a mining pool as you will be mining together. Mining pools rewards smaller amount of coins at a time than if you would mine on your own, but you will get coins on a regular level compared to when you mine alone, making it more profitable for most miners.
You can find several different mining pool sites online, where some have high requirements to the miners they accept into their pools, while other mining pools are for everybody. Furthermore by joining a pool the algorithms you have to solve will be easier and smaller, which is ideal for you as a new miner until you understand the entire process and have upgraded your equipment.