How to mine Ethereum — A beginners guide.
Ethereum is one of the most prominent cryptocurrencies in the crypto market. The Ethereum blockchain allows thousands of developers all over the world to build decentralized applications.
Imagine it like a decentralized app store. There are gaming apps, finance apps, NFTS, etc. However, the Ethereum blockchain is far more extensive than that. There is so much that you can do with Ethereum and the blockchain that we had to write about it.
Today’s article is going to be focused on crypto mining. We are going to discuss what it is and how it works.
What is Crypto mining?
Crypto mining is the process where new cryptocurrencies are discovered and transactions are verified on the blockchain. When someone buys or sells crypto, crypto miners have to validate the transaction for it to be approved or completed. When a transaction is validated, it’s added to a block on the blockchain.
Miners are at the heart of the blockchain network. They facilitate and interact with the blockchain in a Proof of Work system.
Miners are responsible for uncovering new Ether and adding them to the coins in circulation. In traditional governmental systems, a central bank would provide, monitor, and supervise the currency in circulation in the country. Decentralized systems use consensus mechanisms that guide how coins are found and how transactions can be validated on the network.
How does Ethereum mining work?
For now, Ethereum works with the Proof of Work consensus algorithm. The consensus uses miners to keep records of activities on the blockchain. Cryptocurrencies such as Ether are given to these miners as a reward for their efforts on the blockchain. The more crypto is mined, the more complex the process becomes.
Four things you need to mine Ethereum
Free mining software: There are free mining softwares. These softwares also specify what cryptocurrencies you can mine with them. Softwares such as Ethermine, Cudomine etc can be used to mine Ether.
Membership in an online crypto exchange: This is crucial because you need a platform where you can exchange your cryptocurrency for fiat money or vice versa. You can create an account with ValorExchange and enjoy exchanging your Pesos, Yen, etc for crypto currencies like Ether, Bitcoin and USDT. The process is as easy as snapping a finger.
A cryptocurrency wallet: Where else would you keep your cryptocurrencies?
A mining pool: Mining pools are groups of miners who pool their resources and mine cryptocurrencies. The profits are then split between members of the pool. Members usually pay a membership fee to cover some additional costs.
Benefits of mining Ether
Ethereum mining has some significant advantages.
There are no counterfeits: You are more likely to experience counterfeit fiat currencies than fake Ether. This is because the blockchain holds a record of all cryptocurrencies in circulation
It is accessible to everyone: Anyone can mine for crypto; they need the time and the financial capability. It is not a cheap nor an easy process and would require some technical know-how.
This is one amongst our beginners guides that we can’t wait to share with you. There’s a place where you can get the latest crypto information, news, tools and many more all for free. We know because we provide them all for free on our Telegram community. If you want to know more about how you can get more value for your crypto then join us.