Although many cryptocurrency users acquire their coins on an exchange, where they can be purchased for fiat currency or another cryptocurrency, mining is a second option to gain cryptocurrencies. This page will briefly describe what mining is and how it works, and also present a few additional resources where users can learn more.
What is mining?
Miners are cryptocurrency users who allow the network to use some of their personal processing power, so that the transactions on the cryptocurrency blockchain can be processed and secured. Their processing power thus helps resolve complex mathematical problems and maintain the network’s security. In return, these users gain compensation; the exact amount of coins gained per block secured can vary from currency to currency.
How to mine cryptocurrencies
In order to mine cryptocurrencies, users will most likely need to download a specific mining application; this application will vary depending on the currency the user wants to mine. In regard to most currencies, which use a so-called “proof-of-work” system for mining, a user must have significant technological equipment at his disposal, since the greater the computing power, the better his chances to be the first to create successful block. Some currencies, however, such as OmiseGo, have a different mining or “harvesting” system, whereby users are simply rewarded proportionate to the stake they have in the system.
Since mining most cryptocurrencies requires an up-to-date and technologically advanced computing system, this website offers the tools to accomplish this. It specializes particularly in “bundles”, consisting of a motherboard, CPU, media drive, etc, ready set up to support a number of GPUs simultaneously. GPUs (Graphics Processing Units) tend to be more powerful than CPUs (Central Processing Units), and for this reason, they are more and more being used for cryptocurrency mining.
Go to gpuShack
Because most cryptocurrency mining requires advanced technological tools, it has become very expensive to do this alone. This is why mining pools such as Cryptomining Farm have come into play; in this way, users can combine their resources and mine together. Cryptomining Farm is also a cloud mining pool, which means the users do not have to put their physical resources at the system’s disposal; instead, they invest a sum of money, which is used to access processing power for mining, and then share in the reward in the form of cryptocurrency coin.
Go to CRYPTOMININGFARM
Whereas many mining tools (or mining pools) only enable users to focus on one particular cryptocurrency, MultiMiner makes it easier for users to mine different currencies at once. In this way, they only require one application to mine, which streamlines the process. MultiMiner allows mining for Bitcoin and Litecoin, and also automatically detects the system components (such as CPU, GPU…) that can be used for this.
Go to MultiMiner
MacMiner is another mining application that allows for the mining of many different cryptocurrencies at once – from major currencies such as Bitcoin to more recent additions like Dogecoin, Darkcoin, and so on. Additionally, it is optimized for Mac users, who can use multiple popular Mac mining applications such as cgminer, bfgminer and others using one tool.