The crypto industry is vast, diverse and new and there are plenty of things that you can do, depending on your imagination, skills and amount of effort you are willing to put into it. Together with the development of this industry, new jobs have appeared and those who spent enough time to understand how things work have gotten rich in the past few years. There is a need for experts in the crypto field when it comes to marketing, PR, developers, advisors, and so on. However, I will focus on the most popular ways to make profit in the crypto industry, and I will start with the most popular one: mining.
What is cryptocurrency mining and how does it work?
Cryptocurrency mining, or cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. Also known as cryptocoin mining, altcoin mining or Bitcoin mining (from the first coin, and the most popular one to this day, Bitcoin), cryptocurrency mining has become popular in the past years, but its difficulty increased, miners ending up buying power stations to make a big profit.
Because crypto industry is a decentralized market, all transactions are made through a cryptocurrency miner, that is responsible for ensuring the authenticity of information and updates the blockchain with the transaction. Another thing about crypto mining is that it involves competing with other cryptominers to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data. The first crypto miner that cracks the code is rewarded by being able to authorize the transaction with small amounts of the cryptocurrency they choose to mine.
If you want to mine, you need advanced hardware and video cards, usually, this being the reason why video gamers complain that the video cards price has tripled in the past months. However, if you do not own professional hardware, there is always the option of cloud mining.
Not all cryptocurrencies can be mined. Some cryptocurrencies are not coins, but tokens with the sole function to power an ecosystem or a project, and thus, they cannot be mined. Bitcoin, Ethereum and Monero are the most popular options for cryptocurrency miners.
After you have purchased the hardware you need for your Ethereum mining rig, you need to configure the software side as well. One of the best options for mining software is Claymore. You can also find more about this on a dedicated thread on BitcoinTalk and download the latest version. After downloading the latest version of Claymore, you will have to unzip this file somewhere accessible on your PC. I choose a dedicated folder for this. Once again, in order to mine, you need high-end graphic cards, like the RX 470, 480 or 580 with at least 2 GB RAM, as well as the top-of-the-line cards from nVidia.
Before you can set up Claymore, you need to choose an Ethereum mining pool. Of course, you can choose to solo mine, but it is complicated and not recommended. After trying multiple mining pools, the one that I recommend from my experience is Ethermine. On their website, they write that Ethermine is the high performance Ethereum Mining Pool with instant payouts as soon as you reach your configured payment threshold. It is easy to use after you have correctly configured it.
Before you set-up Claymore, you need to make an Ethereum wallet, and you can easily do that by going on MyEtherWallet (MEW). It’s free, but you have to enter a strong password, note it on a piece of paper, print your Private Key and save your Keystone. Put the private key and password somewhere safe and save your wallet address. You will need to return to the folder that you extracted earlier, and search for start.bat, right click on it and choose “edit”. You will now edit a batch file, which is basically a script that Windows can run. You are telling command prompt to use a program, and the parameters that program can use. On Ethermine, you can find the details you need to insert there: the miner, the pool, the port and insert your MEW. You can also insert options for dual mine, because Ethereum uses the actual memory chips of the graphic cards and other coins use the core, the actual processing power of the cards, so you can run both of them in the same time. You can basically delete everything in your batch file, and replace them with the template provided from Ethermine:
EthDcrMiner64.exe -epool eu1.ethermine.org:4444 -ewal <Your_Ethereum_Address>.<RigName> -epsw x
Select a server that is physically near to you to reduce ping. You can change it later by simply replacing that part of the URL in the start.bat file. Replace <your_Ethereum_Address> with your actual Ethereum address (the one starting with 0x…). Replace <RigName> with any nickname you want to give your rig, and leave a period in between Ethereum address and the rig name. After you are done changing the details, save the changes and unless you want to dual-mine a different coin, which brings a bit more work to setup Claymore to do it, you are done seting a basic Ethereum pool mining.
After you feel comfortable with Claymore, you can read the “Readme!!!” text file, where you can find parameters to customize how your mining rig mines. To start mining, all you have to do is run your batch file, load up your Ethereum address at the website of the pool of your choice and watch as you slowly start to earn Ethereum. If you have problems with its configuration, there are crypto communities dedicated to mining all over Telegram, you could find one from your country, join it and ask for guidance.
We have decided to make a series of articles about Cryptocurrency and Blockchain for beginners. Stay tuned for more!
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A guide for beginners in cryptocurrency – Part I