How to start crypto mining
Today, almost everyone knows what cryptocurrency is. Some may have already tried to buy and sell coins, while others actively use crypto for business and other needs. But how many people know and understand crypto mining and how to do it right? This article explains how to start crypto mining at home and from your phone.
What is crypto mining?
Many cryptocurrencies are available in the market, each of which slightly differs in mining protocols. Cryptocurrency mining brings new coins into circulation and authenticates ongoing transactions.
Cryptocurrency mining was the first method that enabled cryptocurrencies to be decentralised. Crypto mining is the way that proof-of-work cryptocurrencies validate transactions and mint new coins without needing any governing bodies or financial institutions to confirm transactions.
Bitcoin was the first cryptocurrency that introduced how the proof-of-work model works. Miners checked transactions using computing devices to solve complex problems. The miner showed proof of doing work by providing correct answers. The first miner to provide the correct answer gets the right to confirm a block of a specific crypto transaction. After the block is confirmed, it's added to the cryptocurrency blockchain.
The miner also gets a reward for confirming the transaction. The rewards come from the cryptocurrency transaction fees and the newly-minted coins.
Types of cryptocurrency mining
Before we discuss how to start mining, let's consider the main types of cryptocurrency mining you can choose from.
- ASIC mining uses an application-specific integrated circuit (ASIC). This is an expensive type of crypto mining because it needs a specific device with the highest hash rate and more mining power.
- GPU mining uses one or two graphics cards. The advanced graphics processing units (GPUs) also provide considerable mining power, though at a higher up-front cost.
- CPU mining uses a computer's central processing unit (CPU). It's one of the most popular types of crypto mining. However, it doesn't have as much mining power as ASICs and GPUs. The profits from CPU mining are minimal.
- In mining pools, groups of miners work together to mine crypto and share block rewards. In pool mining, miners should pay a small percentage of block rewards as pool fees.
- Solo mining means mining on your own. If you choose this type of crypto mining, you should note it's harder to earn rewards this way. That's why many miners prefer mining pools.
- With cloud mining, you pay a company to mine cryptocurrency on your behalf using that company's mining devices.
What type of cryptocurrency mining is right for you? The answer to this question depends on what cryptocurrency you want to mine and how much you can invest. ASIC mining or GPU mining is especially popular with crypto miners.
How to mine crypto on your phone
Installing a mining application is the only way to start mining crypto on your phone. Usually, such apps put you in mining pools to begin mining in groups with others. Mining apps use your smartphone's hardware to mine cryptocurrency at a specific hash rate. After a certain time, a mining app lets you generate enough currency to convert into fiat money for a profit.
Finding a crypto mining app in Apple's App Store and Google Play Store is not that easy. Both platforms banned crypto-mining apps a while ago. The main reason is that mining apps put a lot of stress on a phone's processor, which can result in battery draining and lagging issues. You cannot download legal crypto mining apps from your smartphone's app store. If you don't want to take risks, you need to ask someone you know and trust to share a crypto-mining app.
After you get a mining app, you need to find a mining pool to join and start mining the given cryptocurrency. Be prepared to spend some time searching for the best options. However, once you choose one, you can get a tangible amount of the selected cryptocurrency, which you can then trade for fiat money through the crypto-mining mobile app.
How to start crypto mining at home
To start crypto mining at home, you don't need to own a nuclear power plant. Over a decade ago, it was incredibly easy to mine Bitcoin from home by simply using a few gaming computers. Bitcoin was the first globally accessible cryptocurrency to popularise mining as a process of using computational power to generate a hash (winning code) before other miners were selected to add a new block to the blockchain. In exchange for the efforts applied, each successful miner is rewarded with newly minted cryptocurrency and the fees attached to the transactions they include in the new block. This is how the proof-of-work blockchain validation system works.
So, let's see how to start crypto mining at home. There are several options for you to choose from. These include:
- Mining altcoins. There are many altcoins that you can mine at home using a decent home computer or a laptop. For example, you can mine Dogecoin (DOGE), Monero (XMR), Ravencoin (RVN), Litecoin (LTC), Ethereum Classic (ETC), Zcash (ZEC), Dash (DASH) and more. Bear in mind that you will need more computing power to mine some of these alt coins than others. You should also check out the electricity costs to ensure it's worthwhile and profitable to mine at home.
- Mining pools. These are groups of miners who combine their computing power (hash power) to increase the chances of their group solving the proof-of-work puzzle and receiving the reward. After the group gets a reward, it is distributed among all mining pool members.
- Mining apps. There are dozens of mining apps available, allowing you to mine cryptocurrency on your phone. One of them is XCOEX, which we discuss below.
How to start crypto mining with XCOEX
XCOEX is a fairly new exchange platform that launched in the UK in 2017. It provides a cryptocurrency wallet that you can install on your smartphone.
Before we discuss how to start crypto mining with this software, let's see what the acronym means.
- X stands for a cryptocurrency asset
- CO stands for icon
- EX - for exchange
The XCOEX exchange is aimed at newer users, though experienced traders will also enjoy its simplified, intuitive and sleek interface. It provides enough trading tools to be able to do serious trading regardless of your experience in the cryptocurrency field. You just need to take 5 simple steps to start crypto mining with XCOEX. Let's check them out.
First, create a free account using just your e-mail address on the XCOEX website or mobile app.
Next, you'll be asked to verify your identity before trading. To complete the verification, you'll need to record and upload a short video to the platform. Once confirmed, you'll receive an e-mail notification.
After verification is successfully completed, you can start trading. To begin with, you'll need to deposit money into your account using your credit/debit card. You can transfer cryptocurrency if you have crypto assets in another wallet or exchange.
Alt3= "XCOEX deposit money"
The XCOEX website and mobile app let you buy and sell crypto assets and get fiat money. You can also exchange one cryptocurrency asset for another by choosing a preferable pair and the number of assets you want to exchange.
You can withdraw fiat money whenever you wish by sending it to your credit/debit card or bank account. To do it, the XCOEX website and mobile app provide the "Withdraw funds" feature.
How much money can you make mining crypto
Let's wrap up our discussion of how much money you can make mining crypto with the calculation of the income you can generate with Bitcoin mining. The truth is that the rewards for Bitcoin mining are reduced by half every four years. In 2009, mining one block would earn you 50 BTC. In 2012, this number halved to 25 BTC. In 2016, the rewards dropped to 12.5 BTC. In 2020, the rewards for Bitcoin mining halved once again to 6.25 BTC.
coin. If you use an AntMiner S19 Pro for Bitcoin mining, your average daily profit is projected to be about $17.79.
Because cryptocurrency prices are so volatile, it's impossible to guarantee that you'll be able to make back the money you invested in the mining equipment. Volatile networks determine how difficult it is to mine cryptocurrency, especially considering the bearish trend of most crypto assets we've analysed recently and Bitcoin's price drop, in particular.