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Cryptocoin Mining 101

What is cryptocoin mining?

The simple answer is, using your computing power to solve some calculations and earn coins.

The official answer is POW (proof of work), proof of work is a protocol that has the purpose of secure the transaction of that cryptocoin by attacking of hackers. Usually the POW is requirement some super computer to do it, but right now, all miners become a small part of that "super computer" and the first miner who solves the block will get the reward of that block. (One block contains a certain amount of coin).

However, you do not have to know all the logic in order to mine. All you need to know is use your equipment, which can be your computer or asic to mine. If you build it right, tune it good and mine the right cryptocoin. You will get profit.

What is the way to mine?

There is are mainly 3 ways to mine. CPU mining, GPU mining and ASIC (Application-specific integrated circuit) mining.

CPU mining, is using your CPU to mine.

Con:

  • If you have computer, you have CPU, then you can start to mine without any investment.
  • Still some CPU only coin or CPU advantage coin to mine, but not so many

Pro:

  • You most likely will not earn big money on it.
  • GPU and ASIC will outpower GPU in mining most likely.

GPU mining, is using your video card to mine. Many people will build the "GPU mining rig" -- Buy GPU here

Con:

Pro:

  • It takes time to build
  • Needs a lot of tune up (However, a lot of people enjoy doing it)

ASIC mining -- Buy ASIC here

Con:

  • Professional mining equipment, great ROI in most of time
  • Powerful hashrate, you will see the mining result immediately
  • Easy to start, almost no skill needed

Pro:

  • If the equipment has problem, must contact the manufacture to fix it
  • Zero resell value once the equipment is no long profitable

We will give more details in each of the mining methods when we have time. So stay tuned.

Happy mining.