How to mine XRP?
How to mine XRP?
Mining XRP has its own peculiarities making this currency particular. In fact the only individuals being able to generate it are its creators. Every coin being used for transaction is eliminated and can’t be reused in further trading operations. As a result, the only way to mine it – is to get any of other cryptocurrencies first and exchange them into desired one. Anyway, using XRP has lots of benefits due to its increasing stability and easy fast transactions for USD, EUR, GBP, INR or JPY. Also Ripple does not oppose Bitcoin but supports it instead. So there are few ways for how mining in general, but only two of them are applicable to XRP:
• Opening a wallet at reliable miner’s website
• Conduct exchange operations
• Use cloud mining services (except Ripple coins)
• Get started with mining pool (the same thing, not applicable for XRP)
Pick Your Mining Company
As cryptocurrencies stay at their peak, there are a lot of companies providing mining services for any type of coins. In such a variety investor should apply few helpful tips on picking his trusted provider.
First of all, you need to make sure the cloud mining service conducts transactions on XRP. In any other case it’s useless for chosen purpose. Secondly, the company should be well-known among market participants and have their actual feedback and lot of reviews.
Making a choice you should keep in mind another one peculiarity – Ripple is a centralized coins system, there is only one protocol being out of control of Ripple Labs (issuing company). For the very moment total existence of XRP coins amounts nearly 100 billion.
Chose A Mining Package
As it was said before, Ripple coins are not subject to mining processes, the only institution having issuing power is the Ripple Labs. In case of mining other coins, investor faces few issues, like:
• Choosing mining algorithm and machine with certain hashing power
• Keeping in mind set of goals and looking for the best way for its achievement in terms of available resources
• Paying different types of charges to the mining company
• Conducting an agreement for a fixed period of time and paying all charges mentioned above till it expires
Thereby, XRP gives fewer opportunities in mining, but owning this coin is still profitable, as its value grows continuously due to its scarcity in market.
Pick A Mining Pool
Using this investment tool in typical circumstances has a lot of advantages, as risk sharing and guarantied earning for each successfully done mining conducted by any participant, even for 1 block. It works by principle of distribution – even if you do not contribute in pool, you may get a reward as a part of someone else’s research.
The mining pool though has one disadvantage – each participant has to share his success with other ones. Such system may demotivate fortunate miners and gradually bring them to necessity of using their own software and get the whole pie.
In terms of XRP this method is not applicable due to impossibility of making coins for anyone except Ripple Labs participants. As a result, we bit by bit get closer to the last two reliable algorithms for earning XRP.
Select A Wallet
First of all, there are few different types of wallets, like:
• Hardware wallet. Allows the owner to conduct and monitor digital cash flow in real-time mode. The main advantage is its safety against fraudulent transactions.
• Mobile applications for iOS or Android. Their distinctive feature is quick access and availability wherever you can connect Internet. High level of security provided by developers makes these wallets reliable and convenient
• On-line wallets making possible trading or exchange in real time. Most of them are free or take a minimal fee for maintaining service.
• Paper wallets. As for now this type is known like the safest storage for any digital currency, including XRP. They allow generate public and private keys by means of special apps. These keys should be written on paper each time you want to open access to the funds.
While surfing internet potential investor may often see announcements offering to earn XRP in any way. It should be told that making such a deal you must first figure out the reliability of this new partner and study in detail all explicit and hidden conditions for agreement.
What if I want to mine with my own hardware?
In general this way of mining coins is relatively long, harder to start and is more expensive in the beginning, but also stays much more fruitful when all the processes are well streamlined. Another specialty of mining solo is the cost it takes for maintenance: the hardware needed to set up mining process requires enormous electricity supply and could exceed profits you receive. Also you should take into account cost of buying special mining rig, any possible risks and market trends before making final decision.
Please notice, this way is common for most of known digital currencies, but is not applicable for mining XRP.