The development of cryptocurrencies has led to changes in the world. Before 2009 no one could even imagine that you can receive profit for solving certain algorithms. People were used to ordinary currency which you can hold in your hands. But cryptocurrency is completely different. In order to achieve a crypto coin, you need to find a block within a chain and to solve this block. Blocks are solved by specific machines called ASICs.
This process is called mining. Blocks are recent transactions, whenever someone finds this block and solves it using mining rigs, he receives a specified amount of cryptocurrency. If you are mining such currency as ZCash
, you receive 10 ZEC per solved block.
Everything seems simple – you need to purchase a specific machine, to set it up, and it will solve blocks. This means that the machine owner will receive money each time his hardware solves a block. But we don’t live in a perfect world where everything is simple. Mining is sometimes difficult, the market is not that stable as everyone has expected, etc. In order to protect your investments, you can use the best methods to mine cryptocurrency.
It is obvious that you can receive additional profit for mining coins. But there are different ways of mining and before you build a career of cryptominer, you need to find out everything about this process. In this article, we will explain how does mining works, what are the methods of mining it, etc.
Pick Your Mining Company
To begin with, you might want to choose a cloud service instead of solo mining. Why is it beneficial? Although ZCash does not require specific ASIC-miner, it needs a powerful GPU. If your computer has a standard GPU, you might face some difficulties in mining coins.
It might take too much time to earn ZCash, and you will have to pay for electricity. Such a way of mining can damage your computer and you will either be forced to buy a new one or repair the current one. But if you choose a mining company, you only pay for hashing power and the number of coins which is included in the package you purchase.
It might be considered as an investment, rather than mining process. Before registering an account and buying a package, you need to make sure that you pay only for hashing power and coins. Some companies include the price for electricity and hardware repairing. Make sure that you only pay for mining process, if not, chose another company.
Choose A Mining Package
There are several types of cryptocurrency, you need to choose ZCash. Then you’ll be offered to pick hashing power. Hashing power is the ability of a machine to solve some algorithms. For example, mining rig finds a block, it needs to solve it in order to convert it into 10 ZEC. If the machine has more than average hashing power, it’ll take less time to solve the block. But if the hashing power is low, it can take a long time before solving the block.
Basically, you pay for the speed with which you’ll receive your ZCash. If you are a beginner, it might be a good idea to buy a pack with less hashing power in order to find out whether this coin fits your needs.
Pick A Mining Pool
Mining pool is a safe way to make money. There is a restricted number of ZCash. Whenever a block appears, someone can find and solve it. ZCash appears every 2.5 minutes as opposed to 10 minutes for Bitcoin. There is a chance that you might find this block and solve it first, but the chance is not high enough.
Imagine a situation where 1000 miners are working together. Each time someone finds and solves a block, the revenue is spread between the participants. The chances to find several blocks are higher, when you work together. When you work alone, you collect all the revenue, but it is difficult to tell, with what frequency you’ll be solving blocks. While a group can receive less profit, but everyone will receive it frequently.
The process of mining resembles a lottery when there is a fixed number of tickets. If there are 1000 of tickets and you purchase 1, the chances of winning a lottery are low. But if 100 people decide to buy 1 ticket each and to share a total price, the chances of winning are higher.
Before joining a mining pool, make sure that it contains more people. Of course, you’ll get less profit, but with higher frequency. Pay attention to minimum payout. If it is low, then you’ll be able to withdraw money sooner.
Select A Wallet
In order to successfully withdraw and store your ZCash, you need your own e-wallet. It has to be secure so that hackers won’t steal your money. The process of picking a wallet is relatively simple, just check the current rankings. If the service has a good reputation, you can register an account.
What if I want to mine with my own hardware?
As it was mentioned above, you need to bear in mind electricity bills. If you have cheap electricity, then mining solo can be a good idea. But even though you don’t need to purchase hardware since a simple GPU can be used for mining, your PC will produce noise. It can also overheat in the process, and it can damage your computer.
Before you start investing your money, analyze the current situation on the market. It’s always a good idea, especially if you are not willing to lose money.