Crypto Mining For Dummies - What Is Crypto Mining?

Crypto Mining For Dummies – What is Crypto Mining?

Crypto Swami crypto mining review video. In today’s video we are going to be talking about ‘how to crypto mine’ and cryptocurrency mining in detail. What is crypto mining? We’re giving you an overview on it.  How do crypto mining rigs work?

How to crypto mining calculator profits, as well as giving you my opinion on the ethereum 2.0 as well as the EIP-1599.

There will be a lot of crypto mining information in this video.

I hope you guys enjoy this bitcoin mining video and you get something useful out of it in this video. We do have a lot to talk about and explain but the first thing we should cover is crypto currencies if you are new to bitcoin mining I would assume you’re fairly new to crypto technology in general.

What is cryptocurrency? Cryptocurrency is a digital asset just like your digital dollar assets, except that it runs on the blockchain. lt does not have a bank or any central entity that controls it hence why it’s called decentralized.

  One the main pros of cryptocurrency is there are many cryptocurrencies that are newly released on the blockchain, but generally as a crypto miner we only focus on the profitable ones. You keep your cryptos in a wallet that is made  of a public and a private key imagine your public key to be your email address and your private key is your password to receive or send money you will be using the public address.

Now that means if you lose your money or send it to the wrong address you don’t have a way back as for anonymity cryptocurrency is fairly anonymous but not hard to track down the source of the transaction and the  receiver there are some cryptocurrencies intended for further privacy, and such but to achieve nearly as full anonymity as possible you will definitely need to do more work. There are bitcoin ATMs and one of the main things that you should know is how to buy bitcoin cryptocurrency and how to sell your bitcoin cryptocurrency, there are different regulations for every country. We have made a crypto news video reviews on both of  these topics as well as on different bitcoin wallets and crypto exchanges.

Now let’s talk about cryptocurrency mining,  cryptocurrency mining is the process of validating transactions and minting new coins from the block chain. Lets further explain what is block chain technology.  The two different ways to mine cryptos 1) proof of work and the other is proof of stake. Proof of work is what all the different crypto mining hardware falls under; such as gpu rigs, a6 fpgas, etc. The  mining hardware solves randomly generated complex puzzles using electricity and computational power and then you’ll get compensated once you find the right solution while proof of stake which is like being a crypto shareholder.

So it’s owning a certain number of certain cryptocurrency,  to then be able to launch a node and that will be validating transactions and minting new coins out  of the blocks usually these nodes need a minimum number of coins to create one in some scenarios.  Your coins are locked out and you can’t move them around, but there’s also soft staking which is more flexible fpc needs to be on 24/ 7 to keep your node online but it can be any pc as long as it’s up 24 / 7 with a stable internet connection there is more to staking than what we’ve mentioned.

Proof of work has much more to it there are many different algorithms that cryptocurrencies fall under algorithms are basically different arenas of puzzles, so some crypto mining software can excel better at certain coins with certain algorithms more than other coins the measurement for your mining power. Hash rate is considered the solution attempt to the puzzle; so if your Hash rate is 30 mega hash then you’re doing 30 million solution attempts a second there is a lot more complexity to it regarding to solving the block.

There are  different types of mining rigs so let’s go ahead and go through these different types of mining rigs and explain them briefly. First we have the a6, a6 are known as application specific integrated circuits; they are mostly used to mine certain alt coins with a high output of computational power. High electric consumption now by mining a specific coin we mean that if you buy for example  an s19 it provides a computational power of 110 terahash and consumes 3 250 watts but it can only mine coins that use the shot 256 algorithm such as bitcoin with such immense hash rate your profits will still seem low due to the network difficulty which we will explain later on in the section for  what impacts your mining profits.

Then the second type of mining rates we have the fp gas,  fp gas are basically what’s in between the a6 and the gpu miners so they’re made for a handful of  algorithms they can’t mine every coin but some of them can and they’re very similar to gpus but they  are more efficient and more profitable to some extent but they can also get very very expensive.  I myself have no experience at all with any fpgas so one day we will probably do a crypto news video covering them in detail.

Then the third thing we have are the gpu miners, and that’s what this video is primarily about so in gpu mining use graphic cards to be able to get more  computational power so the more and better gpus that you have the more mining power you have and this option is the most residential friendly because asic miners do produce a lot of heat  and noise while fpga miners are very similar to gpu miners so these two options are residential  friendly

In a way I have recently released a full buying guide for gpu mining rigs the link  will be in the descriptions below and we also had a giveaway in that video and the winners of that  giveaway will be selected in this video.

There are different type of mining such as usb mining cpu mining as well as storage mining where you can mine with your hard drive but all of these would  probably require their own individual video, since there is a lot of information to cover on them so  hopefully in the near future. We will have a crypto news video on every type of mining rig. So that you can get more information regarding to these topics now that we wrapped up the different type of mining rigs we can go ahead and move on to the different type of mining services. For mining services we mean by that is cloud mining hosting, as well as gpu rental or buying pre-built rigs.

So  we’re just going to give you my opinion on them this is not a financial advice. These bitcoin mining cloud platforms and maybe you can benefit from. So the first thing we want to start off with is cloud mining. Cloud mining for the most part is usually unreliable there are many scenarios that  people get handed the bad end of a stick in cloud mining since your money is going to a third-party  services.

That should be giving you hash power in return but you never know when these services will close on you, or leave there’s a lot of ones that are scammy. So they would take your money and promise you a certain return such as 10 a month or such, but then you’ll never get your money back.

  You’re probably going to be asked to pay more to be able to withdraw your funds and then you’ll never be able to withdraw them either way. Whether you pay or not so just be careful with these services. For cloud mining most of them are scams! We honestly wouldn’t use a service for cloud mining,  it’s better to just build your own rig.

There’s also bitcoin hosting can be useful if your electricity is very expensive, so for example We’ve seen a lot of comments from Germany, and they’re all talk about how expensive the electricity. Which is insane it’s about 25 cents, and above so in that case mining cryptocurrency can be a little bit tough for you.

If you have to pay the  electricity bill it can get really hefty so what you’ll need to look for is somebody credible or  somebody that you trust that can host for you and what that means is that you’ll basically  have your rigs run at someone’s else’s place so if you know somebody for example in US or Canada.

  They have fairly decent electric price you can have your rig built there by the person or ship them, the rig whichever way is comfortable for you and then from there you’ll have your rig running there by covering your own electricity costs. As well as giving the person that’s hosting.

Seaswami LLC found this on YouTube

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