Mining 101

Cryptocurrencies have to be mined by users using a mining program which solves sophisticated algorithms in order release blocks of coins that can go into circulation. This is the basics while PoW would be an added feature in the currency. This is part that makes the cryptocurrencies unique, as there is nobody who can simply press a button and get unlimited coins. Everybody can compete equally while mining coins, by buying the same equipment as one another. The different cryptocurrencies use different types of algorithms for the blocks to be released, but in general it is not something that you should be using your computer to do as it takes specific equipment to mine and it will provide you with a huge electricity bill compared to the profits you will be able to make from it. It is also worth noting that the more coins that has been mined from a cryptocurrency, the more difficult it gets to release new blocks and thus get new coins. The algorithms have been made this way, to ensure that all the coins would not be mined instantly and leave room for the currency to stabilize and not be over populated from the beginning, thus not having any significant value for anyone besides the miners. Please be aware that it is currently quite difficult to mine coins for a profit, as equipment, electricity and so on will cost you more than to simply buy a Bitcoin or similar. Instead we suggest that you have a look at different cryptocurrency exchange sites, where you can buy cryptocurrencies easily with your money and save the hassle of having to mine.
Mining – The act of contributing processing power to a blockchain network to help determine the next block. Incentivized by the chain providing a reward for doing so.

Hashrate – Hashrate is the speed at which a block is discovered and the rate at which the related math problem is solved. Certain tools have been created to allow for higher hashrates.

Block Height – Block height is the number of blocks preceding the genesis block (first block) on the chain. A genesis block will always have a height of zero because nothing precedes it. It’s a metric used to create a bearing on time in the programming world as well as a few other functions such as maintaining counter-party and betting in the crypto world.

Block Reward – Block reward is the reward allotted for hashing, or solving the mathematical equation related to a block.

ASIC Miner – ASIC mining is a crafty method of mining various coins at a much faster rate than any normal desktop or laptop might allow. Essentially what an ASIC, or Application Specific Integrated Circuit is, is a chip specifically created to execute one task. Enter ASIC mining. An example of one such model is an ASIC miner created to ONLY process SHA-256, which is the problem offered by the Bitcoin blockchain to mine new coins. There are also ASIC’s for scrypt which specifically solves the mathematical code in relation to altcoins such as Litecoin. Though, in recent years there has been a good amount of dialogue surrounding the longevity of mining this way and we’ve even seen coins making it so that it’s impossible to mine with an ASIC. 

Mining Pools
The last thing you should know before you start to mine is the importance of joining a mining pool. Mining alone can be done, but it will not reward you the same way as if you join a mining pool as you will be mining together. Mining pools rewards smaller amount of coins at a time than if you would mine on your own, but you will get coins on a regular level compared to when you mine alone, making it more profitable for most miners. You can find several different mining pool sites online, where some have high requirements to the miners they accept into their pools, while other mining pools are for everybody. Furthermore, by joining a pool the algorithms you have to solve will be easier and smaller, which is ideal for you as a new miner until you understand the entire process and have upgraded your equipment.

The quick-guide to mining
What you will need:
• An address which fits the coin you want to mine
• A mining pool
• Mining software
Currently the most effective way to mine is using GPUs, you can start right now by using MinerGate isn’t recommended if you plan to have dedicated mining rigs. If, however, you wish to mine on an existing computer as a hobby, or out of interest, it’s perfect. While it does take a fee from your mining, it’s GUI is quick and simple to use and once install you can be mining instantaneously. It also has some challenges that encourage you to mine, and if you’re an absolute beginner, then the simplicity of this software will have you jumping for joy. However, if you really want to get into mining rigs, you’ll need to do a lot of research yourself since this information is ever changing.

You can view some of the most profitable coins to mine right now here:
Ethereum is currently trending in the mining-world so the following list is mining pools for Ethereum. – 0.8% fees. Payouts released 2 times a day for balances higher than 0.5 ETH – 2% fees. Payouts released 4-6 times a day for balances higher than 1 ETH. – 0% fees. Payouts released every 24 hours for balances higher than 1 ETH. – Predictable Solo Mining pool. 0% fees. Payouts after 10 confirmations. – PPLNS 1% fees. Payouts released 2 times a day for balances higher than 0.1 ETH. – 0% fees. Payout every 30 minutes for balances over 0.2ETH.