What Is Crypto Mining?

If hearing the words Bitcoin, Bit mine, crypto mining rig, or crypto mining sites renders images of gold mining in Africa, think again. These terms actually point to the broader topic of Crypto Mining. In this article, our team at Easy Earned Money unpacks this popular, and profitable venture. 

Definitions that Answer the Question: What Is Crypto Mining?

Investopedia states, “Mining” is a metaphor for the computational work that nodes in the network undertake in hopes of earning new tokens. In reality, miners are essentially getting paid for their work as auditors. They are doing the work of verifying the legitimacy of Bitcoin transactions.”

Does this definition provide clarity for you? If you’re shaking your head, we’re nodding with our belief that it wouldn’t. With this, here’s another definition.

Webopedia reveals, “Cryptocurrency mining, or crypto mining, is the method of verifying transactions on a digital ledger for a blockchain using machines with extensive computing power. Cryptocurrency mining is the process where specialized computers , also known as nodes or mining rigs, validate blockchain transactions for a specific crypto coin and, in turn, receive a mining reward for their computational effort.” 

Let’s Make Crypto Mining More Simple For You

Now, let’s divulge a more simple, and appropriate definition. After all, at Easy Earned Money we’re in the game of making you understand concepts and aim to break down financial and business opportunities so that they can mean something to you.

“Cryptocurrency mining is the process where specialized computers, also known as nodes or mining rigs, validate blockchain transactions for a specific crypto coin and, in turn, receive a mining reward for their computational effort,” explains Webopedia

As you can see, crypto mining is more than just a way to make and create new coins. It’s more than just mining digital currency. It also includes validating cryptocurrency transactions on a blockchain network and adding them to a distributed ledger . With this, it prevents the double-spending of digital currency on a distributed network

Need More Clarity? Think Physical Currency!

Think of physical currencies. You spend using physical cash. The same can be said about spending cryptocurrency. With every spend, a digital ledger must be updated by debiting an account and crediting another. In all of this, crypto mining aims to use cryptocurrency while securing a network from double-spending. Then new coins are generated to reward miners for their work in securing the network. 

With this, crypto mining is all about validating transactions. And to do this, miners – potentially you – are needed to secure the network. What does crypto mining now mean for you? Well, you as the miner would be incentivized by participating in the transaction validation process and this also increases your chances of winning newly minted coins. And this means financial rewards.

One Question Down, More Questions To Go

Now with an understanding of crypto mining, those looking for profitable ventures in crypto need ask the following questions: 

It’s one thing to understand something, but if you’re in the game of money-making, it’s about applying that understanding to yourself as an individual. To apply this, you need to understand how to make money through crypto mining, what the best approach is, and what is the profit potential. Being complex questions, the latter requires more articles to render sufficient clarity. 

For now, it’s about understanding what crypto mining is, seeking to become a miner and then following this brief step-by-step recommendation

  1. Step 1: Get the Best Bitcoin Mining Hardware. …
  2. Step 2: Join A Mining Pool. …
  3. Step 3: Download Free Bitcoin Mining Software. …
  4. Step 4: Create A Bitcoin Wallet. …
  5. Step 5: Start Mining. …

Should you follow these steps and become a miner, you will be in line for block rewards as well as transaction fees and user fees paid to you for the safe and secure recording of transactions on the blockchain. Then, of course, there’s the revenue for selling actual crypto coins!  

If You’re Wanting To Dig for this Digital Gold, you Need the Right Approach

As a proven approach, crypto mining and investing as a miner can make a profit if done right. As business2community states, “With the right approach and setup, either by joining a mining pool as discussed above or using a cloud mining service, it is still possible to make a profit.” 

Freeman Law continues in the same light, “For aspiring crypto miners, curiosity and a strong desire to learn are simply a must. The crypto mining space is constantly changing as new technologies emerge. The professional miners who receive the best rewards are constantly studying the space and optimizing their mining strategies to improve their performance.”

Read the blog? Your Next Step As The Reader…

Should you want to hear more about crypto mining and cryptocurrency opportunities, let us know by commenting in the comment section below. We’d love to hear what you thought of this blog as well!

  • Want to read about other savings, investment, finance, and relatable topics, news, advice, or information? Comment below! 
  • If you’re a finance expert or a leading professional in any of the industries we focus on and would like to be featured in our blogs, email us now at [email protected]! 
  • If you would like to advertise on our popular site, contact us by clicking here !

Credible Sources: 

  1. https://freemanlaw.com/mining-explained-a-detailed-guide-on-how-cryptocurrency-mining-works/
  2. https://www.investopedia.com/tech/how-does-bitcoin-mining-work/
  3. https://www.webopedia.com/definitions/cryptocurrency-mining/
  4. https://www.business2community.com/crypto-news/6-basic-steps-to-get-started-mining-bitcoin-and-make-money-02309931

Source: https://www.easyearnedmoney.com/what-is-crypto-mining/