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Decryption of currency mining and how to profit from it

 Decryption of currency mining,The American economist Henry Mankiw defined money as everything that people recognize as a means of payment, as currently the society regarding cryptocurrency is divided into two parts.


 The first section recognizes them, considers them money and actively uses them, while the other section eagerly awaits (more than 10 years) the explosion of the “economic bubble”.


Decryption of currency mining

Some countries consider cryptocurrencies, especially Bitcoin, to be used for illegal transactions, including terrorist financing, while others have recognized them as a legal means of payment, even going further and starting to mine and store them for the long term to get rid of local currency inflation and dependence on the dollar.


People who have never dealt with cryptocurrencies consider it not to be money that cannot be touched or put in a wallet, but they forget that the currency in circulation also exists electronically.


 For example, PayPal, perfect money, or even credit cards, all have a digital currency through which you can buy anything digitally without resorting to the base currency, but there is little dispute that this type of financial transaction is regulated by the state, while cryptocurrencies are decentralized and can be printed by anyone.


After the launch of digital currencies, a new term emerged in the money market: cryptocurrency mining, the main driver of its existence and movement among people (not for all currencies), but what is mining, How does it work, how can it profit from it and many other questions that we will answer in this article.


How does cryptocurrency mining work in simple language?

Simply put, ” mining” is helping to solve a very complex mathematical equation that is created when someone sends a certain amount to someone else, and the more you participate in solving this equation the more Commission you get (in the form of a cryptocurrency of the same type).


Various types of devices are used to solve these equations including screen cards, processors, hardware for mining and many other things.


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Bitcoin mining

11 years ago, in 2009 (the year bitcoin appeared), it was easy to mine using only a dual-core processor.


 But its founder, Satoshi Nakamoto, introduced a mathematical equation whose task is to increase the difficulty of mining after the decryption of 2016 block, so over time mining becomes harder and harder and requires stronger resources, as it is now impossible to mine bitcoin on screen cards or processors but special devices with high capabilities must be used.

mining bitcoin, how is Bitcoin mined

The more people who mine the same coin the more difficult it is to mine and the less the commission on it, so whoever mined bitcoin 9 years ago was getting 1 Bitcoin almost every hour using a simple processor, but now to get 1 bitcoin you have to own a huge farm with hundreds of thousands of dollars working day and night to


At the same time, the emergence of new cryptocurrencies, has given screen cards and processors life again, since Ethereum and some other currencies can be mined on these devices and get a good Commission.


The main methods of mining digital currencies

After we got acquainted with the term mining and made a good idea of it, let's get acquainted with the main and basic methods that exist in the market for mining digital currencies.


Mining cloud

Cloud mining is the purchase of a capability from a person (or company), for a certain period, that allows you to mine the digital currency, where you can buy very weak and powerful machines from which you can mine bitcoin as well.


Note: cloud mining is never feasible over a period of one month or even 6 months, you must buy at least a year's worth of capacity to get back what you paid and get a profit as well.


There are many companies that offer cloud mining services, the most famous of which are ” Nicehash” and ” MiningRentals”.


The main advantage of this type of cryptocurrency mining is that there is no noise and does not require constant maintenance and follow-up of mining devices, it does not require you to purchase these devices, since you have to pay for the ability only and start directly mining. But there are great risks of being caught with a scam and a scam, so be vigilant and try to deal with reliable and long-selling companies in the cryptocurrency market.


Digital currency mining using screen cards

Cryptocurrency mining using screen Cards is one of the common methods of mining, as it is available to all people and perhaps the cheapest in our time, in addition, it has a guarantee of at least 3 years and can easily be set to mine various currencies on various algorithms.


Currently, Ethereum mining (the most famous in the world of mining) requires its own specifications of the screen cards, the most important of which is that the screen card has at least 6 GB of memory, i.e. all the screen cards with 4 GB of memory have become inefficient in mining this currency, and whoever owns such cards must move to mining another currency like Ethereum Classic.


We will talk later about the best screen cards in 2021 that you have to acquire to be able to mine and get a good Commission, where you can create an integrated farm starting from 4 screen cards to huge numbers of screen cards working together to be a supercomputer with great potential.


Mining digital currencies using special devices “ Antminer” and” ASICS“

Asics-a device whose sole purpose is to mine digital currencies, as it has great power and also does not consume a large amount of electricity (compared to screen cards), for example Antminer S17 Pro runs on the "SHA-256" algorithm and can mine the following currencies:


  • Bitcoin

  • Bitcoin Cash


  • Bitcoin SV


These devices cannot be reprogrammed for mining other currencies such as zecash, Litecoin or other currencies, but with a weight of up to 6 kg and a courier electricity consumption of up to 2.5 kW it can make about $400 per month, but its price can reach about $4 thousand.


There are other types of these devices that mine currencies other than bitcoin, where you have to study the market well, and can each of them according to the algorithm and then decide which of them you want to buy to get the most benefit possible, where the daily profits of such devices can reach more than 50 or 100 dollars, imagine if you


Of course, one of the disadvantages of these devices is that they can not be reprogrammed for mining other currencies, as if in the event of a technical malfunction there are no cadres that can repair it, since you must send the device to the country of origin, which is a long and expensive process, so there are great risks waiting for you in.


Mining cryptocurrencies via the browser

Mining via an Internet Browser is inefficient for the user, and it is never recommended to use it, as you must install an add-on and start mining, this exposes you to hacking or installing malicious codes on your device that can steal important information about cryptocurrency accounts or any other information.


Cryptocurrency mining using hard disk (hard drive)

Apparently this type of mining has become a thing of the past, but it has to be mentioned because it was also used in cryptocurrency mining, where a person uses the free space of the hard drive in digital currency mining such as ” Storj”,” Burst” and ” Sia” currency, where it requires a minimum of 3TB space and a private computer,


Mining digital currencies using computer processors

Randomchash is one of the most popular algorithms used in cryptocurrency mining using computer processors ” CPU” and can mine ” Pascal” and ” Wownero”currency.


Mining via cryptocurrency freeze

Also this type is one of the types of cryptocurrency mining, where you must first acquire a digital currency (e.g. Dash coin) and freeze it in the wallet, and with the completion of a single block the commission is distributed to all the people who have frozen the coin, helping to send it from person to person.


This method is more akin to investing than it is to mining, where the work here is done with only one digital currency and depends on the success of the currency.


Mining algorithms

The founder of Ethereum, Vitaly Buterin, said that the power of cryptocurrencies lies in their diversity. It is noteworthy that the developers have created more than fifty algorithms for mining digital currencies, here we will show the most famous of them:


Digital currency encryption algorithm mining algorithm

(Bincoin)          SHA256                         POW

(Ethereum)      Ethash                             POW

Litecoin            Scrypt                              POW

(Zcash)            Eqihash                             POW

(Monero)          Cryptonight                       POW

(Dash)                    X11                        POW/POS

(Verge)                  Lyra2Rev2                    POW

Siacoin                   Blake2B                        POW



POW (Proof of Work) translates as proof of work, as this algorithm helps the digital currency network and protects it from hacking and making modifications to the blockchain.


This algorithm also acts as a quota distributor for miners, so if your mining farm (e.g. 0.1% of the network's full capacity) is capable, you'll get 0.1% of the commission to create a new block (in Ethereum, the cost of creating a new block ranges from 2 to 10 ETH).


The PoS algorithm (proof of Stake) is akin to an investment-based distribution algorithm, and can be said to be an algorithm that works on the principle of “money brings money”


The profit here depends not on the ability of the mining farm at all, but on the number of frozen coins in your wallet, the larger you have the larger your commission, the only condition is that there is constant synchronization between the wallet and the network.

Best cryptocurrency mining screen cards in 2021


 anyone can start mining digital currencies with screen cards, which is one of the simplest and most abundant methods on the market. But you should know that profit directly depends on the ability and power of the screen card, and if you want a large income you should buy high-quality screen cards or acquire a large number of them.


Nvidia and AMD screen Cards are usually the best in the mining market, of course, not for their cheapness, but for the quality and capability they offer, as the capital can be recovered within a year (the duration can range from 6 months to 3 years depending on the exchange rate of the digital currency).


But by buying cards the screen and you become a millionaire overnight, you must pay attention to the following things:


Memory. Here the choice must be made according to the principle (the larger the memory, the better), since screen cards with 4 GB of memory now cannot mine Ethereum currency, since in 2021 you will have to buy screen cards with 6 GB of memory and above.

Memory speed. The faster the memory, the better for the mining process, choose at least"DDR 5".

Cooling. This indicator is the most important in the process of coin mining, and the more the screen card has a self-cooling, the better.

Ability to adjust to the capacity. There are screen cards that you can modify and produce, and there is no acceptance of that, as the products of nvedia can be modified and get 20 to 40% more resources than their actual value, which is a very important aspect of the mining process.


Now we'll show you the best screen cards in mining, with daily income for each one, and how long you need to get your capital back.


Note: all these numbers are valid at the time of publication of the article, with the condition that the screen Cards are new and possess a 3 years warranty.


Realtek daily income (USD) capital recovery period


GTX 1660                1.49                            6 months

GTX 1660 Super       1.81                           6 months

GTX 1660 ti             1.81                             6 months

RTX 2060                2.04                           6 months

RTX 2060 Super      2.27                          7 months

RTX 2070              2.33                          7 months

RTX 2070 Super    2.45                          7 months

RTX 2080            2.45                          7 months

RTX 2080 Super  2.68                           7 months

RTX 2080 ti       3.32                           9 months

RX 590            1.75                          5 months

RX 5500T       1.63                           4 months

RX 5600T     2.45                           5 months

RX 5700T     3.5                            6 months

RX 6800T     3.79                         9 months

RX 6900T     4.66                       12 months

RTX 3060     2.91                       5 months

RTX 3060 Ti  3.55                        6 months

RTX 3070    3.55                       8 months

RTX 3080    5.65                     7 months

RTX 3090    6.99                 10 months



Note: the capital recovery period is calculated based on the average price of the screen card in the market and depending on the profit earned per day.


Calculator for calculating profit from digital currency mining

There are many platforms that offer you the service of calculating the profits from cryptocurrency mining via the mining farm or card mode, and give you the amount of daily, monthly and annual profit depending on the price of the discharge at the moment.


Among these platforms is the “cryptocalc " site, through which you can calculate the profits from mining for various digital currencies, where all you have to do is go to the site via THIS LINK, and then choose the digital currency you want to mine, for example we will choose Ethereum.


currency mining

After that, you have to put the power of your device in megahash and how much electricity it consumes (how many watts per hour?) The price of kilowatts in your country and the percentage taken by the platform on which you are mining (most often 1%).


For example, we have a farm consisting of 12 3060 Ti screen cards and each screen card gives approximately 62 megahash, so the total capacity is 744 megahash, and each screen card consumes about 150 watts per hour electricity,


 so the total exchange of electricity per hour for the farm is 1800 watts per hour, while the average kilowatt price is $0.05 per kilowatt, we put all these data in the calculator and per day and $273.84 per week and so on.


how does bitcoin mining work

Where can the digital currencies you have mined be saved?

First, you should know that you can only start mining if you have an account number for the currency you want to mine, if you decide to mine Ethereum you must have a wallet that enables you to receive and send that currency.


Of course, there are many conservative existing in the market which supports multiple digital currencies, the easiest is to open an account in one of the stock exchanges of digital currencies which supports most of the digital currencies in the market.


We recommend reading this article to learn about the best e-wallets, best cryptocurrency to invest in 2021 (new cryptocurrencies)


What are the best cryptocurrencies?

Very difficult to assess the digital currency and choose the best, but you must look at its history and business reliability by society and many other things.


At the same time, there are some currencies that have proven themselves in this market, among which the parent currency Bitcoin, Ethereum comes second, Litecoin, Bitcoin Cash, Ripple and other currencies can be viewed on the coinmarketcap platform.


crypto mining

Note: the valuation of the top ten cryptocurrencies is constantly changing, but they are the most stable at the moment and can be invested in the medium or long term.


Q & A about cryptocurrency mining

Is cryptocurrency mining profitable?

The profit in cryptocurrency mining depends on something fundamental which is the exchange rate of the currency you are mining, and assuming if you are mining Ethereum and the exchange rate is $ 1000 per currency, mining will be profitable no doubt, but imagine if the price dropped to $ 100, here you will pay for electricity only and you will not


Is cryptocurrency mining legal?

Depending on the country in which it is located, there are some countries whose governments have decided to legalize cryptocurrency and mining, while others have banned it.


How many screen cards do I need to get a good profit from mining?

First you have to know that it depends on the type of screen card, i.e. if we take the RTX 3080 screen card, it is three times more powerful in mining than the GTX 1660 Super screen card, but its price is also almost three times more, but here you can buy one screen card for three at the same time,


Can Bitcoin be mined using screen cards?

Unfortunately it can not, you should choose devices dedicated to bitcoin mining, which is developed by the Chinese company ” Bitmain”.


Are there risks to cryptocurrency mining?

If you are in a country that forbids mining, this can lead to imprisonment or large fines, but if you are in a country that allows mining, you must (often) pay taxes on income from mining, and if you do not, you are liable for tax evasion, in addition, if you are mining inside the apartment, and if the


What are the best platforms for digital currency mining?

There are hundreds of platforms where you can reach the mining farm and start mining, but here are the most famous:

NiceHash

ViaBTC

EMCD

ETHpool

Binance Pool

F2pool

NanoPool


Are there other ways than mining to earn cryptocurrency?

Yes, there are many ways to earn cryptocurrency other than mining, where there are advertising companies that pay you in digital currency for an ad on your website, or there are some content platforms that pay in digital currency for an article you write for them, such as Steemit and Hive.


Related: What You Need To Know About Dogecoin


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