There are several methods to do it, like everything,
each has its advantages and disadvantages.
Cryptocurrency
market (exchange)
This method is very similar to trading on the stock exchange. When you trade with shares in the stock market you do it through “Brokers”, with cryptocurrencies you do it through “Exchanges” (same but different concept “matter” of trade). It consists of buying cryptocurrencies and waiting for them to rise in price in order to sell them. To make a profit under this model, we must have extensive control of our emotions, and be alert to currency fluctuations; buy low and sell high. It is not very scientific, although it requires constant monitoring of market behavior. The more informed you are on the subject of cryptocurrencies, the organizations behind them, and the plans they have, as well as the plans that the different ones have”
Mining
It is called mining to use computer equipment
specifically designed to keep the cryptocurrency network alive, validating all
the movements that occur in it, and at the same time generating more
cryptocurrencies so that they are later integrated into the market.
Keep in mind that when I talk about mining, almost everything I say applies to the Bitcoin network, this is because it is the first network and the strongest. Bitcoin programming sets limits on daily mining capacity and is proportional to the number of miners operating on the network, that is, it sets how many Bitcoins can be mined per day. So if we assume there are 1000 miners working, they will be more likely to get Bitcoins than when they trade millions. That is, while more miners work to obtain bitcoins, the same programming on the network increases the difficulty in obtaining the amount of daily bitcoins. In this way, it is sought that everyone’s effort be fair. Satoshi Nakamoto, the person or group that programmed Bitcoin also set a limit on the number of Bitcoins that can be mined.
Some coins propose different, even better, methods of mining and some do not work through mining. But that is another topic that will be left to you as a task to investigate, because my purpose with this page is not to delve into complex technological issues. Bitcoin Champion is one of the best site for bitcoin transactions.
There
are two main ways to do mining
Mining with own equipment.
The history of Bitcoin mining is interesting, I don’t
want to go into it in detail, I will only mention that the first mining
equipment required powerful graphics cards. Nowadays that is obsolete and
using your computer to do mining would be very expensive and you will get
practically nothing. This eventually led to the design of dedicated mining
equipment. These teams have a specific capacity that allows them to
provide the ability to confirm movements to the network of a given currency.
To mine cryptocurrencies with your own equipment, real
planning is necessary, that is, you have to take into account the area or space
where you will put your mining equipment to work. You must take into
account that these devices consume a lot of light, generate a lot of heat and
make a lot of noise, so a well-adapted place is required for this type of
task. It is not as simple as simply putting a kit in your bedroom next to
your bed to get the job done.
When mining was just beginning it was easy to do something like this, but today much more is necessary if we want to obtain good results.
Individual
mining
Here you simply connect directly to the network of a
certain cryptocurrency (let’s say Bitcoin or Ethereum), and your team will help
to validate the movements that occur in the network, and by doing so you will
also be working on solving mathematical problems, which if you manage to solve,
you will get a certain amount of Bitcoins. The problem with this method is
that a team, as powerful as it is, is very difficult to generate enough
bitcoins to be profitable, that is, to make the investment worthwhile. Why? Because
powerful equipment costs a minimum of $ 1,000.00 USD, there are some over $
2,000.00 USD and it also consumes exorbitant amounts of electric energy, so
your electricity bill will not come out cheap and this will increase your
costs.
