What is cryptocurrency mining (extraction) in simple words? How can you mine Bitcoin in 2020?

How and where to get cryptocurrency? What is the difficulty of mining Ethereum cryptocurrency? What are the ways to earn cryptocurrency at home?

Do you follow the exchange rate of the most popular cryptocurrencies? If so, then you probably know that bitcoins have risen in price by 4.5 times in 2020, and ethers have increased in value by 295% in a few months. What does this mean? About the fact that investing money in cryptocurrency is promising and profitable. One of the most effective ways to make money with digital money is cryptocurrency mining.

Denis Kuderin is with you, an expert on financial topics at HeatherBober magazine. I will tell you what cryptocurrency mining is like at home , what types of mining exist, and which digital coins are easiest to mine.

You will also find out which cloud mining services are the most reliable and secure, and get expert advice on increasing the efficiency of your crypto mining enterprise.

How to earn passive income on websites

How to buy a website with income and receive from $10 to $3000, even despite the pandemic and its consequences. How much does a profitable website cost and how to start investing with 10,000 rubles or more in your pocket

More about the course

What is cryptocurrency mining

The blocks that make up the chain (blockchain) have a number of parameters. One of them is a hash, a certain number that needs to be found to generate a block. The search is carried out by enumerating the values. The specific computational models vary between cryptocurrencies, but they all have similar features: finding a hash takes a very long time, and checking the finished result is very fast.

Cryptocurrency mining guarantees the reliability, integrity and normal functioning of the crypto network (namely, confirmation of the integrity of transactions, protection from hacker attacks and fake blocks, ensuring decentralization).

When two network participants exchange a transaction, it must be confirmed. Confirmation represents inclusion in a block. Only after this can the funds transferred through the transaction be used further. The possibility of confirming a fake transaction is excluded.

From the point of view of ordinary users, mining is a source of additional income. But, before you start doing it, you should carefully calculate the payback of the equipment, possible profits and, in general, the prospects of the chosen cryptocurrency.

It is advisable to watch a video that describes in simple words the process of mining or mining cryptocurrencies (you need to turn on subtitles in Russian):

How to evaluate profitability?

There are web resources that provide calculators for the profitability of online mining. When using them, it is enough to enter the following data:

• hash rate;
• cost of equipment;
• energy consumption indicator;
• current value of bitcoins (another cryptocurrency).

Profitability calculators can be found on the following sites:

• BitcoinWisdom - https://bitcoinwisdom.com/bitcoin/calculator;
• ASIC Trade - https://asictrade.com/calc.html;
• BTCInvest - https://btcinvest.net/en/bitcoin-mining-profit-calculator.php;
• BitsMedia – https://bits.media/calculator/;
• CoinWarz – https://www.coinwarz.com/calculators/bitcoin-mining-calculator;
• LiteCoinPool - https://www.litecoinpool.org/calc.

It is also possible to use the Telegram WhatToMineBot bot, which allows you to calculate the benefits of mining on initial conditions. It is important to consider that different resources and means can produce different results. It is also worth devoting time to studying the theory of mining, identifying for yourself the optimal methods and methods available according to technical capabilities.

Mining process

During cryptocurrency mining, the creation of new blocks occurs according to the following algorithm:

1. Users search for a hash by performing computational operations.
2. When the code is decrypted, a new block is opened, which has a cryptographic signature.
3. The signature contains all the hashes of the previous blocks.
4. The first miner to guess the hash receives a reward.

In new cryptocurrencies, the hash is easy to find, but in such as Bitcoin and other top coins, finding it alone will not take you a lifetime. Therefore, miners join together in pools to create blocks faster. And the reward is shared fairly among everyone.

Content

• Is it profitable to mine in 2020?
• What to mine in 2020
• What is the best way to mine?
• What to mine on a video card
• What can you mine on your home computer now?
• Is it worth mining Bitcoin?
• How to get maximum profit from mining
• How to choose a new cryptocurrency for mining
• conclusions

The difficulty of mining top coins reaches terrifying levels. At the same time, a new cryptocurrency appears on the market almost every day, the further role of which has not yet been determined. Even experienced miners easily get confused in such diversity, and, meanwhile, the profitability of mining depends on the choice of cryptocurrency.

Where to sell mined cryptocurrency

The cryptocurrency obtained by mining can be saved as an investment or sold and received real income. Crypto sales are carried out using special services - crypto exchanges and cryptocurrency exchangers, which differ in functionality, interface, and commission fees.

The following trading platforms with the opportunity to receive fiat money or stablecoins are popular:

1. LocalBitcoins.
2. EXMO.
3. Binance.

For margin trading of cryptocurrencies you can use:

1. BitMEX.
2. BitMax.
3. Gate.
4. Huobi.

Where to mine cryptocurrency - a list of cloud mining services with a good reputation

Especially for the readers of our magazine, we have prepared a review of three reliable sites for cloud mining.

Study the conditions and register.

1) Hashflare

A platform that supports the Russian language with a minimum withdrawal amount of 0.0004 BTC and equivalent amounts in other cryptocurrencies. To start working, you need to purchase at least one hashrate - a unit of power, but the equipment starts working immediately after payment.

You will receive your first credits to your account within 24 hours. No hidden fees, instant withdrawal, ability to distribute power between several pools.

2) CryptoMining Farm

The service rents out production facilities for mining any cryptocurrency. An authoritative resource for professional miners.

The minimum withdrawal amount is 0.01 BTC . Withdrawal forecast 0.01 BTC . The service profitability forecast is 80% per year. Designed for long-term investments (up to 15 years). There is no Russian version.

3) Hashing24

It is one of the leaders in the international mining industry. The main cryptocurrency is Bitcoin. The minimum withdrawal amount is 0.001 BTC . Many replenishment methods, including payment by Visa and MasterCard bank cards. Payments are issued regularly. There is a 24/7 support service, but there is no Russian-language version.

Difficulty of cryptocurrency mining

The emission of most cryptocurrencies is finite. For example, there cannot be more than 21,000,000 bitcoins (according to calculations, they will be mined by 2140). But due to the growing popularity of the industry, more and more new miners are coming.

When creating Bitcoin, the developers set the approximate time for a block to be 10 minutes, and this period of time should not change, regardless of how many people support the network. This is protection against uncontrolled coin creation. The mining difficulty setting is designed to keep the 10-minute interval at the same level.

The difficulty is automatically adjusted every 2020 mined blocks (approximately once every 2 weeks). If, according to the system's calculations, the miners mined this number of blocks too quickly, then the difficulty increases, and vice versa.

The reasons why the complexity of cryptocurrency mining was introduced:

• Controlled emissions. Eliminates the possibility of creating all blocks too early.
• Increasing the value of cryptocurrency. The more difficult it is to mine coins, the higher they are valued on the market.

There is another indirect advantage of mining difficulty. This provides incentive for the development of new technologies. New equipment with higher power is regularly released, which has an impact on the world economy.

Dynamics of growth in the difficulty of mining Bitcoin cryptocurrency:

Network hashrate, mining algorithms

Hashrate is an indicator that reflects how much total computing power miners give to the network for its continuous operation. The network consumes a lot of energy because it must constantly cycle through codes to form the next block. To prevent the search from being too simple, there are hashing algorithms.

Bitcoin network hashrate (as of 02/02/2019, the total power is 44802504 TH/S terra hashes per second)

The mining algorithm converts any digital data into a permanent string of letters and numbers. Depending on which hash function is used, the size of the fixed bit varies. The algorithm has two main properties: it is a one-way function and produces unique results. Accordingly, it is characterized by linear execution - it is impossible to reconstruct the network from a ready-made hash.

The Bitcoin network uses the SHA-256 algorithm. To successfully generate a block, the miner must select the block header so that it is equal to or less than the target value. The target value is a number from 256 bits. The lower the target, the more difficult it will be to generate a block. The Ethash algorithm is used to mine Ethereum.

Reward for mined block

When a block is closed, miners are always given a reward. For Bitcoin it is:

1. 2009–2012 – 50 coins.
2. 2012–2016 – 25 coins.
3. 2016–2020 – 12.5 coins.

The reward will continue to be halved every 210,000 blocks created. This phenomenon is called halving, or halving Bitcoin, and performs similar functions with increasing complexity, in particular increasing the value of the asset.

Why Bitcoin Needs Miners - Technical Details

Mining is the basis of the integrity and reliability of the Bitcoin system or any other cryptocurrency. The work of miners provides all the main functions of the network:

• Confirmation of transactions (transactions);
• Protecting the network from entering false information (fake transactions and blocks);
• Protecting the Bitcoin network from various types of attacks;
• Support for decentralization of the Bitcoin network.

A transaction between two participants in the Bitcoin network must be confirmed by participation in the block. If the miner who created the block accepted it and included it in the block, the coins contained in the transaction become available for further use. An attacker who tries to feed a fake transaction to the network will be rejected at the block generation stage.

Slip a whole block into the network? To do this, you need to have a signature generated on the basis of the previous block. If there is no signature, then it must be calculated - which means repeating the entire series of calculations that were needed for the previous previous block, and so on, right up to the very first block created on January 3, 2009. That is, in order to roughly hack the network and establish your own rules in it, you need to recalculate the entire blockchain.

An absurdly large amount of work - in fact, it is easier for an attacker not to recalculate the entire volume of calculations in the Bitcoin network for the sake of just one block - but to join his computing power in honest work.

Fork the block chain? This is possible, but such a branch is doomed to remain alone, orphaned - orphaned

, if you do not support it with ever-increasing computing power, greater than the total power of all “honest” miners, which also requires huge costs and is devoid of practical meaning.

With just a few hundred million dollars of hardware investment, you can have 51% or more of the computing power of the Bitcoin network. This attack is called the “51% attack.” But even in this case, the triumph will turn out to be, rather, a Pyrrhic victory. An attacker will only be able to “freeze” transactions on the network or arbitrarily change payments from his own wallet, which will not bring much wealth.

Decentralization, that is, independence from a single control center, is one of the key advantages of Bitcoin over traditional currencies, and it is provided precisely by miners who are dispersed throughout the world. Disabling part of the computing power will not lead to stopping transactions on the network - to do this, you need to turn off every single miner.

The concentration of power in the hands of large pools and data centers creates a certain threat to decentralization. But mining is spreading more and more widely and now there is no longer one pool that could receive more than 50% of the network. And data centers are dispersed across several continents - from Norway and Greenland to Australia.

Cryptographic consensus algorithms (Proof-of-Work)

Despite the fact that the problem of the Byzantine generals was solved back in the 90s, blockchain solves a more complex problem. All its nodes are in constant change mode. The cryptographic algorithms here are different from those used in the Byzantine puzzle.

Most cryptocurrencies use proof-of-work (PoW) and proof-of-stake algorithms.

Currency extraction based on PoW is usually called mining, while mining based on PoS is called forging.

The most common algorithm used by cryptocurrencies is SHA256.

The task of the algorithm is to hash blocks of transactions. SHA256 generates a 256-bit hash.

Next, the blocks are lined up in a continuous chain and miners who solved the correct hash receive their 12.5 BTC per block.

Mining speed is measured in hashes per second (h/s). As it turns out, the hash sum can be calculated with pen and paper. If we decompose the algorithm mathematically, we can achieve a speed of 0.67 hashes per day (with a 12-hour load, this is approximately 0.000016 h/s). However, most likely, this is not the best method of mining, because... Modern mining systems are capable of building blocks at a speed of several terahashes/sec, which is a quintillion times faster than a human.

VIDEO - the principle of encryption in the Bitcoin blockchain using pen and paper:

In addition to SHA256, the following encryption algorithms are popular:

• Scrypt;
• ECDSA;
• SHA3-512;
• Equihash;
• Ethash.

Read more about cryptocurrency mining algorithms in our separate material.

Types of mining

There are quite a few types of mining, but not all of them will be effective for a specific cryptocurrency.

Mining on processors (CPU)

Once upon a time, it was possible to mine Bitcoin on a processor.
There was no need to buy any additional equipment at all. But now these days are long gone - the complexity of the network does not allow using the CPU to mine bitcoins. However, fresh cryptocurrencies that still have low complexity are available for mining on a processor. Another question is that it is impossible to say in advance whether the currency will be promising and whether it makes sense to spend time and electricity on it.

On video cards (GPU)

Most popular cryptocurrencies, except Bitcoin, are now successfully mined using GPU “farms” - a collection of several powerful video cards (on average from 4 to 12).
Video cards are capable of quickly processing information because they were originally created for this - meaning support for demanding games or high-definition videos. Integrated models or cards from laptops are not suitable, only full-fledged discrete video adapters.

On the hard disk (HDD)

Hard disk mining is carried out in accordance with the PoC (Proof of Capacity) algorithm.
The method became known at the moment when there was a sudden shortage of other important components for mining (GPUs, motherboards) on the market. The cost of cryptocurrency was rising, there were more and more miners, and manufacturers simply could not cope with demand. Then the crypto developers invented a new technology, which, if efficient, does not require sky-high power. Nowadays, cryptocurrency mining on HDD is quite common.

Cryptocurrency mining on ASICs

An ASIC miner is a special integrated circuit that has high power, but is programmed for only one algorithm (sometimes for several related ones).
For 2020, this is the most high-tech type of mining. ASICs are now the only way to effectively mine Bitcoin. However, cryptocurrency developers do not like them because they are harmful to decentralization. Due to the high cost of equipment and the long payback period, not all home miners opt for this option, but large corporations see this as a benefit. This way the network becomes less centralized.

Browser mining

Cryptocurrency mining is carried out by using the user’s equipment, but only during the period of time when he has a tab open with the corresponding site.
The percentage of resource use depends on the specific project and can be equal to either 10% or all free resources. You can limit the indicators by settings. If you set the power to maximum, the computer will slow down, but your profits will increase. Reducing power will remove the brakes, but also reduce profits. It is best to combine two options - set the power to maximum values ​​at night or when no one is at home, and reduce it while using the PC.

Cloud mining

When using cloud mining services, the user pays for a certain amount of capacity by purchasing a contract. He doesn't need to do anything else. Mining is carried out on the equipment of the site owners, and the user who has paid for the contract receives income in accordance with the purchased capacity.

Mining on a mobile phone

To mine on your phone, you need to download a special program to your iPhone or Android. This option is one of the least effective - the phone or tablet will become very hot, which can lead to damage. At the same time, the profit is clearly not worth it; you can literally earn pennies using this method.

Large investments in mining in 2020 - is it worth starting?

Critics believe that investing in digital currency has high risks. But experienced investors still often choose this platform to invest on a long-term basis.

In general, it is important to understand how the system works and consider the risks. Let's take a look at the benefits of Bitcoin mining from the perspective of investing impressive amounts:

• Bitcoin has no gold backing and is not tied to any government. Technical software and miners only work because bitcoins have a high price. It is formed in accordance with the number of system users (miners), and it increases. The price of bitcoins will remain at a stable level for a long time, so it can be argued that investing in digital currency has no risks;
• In 8 years, the value of bitcoins has increased by more than 1000 percent. It goes without saying that those who invested good money in this area of ​​business then became very rich. Forecasters claim that the value of BTC is not finite and will continue to grow;
• The reliability of the system is known throughout the world. Third parties cannot independently gain access to information about transactions, addresses and identities of people unless they themselves transmit the information. Of course, there have been cases where hackers broke into the system. But they only made it unstable for a while, after which everything fell into place, and the criminals were left with nothing. If you are going to invest heavily in cryptocurrency mining, then try to choose sites that meet all technical and personal security requirements;
• The technology behind the Bitcoin system looks promising and has promise. Financial structures of different countries are already considering the possibilities of introducing the structure into their economies. In addition, the latest software is currently being developed for the use of bitcoins, as well as their forks. What does this mean for investors who have invested in cryptocurrency? If BTC becomes an official currency and is recognized by many countries, then people who invested their capital in BTC would receive enormous profits. This may already be in the near future.

The state's attitude towards mining

The state's attitude towards mining is ambiguous. In the case of electronic money, you can always find all participants in the transaction. Cryptocurrencies are anonymous. This means that they provide great opportunities for money laundering, drug trafficking, sponsoring terrorism and the circulation of illegal goods and services within the country.

In addition, cryptocurrencies are not profitable for the state from a financial point of view: taxes are not paid on profits, and banks do not receive commissions for transactions. However, the active inclusion of cryptocurrencies in tax legislation is already underway all over the world.

Here the state has two options:

• Prohibit and introduce penalties for the use of cryptocurrencies;
• Take control.

The first reaction of states to cryptocurrency was negative. Governments warned that the circulation of cryptocurrency is not controlled by anyone, and in case of fraud, citizens are not protected in any way. China has completely banned trading on the BTCChina cryptocurrency exchange.

Mining news reports that other countries are still considering the possibility of legalizing cryptocurrencies. The Russian government has repeatedly stated that it will lead and regulate mining in Russia. Government cryptographic currencies are also expected to appear on the market.

Expert opinions about mining are divided. Some say that cryptocurrencies are the currencies of the future that will replace money, while others believe that this is a bubble that will burst sooner or later. Like any business, mining has its pros and cons.

The advantages are that despite short-term drops, they still increase their value over time, which is what we see in the example of Bitcoin. The disadvantages are that cryptocurrencies are very unstable, they can periodically drop greatly in price, and the mining process itself is dangerous for the equipment because it wears it out.

What is hidden cryptocurrency mining

Hidden mining is the extraction of coins on the user’s computer, who is not even aware of it. It is carried out by secretly installing a botnet program on a PC. You can notice a hidden miner by the increased load - the video card or processor is usually 100% loaded, even if no application is running. However, there are more cunning varieties that take only part of the resources, making them more difficult to detect.

The first hidden miners appeared in 2011, and a couple of years later it turned into an epidemic. Thousands of computers around the world were infected. Most often, botnets were transmitted via Skype. The most dangerous thing is that they not only mined, but also stole confidential information and access to crypto wallets.

What to mine on a video card

Last year, mining top cryptocurrencies on video cards became unprofitable for most miners due to the manifold increase in network complexity and the high cost of electricity. An excellent way out of this situation is to mine liquid and promising altcoins with a low network hashrate.

Fortunately, video cards allow you to mine almost all cryptocurrencies. In addition, the miner has the ability to promptly respond to changing market trends and quickly switch between mining different cryptocurrencies.

It is worth noting that it is better to mine cryptocurrencies running on Equihash using Nvidia brand video cards, since they traditionally have a larger amount of RAM. The correct selection of farm components in some cases can significantly increase profitability.

How to start mining at home

Mining cryptocurrency at home needs to start with choosing a cryptocurrency.
Those who settled on the most popular (Bitcoin) need to be prepared to spend 100–200 thousand rubles on ASIC, and then up to 10 thousand every month on electricity. If the choice fell on one of the less popular, but also promising cryptocurrencies, then you will have to assemble a mining farm, which includes several video cards, a motherboard, a processor, and a hard drive. All this is combined within one case and requires high-power cooling.

And if you decide to try your hand at mining a freshly minted crypto without extra costs, then you just need to download the mining program and start mining it using your processor. You need to make sure that an appropriate cryptocurrency wallet has been created where the earned funds will be stored.

"Farm"

A mining farm is a computer to which several video cards are connected. Such a device is also called a “rig”. If you seriously decide to start mining cryptocurrency, then you will need such a mining farm. You can buy a ready-made farm, or you can assemble it yourself from the most optimal components.

Just a few years ago, it was possible to earn several thousand bitcoins per day using your home desktop computer with low technical characteristics. Due to the high interest in mining and the demand for cryptocurrencies, the mining process is constantly becoming more complicated. To mine one bitcoin today, you need to assemble an entire farm with high technical performance.

The most profitable cryptocurrencies for mining are Bitcoin, Ether and Litecoin. It is these coins that most of the mining power from all over the world is directed towards. Mining these coins is becoming more difficult every day. To speed up the process of mining electronic currencies, miners are assembling more and more powerful and larger farms. Some IT giants have long been involved in the process and are also building huge mining farms. These farms resemble industrial computer centers.

5 largest mining farms in the world

But mining is still relevant at home. To assemble your own farm, you need a number of components:

• a motherboard to which you can connect several graphics adapters;
• small hard drive;
• high frequency processor;
• RAM within 4-8 GB;
• 4-8 video cards with memory more than 2 GB;
• power supply from 750 W;
• extension adapters with which connection is made;
• cooling system;
• start button;
• frame.

Cryptocurrency mining equipment

A little history. How devices for cryptocurrency mining developed:

1. CPU. Was relevant from 2009 to June 2010.
2. Video cards. Since 2010.
3. FGPA – since 2011. These are powerful, but at the same time compact devices that have already gone into oblivion due to the fact that the development of chips did not pay off, and manufacturers abandoned them.
4. ASIC. Since 2012.

Of course, progress does not stand still. As cryptocurrencies develop and new mining algorithms emerge, inventors are also working hard. New ASIC models are released almost every year, and there is no end in sight.

Equipment for cryptocurrency mining from the manufacturer Bitmain (Antminer T15, S11, S9 and others):

How to mine without investment?

The question of how to mine without investment is now of interest to many novice miners. You can even collect cryptocurrency on your laptop. To do this you need:

• create a cryptocurrency wallet;
• choose the optimal extraction method;
• select generous faucets with interesting working conditions, where profits will flow automatically;
• withdraw satoshi to your wallet in a timely manner;
• using exchangers, exchange cryptocurrency for rubles.

It is recommended to use licensed software from well-known manufacturers. It is good that signature databases are updated frequently.

Mining pools

A mining pool is a server that ensures that large-scale computing tasks are divided into smaller ones and distributed across all devices connected to the server.
Mining pools make it possible to reduce the time required to generate a block by thousands of times by combining the power of the participants’ equipment. Thus, even a miner who does not have significant capacity can count on some share of the reward.

The higher the pool’s overall hashrate, the higher its “luck” – the chance of signing a new block. Therefore, large pools work much more efficiently than small ones.

Prospects and risks

Bitcoin is a promising currency, which is due to its constant rise in price. According to experts, investments in cryptocurrency are currently profitable, especially against the backdrop of rising exchange rates.

Experts advise newcomers to this market to conduct their activities extremely carefully and not to react to various offers of a speculative nature. It is recommended that they start today by studying the topic of investing. It is advisable to understand the peculiarities of the market and be critical of all tempting offers. Currently, there are many scammers working in this field who are ready to tell a novice miner many fairy tales just to get his money. Therefore, you should not give money to anyone. You should keep them at home. In this case, only the miner is responsible for the safety of his financial savings. There is no need to shift responsibility to other people, otherwise you may lose your entire investment.

Programs for mining cryptocurrencies

Having acquired equipment and registered a wallet, it’s time to move on to choosing mining software . Several programs are the most popular:

1. Minergate xFast GUI Miner.

   

2. Bitmint. Mines using the SHA-256 algorithm.
3. CUDA miner. Mines on MaxCoin, SHA-256D and Scrypt.
4. CGMiner. Mines on NeoScrypt, CryptoNight.
5. BFGMiner. Mines on RPC, Scrypt.
6. MultiMiner. Mines on a variety of algorithms, including all the popular ones.

Applications differ not only in algorithm, but also in the level of commission to developers. On average, 1–2% of earnings always goes to the app creators.

What can you mine on your home computer now?

Considering current market trends, farming cryptocurrency exclusively on home PCs and laptops is not profitable and even unprofitable. In particular, laptops will overheat due to their design and quickly fail, and the power of even the most top-end PC will not be enough to make good money. In addition, a home computer can also quickly fail due to overheating.

A home PC can only be used for cloud mining. Otherwise, the owner risks not only not being able to recoup the money for electricity, but also incurring a large sum for repairs.

Select a pool and program

Mining cryptocurrencies in a group involves choosing a pool for mining digital coins. The more powerful the pool, the higher the chances of finding the right block and getting more crypto coins. Links to pool sites are provided on digital currency portals or forums (for example, Bitcoin Talk).

Key pool selection criteria:

• total production capacity;
• share of your block price;
• protection;
• access to monitoring;
• complexity of setting up the miner program;
• availability of a server on the territory of the Russian Federation;
• pool commission (it is about 1 percent);
• commission for transferring earned coins to a virtual wallet.

The list of pools for mining cryptocoins is extensive; there are over one and a half thousand of them all over the world. At the same time, most miners choose Bitcoin pools.

Best mining pools:

1. F2Pool is a Chinese service operating since 2013. This resource holds approximately one-fifth of the entire network hashrate. Pool participants should immediately withdraw earned money from their accounts. Otherwise, after 90 days, they will be used to develop the pool.
2. AntPool – this Chinese service is comparable in power to F2Pool. Users have the right to choose a Russian-language interface. The pool provides various payment systems, including a commission-free withdrawal method.
3. BTC China is a Chinese service without a Russian interface. Since the use of English on the site is limited, it is not among the most popular. Hashrate share: 10-12 percent.
4. BW pool is a Chinese resource that allows you to mine Bitcoins. It takes up about 9 percent of the network's capacity. The pool participant receives profit through the PPLNS system, which does not charge a commission.
5. Bitfury is a European pool. Its owner is a company specializing in the sale of computer equipment. Its offices are located in Georgia and Iceland. The pool is engaged in the mining of bitcoins.

The five listed pools occupy more than 50 percent of the capacity of the entire network.

List of other pools that also deserve the attention of miners:

• NiceHash;
• Mininggrirentals;
• Minergate;
• Dwarfpool;
• Zpool;
• Nanopool;
• Slush;
• Eligius;
• Ghash. io;
• Mining Pool Hub.

Pools differ in the way a participant’s earnings are calculated:

1. PPS – payment occurs for each share that the participant contributes to the pool. Here there is some stability of payments for the miner, however, the risk remains for the pool operator.
2. PROP – payment to group members is made in proportion to the shares they invested in the pool.
3. PPLNS – users are paid according to the last number of shares added.

Popular cloud pools for 2020:

• Hashing24. com;
• HashCoin. io;
• HashFlare. io;
• Eobot. com.

List of current mining programs:

• sgminer;
• cudaminer;
• cgminer;
• pooler cpu miner/minerd;
• ccMiner.

Issues

I don't like problems, but without them nothing exists. I have already mentioned competition in mining several times. And this is really one of the main drawbacks. After all, it forces miners to buy expensive equipment for any crypt. Weak video cards can still do something, but they don't have much time left.

I guess I'll end here. You know enough to choose a cryptocurrency for mining on a video card. If you have the equipment ready, then start choosing.

More hashrate for you!

Selecting an exchange or wallet for mining

Mining coins involves their subsequent transfer to a virtual account or crypto exchange. On the official cryptocurrency website you can always download a wallet and store your profits on it. However, there is another way - to exchange the mined crypto money on the exchange. To do this, you should find your cryptocurrency on the coinmarketcap website and see on which platforms it is traded. Those with higher trading volume are more preferable.

Next, you should register on the selected exchange, open a personal account and find your cryptocurrency. By clicking on “Deposit”, the user will receive an address to withdraw their coins. When the first coins appear in the pool, they can be easily transferred to your exchange wallet. Money received in the wallet can be immediately exchanged for a more attractive cryptocurrency. They are also left on the balance of their electronic account, hoping that their price will increase.

Universal platforms that are not only a crypto exchange, but also a platform for mining include:

• EXMO;
• Pjlonex;
• Yobit. net;
• Cryptopia;
• C-CEX.

How to choose a pool, exchange and wallet is described in detail in the video. Filmed by the channel: “Kirill Krylov”.

Blockchain technology and cryptocurrencies. Fast start

Get the book and learn all the basics of blockchain technology and cryptocurrency in one evening

• block time - 11 minutes;
• block size - 902 kbytes;
• average number of blocks per hour - 5;
• block reward - 12.5BTC;
• difficulty - 3,290,605,988,755;
• profitability - 0.5988 USD/Day for 1 THash/s.

With such indicators, it becomes clear why there is no point in mining cue ball using GPUs. Pay attention to profitability. For a whole terahesh you will get only half a dollar a day. But on a home terahash mining farm you will not achieve mining speed.

It is also worth considering that the difficulty of its extraction does not increase every day, but after a certain number of blocks. Therefore, at some point you will notice that mining has become even harder. Just leave BTC mining to the madmen and mining giants from Hong Kong or Iceland.

Bitcoin Cash

Bitcoin fork. Due to this, it also quickly became popular; at the time of writing, the rate was floating around $1,000. What is worth knowing about its mining?

• Block time - 9 minutes 10 seconds;
• block size - 58.5 kbytes;
• average number of blocks per hour - 7;
• block reward - 12.5 BCH;
• difficulty - 368,149,453,515 -2.82% in 24 hours;
• profitability - 0.7625 USD/Day for 1 THash/s.

In this case, the name played a role. Since this is a fork of cue ball, it didn’t take much time and everyone started mining it. The difficulty has increased very quickly, and as a result the profitability is also quite low. Mining on a video card is also useless. You will go into minus, and quite a big one.

Litecoin

Another fork of the cue ball, which is also a payment system. Litecoins are easier to mine because they use the scrypt algorithm. As already mentioned, it requires more power to simply start mining, but it is still less taxing on the graphics card. This algorithm partially uses the power of RAM, which allows you to offload the GPU.

• Block time - 2 minutes 30 seconds;
• block size - 27 kbytes;
• average number of blocks per hour - 24;
• block reward - 14.2 LTC;
• difficulty - 5,476,027 +0.72% at 24 hours;
• profitability - 0.0158 USD/Day per 1 MHash/s.

Litecoin mining is already showing encouraging results, but there are several nuances. This crypt is mined by many miners, which creates a lot of competition. Secondly, ASICs have been created for scrypt, which perform their task perfectly. Thirdly, scrypt will load your video card quite heavily, so you will pay hefty electricity bills. Verdict: mining on a video card is possible, but ineffective.

Dogecoin

A well-known “joke” in the world of cryptocurrencies. Small course, but huge interest from the entire community. There hasn't been a single scandal around DOGE yet, because it was simply created for fun. But it can be mined.

• Block time - 1 minute;
• block size - 8.7 kbytes;
• average number of blocks per hour - 58;
• block reward - 10,000 Doge;
• difficulty - 1,788,128 +0.55% in 24 hours;
• profitability - 0.4394 USD/Day for 1 GHash/s.

Dodge is relatively easy to mine. There is not much competition here, but at the same time there is a small hashrate on the pools. To make a good profit you will need a lot of capacity. Considering the algorithm of this currency, we remember that a powerful video card is needed and will be heavily loaded. However, so far the difficulty is low and it increases smoothly, so you can mine on a video card and accumulate a small crypto fortune.

Ethereum

Ether was nicknamed the second cue ball, an improved system. This cryptocurrency uses a completely different algorithm, so its mining is also different. Its extraction occurs very quickly, and the network is still not overloaded.

• Block time - 15 seconds;
• block size - 18 kbytes;
• average number of blocks per hour - 245;
• block reward - 3 ETH
• difficulty - 3.15Р -0.48% in 24 hours;
• profitability - 0.0556 USD/Day per 1 MHash/s.

Ether is loved by many miners for such indicators. It is obtained quickly, quite profitable, you can try using only one video card. When mining in pools, the reward is distributed in proportion to the output power. Verdict: You can try your hand, but to get a big reward you will need more power. Competition in Ether mining is very high, so you won’t earn much with a weak video card.

Ethereum Classic

It is a fork of Ethereum, also based on the Ethash algorithm. Ethereum Classic is relatively young and, due to the good reputation of Ethereum, has not gained such wide popularity, since this system has not introduced anything noteworthy new.

• Block time - 15.6;
• block size - 4 kbytes;
• average number of blocks per hour - 229;
• block reward - 4 ETC;
• difficulty - 143.342 T -0.29% in 24 hours;
• profitability - 0.0472 USD/Day per 1 MHash/s.

ETC is much more profitable to mine on a video card than ETH, since there is not so much competition here, and the indicators are approximately the same. Today I consider it one of the best options for GPU mining - however, it is on the Ethereum blockchain, which can become overloaded at any time. But so far this has not happened, so you can safely try mining.

Dash

Another payment system that is used by many companies and various services. The creator of Dash based it on the X11 hashing algorithm system. The main goal was to make it difficult to create equipment designed for mining this crypt. So far the goal is being met.

• Block time - 2 minutes 38 seconds;
• block size - 11KB;
• average number of blocks per hour - 23;
• block reward - 3.6 Dash;
• difficulty - 89,571,412 +8.99% in 24 hours;
• profitability - 0.2052 USD/Day for 1 GHash/s;

It is very noteworthy for mining on video cards that they consume approximately 30% less energy resources, and also spend 40% of resources on heat dissipation. Thus, GPU mining of this crypto is very profitable, since less money is spent on paying bills. But again, because of this, there is a lot of competition on DASH.

Monero

A controversial cryptocurrency, but still loved by many. It provides the highest level of anonymity to its users. It is because of this that there have been objections that it could be used for black market trading. Keep this in mind in case you are selling something prohibited.

• Block time - 2 minutes 3 seconds;
• block size - 76.9 kbytes;
• average number of blocks per hour - 29;
• block reward - 5 XMR;
• difficulty - 118.304 G +0.75% in 24 hours;
• profitability - 1.0108 USD/Day for 1 KHash/s.

This is the very profitability that so attracts every miner. But not everything is so perfect. The main disadvantage of Monero is that its transactions are 8 times heavier than Bitcoin ones. Thus, it takes a huge amount of time to process the payment. But anonymous payment for a shipment of something forbidden is worth it, isn’t it?

Mining on a video card is allowed, since the currency algorithm does not load the system. You will save enough on electricity. But I do not recommend mining it on weak video cards, since due to its high profitability it is mined by many. If you are willing to wait for the transaction to be confirmed and you have the hardware that can beat many miners, then you can try Monero.

Zcash

It is the last on our list, but far from the last on the crypto market. The level of anonymity has already been confirmed by many companies. At the beginning of the history of Zcash, Europol was seriously concerned about the rapid growth in popularity of this cryptocurrency.

• Block time - 2 minutes 32 seconds;
• block size - 26.7 kbytes;
• average number of blocks per hour - 24;
• block reward - 12.5 ZEC;
• difficulty - 8.958 M -3.14% at 24 hours;
• profitability - 4.458 USD/Day for 1 KHash/s.

Profitable currency, many levers to ensure anonymity, available for mining on a video card. But its nuance is that it also actively uses RAM for mining. This is a major difference from many protocols that really makes the process of creating ASICs more difficult. Again, you can try mining it with a GPU, but make sure you have enough RAM.

Blockchain technology and cryptocurrencies. Fast start

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From the inside it is a complex process. Imagine that you basically know the Persian language, but you have just been told to translate a highly specialized technological text. You will have to exactly decipher each word.

This is the simplest explanation of how a computer works. It works well with hashes and performs many different operations. But then he is given the task of deciphering a very long and unknown code. Moreover, this can only be done through sequential enumeration. The more powerful your computer, the faster the search occurs. But it's not only that.

To decide which crypto can be mined using GPUs, you need to understand their algorithms, the concept of mining difficulty, and how it grows.

How to calculate your profit

To calculate your mining profit, you need to consider 3 critical factors:

• average hash rate;
• average electricity consumption;
• the method you will use.

That's not all, as you'll also have to consider the cost of your mining rig, consider exchange rates when converting your mined crypto asset into fiat, and much more.

Almost all equipment used for cryptocurrency mining consumes huge amounts of electricity. It works for a long time, 8-16 hours, and on some mining farms around the clock. Therefore, when calculating profitability, it is necessary to take into account not only the costs of purchasing or renting equipment, but also the costs of electricity and the Internet.

The return on investment in mining is calculated as the sum of all expenses for the year divided by the amount in dollars or rubles that can be received from the sale of crypto coins mined during the year. For example, the cost of purchasing equipment for mining bitcoins and paying for electricity and the Internet amounted to 20 thousand dollars. Within a year, the user managed to mine 10 bitcoins. At the end of the accounting year, the cryptocurrency rate was $3,000 per 1 bitcoin. The profit as a percentage was (3000*10)/20,000=1.5 or 150%. The investment turned out to be profitable, since the profit covered the costs. However, the situation does not always work out so well. If the price of Bitcoin fell below $2,000 per unit, the investment in purchasing mining equipment would be unprofitable.

You can easily find mining calculators and other evaluation tools such as whattomine.com that allow you to check the difficulty, income, expected rewards and other basic criteria of cryptocurrencies.

Even modern jokes aren't that complicated

Have you noticed that as we age, we approach humor differently? If at the age of 10 the word “bug” was enough to make a child laugh sincerely, then at 20 you already need to choose the moment for a joke, say it correctly, and not offend anyone. At the same time, she should not demand explanations from everyone, otherwise it won’t be funny.

The difficulty of mining also increases, but not with age. The blockchain of any currency consists of blocks. They contain digital codes that represent the coins. There are two types of coins: limited and unlimited.

One way or another, the difficulty of mining will increase with each new block. Thanks to this, a stable system is ensured, the depreciation of cryptocurrencies is minimized, and mining participants remain in approximately equal conditions. But the difficulty of mining is one of those factors that dictates the rules for using this or that equipment to mine a specific currency.