What is cryptocurrency and how to earn it through mining?

Today, almost every active Internet user has heard about cryptocurrency, bitcoins, miners, etc. However, few have a clear idea of ​​what cryptocurrency is and how to earn it. The article you are reading is written specifically to bring you up to date, as well as to tell you as much as possible about all the nuances associated with this issue.

What is cryptocurrency?

Cryptocurrency is a digital (virtual) currency that is based on cryptographic protection. In simple words - this is a coin (coin), consisting of 100 million parts (Satoshi), each of which carries encrypted information (crypts). Such a system provides cryptocurrency with maximum protection not only from hacking and theft, but also from all kinds of fakes.

It was the high level of protection that attracted the attention of most investors who bet on b itcoin before it began to rise in price. Pricing policy, in turn, depends on the level of confidence of currency holders.

Cryptocurrency

It is not surprising that after the phenomenal success of Bitcoin, which is the first cryptocurrency in the world, new coins began to appear. They seek to repeat the achievement of their older brother. Before you learn how to earn bitcoin cryptocurrency from scratch, let's look at the top ten leaders, as well as pay attention to the cost of these coins.

Miners

As we already know, the first digital currency was Bitcoin. It appeared in 2009, and the history of its creation is still shrouded in mystery. After the debut of the MTC, the so-called miners began to appear, which use the performance of the processor and video cards, mining cryptocurrency. To date, there are many ways to start making cryptocurrency, which we will tell you about.

Mining

After Bitcoin was in the public domain, mining was the only way to mine it. This is a unique process that allows you to get Satoshi (the one hundred millionth part of Bitcoin), and collect them into blocks that later create the coin itself. Let's learn in more detail about how to earn cryptocurrency on mining and what you need for this.

Due to the fact that the mining process becomes more complicated, people began to collect "farms". Each consists of a high-frequency processor, a motherboard, a powerful power supply and ultra-modern video adapters, the total number of which (on the same equipment) varies from 4 to 8. It should be noted that along with the demand for cryptocurrency, the cost of video cards, for example, GTX 1080, has risen sharply. It costs about $ 1000. One such card can bring in about $ 5 a day, which means that it will pay for itself within 7-8 months, subject to the deduction of the cost of electricity consumed.

Which video cards are better for mining

Most people, even those who know what cryptocurrency is and how to earn it, make serious mistakes when choosing video adapters for assembling "farms". At the moment, you can find a lot of announcements about the sale of completely new, high-quality farms that will definitely bring you an unprecedented income. However, do not rush to part with your money and buy a "pig in a poke."

First of all, pay attention to the model of video cards sold. If they belong to an outdated line, then there is no point in such an acquisition, since their profitability at any moment can decrease so much that you won’t even be able to recoup the equipment. You should always remember that mining is a process that is constantly becoming more complicated. If in 2009 it was really possible to mine up to 10,000 bitcoins per day with the simplest video adapter or processor, today, with a good farm, you will mine about 0.01 VTS ($ 24).

Let's look at the main characteristics that modern graphics cards used for mining should have:

• The size of the video memory . Everything is extremely simple here - the larger the volume, the better. In order to mine, for example, ethereum, video adapters with a volume of 2 GB or more are ideal.
• Memory speed . When looking at a video card for its further use in cryptocurrency mining, pay attention to the standard of installed memory. The best option is DDR5, which consumes significantly less power than its predecessors, and also has more computing power.
• The possibility of overclocking . This is not the most important detail. When overclocking a video card, you can achieve an increase in its power, sometimes up to 40%. But it is worth noting the fact that when using the wrong settings in the mining client, the profitability of an overclocked video card can even decrease, and the energy consumption can increase.
• Cooling . This is perhaps the most important point, even though it is at the very end of our list. The stable operation of all video card systems, as well as its durability, directly depends on the cooling system. The least susceptible to overheating are modern video adapters from Radeon.

Top 5 graphics cards for mining in 2017

You already know what cryptocurrency is and how to earn it using a “mining farm”. We have prepared for you the TOP-5 video cards that are best suited for digital currency mining:

Bitcoin Faucets

After calculating the approximate cost of the “farm”, many people begin to look for a way to earn bitcoin cryptocurrency from scratch, without any investment. One of the options for getting a “freebie” in the form of Satoshi is a service called Bitcoin-taps. These are special Internet resources that offer their visitors to perform some action, for example, enter captcha, and then get their reward. In a couple of clicks, you can earn from 100 to 1,000,000 Satoshi accrued randomly.

The size of the reward directly depends on the popularity of the resource: the more unique users - the higher the cost of advertising, which is the main form of earnings for the organizers of bitcoin faucets.

Cloud mining

This method is perfect for those who do not want to lose time on the purchase and installation of mining equipment, which also consumes quite a lot of electricity. All you need is to choose a suitable and reliable resource that provides the possibility of cloud mining, and then rent a certain amount of power.

Some services that lease out facilities provide a one-time bonus for registration, and also have a referral system. Many users, as a rule, from the countries of the former Soviet Union, use the provided bonuses as a startup. And then, the money received from mining is reinvested in the lease of new capacities, increasing income. This is another way to earn cryptocurrency from scratch.

The best services for cloud mining

Before entrusting your money to any service, you need to make sure of its reliability, as well as solvency. Otherwise, there is a risk not only to remain without earnings, but also to lose their own savings. Next, we give a list of seven “cloud farms” that are popular among miners:

1. Hashflare - offers the highest income from production of ether (ETH), which is 200% of the cost of the purchased package (contract).
2. Hashing24 is an analogue of the aforementioned service, however, only bitcoins are mined here. Regular representative in the list of the best "cloud farms".
3. Minerjet is one of the most popular resources that offers to extract several digital currencies at once: ethereum, monero, litecoin, etc. You can earn up to 200% per year without investment!
4. Ilivion is a recently appeared service that enables the extraction of bitcoins. Estimated profit - 3% per day of the package price.
5. Bit-hit - most experienced users who know what cryptocurrency is and how to earn it, choose this particular “cloud”. Here you can not only mine BTC, LTC, ETH and other types of digital currency, but also withdraw money earned daily, which is sometimes very convenient.
6. Speedmine is the most stable service with an attractive and user-friendly interface. Profit reaches the mark of 4% per day.
7. Cryptomonitor is a reliable site that has been around for two years. Profit from the acquired contract is 200%.

How to make money on the cryptocurrency exchange

In order to master this type of earnings, you need to understand the specifics of the exchanges. Their main task is to provide their own platforms for transactions using digital currencies (sell, exchange, buy). As a rule, people who know where to earn cryptocurrency, and who do it successfully, convert the accumulated coins into the usual rubles or dollars. It was the appearance of such exchanges that saved millions of people from a number of problems associated with the cashing out and exchange of some banknotes for others.

The main advantages of modern platforms include a high-quality and intuitive interface, the ability to access from anywhere in the world, as well as a huge number of offers for the exchange and withdrawal of money. Even a person who has never encountered such resources, and who does not know how to make money on the cryptocurrency exchange, will quickly be able to navigate and understand the basic principles. First of all, it is necessary to determine for yourself the optimal platform, which will not only be rich in internal functionality, but also have a reputation for reliable service.

Today, there are a huge number of exchanges on which you can make not only transactions using, for example, ether (ETH), but also make good money on the difference in cryptocurrencies. Among these are Russian-speaking resources, however, the most advantageous offers are found on Chinese exchanges. The main disadvantages of services located in China or Korea include:

• Inconvenient for residents of the CIS interface, which is usually in Chinese or English.
• Reliability level is below average.

Highlights during trading on the exchange

Suppose that you have already found a suitable exchange, fully understood the specifics of its work, and studied all the functionality. Now it's time to make a profit, but how to earn cryptocurrency, bitcoin or your first dollar ?! The easiest way can be attributed to the history of the concluded operations and graphics. By analyzing the graph, you can observe how the exchange rate of the MTC to other currencies has changed over a certain time period. As a rule, experienced traders use Japanese candles, which display the dynamics of growth or decline. Remember that success will largely depend on how well you learn to read candles.

The characteristic features of Japanese candlesticks are as follows:

• The location of the candle body always indicates the current state of the course. In the event that you entered the exchange at the time of the opening of trading, and the cryptocurrency rate is rather low, and before the end of the trading it has appreciably risen, the body of the candle will have red or black color.
• The shadow of the candle always indicates the maximum or minimum rate during the bidding.

There are times when the candle shadow is displayed on the chart, but the body is missing. Among traders, this is called a dodge. You also need to know the working principle of Sell and Order buy, which form a glass. If you translate into a language that is understandable to a beginner, then this is a complete list of requests collected from all users who are up for sale or want to buy digital currency. A glass provides an opportunity for the seller to choose the best offer, and then carry out the transaction.

Afterword

Now you know how to earn cryptocurrency (bitcoins, ETN, LTC) and you can put this knowledge into practice. However, you should not trust people, sites and viral ads who will promise you an exorbitant reward in exchange, for example, for a money transfer. Recently, a lot of fraudulent schemes have appeared, with the help of which attackers try to steal the pocket of unsuspecting users.