You must have heard of Bitcoin, the opening cryptocurrency in a decentralized manner which was released in 2008. Since then, similar digital currencies have entered the market and revolutionized the area of economics.
Today, people can make a small profit by investing few dollars in the equipment and then spend time mining for digital coins before they experience any return on their investment.
Litecoin, Dogecoin and Feathercoin are three cryptocurrencies that are cost-effective for novices. At current point in time, a person might earn between 50 cents and 10 dollars on regular basis using consumer level mining hardware. The latter two will give slightly less profitable results with the same mining hardware but are gaining popularity day by day.
If you are perceiving it as a hobby then cryptocoin mining can produce small income of course. In fact they are accessible for regular people to mine and a person can recover their investment in around a year.
As a second income, it may not be a reliable way to make money for most of the people. The profit only becomes substantial when someone is willing to invest a great deal of money in up-front hardware costs which could earn you an approximate of $50 per day or more.
There is very small chance that Litecoin, Dogecoin or Feathercoin will parallel in value alongside Bitcoin at some point. If it happens, then you could consider it as a second income. If you do decide to try cryptocurrency mining, and do it as a hobby then expect a very small return. If you primary motive is to earn money then you better purchase them with cash instead of mining them.
How cryptocoin mining works?
Following is a brief tutorial for beginners on how cryptocurrency mining operates. The main focus is on mining Litecoins, Dogecoins and Feathercoins. The main objective is to achieve three things;
- Offer bookkeeping services to the network(verifying transactions).
- Get a reward for your accounting services by receiving fractions of coins.
- Keep personal costs down:electricity and hardware.
Here are the ten things you need for mining.
- A free private coin wallet.
- A free mining software.
- Membership in an online mining pool which is community of miners.
- Membership at an online currency exchange.
- A full-time Internet connection which is highly reliable.
- A hardware setup location in a cool area.
- A custom-built computer designed specifically for mining. You may not use it for other purposes while mining.
- An ATI graphics processing unit or a specialized processing device called ASIC chip. This will be the workhorse of providing mining work.
- A fan to blow cool air to your mining computer(if needed).
- Dedication-You will need personal curiosity in order to attain more knowledge and develop your venture further.
As mentioned above, mining can be beneficial. If you are ready to pursue it as a hobby, then follow these steps and make sure everything is in order to carry out the operations successfully.