First let’s talk about what cryptocurrency is and how it works.
Cryptocurrency is peer to peer digital currency that runs on a decentralized ledger called a blockchain. The blockchain is ran by computers across the globe using a piece of software called a node.
The blockchain is a giant database of all transactions that have ever happened and cannot be changed.
The most popular of which is Bitcoin. However, there are many others well over 2000 separate currencies.
Why Should I use Cryptocurrency?
Lets say, for example, Susie wants to send Bob some Bitcoin. Bob gives Susie his Bitcoin address, Susie opens her digital wallet and she puts in Bobs address, and the amount of Bitcoin she wants to send Bob. The transaction is sent to the Bitcoin network and computers confirm that the transaction is valid. Meaning that Susie’s address has enough Bitcoin to send Bob. If everything checks out the other computers, nodes, agree that the transaction is valid. If so, then the transaction is confirmed. This is a very simple explanation of how things work, it is far more complicated.
The true beauty of this is you can send 0.00000546 up to the current available maximum supply of Bitcoin in any 1 transaction.
Just think about that for a moment…
Let’s say Bitcoin is worth $5000 per Bitcoin, that means that I can send $1,000,000 around to world in just a few minutes with very minimal fee of around $0.25. Can’t do that from your bank account!
Or, let’s say I just want to send $100 using one of the more standard ways, that fee would be between $0.99 and $12.99. The fee for wire transfer only increases as your need to send more money increases. But, with Bitcoin, and many other cryptocurrencies, the fee is pennies no matter how much you want to send.
So, how do you get started?
The easiest way is to simply buy some from Coinbase https://www.coinbase.com/join/59eb70fdf3a4f200ff606cc2
Once you have your cryptocurrency of choice you can leave it on Coinbase or move it to a digital wallet.
There is a great video on how to send your coin from Coinbase to your Exodus Wallet here: https://vimeo.com/235079986
You can find more great videos on how to use your Exodus wallet at the following link: https://vimeo.com/exodusio
What about mining?
Mining is probably the easiest way to get into cryptocurrency. If you have a gaming computer already.
While there are many different types of mining the most common is GPU mining.
This is the process by which you use your computers graphics card to earn cryptocurrency.
You can find our guide on how to mine at the following link: https://pistolcrypt.com/how-to-mine
NOTE* The guide does not cover Ethereum mining however, the process is similar.
More information on how to mine Ethereum can be found here: https://www.coindesk.com/information/how-to-mine-ethereum
With all the cryptocurrencies out in the markets how do you know which to mine?
Well, it boils down to doing your own research and understanding your goals. Set realistic goals and understand that profit calculations are general not correct in the long term.
A great place to start is https://coincalculators.com they offer a wide variety of calculations and equipment to make your calculations with and can help to point you in the right direction.
Speaking from pure opinion and experience, if I had it to do all over again, I would insure the following items are in place.
- Do I have enough power?
- Is my home electrical enough to carry the needed power for a mining rig/farm
- 200-amp service and a stand alone 220v circuit on a 30 amp circuit
- Maximum safe watts would be 5280 or about 3 – 13 GPU rigs and 1 – 7 card GPU rig, or about 46 GPU’s total.
- As of today 12-23-2018 that would earn you a profit of $5 per day for 1288 Mh/s mining Ethereum Classic at a cost of $0.10 per kWh, using 46 AMD RX 570 8GB.
- Can I stand the noise?
- Mining is loud, a 1200w HP Server PSU is LOUD! See our video, here: https://www.youtube.com/watch?v=HSm-sCgkL60
- Mining is expensive!
- A small 12 – 13 GPU mining rig will use on average 1.6 kWh and cost $116.88 at $0.10 per kWh a month.
- Mining is time consuming.
- It can be a lot of work to support your equipment, ever wanted to stay up all night wondering why your mining rig keeps crashing only to find out it was just a loose cable?
- You better be very computer literate.
- I’ve been in IT for over 20 years and I had a hard time getting started.
- If you have never even opened a computer before, you better start now!
- Do not buy cheap parts, used parts are fine. Inexpensive is different from cheap!
- BUY USED GPU’s
- Learn all you can about Linux, a basic knowledge is a minimum.
- If you don’t know what sudo apt-get update means, learn!
- You’re going to break something, so have spare parts.
- Invest in a good air compressor as it makes cleaning your equipment much easier.
- Don’t use it to make your fans spin really fast, you will break them.
- Function over form every time, it doesn’t need to be pretty it just needs to work!
- Use all one make and model of GPU.
- If you buy a motherboard that can hold 13 GPU’s, buy 13 of the exact same GPU.
- Watch a lot of YouTube videos on how to build a mining rig, just google it!
- It is ok to start small.
- Finally, remember…Never spend more than you can afford to lose.
Here are some great links to resources and projects
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Cash App – cash.me/$pistol22cal
BTC – 363ssGLCAxbyqaibfnSU6KqjegdBTzRywU
LTC – MHDy8MurFBjrQifiaZkbLHYAvhz65Xdn5b
ETC – 0xA0717fa8AeD650336da9fe41802f428c8f2d5806
ETH – 0x7e99E67385345f5C2B67a06099bE46036288A3FE
The above content is the opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.