What does mining mean?
Simply said, mining means that you can earn e.g. bitcoins without paying actual cash money for it. That is it not free at all, we will find out later in this article.
Miners verify transactions and complete blocks (one block = one megabyte worth of bitcoin transactions), which are added to the blockchain. This is a very complex computual puzzle. By doing this, miners help to work against the “double-spending problem” (owners of cryptocurrency use their digital tokens twice) and ensure the validity of those transactions. They get rewarded by receiving cryptocurrency. But verifying one megabyte worth of transactions does not mean you will get any bitcoin for it, it just means you are eligible to earn cryptocurrency. You also have to be the first coin miner, who is solving this numeric puzzle or verify the most transactions, to get paid out. This process is called proof of work.
How to become a miner?
As mentioned before, becoming a miner is not for free. You will need to purchase several things:
First of all you need to set up a mining rig. This can either be a GPU (graphics processing unit) or an ASIC (application-specific integrated circuit). ASIC is a special mining hardware, which mines cryptocurrency very fast and does not use a lot of energy.
After owning a mining rig, you will need to set up a bitcoin wallet. To receive, manage, store and organize your cryptocurrency.
The next important step is to find other miners and start a cooperation. Those are called mining pools. Because the chances are very low, that you will receive any tokens on your own. Though you have a very powerful ASIC. You can find many mining pools to join online.
After those three steps you will need to install a software. Getting a mining programme for your computer is important to get connected to the Blockchain and the network.
With all of those things you can finally start mining and receiving cryptocurrency tokens.