What is Crypto Mining?
Understanding Cryptocurrency Mining
Cryptocurrency mining is the process by which new coins are entered into circulation and transactions are verified on a blockchain network. It's also how the network confirms new transactions and maintains security.
How Does Mining Work?
Miners use powerful computers to solve complex mathematical problems that validate transactions on the network. When a problem is solved, the miner adds a "block" of verified transactions to the blockchain and is rewarded with cryptocurrency.
Why is Mining Important?
- Creates new coins in a decentralized way
- Secures the blockchain network
- Verifies and records transactions
- Prevents double-spending of coins
Types of Cryptocurrency Mining
CPU Mining
Uses computer's processor. Slowest method but accessible to beginners.
GPU Mining
Uses graphics cards. More efficient than CPU for many algorithms.
ASIC Mining
Specialized hardware designed specifically for mining cryptocurrencies.
Cloud Mining
Rent mining power from remote data centers without owning hardware.