So now when you know what a crypto-currency is we can now understand the mining of these currencies.
Ok, so first obvious question is why do we need miner I mean cant we generate any amount of digital currency.
No, not actually as they are more like an actual resource and there is a maximum value which can be in circulation.
So what are miners actually doing?
The miners are actually doing complex maths to maintain the Bitcoin network.The miners simply help in tracking the currency block chain
and validating the Transactions, as a reward the miner is given some bitcoins.
How to mine these currencies?
First, you would need the hardware for mining.
As with bitcoins, there are special hardware components known as ASCI that are designed specifically for mining bitcoins.
Sure you can mine with a computer with a good graphic card but that won’t even get you the cost of electricity you are using.
And with etherum, you can’t use those ASCI miners as it uses a different algorithm (Script) that can’t be solved by those ASCI miners so you have to use your graphic card for that.
Then you need a wallet be it be Bitcoin wallet or ethereum or any other which ever you wish to mine.
You then need to download the block chain of the currency you want to mine.
You can then mine solo or in a pool but for a beginner, it’s better to go with pool mining.
Also, you will have to set up the mining software.The most popular mining programs are EasyMiner, CGminer and BFGminer. EasyMiner is a GUI based.
With all these done you are ready to mine.
And do remember its not free money you are using electricity to keep your system up and running and you need hardware for this purpose so you have to calculate that it’s actually profitability before you start mining.