By mining cryptocurrencies such as Bitcoin, you participate in the verification of the transactions made on its network and in the issuance of new cryptocurrencies. If you’ve read or heard about cryptocurrency mining before, you may be familiar with the word algorithm. There are two types of algorithms that are crucial to know how to mine a particular cryptocurrency: the mining algorithm and the consensus algorithm.
The mining algorithm (hashing algorithm) is closely related to data processing. The mining hardware you need depends a lot on the mining algorithm used by the cryptocurrency of your choice. Especially if it is ASIC devices since these are developed to work only with a specific algorithm.
Today, among Internet users, services such as GetBitcoins, those that allow you to quickly and online get bitcoins, without resorting to mining services, are gaining more and more popularity. But cloud mining services allow you to earn much more and now you can familiarize yourself with the best of them.
Minergate “Fastest miner in the industry” Review
Minergate was born in 2014 as a mining pool created by a group of blockchain technology enthusiasts. It is one of the most popular platforms for mining through a pool, which is the most popular — and profitable — modality today. It provides a fairly simple to use mining software, as well as a 24/7 support service. Private mining stopped being profitable several years ago. Thus, pools are born, in which the block reward is distributed among the participants who contribute computational resources to solve the relevant cryptographic problems.
How to use Minergate?
To start using Minergate, you must have an idea of how much hashing your computer has. To do this, just look at the specifications of your CPU, GPU, or mining rig. If this is not possible, there are some programs that help to calculate it. Then, taking into account the electricity cost in your region, perform the profitability calculation that the same Minergate calculator offers. If you determine that mining is profitable enough, follow the steps below.
Download and install the mining software
Visit the Minersgate.org website and click on ” Download and Start Mining “. The download of the software for your computer’s operating system will begin. It is available for Windows, Mac OSx, Ubuntu, and Fedora.
Once downloaded, open the executable file to begin the installation on your computer. Some antivirus and browsers will detect that the file contains a virus, although we have not been able to verify that this is the case. Follow the instructions for installation, which takes only a couple of minutes.
The Minergate commissions for the mining pool are quite competent. They depend on the method used by the cryptocurrency in question: for PPS the commission is 1.5% while for PPLNS the commission is 1%. What we do see quite high are the withdrawal fees, which cannot be set manually. The cost to mine in the cloud depends on the hash rate contracted, for example, if you contracted about 4500 GH / s, you would have to pay around $ 1.5 per day.
Conclusion: Is Minergate Reliable?
Although we have not been able to find irrefutable information indicating that Minergate is a scam, we have found negative reviews from users who are not very happy with its commissions and performance. However, the incredible ease to start mining and the fact that it offers software with such a friendly graphical interface, make it a very attractive alternative for beginners. This way, you don’t have to have a lot of experience to use it.
What is cloud mining?
Basically, it is a service in which you rent mining power, in order to receive the rewards generated. It is like mining through a third party, which, in this case, would be the platform that offers you a portion of its mining power. This explanation perhaps leaves more questions than answers: is it profitable? Why not mine with my own hardware? Is it reliable?
In answer to the above questions, the same factors that influence the profitability of traditional cryptocurrency mining, done with proprietary hardware, also influence the profitability of cloud mining. In other words, the profitability of both is equally relative. However, the chances of you end up falling victim to a scam when investing in cloud mining are much higher.
In favor of cloud mining, you do not need to invest in mining equipment or anything related to this issue (electricity, cooling system, etc). Also, you don’t need to worry about hardware maintenance and care.
Hashflare Cloud Mining Review
Hashflare is a respected cloud mining provider. Here you can start mining cryptocurrencies without investing money in your own hardware and software. You pay for the hash power while Hashflare mining devices are hosted on your premises and you don’t have to worry about configuration or maintenance.
The company is based in Edinburgh, Scotland, and has data centers in several countries. The company was founded in 2015 by the HashCoin team, which initially financed its project by holding an Initial Coin Offering (ICO). This enabled a significant amount of capital to be raised and invested in the acquisition of the most modern mining equipment.
The company’s mission
From the very beginning, the company has committed itself to the mission of making cryptocurrency mining accessible to as large a target group as possible, from beginners to advanced crypto enthusiasts. Especially beginners without technical know-how should also have the opportunity to mine the desired cryptocurrencies and thus benefit from their potential returns and at the same time contribute to a higher decentralization of the blockchain networks.
1. HashFlare.io is supported by Hash Coins, a well-known and financially solid Estonian mining supplier.
2. HashFlare has state-of-the-art infrastructure with high-tech mining equipment that ensures excellent mining performance.
3. Large selection of popular cryptocurrencies that can be mined. As a user, you can currently mine either BTC, ETH, LTC, DASH, or ZCASH. It is quite possible that more cryptocurrencies will be added soon.
4. Immediate payouts – contrary to most providers, where a minimum amount must be reached or only paid out at regular intervals.
5. Attractive partner program – the recommendation of HashFlare to interested parties who register for HashFlare is rewarded with an attractive additional bonus.
6. Unlimited contract duration;
7. Comprehensive statistics – in your user account you always have a detailed insight into the most important mining statistics.
8. Pool allocation – you do not have to mine alone, you are assigned to one of several mining pools, which increases the likelihood of profitable mining.
9. Neither hidden commissions nor fees in the pricing structure.
1. Certain maintenance fees for Bitcoin and Litecoin – if you decide to mine BTC or LTC, there is an additional maintenance fee that does not apply to other cryptocurrencies such as ETH.
2. No complete transparency – unfortunately, the company only offers limited insight into its operations in some aspects. For example, they don’t publish detailed reports on where the company’s mining equipment is located (for security reasons, it is said). You will not find out exactly which country your mining device is in.
3. A commission may apply to bank transfers. If you decide to withdraw in fiat currency to your bank account, you should be aware of the existing withdrawal fees, which can reduce your income.
Hash-flare.com Customer Support
In this respect, we actually find Hashflare’s customer support very appropriate. Two things that could be improved are that customer support is unfortunately available only in English, and the option to call by phone would also be very helpful if there are urgent questions or concerns.
The consensus algorithm, for its part, is more related to the agreement between all the members (nodes) of a cryptocurrency network regarding its operation: which transactions meet the validity criteria, the order of the blocks in the chain, etc. You will learn more about the functions of the mining and consensus algorithms later. For now, we will focus on the two most popular types of consensus algorithms among cryptocurrency networks: proof of work (PoW) and proof of stake (PoS).
How much work do I have to work to meet the proof of work?
Relatively, you would have to work very little. The work of this test will not be done by you directly, but by the hardware, you use to mine Bitcoin or the cryptocurrencies that you prefer.
PoW (proof of work) is a consensus algorithm that is based on solving a puzzle using mathematical calculations. The miner tries to get the answer to this puzzle as quickly as possible, which will allow him to attach a new block of transactions to the chain
The chances of two miners coming up with the same answer simultaneously are virtually nil, if not impossible. The puzzle in each block requires a different and random solution, so it cannot be easily predicted. This mechanism seeks to prevent the double-spending of coins; that is, someone who has already transferred a cryptocurrency can transfer it back to someone else as if they had never spent it.
Solving the puzzle of a block involves obtaining the reward that it offers. But, to get to that answer before another miner, your hardware must process large amounts of data at high speed. That is why it is important to have powerful and adequate mining equipment to mine your favorite cryptocurrency.
Proof of work is the most commonly used consensus algorithm in cryptocurrency mining. Bitcoin, the first of all cryptocurrencies, uses PoW and in order to mine it, it is necessary to have specialized hardware. Other recognized cryptocurrencies that use proof of work are Monero (XMR), Ethereum Classic (ETC), Zcash (ZEC), Bitcoin cash (BCH), etc.
The Ethereum network, whose native cryptocurrency is known as ether (ETH), also uses PoW as its consensus algorithm; but it is expected that it will soon replace it to work with the proof of stake (PoS) or with both in a hybrid way.
What do I need to mine cryptocurrencies?
First of all, a tremendous thirst for knowledge and endless patience (those who know about assembling and programming computers will know what we mean). Beyond the characteristics already mentioned, roughly we can say that you will need a certain type of hardware and software, electricity and Internet, and a cooling system according to the type of mining hardware you have and the place where it is located.
The most essential thing is to have electricity and internet services that are stable to mine. Otherwise, the work of your teams will be constantly interrupted and you will not be able to get the benefit you expect from mining.
When we talk about hardware, we refer to the equipment necessary to mine the cryptocurrency of your interest. It can be generic hardware such as processors and graphics cards, as well as dedicated equipment specifically for mining. The choice of one or the other depends mainly on the mining algorithm with which the cryptocurrency in which you are interested is programmed.
The mining algorithm is in charge of establishing the rules in which the information of each cryptocurrency transaction will be encrypted and decrypted. In other words, it turns an easy-to-understand message into something indecipherable. Also, the algorithm must ensure that it is impossible to repeat the same result with another message. This provides security to the network and seeks to ensure that no cryptocurrency can be “counterfeited.”
Back to mining hardware and the types of algorithms that each can mine, here are some examples: If you want to mine bitcoins (BTC), you would need to purchase a specialized ASIC device to mine the SHA-256 algorithm. If you want to mine ether (ETH), the cryptocurrency of Ethereum, or Zcash (ZEC), then you will need at least a dedicated graphics card (GPU) and a computer with a certified power supply. On the other hand, if you want to mine Monero (XMR) or Bytecoin (BCN), the processor (CPU) of your computer may be enough.
There are different types of software or computer programs that you will need to mine cryptocurrencies such as Bitcoin. Let’s start with mining software, a program that allows your hardware to interact with and mine the cryptocurrency network. There are different types of software that vary depending on the hardware used and the cryptocurrency to be mined.
Among the most recognized are CGMiner and Claymore. The former is popular with bitcoin and bitcoin cash miners, while the latter is often used to mine cryptocurrencies such as ether, Ethereum Classic, Zcash, Decred, and Siacoin, among others.
You will also need a program to monitor the behavior of your hardware and configure it according to your preferences. ASIC devices, like Bitmain’s AntMiner, usually include their own software to configure them and monitor their performance. While GPU miners may need to download programs like MSI Afterburner or GPU-Z for this purpose.
As for monitoring the performance of your mining rig, you can do it through the website of the mining pool where you are mining or using the TeamViewer program, which allows you to access your rig remotely from another device.
The wallet or purse
Another important element is the wallet or purse that you will use to receive your payments for mining. This can be hardware (Trezor, Ledger, KeepKey, OpenDime, etc), digital (Coinomi, Wasabi, Exodus, Jaxx, etc), or online (MyCrypto, Blockchain, Bitgo, etc).
Refrigeration and conditioning
You cannot ignore what is related to the conditioning of the place where the mining equipment will be, especially regarding its temperature. As a consequence of the high level of processing that mining requires, mining hardware tends to rise in temperature and runs the risk of overheating. The temperature can be so high that it could accelerate the deterioration of the device, and even reach the point of stopping working completely.
To avoid a tragedy like the one just mentioned, you should investigate the limit temperature that your hardware can withstand, evaluate the temperature that your equipment reaches while mining, and find a sweet spot, in which it is profitable to mine while maintaining your equipment safe from overheating.
There are a couple of things to consider to prevent hardware overheating. The first is the cooling of the space where your equipment is located, for which you can use air conditioners, fans, or heat extractors, as is more appropriate in relation to the temperature of the place where the facilities are. In addition, there is also a way to refresh your equipment with liquid cooling systems, which are quite effective as long as they are properly maintained.
Added to what has to do with cooling, is the configuration of the miner itself. By this, we mean both the power assigned to the heat extractors integrated into the hardware and the processing power required of it. Sometimes it may be more convenient, for the sake of the mining device, to lower the mining power a bit so that your equipment works optimally for a longer time, instead of having it at its maximum and that they suffer early breakdowns that more dramatically affect your income.
What is a mining pool?
A mining pool is a node to which a group of cryptocurrency miners connects to carry out this activity together. The sum of the mining power (hash rate) of all its participants is shown on the network as one, and not separately. This is the case of cryptocurrency networks that work with proof of work.
Pools on cryptocurrency networks that use proof-of-stake as a consensus algorithm work a bit differently. The participants of these mining pools delegate their decision-making power to someone else managing a full node. In this way, the chances of adding more blocks to the chain and obtaining its rewards increases.
In both cases (PoW or PoS), the pool, after receiving the corresponding rewards, is committed to distributing “the loot” fairly and equitably among all its workers.
Mining alone or accompanied?
Perhaps a greedy little voice in your head has whispered in your ear: “But why mine in a group and not go it alone? So, I could keep all the rewards I get. ” If you take that little voice seriously, you may never make any profit from mining.
Let’s put it like this: if you want to mine cryptocurrencies like Bitcoin alone, even if you have the most powerful mining hardware on the market, you will still be waiting for your rewards on the side of the blockchain.
The power of a mining device looks negligible compared to the hash rate of the entire network. For this reason, you may never mine a mere satoshi by yourself. In fact, there are cryptocurrency mining farms that have hundreds, and even thousands, of these teams working as a single node. So, the chance of your little miner competing against these monsters is technically nil.
To better understand the previous example, it is important to note that, in cryptocurrency networks such as Bitcoin and Ethereum, which use proof of work (PoW) as a consensus algorithm, the first mining node to solve a mathematical puzzle proposed by the network can add a new block of transactions to the blockchain and you earn a reward in cryptocurrencies.
There is only one correct result for every proposed puzzle on a cryptocurrency network and only one way to get this answer. The probability that a mining node solves such a puzzle depends on its mining power compared to other mining nodes on the network.
A miner who has 5% of the global mining power of a network will be able to solve more puzzles than another miner who only has 1% of the total hash rate. But, if 8 miners joined together to add 10% of the mining power of the said network, they would have the odds in their favor. This would make mining more profitable for each member of the group than it was for them separately. For these reasons, it is more convenient for the vast majority of miners to mine in pools.
Hashflare is one of the longest established cloud mining providers on the market. For almost 5 years, miners all over the world have been offered the opportunity to conclude cheap and attractive cloud mining contracts on the most important cryptocurrencies. You can currently mine Bitcoin, Litecoin, Ethereum, Zcash, and Dash here. Our test report shows that Hashflare offers exciting opportunities. Users receive daily payouts and can always see mining statistics live.
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