However, the comparison does hold; digital currency miners use computers to solve cryptographic problems and receive a reward in the form of cryptocurrency.
– You'll need a cryptocurrency wallet, mining software, and mining hardware to begin mining cryptocurrency. – The equipment you need can be very expensive; however, the more you pay for equipment, the more profitable it can be. – Mining pools can help increase your profitability because they share the workload and have faster combined hash rates.
The first miner to solve the cryptographic puzzle called the hash receives a cryptocurrency reward. With that in mind, one of the first steps to take if you're interested in being a cryptocurrency miner is to learn which cryptocurrencies can be mined. Bitcoin (BTC), ether (ETH), Monero (XMR), and Litecoin (LTC) are examples of coins that can be mined.
The number of miners with large-scale mining operations has taken over most of the hashing power of each cryptocurrency's network. Hashing power is how many calculations per second a network can complete.
Some cryptocurrencies require expensive hardware to mine, and overwhelming demand for this equipment has caused the cost and effort associated with setting up a rig to skyrocket.
Others may be more accessible in terms of the equipment that you need. The costs alone make it worth your while to take the time to plan how and what you'll mine.