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Everything You Need to Know About How to Mine Cryptocurrency

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on.

Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining as well as the most secure wallets (such as Ledger Nano Coinbase and Trezor Model T) where you can keep your coins, and include the most reliable crypto exchange platforms (Coinbase and Binance) where you can trade the coins you mine to other cryptocurrencies. 

Understanding Mining

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency. This is the biggest TL;DR possible, so let’s branch out a bit, shall we?

Imagine that you have a machine that mines crypto coins. We’ll talk about the specific types of machines later on in the tutorial, but for example’s sake, let’s just say that it’s your own, personal computer and you’re trying to figure out how to mine cryptocurrency.

Your PC would perform specific tasks that are required to be able to obtain even the slightest amounts of cryptocurrency. These tasks are called “Proof of Work”, and they are designed to create a fair playing field for all the different miners out there.

The tasks themselves are math equations. The more miners want to mine one, a specific mining pool – the tougher the equations become. This brings balance to the pool, but it also motivates bigger and stronger machinery usage.

Many more subtle factors come into play while the mining process is happening, but the general idea is that if your device contributes to the “mining”, you’ll get a share of the spoils.

That is a very short and simple way of defining what is cryptocurrency mining. Now let’s move on to what you came here to see – how to mine cryptocurrency.

Cryptocurrency Mining

There are a few ways you could go about cryptocurrency mining. I’ll cover the main ones here, and start from the easiest one – cloud mining.

This rent lasts for an agreed-upon period, through which all of the earnings that the rig makes (minus the electricity and maintenance costs) are transferred to your cryptocurrency wallet.

The people (companies) that offer these cloud mining services usually have huge mining facilities with multiple farms (tens or hundreds of rigs stacked and operating together) at their disposal and know perfectly well how to mine cryptocurrency.

Cloud mining has become so popular mainly because it offers the possibility to participate in the world of cryptocurrencies for people who might not have enough money to buy their rigs or who perhaps simply aren’t interested in owning a rig.

There are two options of cloud mining – free and paid. Naturally, a lot of people that are looking for ways to mine cryptocurrency would gravitate towards the “free” options, but it does have its drawbacks (very slow mining speeds, extra conditions, etc.). Paid cloud mining usually works like this:

You find a cloud mining host online. You check out the plans that the host offers – there are usually four or five of these plans, ranging from the cheapest to the most expensive one; some hosts even offer you the ability to create and customize your cloud mining plan.

Once you know what you want, you simply perform the transaction (meaning that you pay the host), register your cryptocurrency wallet code and that is how you make the first steps on how to mine cryptocurrency!

Different plans cost different amounts of money and last for a variety of periods. The standard plans can go anywhere from $500 up to $5000, and last from two years to a lifetime.

It is usually expected that you’ll break even at around the half-a-year – one year mark, and then profit from that point onwards. No one can know for sure, though, because the prices of cryptocurrencies are very volatile and their prices tend to sway by quite a bit.

Method #2 – CPU Mining

CPU mining utilizes processors to mine cryptocurrencies. It used to be a viable option back in the day, but currently, fewer and fewer people choose this method how to mine cryptocurrency daily.

There are a couple of reasons why that is. First of all, CPU mining is EXTREMELY slow. You could go on for months without noticing the smallest amount of revenue.

It’s also usually not worth it – you make very little amounts of money, but you probably spend ten times that amount on electricity and cooling. The problem mitigates itself by a bit if you can find a place that has nice cooling and cheap electricity bills, but that’s rarely the case.

So why do people still even use CPU mining, then?

Well, basically because anyone with a desktop computer could do it.

All you need to be able to mine using the CPU method is just a computer and a couple of programs. It is possible to do it with a laptop, but it is VERY STRONGLY NOT ADVISED. Your laptop will probably fry and overheat in a matter of a couple of hours.

The fact that it’s so easy to start cryptocurrency mining attracts new CPU miners every day. Some people that are looking for how to mine cryptocurrency don’t care about the details – they just want to start the process as soon as possible, and in any way possible.

Method #3 – GPU Mining

GPU mining is probably the most popular and well-known method of mining cryptocurrencies. If you google “cryptocurrency mining”, GPU rigs are going to be some of the first things that you’ll see.

Cloud miners, for example, use GPU rigs for their services. And these guys are professionals that sometimes have hundreds if not thousands of rigs, so they probably know what they’re doing, right?

GPU mining is very popular because it’s both efficient and relatively cheap. Don’t get me wrong, the construction of the rig itself tends to be costly – but when it comes to its hash speed and the general workforce, the GPU mining rig is great.

GPU rigs utilize graphics cards to mine cryptocurrencies. One standard rig is made out of a processor, a motherboard, cooling, rig frame and – of course – a few (2 – 8) graphics cards.

A typical price for a well-performing and nicely built GPU mining rig aims to be around the $3000 price range. It is a hefty investment but will pay off much faster than, let’s say, a CPU miner. People looking for ways how to mine cryptocurrency should check them out.

Method #4 – ASIC Mining

ASICs (Application-Specific Integrated Circuits) are special devices that are designed explicitly to perform a single task, which in this case is crypto mining.

ASICs are very well known and treasured because they produce insane amounts of cryptocurrency when compared to its competitors’ GPU and CPU.

But if they are so good, why didn’t I mention them sooner?

Well, mostly because they’re a big subject of controversy.

You see, when the ASIC company announced its new version of the machine, the announcement caused an uproar in the cryptocurrency community. Many people have called for an outright ban on these machines. Why?

Because ASICS are so powerful, they rob other miners who are using GPU or CPU rigs of the possibility to keep up both in hash speeds and in earnings. Also, ASICs have twisted the economy of certain specific cryptocurrencies – imagine if the majority of earnings would go to one miner with an ASIC farm, what kind of chaos that would ensue.

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How to invest money in 5 simple ways

Do you ever get overwhelmed looking at the menu at a fast-food restaurant? There are about 57 different combo options to choose from. Do you get the bacon cheeseburger or the chicken tenders? What side do you get? Fries? Tater tots? And what about drinks? All of the sudden the question “Can I take your order?” seems like it’s going to dictate the rest of your life!

But if you think that’s stressful, trying to figure out how to invest your money can feel even more intimidating. It’s easy to go from pumped at the idea of saving for retirement to panicked trying to decide what to invest in. These are some big decisions. We get it.

The truth is, learning how to invest doesn’t have to be complicated. You can learn how to invest your money in a few simple steps:

  • Step 1: Set goals for your investments.
  • Step 2: Save 15% of your income for retirement.
  • Step 3: Choose good growth stock mutual funds.
  • Step 4: Invest with a long-term perspective.
  • Step 5: Get help from an investing professional.

We’re going to walk you through how to get started with investing so that you can start working toward your retirement dreams.

Step 1: Set goals for your investments.

This is important. Take a step back for a second. What does your dream retirement look like? Have you ever really thought about it? No matter what age or stage of life you’re in, it’s never too early or too late to think about what you want to do in retirement someday. And make no mistake, “someday” is coming—and what it looks like depends on what you do today.

It’s not enough to invest just for the sake of investing. You need to have a strong why, something that keeps you going when times get tough and you’re

tempted to jump ship. So, to get started, set up a “dream date” with your spouse (or, if you’re single, meet up with a trusted friend) and talk about some of the things you want to do in your golden years. You might be surprised what you both come up with!

It’s not enough to invest just for the sake of investing. You need to have a strong why, something that keeps you going when times get tough.

But it’s not enough to dream. You need a plan to turn that dream into reality. Remember, retirement isn’t an age—it’s

a financial number. You need to know exactly how much you’ll need to fund your retirement dream! Our handy investment calculator will help you set a goal that you can start working toward today.

You can do this! 

Step 2: Save 15% of your income for retirement.

Okay, let’s dive in. When you’re out of debt and have an emergency fund with three to six months of expenses saved, start investing 15% of your gross income toward retirement.

Why 15%? Because there are some other goals you need to plan for—like paying off your home early or saving for your kid’s college fund. Just remember, when it comes to juggling college savings and your own retirement goals, saving 15% of your income for

retirement comes first.

The next step is to decide where to invest your money. Start with your work 401(k) and invest at least enough to receive the full employer match. Then you (and your spouse if you’re married) can invest up to $6,000 a year in a Roth IRA.

When you’re out of debt and have an emergency fund with three to six months of expenses saved, start investing 15% of your gross income toward retirement.

And the sooner you start investing, the more compound growth works to your advantage. Here’s what we mean: Let’s say you start investing $800 a month in good growth stock mutual funds when you’re 35. If your investment grows for 30 years at the historic average annual rate of return, you could have over $2.2 million when you retire. How much of that was money you put in? Less than $300,000. The rest was compound growth!

What if you’re starting late with nothing saved at all? There’s still hope. If you start investing at age 50 and invest $800 each month, you could still end up with close to $700,000 by the time you celebrate your 70th birthday. That’s not bad at all!    

Step 3: Choose good growth stock mutual funds.

It’s normal to feel overwhelmed by all the mutual fund options when you’re making your 401(k) selections or talking through your Roth IRA options with a financial advisor. With so many choices, it can be hard to figure out the best way to invest your money.

But choosing the right mutual funds is really simple if you follow this strategy. We recommend keeping your portfolio diversified by spreading your investments evenly across four mutual fund categories:

  • Growth
  • Growth and income
  • Aggressive growth
  • International

Yes, it’s that simple! Keeping your portfolio balanced with these four types of funds can help you minimize your risk and still take advantage of the returns the stock market can offer. If you’re confused about your fund options, talk to a financial advisor or investment professional. They can help you make sense of the details so you feel confident about how your money is invested.

Keeping your portfolio balanced with these four types of funds can help you minimize your risk and still take advantage of the returns the stock market can offer.

Step 4: Invest with a long-term perspective.

When the market spikes or dips, it’s easy to make emotional decisions about your investments. Just rememberSaving for retirement is a marathon, not a sprint!

In our National Study of Millionaires, we found that financial discipline and consistent investing were their keys to building wealth. That means they put money into their 401(k)s and IRAs like clockwork month in and month out for decades, no matter what was happening on Wall Street. You see, millionaires focus on what they can control, not on what’s out of their control.

We found that financial discipline and consistent investing were the keys to building wealth for millionaires. That means they put money into their 401(k)s and IRAs like clockwork month in and month out for decades, no matter what was happening on Wall Street.

And no matter what, don’t cash out your 401(k). Don’t steal from your future to fund your new kitchen remodel or dream vacation. Keep your hands off your retirement accounts until you’re

ready to retire, and invest consistently year after year—regardless of what the market is doing. That’s a long-term investing strategy you can count on.

Step 5: Get help from an investing professional.

Listen, you don’t need to have all the answers about long-term retirement investing. But you do want to have someone in your corner who can help you along your financial journey.

That’s why we recommend working with an experienced investing pro who can answer your questions and show you how to get your retirement savings started the right way.

Find a financial advisor who’ll stick with you for the long haul and help you stay on track even when times are tough. If you don’t have an advisor, we can put you in touch with an experienced investing pro in your area.

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The Smart Way To Make Your Money Grow

The Smart Way To Make Your Money Grow

If you want a shot at becoming wealthy, you need to do more than simply earn money.

You may be thinking to yourself – this is not the time to talk about investing.

You’re panicking about your job, that argument with your best friend, your cat behaving even more weirdly than usual – and don’t even get me started on your love life.

But really, there’s NO GOOD time to talk about investing. Ultimately, you have to be disciplined enough to hold onto the money you earn – to then take the next step in learning how to make your money grow.

And the best way to grow your money is by learning how to invest.

It’s as simple as that.

When you become an investor, you’ll be using your money to acquire things that offer the potential for profitable returns through one or more of the following:

  • Interest and dividends from savings or dividend-paying stocks and bonds
  • Cash flow from businesses or real estate
  • Appreciation of value from a stock portfolio, real estate, or other assets

As you learn to become an investor, you will begin to devote your limited resources to the things with the largest potential for returns. That may be paying down debt, going back to school, or fixing up a two-family house.

Of course, it may also mean buying stocks and bonds, or at least mutual funds or exchange-traded funds.

Thanks to advances in technology, you can start to invest with as little as $5 a month and a smartphone. It’s our job to help you filter out the noise, learn the basics, and make good investment decisions from the start.

With no fees on accounts with low balances and easy automatic investing, Wealthfront is our top pick for the best all-around investment account. If you want to learn more about them, read our Wealthfront review.

Investing allows you to significantly grow your money over time thanks to the power of compound returns.

Compounding can be called the Eight Wonder of the World. Thanks to the power of compounding, a single penny could grow into millions of dollars, given enough time. You may not live that long, but consider the following examples.

Now that you know why you should invest, how about when to invest?

The answer to that is pretty simple. The right time is now.

Investing sounds more intimidating than it is. Yes, there’s always a potential risk for loss, but there’s an even bigger potential for serious gain.

Doing anything for the first time can be terrifying, especially when it involves your hard-earned cash. But here’s some advice for first-time investors.