Is Crypto mining, 1 option for passive income?
CRYPTOCURRENCY & CRYPTO MINING
A cryptocurrency is a form of money whose value overshoots the value of many traditional forms of currency. Cryptocurrencies invention dates back to 2008 when Bitcoin, the first Cryptocurrency, was created by a person named Satoshi Nakamoto.
Bitcoin (the first Cryptocurrency) was almost entirely worthless at the time of its creation; in-fact, someone referred to in the crypto trading world as “the pizza guy” traded ten thousand units of Bitcoin for Pizza at that time. Like most people, the Pizza guy wasn’t stupid enough to recognize the value of the currency and trade it off at that time; he was short-sighted about the future holdings of the crypto assets at that time. In a matter of just a few years, Bitcoin rose tremendously in value, and it attracted a lot of investors to the world of cryptocurrency trading.
As the value of Cryptocurrency started rising, it attracted many new investors who foresaw the prospects embedded within the crypto investment world. Asides the value increase of Cryptocurrency, investors trooped into trading with this asset because it held more stable opportunities over the years. The value of Cryptocurrency has been hardly dwindled by the factors that depreciate the value of other currency forms. The twenty-first century has seen the rise of Cryptocurrency, and today, Cryptocurrency is the most expensive form of currency in the globe.
Passive income is income that accrues to a person while such a person is not paying attention. There are many ways of making passive income in the world today. As we spoke to how to make passive income in trading as an example: CRYPTO TRADING TIPS FOR BEGINNERS, one has to educate themselves first However, one of the most effective ways of generating a meaningful source of passive income lies in the world of cryptocurrency investments.
There are a lot of ways through which investors can generate revenue in the crypto investment world. One of the ways traders can make a meaningful source of passive income in the crypto investment world is the Crypto mining activity. In the following sections, we will examine the nitty-gritty of crypto mining and the way to go about it.
WHAT IT MEANS
In simple terms, Cryptocurrency Mining is essentially generating new Cryptocurrencies through a series of processes. Cryptocurrency mining involves a process of digging through a lot of computational factors. These computational factors help to create some cryptocurrency as a reward. Crypto mining was a walkover for traders at first, but as the crypto world witnessed a boom, generating new cryptocurrencies got a lot harder. So many are discouraged about crypto mining. The good news is: Cryptocurrency mining involves solving a series of complex mathematical problems in the cryptocurrency cloud.
When these problems are solved, the cryptosystem rewards the system that solved those problems with some Crypto assets. While this may be hard to achieve, a crypto miner does not have to sit and start trying to calculate the solution to these complex computational data; there are computer systems with just the exact configuration that solves these problems. All a crypto-miner has to do is get one of the computer systems that can approach crypto technological computations, and there go the profits. Also take time to review different sources/information on mining, as there is much to learn here and education is #1! Another resource and explanation on mining: “What is cryptocurrency mining? by Webopedia”
REQUIREMENTS FOR CRYPTO MINING
The cryptocurrency network exists in the cloud. The set of equipment required to approach the crypto investment world has to be some of the strongest because they are not just solving preset computational data, they will be cutting through a lot of changing algorithms to solve these mathematical expressions.
The first thing that’s required for crypto mining is a powerful computer. Please kindly note the choice of words “a powerful computer.” This requirement is because the system will be on for a very long time, and if such a system runs into an error or crashes, by the time it comes back online, the investor would need to start the mining process afresh again. Most gaming systems have the power that can run successfully through crypto mining activities.
So a trader that wants to invest in cryptocurrency mining should look for computers that have strong gaming capacities, because as a matter of fact, the stronger the system, the more such a trader can make in the mining field. Asides gaming systems, computers with strong graphical processing units (GPU) also can generate the required hash rates for successful crypto mining activities. As a rule of thumbs, it is not advisable to run crypto-mining operations on Laptops. Although some do, it is still not desirable, because such a laptop will most times weaken out and develop faults in a little less than no time. The following are some system requirements for a meaningful mining operation in the crypto asset world:
- System RAM capacity: 4 Gig
- Graphics Card: NVIDIA GeForce GT 430
- CPU: Intel Pentium 4 2.00 GHz (or a Quad Core CPU)
- Least Operation System: Windows 7, 64 bits
Another requirement for crypto mining is an uninterrupted power supply. As earlier stated, the computer system will be solving a lot of computational data. As such, the system will be expected to stay on the current challenge before setting out to address others. According to an Ethereum Miner on the internet, when the power cuts out in the Ethereum Mining process, and a system shuts down. By the time the system restarts, such a system would have been past the average block confirmation time of about fifteen (15) seconds. The possibility of succeeding in the crypto mining process with unstable power is very low (if not impossible).
The other requirement for a fruitful crypto mining career is a state of the art internet connection. A trader needs unhindered access to the internet if he/ she is to succeed in the crypto mining world; this is because all cryptocurrencies run on the power of the internet, and so anyone who wants to solve their computational challenges must seek them out in the clouds. Like the power supply, the internet connection of a crypto miner must be stable and fast to detect sharp changes and adapt appropriately.
CRYPTO MINING PROSPECTS
The advantages of mining cryptocurrencies are numerous, and it would take a whole new article to write about the benefits engrossed in this aspect of crypto investment. Below are some of the benefits attached to successful cryptocurrency mining activities:
- Low Risk
While there are a lot of other crypto investment options that promise higher return prospects than Crypto mining, many of them are very risky investments that can sometimes cause the trader to lose all (or most) of his/ her funds. The guaranty of crypto mining is that once a trader has the system and power to run the cost of mining, such a trader would no doubt; make a meaningful income on the Crypto mining block, although not as profitable as many other crypto investment options. Crypto mining promises a mind-assuring return on investment.
- Open to All
While it is almost impossible to trade Cryptocurrency without some knowledge of the financial markets and trends, crypto mining is open to all who can get the computational requirements to approach the crypto mining block. Anyone who wants to mine Cryptocurrency does not need any in-depth knowledge of financial trends; such does not even need to have any background in the tech world. Anyone can mine Crypto as long as they can meet the requirements to achieve a meaningful hash rate.
- More Passive than TradingWhile Crypto trading offers some passive income level, Crypto mining provides a more reliable form of passive income. All the trader needs to do is set up the system that will perform the computational algorithm, and the trader can go about doing all other activities. Many people who mine cryptocurrencies around the world just set their systems up with uninterrupted power and internet supply and get right on with their lives, only to come back and make the claims of their crypto rewards. Crypto mining is a very stable source of passive income.
- Flexible Investments
Crypto cloud mining involves generating some units of a cryptocurrency; many miners spread their mining activities to cover a wide range of crypto assets such that they make profits from a widespread assets database. This factor is one of the other things that make Crypto mining a world to look for stable passive income. Once the system has the power to mine the coin, it can extract as may coins as its power allows.
While there are many ways to approach the crypto investment world, Crypto mining is one of the unique styles of making it worthwhile online, especially with regards to a meaningful passive income.