From CNN to BBC, almost every major international TV and online media is talking about Bitcoins! However, not all of them dive into what Bitcoins really are and how you could actually get them. Let’s break down everything you need to know about cryptocurrency mining and how to start investing now as a beginner.
Cryptocurrency is secure digital money. The word cryptocurrency is made up of the words crypto (meaning coded and difficult to crack) and currency. It is secure in the sense that it is anonymous – not tied to your credit card or bank account. The most popular cryptocurrency is Bitcoin but there are other alternative and equally secure digital currencies such as Litecoin, Monero, Ethereum, Ripple and others.
The main process of making cryptocurrency is referred to as cloud mining. The mining basically involves pooling together massive computer processing power to solve and record complex mathematical equations. Each solved equation gives some coins as a reward.
If you were to mine bitcoins yourself, you would need multiple powerful computers to make any good progress. This is where data centres (cryptocurrency mining companies) come in. You can use them to mine remotely (cloud computing) without having to buy and maintain the required computer hardware. You simply need to pay a fee to use their infrastructure.
Excited and ready to mine some Bitcoin? Here are five steps to get yourself some digital money.
1. Choose a cloud mining company and register
You need to sign up with a cloud mining company. There are many out there. A simple online search will reveal thousands of them. But not all platforms are equal. You need to find the ones which are safe, have been around for a while, and offer the best prices. A good example is Hashflare.io – a company owned by renowned mining experts. Apply hashflare code to get 5% off when registering with them.
2. Obtain a cryptocurrency wallet
Now that you are going to get cryptocurrency you are going to need somewhere to store it. A crypto wallet is similar in some ways to a PayPal account. You use it to hold your digital currency until such a time when you want to do something else with it. Wallets charge you a small fee for transactions.
3. Choose a cryptocurrency
There are many different types of cryptocurrencies. However, you want to stick to something that is basically the mother of them all – Bitcoin! It is widely used and accepted by more merchants than any other digital currency.
4. Make an investment
You need to buy into a Bitcoin mining pool. For every amount you invest, the number of Bitcoins you get varies. Once you buy into a Bitcoin mining pool, you start getting Bitcoins and you can withdraw them to your Bitcoin wallet.
5. Exchanging Bitcoin for dollars
The value of Bitcoin fluctuates almost on a daily basis. Bitcoin has been on a meteoric rise in dollar value for the last couple of years. You simply need to hold on to your Bitcoin, wait for the value to go up and then sell it for profit on Bitcoin exchanges.
6. Save money
As you can see you get charged a small fee here and there to buy and sell your bitcoins. There is a way you could cut the costs to earn even more profit. For instance, right here on http://hashflare-redeem-code.net/, you’ll find coupons and promos to get you discounts on various mining platforms.