HOW TO MINE CRYPTO AND A GUIDE FOR …

HOW TO MINE CRYPTO AND A GUIDE FOR CRYPTOCURRENCY BEGINNERS

Table of Contents

Chapter 1: Introduction................................................................................................................................................. 8

What is cryptocurrency? .......................................................................................................................................... 9

Beginners Understanding on cryptocurrency .................................................................................................. 9

History of Bitcoins and other coins................................................................................................................... 10

Who is Satoshi Nakamoto?.................................................................................................................................. 11

What is Bitcoin? ........................................................................................................................................................ 11

Brand New Bitcoin Reward .................................................................................................................................. 12

Understanding how to trade with Bitcoins .................................................................................................... 12

Understanding Steady Change of Bitcoin Price ...................................................................................... 13

Breaking Complexity in Crypto Mining ........................................................................................................... 13

Chapter 2: How Bitcoins Works .............................................................................................................................. 15

Owning a Bitcoin...................................................................................................................................................... 16

Origin of Bitcoin Addresses ................................................................................................................................. 16

Bitcoin Transactions ................................................................................................................................................ 16

Working of Blockchains......................................................................................................................................... 17

Can Bitcoin be Created out of Thin Air? ......................................................................................................... 17

Chapter 3: Bitcoin Mining and Consensus.......................................................................................................... 18

Securing and synchronizing blockchain by mining .................................................................................... 18

Abuse of Bitcoin ....................................................................................................................................................... 19

Why has Bitcoin become very controversial over the years?.................................................................. 19

Bitcoins Economics and Currency Creation ................................................................................................... 20

A De-Centralized Consensus ............................................................................................................................... 21

Independent Confirmation (Verification) Of Transaction. ........................................................................ 22

Aggregation of Transactions into Blocks........................................................................................................ 23

Transaction Fees, Age, and Priority .............................................................................................................. 24

Generation Transaction .................................................................................................................................... 26

Coinbase Fees and Reward ............................................................................................................................. 27

Successfully Mining the Block............................................................................................................................. 27

Chapter 4: Should You Mine in a Pool or Solo ................................................................................................. 28

How to solo mine .................................................................................................................................................... 30

Step by step of setting up a solo mining server ..................................................................................... 30

Advantages of solo mining ............................................................................................................................. 32

Disadvantages of Solo mining ....................................................................................................................... 32

Pool mining................................................................................................................................................................ 33

Payout systems .................................................................................................................................................... 33

Characteristics of pool mining ....................................................................................................................... 36

Using a pool .......................................................................................................................................................... 37

50 BTC .......................................................................................................................................................................... 37

BTC GUILD .................................................................................................................................................................. 38

Chapter 5: How To Set Up A Bitcoin Miner ........................................................................................................ 39

Step 1. Purchasing a Custom Mining Hardware .......................................................................................... 40

Hash rate. ............................................................................................................................................................... 40

Energy consumption.......................................................................................................................................... 40

Why custom hardware is the best ................................................................................................................ 40

Categories of Bitcoin Mining Hardware ..................................................................................................... 41

Step 2. Obtaining a Bitcoin Wallet .................................................................................................................... 44

Step 3. Secure Your Wallet................................................................................................................................... 45

Step 4. Decide the mining pool to join or whether to mine alone ....................................................... 47

Step 5. Download a mining program ............................................................................................................. 47

Step 6. Run your miner .......................................................................................................................................... 48

Step 7. Keep an eye on temperatures.............................................................................................................. 48

Step 8. Check your profitability. ......................................................................................................................... 48

Chapter 6: Top 6 Coins you can mine Apart from Bitcoin ............................................................................ 50

Ethereum (ETH)......................................................................................................................................................... 50

Litecoin (LTC) ............................................................................................................................................................. 51

Zcash (ZEC)................................................................................................................................................................. 51

Monero (XMR) .......................................................................................................................................................... 52

Ripple (XRP) ............................................................................................................................................................... 52

Dash .............................................................................................................................................................................. 52

Chapter 7: How to Mine Different Altcoins ........................................................................................................ 53

Ethereum..................................................................................................................................................................... 53

How to Mine Ethereum (ETH) ........................................................................................................................ 53

Mining ..................................................................................................................................................................... 57

Litecoins ...................................................................................................................................................................... 60

Hardware you need to mine litecoin ........................................................................................................... 61

The process of mining litecoin ....................................................................................................................... 61

Zcash ............................................................................................................................................................................ 67

Reasons for mining zcash ................................................................................................................................ 67

Selecting your GPU Hardware ........................................................................................................................ 68

Mining Zcash on your PC................................................................................................................................. 68

Monero ........................................................................................................................................................................ 76

How to mine Monero ........................................................................................................................................ 76

Ripple ........................................................................................................................................................................... 85

Ripple XRP is not mineable ............................................................................................................................. 85

Reason why banks are changing to ripple ................................................................................................ 86

How do I invest in ripple? ................................................................................................................................ 86

HOW Many XRP (Ripple coins) EXIST? ........................................................................................................ 87

How to buy ripple in 3 simple steps ............................................................................................................ 88

Buy ripple with fiat currency ........................................................................................................................... 89

Buy Ripple with Bitcoin (trade BTC for XRP) ............................................................................................. 89

Dash .............................................................................................................................................................................. 90

Advantages of dash ........................................................................................................................................... 90

Advantages of Dash over Bitcoin .................................................................................................................. 90

How to mine Dash .............................................................................................................................................. 90

Requirements for mining Dash ...................................................................................................................... 91

Mining process..................................................................................................................................................... 91

Change the Dash Wallet Address ................................................................................................................. 94

How much you will be earning mining dash ............................................................................................ 95

Steps on how to buy dash ............................................................................................................................... 96

Dogecoins................................................................................................................................................................... 97

How to mine Dogecoin guide ........................................................................................................................ 98

What you need to start mining ..................................................................................................................... 98

Making workers ................................................................................................................................................. 100

Chapter 8: The Network of Bitcoin ...................................................................................................................... 105

Features of the peer to peer network ............................................................................................................ 106

Bitcoin peer to peer network and protocols ............................................................................................... 106

Networking nodes and their functions ......................................................................................................... 106

Simplified payment verification nodes (SPV) and Lightweight nodes .............................................. 107

Wallet..................................................................................................................................................................... 107

Bitcoin core.......................................................................................................................................................... 108

Full blockchain node ........................................................................................................................................ 108

Understanding Extended Bitcoin Network .................................................................................................. 108

Network transactions ........................................................................................................................................... 109

Exploring Bitcoin networking blocks. ............................................................................................................. 110

Bitcoin difficulty networking factor ................................................................................................................ 110

Networking through pool mining or solo mining .................................................................................... 111

Chapter 9: How to Predict Return on Investment and Payback Period of Cryptocurrencies ........ 112

Investing in cryptocurrencies ............................................................................................................................ 112

A statistical analysis of cryptocurrency.......................................................................................................... 113

Ideal investment strategies ................................................................................................................................ 114

Financial institutions ........................................................................................................................................ 117

Regulations and deregulations .................................................................................................................... 117

Major network compromise ......................................................................................................................... 117

Global economic event ................................................................................................................................... 117

E-commerce ........................................................................................................................................................ 117

Financial technology ........................................................................................................................................ 118

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