Table of Contents
Air Like – Crypto is a term you must have heard a lot in recent years.
If you are still unfamiliar with the term cryptocurrency, you must know or at least have heard of Bitcoin. Now,Bitcointhis is an example of cryptocurrency or crypto currency.
Linguistically,cryptocurrencyconsists of a combination of two words, namely cryptography which means secret code and currency which means currency.
Thus, cryptocurrency can be understood as a digital currency that can be used for virtual or internet-based transactions. Well, to ensure its security, cryptocurrencies are protected by quite complicated secret passwords.
This digital currency is decentralized, meaning that it does not require a third party such as a bank as an intermediary in a transaction. This is made possible by blockchain technology which keeps all its members connected to each other.
This is the salient feature of crytocurrencies. This type of money is not issued by a central authority so it is theoretically immune to government interference. Another characteristic of cryptocurrencies is that they are encrypted.
Each user has its own code to transact with cryptocurrencies. Every time a transaction is made, the user cannot see who the transaction was made by. Because there will be no real name that appears in every transaction.
Apart from that there are no rules about who can use cryptocurrency and what the money is used for.
Cryptocurrency Profit and Loss
Like currencies in general, cryptocurrencies are used for transactions. Currently, there are many shops that accept cryptocurrency as a means of payment.
Crytocurrency has several advantages, including being universal because it does not require any conditions to become a user, is relatively fast, and transparent.
However, because they are anonymous, crytocurrency transactions have the potential to be used for a number of illegal activities, such as money laundering and tax evasion.
How To Mining Crypto Bitcoin
At the same time the anonymity is also welcomed by its users. For example, if it is used by activists living under a repressive government.
Mining using this method means to be part of a pool or collection of miners. This method is considered the easiest and fastest. In other words, you become part of the other miners who will then share the rewards.
There are several things you need to consider when choosing a mining pool, including the size of the pool , the minimum fee, and the fees charged by the pool .
You could say this method is the opposite of pool mining . This way you don’t have to share your rewards with other miners in a pool that can number in the thousands. However, mining alone means that you will compete with other miners and even other pools . This is one of the problems of single miners.
You need to have hundreds or maybe thousands of mining tools and all their supports to be able to compete, such as PCs, motherboards, graphics cards, hard drives, RAM, and so on. You also have to provide a large amount of electricity and solve complex algorithms to generate Bitcoins.
Quoted from the Cryto Currency Indonesia page, cloud mining is a mining methodBitcoin which does not require a sophisticated computer. For mining using this method, you do not need to know how to mine Bitcoin.
In addition, you also don’t need to own and take care of all mining equipment including damage or anything like that. You only need to pay up front.
You can use cloud mining provider services such as genesis mining, hashflare, hashing24, and so on. The drawback of this method is that if the price of Bitcoin is in free fall one day, you may end up losing money.