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Gate.io Blog WHAT IS CRYPTOCURRENCY MINING?
Crypto 101

WHAT IS CRYPTOCURRENCY MINING?

23 November 17:36


[TL; DR]
Preface: Things you need to know about cryptocurrency and mining
What is Cryptocurrency Mining?

How to mine on CryptoCurrency?
Some of the Best Cryptocurrency Exchanges

Cryptocurrencies are becoming more and more popular in our time, whether they are often volatile or sometimes high-risk, but that does not stop the curiosity and attraction of Crypto to people today.

Crypto is a perfect choice for those who have lost their main "source of food" in the Covid 19 era and gradually become a great "mystery" for new investors because of the high returns they bring. Therefore, more and more people know and find Crypto. Perhaps one day in the future, the world will develop according to the trend of virtual money and predict that we will also be the ones to make that global change!

But what do you know about Crypto, and do you know how to properly invest in these virtual currencies? If you are just starting out and want to dive deeper into this world, let us guide you to join hands to create a "global change"!

1) What is Cryptocurrency Mining?

Source: The economic time

"Mining" is a process of creating a new virtual currency by finding the results of complex algorithms. When a person invests in a virtual currency, the details of that investment are entered into a large ledger, known as the Blockchain. Only when the investor confirms the transaction process legally will the whole process be completed. Immediately after the confirmation is complete, the transaction will be locked in the Blockchain for all "investors" to see, and at that time, the transaction will be completed.

Verification requires investors to solve complex math problems. They must be in a race against others to solve possible problems. The first to complete the transaction will be paid a small portion of the process as a "bonus" for their efforts. Every successful transaction leads to the entry of a new coin into the cycle.

However, you will pay a high price for this. They require a highly configurable computer, which consumes a lot of time and energy to be able to win this "reward".

2) How to mine on CryptoCurrency?

As mentioned before, mining requires a computer with an extremely high processing configuration. When mining virtual currencies, we need to have to speed; the faster the speed, the easier it is for investors to mine and increase their assets. But if your computer is slow, then you will have a high chance of losing the opportunity to other investors. A powerful graphics processing unit (GPU) or video card is essential for mining cryptocurrencies. After that, the investor will need to create a coin wallet for a mining pool - a group of investors who have pooled all their resources to increase their own mining power. Investors in the same pool will distribute profits among themselves.

3) Some of the Best Cryptocurrency Exchanges

Virtual currency exchange is an online marketplace where users can sell, buy and exchange virtual currencies. Cryptocurrency exchanges act like an online brokerage, as users can stake legal coins (like U.S. dollars) and use these funds to buy crypto payments. Users can exchange one currency for another, and some exchanges allow the user to earn interest on cryptocurrencies held in the exchange account.

Some reputable and suitable cryptocurrency exchanges for everyone: Gate.IO, Coinbase, Cash App, Binance, Bisq, ….

Source: Gate.io

In addition, you can learn about GATE.IO exchange to make transactions because it is an exchange that is established with integrity, transparency, and fairness to a very high standard. No listing fees and only select quality and promising projects. GATE.IO's exchange covers only 100% of the real trading volume.



Author: Tomi.D - Gate.io researcher
*This article represents only the views of the researcher and does not constitute any investment advice.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.


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