There are a lot of ways to make money from Bitcoin these days. From day trading to Peer to Peer lending and everything in between. One way is potentially very passive and that is crypto mining.
No, you don’t have to get your hands dirty, but you do need to learn a few things first.
All of the bitcoin that gets traded has to be “mined”. What that means is that a computer has to encrypt each transaction on the blockchain and as a reward the person whose computer it is gets a small amount of bitcoin.
It sounds easy, and it isn’t difficult, but you will need to follow the guide to get started.
Method One – Use the cloud
Think of cloud mining like renting out some land to grow a farm. There are corporations that run a large number of servers that are used for the commuting to verify the transactions. This is how the bitcoins are mined.
You pay rent to a company and they pay you right to your digital wallet according to how much you paid for rent. They deduct their expenses such as electricity and maintenance and the remainder is yours no matter where in the world you are.
It may not end up being a lot of money but considering that it takes no effort and is as guaranteed as it can be then it is worth it. Particularly if you live in a low cost of living country. Take a look at the 1 bitcoin to Bangladeshi Taka exchange rate and you can see that it can be quite a good income for some people.
Method Two – GPU mining
The most popular way to mine for bitcoin is to use a GPU (Graphics Processing Unit) system. The reason these are so popular is essentially speed. Since many of the computations can be done in parallel, many hashes are able to be verified quickly.
It doesn’t take a special computer to do this, but you will need to upgrade your system.
This can be quite costly because the computing power that is necessary to run this mining rig can be quite expensive.
It pays off, however, as it can run day and night and make you money while it does the mining. It can cost a few thousand to get the graphics card, cooling system and motherboard for your rig. Then add in the cost of electricity as this system runs 24 hours a day.
Method Three – ASIC mining
ASIC, (Application-Specific Integrated Circuits) are computers that are built specifically to mine for bitcoin. That’s all that they do so they have all of their resources devoted to the computing power needed to mine.
They are not cheap, however so it can be an expensive way to get involved with mining as a newbie. If you have the money to spend and are interested, then by all means try it. If not, then you can make it a goal to use the proceeds from a GP set up to upgrade to ASIC.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.