How Can You Mine Crypto For Free?

Highlights

• Cryptos are mined in two ways - proof-of-work (PoW) and proof-of-stake (PoS), PoW being the traditional way of mining for crypto
• The miner sets up their node (computer/s), run the mining software and then wait to verify each block of the ledger
• The miner is then required so solve a series of complex mathematical problems. Then if you solve it, you’re rewarded with tokens

There are three ways to obtain cryptocurrency. Purchase it on an exchange, accept it as payment for goods and services or mine it.

Most people don’t consider the third option, thinking perhaps you need a PhD in computer science. This is not the case. In fact, just about anyone can mine Bitcoin or any crypto for that matter. All that is really needed is the proper equipment and willpower. Lots of willpower.

Just because anyone can do it doesn’t mean it’s easy.

How Does It Work?

Cryptos are mined in two ways: proof-of-work (PoW) and proof-of-stake (PoS). PoW is the traditional way of mining for crypto.

This is where the miner sets up what’s known as a node – a system of computers. These computers, using specialised mining software, solve a series of complex algorithms in order to release new coins.

How Can You Mine Crypto For Free?

The older digital currencies, like Bitcoin and Ethereum, use the PoW method.

The other method is proof-of-stake, where coins are mined by the platform users simply by “staking” a portion of their cryptocurrency.

PoS is considered much more environmentally friendly than PoW, which is why more modern crypto blockchains use a PoS consensus.

That being said, any crypto which runs on the Ethereum blockchain (and there are a lot of them) must be mined using PoW.

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Here’s An Example

So you may have noticed that people are going nuts over Shiba Inu. For the uninitiated, Shiba Inu (SHIB) is a meme coin, inspired by the other popular meme coin, Dogecoin. Both these coins are based on a popular meme of a smiling Shiba Inu breed dog.

This coin exploded in the past couple of months with its value going through the roof. So it comes as no surprise that everyone wants a piece of SHIB.

So a SHIB miner sets up their node (computer/s), runs the mining software and then waits to verify each block of the ledger.

Ok. Wait, what? When did we get on to Heath Ledger?

Ok let me explain.

Each time a transaction is made in the Ethereum network, it’s recorded on a “block” (collection of data).  It’s then up to the miners to verify each block of data for security purposes.

So as a miner, you’d be required so solve a series of complex mathematical problems. Well, not you, per se, but your computer would be required to solve the problems. Then if you solve it, you’re rewarded with Ethereum tokens.

Therefore, greater rewards are doled out to those with more high-powered hardware.

The Proper Equipment

Bitcoin mining is mainly about the hardware. As we’ve discovered, those with higher computing power have a distinct advantage over those who don’t.

Proper Bitcoin mines have literally hundreds of high-powered computers in a well-ventilated warehouse. It’s a very competitive process so a great deal of will power is required for individual miners to beat the big miners to the punch.

Mining software for Bitcoin is also important and can be downloaded for free. It’s important to do your research, though, to determine which software is compatible with your device.

Examples of free Bitcoin mining software include EasyMiner, BTC Miner and MinePeon.

Different software is available for each platform. So, mining on Ethereum requires different software to mining on Bitcoin.

The Verdict

Mining for crypto is certainly another way to get your hands on some crypto. Bear in mind, though, it’s by no means an easy process. It requires time, dedication and patience. So, if you think you have what it takes, then get your computer ready, download the software and get busy mining! Good luck!