Contrary to popular belief, no coins are generated when mining cryptocurrencies. It is rather the case that you provide the computing power of your own PC to calculate so-called hashes. These hashes are joined together to form the well-known blockchain. This is a continuously expandable list of data records (“blocks”), which are linked and encrypted using cryptographic methods. With CryptoGold Mining, you calculate hashes and are rewarded with new, unique coins. The term mining itself comes from mining, more precisely from gold mining. Because you are actually a kind of CryptoGold prospector when you are mining – only that “digital gold” is being mined these days.
However, mining is currently becoming more and more complex: If you could mine cryptocurrencies around 2010 at a relatively low cost (even from home), the costs for electricity and equipment are now significantly higher. Many people interested in mining use a crypto mining calculator to help them find out that you would not make a profit with mining. A key term for cryptocurrency mining is blockchain. Since blockchains consist of hashes, each of them is unique – and therefore every single coin on CryptoGold that you mine. You will need special hardware for this.
Different ways to mine CryptoGold
Our CryptoGold experience has shown that there is more than one way to mine CryptoGold. For private mining, you need special, particularly powerful hardware, which can be expensive to purchase. Alternatively, you can operate cloud mining through a third party. We have summarized both options for you.
If you want to operate private CryptoGold mining, you must first create a wallet in which you can save your mined coins. Once you have done this, you need the right hardware next. Because while it was previously possible to operate private PC mining without problems, the process now requires a lot of computing power. So you have to buy an extra mining PC that has the necessary specifications and best installed several powerful graphics cards. For most users, private mining is no longer worthwhile simply because of the expensive crypto mining equipment and the horrific electricity costs. If you are unsure, you can use a crypto mining calculator use to investigate whether the investment is worthwhile for you and how much CryptoGold you could realistically mine. In most cases, this company is not profitable when you compare the benefits and the costs.
With cloud mining, you pay a third party to mine CryptoGold for you. You do not need your own mining hardware for this, but can rent a provider and cancel it if necessary – you can imagine cloud mining as renting virtual mining equipment. The advantage becomes clear when you consider that nowadays there are hardly any private individuals mining, but rather large farms and mining robots that are connected to one another in large data centers. The disadvantage: The demand for mining robots and cloud mining is currently very high. Therefore, you may be put on a waiting list and not be able to immediately start CryptoGold mining.
What is a mining pool?
Mining pools have been created as a clever alternative to private mining: A crypto mining pool is a union of several miners who share their computing power over a network and the mined coins, such as CryptoGold, Bitcoin and much more, then according to the computing power of the individual PCs divide among themselves. When mining cryptocurrencies like CryptoGold, crypto mining pools are of particular interest to you because it can take years for a private individual to generate a single block for the blockchain – accordingly, you have to wait a long time for payment! Crypto mining pools are available in different versions, for example, the pay-per-share principle is used or the income is distributed proportionally. However, you also need crypto mining hardware here and since the effort for mining continues to increase, this option may also not be suitable for you.
What cryptocurrencies can you mine?
The question of which cryptocurrencies can and cannot be mined cannot be answered exhaustively due to the high number of currencies on the market. Many coins can be obtained through mining, but others are not. The most popular is still Bitcoin mining, which we have introduced to you in the linked guide. Mining Ethereum Coin, Bitcoin Cash, Monero and Litecoin is also possible.
What equipment do I need to mine cryptocurrencies?
Ordinary PCs or laptops are not tailored for mining cryptocurrencies and are therefore not suitable for mining coins. For many currencies, such as Bitcoin, you need special ASICs miners, the cost of which can quickly swallow up several thousand euros. To clarify whether mining with the special equipment is worthwhile for you, there are crypto mining computers on the Internet. These query the model of your mining PC, your electricity costs and other data and thus calculate whether mining currencies like CryptoGold is worthwhile for you at all. Because it is precisely the hidden costs, for example for the electricity bill, which often make the job of a vain task even with the best mining hardware. Have a mining calculator with a positive result consulted, however, in our CryptoGold experience it may be worth it.
Step by step guide to mining cryptocurrencies
Would you like to operate CryptoGold mining? Then you will receive step-by-step instructions here.
Step 1: choose mining method
Choose your preferred mining method (private mining, cloud mining or mining currencies like CryptoGold in mining pools) and find out which currency you want to mine.
Step 2: check costs
Select your preferred hardware for cryptocurrency mining and use a crypto mining calculator to calculate whether the mining is worthwhile for you. With mining pools, calculate how long it will take to get paid.
Step 3: Install hardware or log in to cloud mining
Install the necessary hardware or register with a cloud mining provider so that you are ready for mining CryptoGold & Co.
Step 4: create the wallet
Create a wallet with a provider where you can save coins.
Step 5: start cryptocurrency mining
Now you can start mining and soon see if the process is worth it.
What happens next?
With the purchased coins, you can now do trading, for example. Various exchanges are available for this, which we have evaluated for you in our Bitcoin / Altcoin exchanges. You can also learn from us how to safely trade Bitcoin.
Conclusion: is CryptoGold mining still profitable?
A few years ago, mining was a worthwhile exercise for private individuals. Nowadays, however, the answer to the question is a resounding no: mining is not an attractive option for most private individuals because costs and earnings are no longer in balance. A better alternative to receiving cryptocurrencies would be buying from eToroor other regulated brokers. This is more worthwhile in the medium term, since you do not have to do any expensive mining and benefit financially from the upswing in currencies. Just like a gold vein, most of the yield has already been extracted from the mountain. Those who have missed the first intoxication, according to our CryptoGold experience, prefer to invest in the mined gold – in this case in the cryptocurrencies.
Is CryptoGold mining still profitable today?
Unfortunately, in most cases not. Use a crypto mining calculator to check if mining is worthwhile for you.
What is a crypto mining robot?
A crypto mining robot ensures that mining runs automatically and you do not have to do any work personally. There are several processes to make mining run completely automatically, crypto mining robots are one of them.
What crypto mining hardware is needed?
You need special computers as equipment or you can rely on crypto mining robots and cloud mining.
Where does the term “mining” come from?
The term comes from mining and refers to the mining of gold – in the case of cryptocurrencies, the “gold” is digital.
Will mining become profitable again in the future?
This is unlikely. The nature of mining and the advent of crypto mining robots and automation will soon make mining even less profitable for individuals.