The reason for the rising popularity of cryptocurrencies is its safety and integrity. The process of mining ensures anonymity of transactions in a cryptocurrency network. Miners maintain a cryptocurrency system’s integrity and balance of ledgers. Individuals use their computers to validate and timestamp transactions and look out for best coin to mine options for investments.
What is the purpose of Mining?
Mining prevents double spending of digital assets. Double spending is a fraudulent technique where a person spends the same value twice. Hence, there is the need for an authority to keep control over funds. Mining, conversely, removes this need for a third authority.
Computer maths help in securing cryptocurrency transactions. Miners solve cryptographic puzzles to confirm transactions within a network. Once a single miner validates a transaction, every other node in the system adds it to its database. After the confirmation of a transaction, miners receive a reward and transaction fee.
More on Miners!
Similar to trading, mining is investing, and miners are a vital part of cryptocurrency networks. They are essentially bookkeepers of this network. They use their system’s computing power to solve complex cryptographic puzzles, which is necessary to confirm a transaction and record it in a blockchain-based ledger.
Mining requires investment regarding CPU and GPU and may necessitate industry grade mining hardware. Coins like Bitcoins that have stayed in the market for a while need expensive investment to mine, whereas newer coins like feathercoins are relatively cost-effective. The decision of best coin to mine depends on one’s capability to invest and experience.
Which cryptocurrency is best?
It’s worth noting that cryptocurrency is a high-risk investment as different coins have different values that fluctuate. Bitcoins were the first to enter the market, and its value has fluctuated since then. In November 2017, the price of one Bitcoin was more than $7000.
Some of the other crypto-coins worth consideration –
Ethereum – As the second most valued cryptocurrency in the world, Ethereum has seen the fastest digital rise in currency ever. Its value has risen by around 2,700% since May 2016.
Litecoin – Litecoin is created from a fork of Bitcoin, and can generate blocks four times faster. Also, the total no of litecoins is much more in comparison to Bitcoins at around 84 million.
Electroneum – A relatively new cryptocurrency, this coin was launched in September 2017. One can use CPU or a GPU to mine this coin. Even a smartphone is capable of mining this coin. Hence, many consider it the best coin to mine, for beginners.
Mining coins require one to install mining softwares on their computers. Many new crypto coins are emerging in recent times and increasingly becoming popular among enthusiasts.