What to consider before starting Bitcoin Mining
What is Bitcoin Mining?
There are many cryptocurrencies available today. While Litecoin and Bitcoin are mined, others are referred to as "AltCoins."
1. How Mining Works
Mining operates on a Proof-of-Work (PoW) concept. Miners use hardware to solve complex math equations.
- The Puzzle: Miners use Hashrate to solve a cryptographic puzzle.
- The Reward: The winner gets digital currency (Block Reward) sent to their wallet.
2. The Requirements
ASIC Miner
Cheap Rates
Cold Storage
Low Latency
3. PoW vs. PoS
What is the difference between mining (Work) and staking (Stake)?
| Proof-of-Work (Mining) | Proof-of-Stake (Staking) |
|---|---|
| Bitcoin, Litecoin | Ethereum, Solana |
| Miners validate blocks using energy & hardware. | Validators validate blocks using locked capital (staking). |
| Secure via Energy. | Secure via Economics. |
4. How to Start
Use these tools to estimate your profits before buying hardware:
Watch this guide to setup your first miner:
"The power of asymmetric math!"
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