Beginners Guide

The Comprehensive Guide to Cryptocurrency Mining

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Oct 3, 2020

Cryptocurrency is one of the hottest topics discussed on the Internet. The cryptocurrency ecosystem is said to be growing at an exponential rate as people are investing head over heels.

If you want to own them, you have to loosen your purse strings.

But you might have heard about people earning cryptocurrencies as rewards by a method called Cryptocurrency Mining. 

What is Cryptocurrency Mining?

Cryptocurrency mining is the process of validating transactions on the Blockchain and gaining rewards in the form of cryptocurrency.

Mining is basically a network of computers called Nodes interconnected with each other to validate the blocks on the blockchain. Once a transaction is initiated on the blockchain, all the nodes compete within themselves to solve the complex mathematical puzzles in order to validate blocks. The node which successfully accomplishes the task is rewarded with a cryptocurrency of the respective blockchain.

The mining process terminates illicit activities and empowers all users on the blockchain network to audit the transactions.

How does Cryptocurrency mining work?

The cryptocurrency, in 2009, was created specifically to be regulated by people using it. But financial transactions have to be validated to prove their legitimacy and transparency. This validating ...

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