Crypto mining. What is it?

Crypto mining. What is it?

Crypto-currencies have recently attracted a lot of crypto traders and crypto-investors – both experienced and quite beginners. The latter, of course, are interested in the opportunity to make a fortune in a short time, however, like any developing unregulated market, altcoins are fraught with a lot of risks.

Investments crypto mining software

If investors consider new cryptocurrencies as investments, they should be extremely cautious and remember cases of market manipulation using the “pump and dump” scheme. This scheme implies the collusion of a number of traders who buy a certain crypto currency, and then launch an active advertising campaign in thematic chats and groups. After the third-party traders start buying it, the first ones are sold on the contrary, fixing profits. When the advertising campaign stops and the price of the cryptocurrency falls to the original level, third-party traders are at a loss, as says crypto mining blog.

In contrast to the passive, active trading is the prerogative of only sophisticated traders. Active trading is primarily speculative and occurs on a daily basis, including using techniques such as scalping, detrading, arbitration. All this requires from the trader professional possession of technical analysis tools, crypto trading account. It is also necessary to always “keep an eye on the pulse” of events, have psychological training, etc.

From the point of view of profitability, active trading is much more profitable than the passive, but the risks here are much higher. Therefore, for novice investors it is worth considering not so much independent trading as trust management. At the moment, trust manager services can be obtained directly in investment crypto funds, as well as indirectly, by purchasing tokens of projects that have their own investment fund.

How cryptonight mining works

Earnings on the Internet using a computer graphics card, setting up a mining, instruction

Earlier, in the absence of access technologies to remote data centers, setting up the production of crypto currency was rather dreary. It was necessary to download the program from the official pool, i.e. community miners, and configure it for your video card. Often for hardware from ATI and nVidia different software was required. Then the program was attached to the account in the mining pool, after which your computer started with thousands of other machines to participate in the issue of the crypt. Once your hardware is able to find the correct piece of code, it is passed to the pool system, and you get a part of its value in the form of already real money. The program itself carries out the necessary instructions. In this case, the crypto currency itself was given to the owner of the pool.

Now came the heyday of technology, everything became easier, more convenient and more profitable. Cryptonote mining is done by specially sharpened data centers, essentially the same giant mining farms, where you can allocate some capacity. To extract litecoin and many other hash derivatives, you simply need to register in the system, rent equipment, connect the storage, where you will be listed the share that you managed to crypto mining profitability, in the crypto currency, which is fundamentally different from the first method. According to forecasts and crypto mining wiki, all BTC will be mined in the middle of the 22nd century.

Let’s once again denote the basics of mining:

  • The process carried out by a computer is a mining;
  • Bitcoin or Litecoin Mining is the formation (or emission) of currency of a new type – crypto-currencies;
  • This cryptocurrency can have different derivatives, generated on the basis of one principle.

Bitcoin is already exchanging for so settled dollars or goods in the international exchange systems of electronic currencies. Banks and stock exchanges work with them. This type of earnings is somewhat similar to auto surfing, but here you can not be afraid that you will grab hundreds of viruses. This is not among fraudulent programs. So you can be calm and calmly move away from the computer on your own business, and money will drip in the daytime and at night with crypto mining hardware. When using your computer you can earn money even while you are playing, watch a movie or listen to music.

How to predict the price of Bitcoin?

The price forecast criteria were formed during the last two years and consist of long-term, medium-term and short-term analysis.

The direction of the global trend is determined by fundamental technical factors:

  • the arrival of institutional investors in Bitcoin;
  • international recognition of the Crypto-currency;
  • problems of scaling and cloning technology.

Theories of linkage of quotations were put forward:

  • with the crypto mining calculator exchange VX volatility index;
  • reverse correlation with the change in the spot gold price;
  • change in the number of Google searches on the topic “bitcoin”.

However, the history of trading did not prove the hypotheses put forward. But the Crypto-currency quotes, like every market asset, are amenable to technical analysis, and growth directly depends on the volume and increase in the number of bidders.

The use of indicators is somewhat difficult: because of the wide range of price changes, there are many false signals. For the same reason, oscillators are unsuitable for use, impulse growth causes abnormal values indicating a constant overbought or oversold market.

Therefore, traders use simple and effective methods of graphical analysis, applying a large time scale, cryptocurrency mining calculator, preferring not to build forecasts within a day.