With the stark rise of cryptocurrency in 2021, more and more people are looking for a way into crypto mining, but at a cheaper price. But can you mine cryptocurrency for free?
Crypto mining refers to a process of verifying crypto transactions on a blockchain ecosystem through complex computerized nodes. Upon successful completion, miners are entitled to rewards - often Bitcoin or Ethereum.
Here's what you need to know about 'free' crypto mining.
Can You Mine Cryptocurrency For Free?
Technically, yes, you can mine cryptocurrency for free. But the more nuanced answer is a bit more complex.
While you can use your home computer to mine assets such as Bitcoin or Ethereum, given the immense popularity of mining now, this is much less profitable due to rising difficulty. With just a basic PC, you would not earn much - if any - especially after factoring in electricity costs.
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As such, while there is a huge selection of free crypto mining software out there, it is really the hardware costs that make mining an expensive investment initially.
The rise in the popularity of cryptocurrency also means many scammers will target would-be miners by offering them the chance to mine cryptocurrency for free. It is important to do your due diligence around all crypto mining projects - paid or free - before giving out details.
What Is Crypto Mining?
A blockchain system is based on a proof of work consensus, meaning it requires miners to verify crypto transactions. Whenever a transaction is initiated in a blockchain, a miner starts to evaluate and solves the complex block algorithm via a 64 digit hexadecimal number.
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Since miners are competing to solve the transaction, the miner who finishes first broadcasts the solution to the entire network. In return, the miner is eligible to receive crypto rewards, which they can then sell or hold.
Read More: Can Cryptocurrency Mining Damage Your GPU?
[image by Brian Wangenheim via Unsplash]