In the world of crypto coins, Bitcoin is one of the most popular one and one of the oldest. As well as Bitcoin, there are a lot of alternative digital coins, commonly known as altcoins.
Bitcoin was created back in 2008, almost instantly becoming a new and revolutionary financial method. The goal of this virtual currency was to replace traditional banks and take the control of money away from governments and return it to the people.
Currently, there are more than 900 cryptocurrencies in the market and the list continues to grow every day. Most of them try to replicate the Bitcoin model with additional features and improvements along the way.
But what is an altcoin and how can we mine it? We’ll now talk a little bit about this topic.
What are Altcoins?
As mentioned above, Altcoins are ‘alternative currencies’ that can replace Bitcoin or have the majority of functions that this popular coin has.
The majority of Altcoins are created through a mining process, they are based on a decentralized network and with an objective of offering a cheaper and more efficient way of making transactions on the internet.
Altcoins are becoming increasingly popular as the price of Bitcoin is steadily increasing and the process to mine them is becoming much harder. In other words, Bitcoin mining has become almost inaccessible and is too expensive for most people. Therefore, fans of cryptocurrencies have begun to look for cheaper options.
In the year 2011, Namecoin was released, and was catalogued as the first Altcoin. This virtual currency started as a test currency and its main objective was to decentralize the registration of a domain name.
Namecoin intended to hinder internet censorship and currently uses the “.bit” domain. It is a decentralized and alternative DNS as well. With the release of this altcoin, developers were motivated to create more altcoins and work in the advancement of the cryptocurrencies.
How can I mine Altcoins?
Before you begin to mine any altcoin, you must do some research into which one will provide the most benefits for you and meet your needs. You have to focus on different aspects of each currency, such as its functions, the support they offer to the users and the reputation they have.
You have two options, you can focus on the larger Altcoins, although these will be more expensive and difficult to mine, or you can take a risk and look for much smaller Altcoins. It is important that if you chose the second option you look out for “Scamcoins” that circulate on the Internet, as this could cost you a lot of money.
As we also previously mentioned, Bitcoin mining has become too expensive, especially for those new to the practice. Professional miners have become a costly ASIC that is not accessible to Bitcoin fans.
But of you want to start mining and test the process with Altcoins, there are two ways you can go about it. The first option is to use a suitable CPU, but you should take into consideration that the process will be slow and not very effective.
The second option is to use a GPU, which requires a high-end graphics processor, but it guarantees fast and accurate results.
You can also use one of the following methods:
Use one of the MaaS platforms. In these platforms, users use their contracts that on average are really profitable. The user can also start with a small investment of $50 or $100. In a short space of time, you will see the ROI. This is the best option for those who do not have a large budget or the knowledge of how to build a platform.
The second option is to build a platform, install the operating system and start extracting altcoins. Users should be wise about choosing software. These types of software optimize the use of energy, so you should make sure it is worth it before beginning.
You should also be sure that you have a basic knowledge of cryptographic algorithms and know how to identify the appropriate altcoin to extract. Look for coins that are scalable, but have good prospects.