Mining in the crypto industry has been in existence for like the last decade, and many people have rushed into it without having the right information, and tools to begin the journey as a miner. This has led to a lot of people losing huge amounts of investments, time, and effort.

     There are different information about crypto mining some are informative but not simplified. This article will be simplifying the rugged terms for understanding to help you achieve immeasurable goals as a Crypto Miner.

• What is Crypto Mining
• Its Working Principle
• Ways/Methods to Mine Cryptocurrency
• Important Tools Needed
• Advantages and Problems
• Conclusion

In simple terms, Crypto mining is the act of making/developing new coins for use. But it can't be fully understood in these terms. Putting it a little complex term, we say It's an act of Validating new Crypto transactions on the blockchain network. This validation allows new blocks of a particular coin/token to be released for public use.


 (A risk that allows one to spend a coin more than once, or an act of retrieving used coins) on a Blockchain network. Since its inception in 2010, it has done more good than harm to the crypto industry.

Now, let's address how validation works, and how miners earn.

As I mentioned earlier that to mine Cryptocurrency you'll have to validate transactions. This validation entails one to solve a complex mathematical equation called a 

(They are codes that are used to secure data or information on a Blockchain network. These hashes are very easy to validate especially if the 

 are available. Without the key, it's almost impossible to crack), and show block credibility

    Miners' reward is like on a first come first serve basis. Miners compete with each other to solve mathematical code, the one who gets to solve the code receives the opportunity to post it to the public ledger, and he gets the reward in form of cryptocurrency.

 agreement that makes sure that it's only verified/trusted miners that validate transactions. It also ensures that miners get paid as soon as the validation is done.​

There are 3 different ways you can mine cryptocurrency, it only depends on what you can invest/afford. They are the following;

This comes in when an individual can purchase all the necessary tools for mining. It was quite unchallenging when mining started but with more people coming into the crypto mining business it became more difficult by the day. This method is not readily used amongst crypto miners.


This is when a group of individuals comes together with their resources, and funds to purchase a large number of mining tools (Hardware and Software) to boost their advantage in obtaining a mining block on the blockchain network. It's also done in such a way that individuals can add their nodes to the Network.

    Rewards are being splitted across the pool. The higher your contribution, the higher your reward will be. Check 

 for different mining pools based on their trustworthiness, and Reward Ability.

This is a widely used means of mining cryptocurrency. Individuals now have the opportunity to capitalize on huge organizations that have better mining facilities. They can now rent a mining rig for a particular time and pay monthly. The renter is then able to keep any crypto earned from the mining rig. 

This method requires very little investment, but you'll need to get a mining software to partake.

I'll be showing you the kind of tools you'll be needing in your journey as a crypto miner. I will be splitting them into two parts
    • 

These are the physical Computers that as nodes, not all types of computers can serve the purpose of mining cryptocurrency. There are factors like its processing unit, storage capacity, battery life, etc that determine the type of computer to use. These are the types of hardware being used:

This is the normal type we are all used to. But when it comes to mining, it takes a very long time to mine, it is more difficult to solve the code with it, and a large amount of electricity to power it. This tool is very expensive and it's not advisable to use.

This is a type of unit that allows different crypto miners to bring a different set of GPUs together under one mining rig. It increases the computational power. This tool is being used in different mining pool as it's the motherboard and a cooling system is all you need. It's an Expensive but Effective tool to use for crypto mining.

    • Application- Specific Integrated Circuit (ASIC); 

This kind of tool is being designed specifically for mining cryptocurrency. It, therefore, produces more block units than other hardware tools. But due to mining difficulty, it gets quickly outdated, and most miners tend to shy away from it.


These are software  that smoothens the process of cryptocurrency mining. These platforms help different miners to combine the hashing strength to mine cryptocurrency faster. There are two types (Commercial Mining App and Open-Source Mining App). I'll just be listing the examples of these Mining Apps


 Examples of this type of mining app are 

Awesome Miner, CUOO Miner, ECOS, Ethermine, Minegate

Examples of this type of mining app  are 

There are some other important Tools that mustn't be left out especially if you want to make good progress. Tools like 

ELECTRICITY, INTERNET, and COOLING SYSTEMS 

Here are a few advantages of mining cryptocurrency;

The main aim of individuals in business is to make money/profit. When one participates in crypto mining, you tend to earn huge profits massively especially when it's a long-term investment.

    However, you don't need to stay on it 24/7, you can mine and continue with your daily activities. Even though it involves you spending quite a lot, but the profit is more than the capital. 

Due to the fluctuating capabilities of the crypto market, investing in crypto mining for long-term profit is much better. Especially when you're investing in coins that are sure to help you make good profit.

 I Always advise people to make sure its a routine to research before investing into any crypto project.

We should know that in any internet business, some hackers will surely try to steal. Crypto Mining is all about validating transactions on blockchain this makes it very difficult for cyberpunks to steal your profit. 


    You are also contributing to the security of the blockchain against attackers, as the more the blocks, the more secure the network gets.

Here are some problems people face in Crypto Mining

To Mine Cryptocurrency, the tools needed are quite expensive to purchase. Electricity is a very important tool for mining and you'll need a lot of it to Mine just 1 block. This is a determining factor if you want to be a crypto miner.​

The fluctuating nature of the crypto market makes it a very risky investment as people's investments might go down the drain when a coin loses its value. Make sure you don't just go into it without your Research!


The Working power of each hardware causes heat to the surrounding/society leading to global warming. It is manageable since there will be enough cooling system to counter the heat.


Look no further, As this article contains the full information you'll be needing to get started in your crypto mining Journey. A lot of people have made hundreds of thousands of dollars as a crypto miner. Get started today!!


Did you learn something new, kindly share it with your loved ones


Is there anything missing from this article, I'll like to learn from you. Pls comment in the comment section, and I'll surely make adjustments. 

Obaloluwa Akomolafe

Crypto Mining: What you need to know before getting started

The world is evolving, and different sectors/industries are growing massively by the day. Cryptocurrency started in 2008 when Satoshi Nakamoto (Pseudonym) invented Bitcoin since then, different new coins/tokens, and new investors have been surfacing in the industry. This is 2022, and according to Coinmarketcap 20,434 cryptocurrencies have surfaced with a market capitalization of 1trilion dollars.

Why am I saying this?, We all know that even in many other sectors there will always be bad eggs amongst the good ones that might not be easy to spot. But due to the advancement in technology being able to spot cryptocurrency scam projects shouldn't be a problem.

In this article, I'll be showing you what you should look out for before investing in any projects. It's more like a fundamental analysis of trading. This article will be a short and precise one.


These few steps that I'll be giving you are very important and must be taken seriously so as not to invest your money into scam projects.

This is the first and the most important step that must be taken before investing in any project. Coinmarketcap has complete information about any coin/token. Pieces of information like Price, Market capitalization, Volume, Circulating supply, etc. All you need to know. 

Be sure to note that if a coin hasn't been listed on coinmarketcap which is not possible then it's definitely a scam project. You're advised not to go close.

The website of any project is another important factor whenever you're doing fundamental analysis. This is a very tricky one as it's not usually checked thoroughly by investors. What are we to check?

You can find the whitepaper of any project either on Coinmarketcap or on their website. A project without a whitepaper is definitely a scam project, no doubt about that. 

The whitepaper contains the full information about the project. Infomation like the creator, their Objectives, Background, Roadmap, Strategy, etc. Scam projects will definitely not go into details, so do well to read and digest all contents on the whitepaper.

The creator of a project is a vital factor of how well the project is going to be. A founder with a bad reputation will do more harm than good to the project. What else are you to check? 

    • Project Social Media Engagements; 

Ponder on these questions when checking their media platforms like Facebook, Reddit, Twitter, etc. questions like Who is posting about that project?, What are people saying about it (

!), What are their communities like, Are they Engaging individuals on their pages?. Don't leave any stone unturned. Although, since it's a new project they might not have gotten much attention but still make sure you keep an eye on them.

Once a coin/token gets listed on  Popular exchanges like Binance, Coinbase, Kucoin, Huobi, and many others. It's worth investing. Although, This doesn't always determine the legitimacy of a project as many good projects have not been listed but are working towards it and vice versa. Keep an eye on them. Don't invest till they get listed on popular exchanges.

The use of technical tools like Dex tools, Unicrypt, and Block Explorer is also important as they'll be giving you pieces of information like if the token initial liquidity is locked (Causing a rug pull - You won't be able to withdraw), the coin/token charts have an only green candle on all timeframe ( Nobody has been able to sell), Contract Code, Address, etc. 

These few steps above will guide you through what you should check out and what you should do.

My Final advice for you is to follow what your head says, scam projects might look very enticing as they may promise you high ROI in a small time frame. Remember to follow these steps so as not to fall into the wrong hands. 

If these tips are helpful kindly like, comment, and share with your fellow investors. 

Scam Alert!!!: 7 Steps to Determine Scam Projects in (2022)

The Fluctuating Nature of the crypto market is one important aspect traders need to pay attention to as the price of a token/coin might either increase or decrease at an unexpected time. Different factors determine whether a coin/token will increase or decrease. Factors like Government Law, Listings on Popular Exchange Apps, News, etc. 

But what if the price begins to lose value constantly? What should you do? what do developers do? There are many ways to increase the price of a coin or token. In this article, I'll be focusing solely on Coin Burning. 


You might have heard about Coin burning, especially during the recent happening of Shiba Inu where a total amount of 400million Shiba Inu was burnt just to revive its price. 

I'll be showing you exactly what Coin burning is, Why it's done, and the different methods used for coin burning.

In Simple terms, Coin Burning is an act of disposing of a particular amount of coin to regain price stability in the crypto market. When I say dispose of, what I meant is that a particular amount of the coin is transferred to a Burner (A wallet with a forgotten/unrecognized private key). This will trigger the scarcity of the coin/token.

Although it's a good strategy, it's advisable that you have the full details of the token/coin you're willing to invest in the reason that some developers still have a hold of the disposed of coins these will cause a lot of losses in the market when the so-called disposed coins get released again.

This strategy isn't Always efficient, but it's worth trying


There are different reasons why coin burning is rampant these days, but here are a few reasons why individuals Coin Burn;


This is the first and main reason why individuals coin burn. Fluctuation in price is very natural in the crypto market, but when a coin/token begins to devalue constantly Coin Burning serves as a strategy to revive the price by reducing the amount in circulation. 

With the main aim in mind, New coins/tokens will surely get at least the attention of individuals. Once a project is trying to implement coin burning, investors will try to buy a certain amount in case the price spikes.

 Sometimes, Developers might want to play smart so make sure to DYOR (Do your own research) before investing in any coin/token as coin burning doesn't always mean it's a good coin.

I'll be explaining this with an example. Assume a developer has a large amount of DogeCoin let's say 5 billion Doge to be able to hide from the public he has to burn a large amount also, so he burns 200 million doge. We'll see that within a little time the rumor of him having lots of dogecoins will reduce with him still having so much.

A lot of developers now give individuals the chance to mine their coins with the condition of them burning some amount of the coin they have. These coins/tokens may be for the same project or another project it depends on the developer. The Higher they Burn, the Higher their chances of being a validator.


There are different methods different developers can use for coin burning. These methods are a few;

This method is a consensus mechanism that pays crypto miners whenever a block is being mined to the public. Developers allow individual to burn their coins to become validators, the more you burn the higher your chances of being a validator. In Doing this, the price begins to appreciate due to the constant burning of the coin/token.


As crypto Enthusiasts, we should know what a Gas fee is (in simple terms, It's a fee that is being deducted whenever a transaction is being made). Stable Coins like USDT have imbibed a constant coin burning strategy to maintain their value by burning a particular portion of the gas fee anytime a transaction is being implemented.


For investors to support a particular coin/token, it is being pitched at the ICO (Initial Coin Offering). During this bid/pitch, some coins may be left out without any investor buying or supporting them. Developers now tend to Coin Burn to increase the price for the current owners of that particular coin. Doing this, also serve as an indication that a project is being committed.


This method is also called the buy-back method. This strategy is first being used by the stock brokers. Developers repurchase coin from different individual at the current market price and put them up for burning. This is solely to increase the price of the remaining coin/token serving as a reward for hodlers.


Coin Burning is one strategy that shouldn't be overlooked as it does the work of increasing the price/value of coins whenever it's being implemented. Although it's not always effective it is being proven to work. A little advice, some developers have crooked ways of rigging this therefore always make sure to research before investing in any coin/token.

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