Despite the crypto market facing a lot of turmoil over the course of the past 12-16 months, the altcoin mining industry has continued to thrive. In this article, we will take a look at some of the most important facets of this sector which crypto enthusiasts ought to be educated about.
(i) Crypto Mining is Not Just Limited to BTC and ETH
Many of our regular readers may be under the impression that in order to be a successful crypto miner, they need to either be working with Ether or Bitcoin. However, as per a number of experts associated with this domain, the best way to proceed with one’s mining activities is by keeping a close tab on the market and seeing which digital assets have the most promising financial future.
(ii) New Tokens Come With Their Own Set of Problems
When mining freshly created alt-coins, we need to understand that the risks involved are much greater than when dealing with established cryptos because “untrusted individuals” are essentially running the asset’s native mining pools — and thus some issues may arise in the future if the project’s dev team decides to go rogue.
(iii) HODLing is an Art that Needs to be Learnt
HODLing is a term that describes the process of accumulating alt-assets and then holding on to them for a certain period of time (in the hope that their value will rise sharply).
However, in this regard, crypto expert Zach Hildreth says that the most efficient way of making money when dealing with digital currencies is by “facilitating sells” on a weekly basis. Also, he says that users need to make educated choices when investing in cryptocurrencies since most of them do not have any long-term monetary potential.
(iv) Choosing a Mining Pool
When looking to join a mining pool, investors need to understand that the bigger the pool, the more computing power it possesses. However, in the same vein, the bigger the mining team, the more one’s overall profits are reduced. Therefore, some time’s one can…