Cryptocurrency mining is very simple to understand. This involves verifying transactions carried out between people who exchange cryptocurrencies, the most famous of which is bitcoin, using very powerful computers. Indeed, by nature, there is no bank in the world of cryptocurrencies to carry out this type of verification. So you need miners.
Miners are the people who mine (this is also the name of these computers). By becoming a miner, you receive a commission for each verified transaction. It's like when your bank charges you when you send money or pay with your card.
The interesting thing is that anyone can become a minor. Just buy the right computers to verify transactions. Everyone can therefore receive money thanks to the validation of thousands of cryptocurrency transactions carried out every day.
Even you.
VALIDATION OF TRANSACTIONS
In reality, everything has already been said: cryptocurrency mining relies on the validation of transactions. Okay, but what else ?
Digital currencies like bitcoin are independent of traditional banks. This is why each transaction carried out between users requires individual verification and validation to be recognized as legitimate.
Let's go back to basics, and look at the name "cryptocurrency".
Why “Crypto” ?
The algorithms used to validate transactions and ensure the security of the Bitcoin network are based on cryptographic principles. This is why we talk about CRYPTOgraphy and CRYPTO-currency.
How to verify transactions on cryptocurrencies ?
Each cryptocurrency (Bitcoin, Litecoin, Ethereum, etc.) has its own algorithm. It is a sort of small manual, precisely describing its characteristics. It's a sort of digital passport.
In traditional banking, what happens when you want to send money from your traditional bank account to someone 'other ?
The process is simple: a bank checks your identity and verifies that you have the necessary funds as well as the authorizations required to send money, because you do not have the right to transfer money freely anywhere.
In the case of cryptocurrencies, the principle is the same, but without the intervention of a bank to carry out these checks.
To guarantee neutral computer verification, if you want to send a bitcoin to someone, the transaction must first be approved by a computer that does not belong to any banking entity and which uses specific software. If the transaction is validated, it is then carried out; if it is not, it is rejected.
The principle of cryptocurrency mining.
You have certainly already understood: these computers are just calculators. These are the calculators we buy to be able to mine. But then, when do these calculators make you money ?
Like a bank which collects fees on the transactions you carry out, each owner of a computer who makes his computing capacity available to validate a transaction receives a small commission in return.
This is how mining works: it involves using a high-performance computer to validate maximum transactions possible and receive maximum commissions!
Why mine cryptocurrencies rather than trading them ?
You are probably already aware that the price of cryptocurrencies is extremely volatile, a factor that many traders use to their advantage. The basic principle is simple: buy low and sell high, like the stock market.
Although it is possible to realize significant capital gains by this method , it is essential to consider a major element: emotions.
- Did I buy at the right time ?
- I "earned" 5%, 10%, 20%.
- Should I sell now or wait a little longer ?
- I'm losing a lot of money, what should I do < qm>
- With transaction fees, at what threshold am I profitable ?
- Should I diversify my portfolio or bet everything on bitcoin ?
These are constant questions you will face if you choose to get into cryptocurrency trading.
Another solution to avoid trading: Cryptocurrency mining.
The machines are much easier to manage! No questions to ask, no unanswered questions, no risk of losing significant capital in a few hours, no strikes... Just a computer that calculates, calculates and calculates again, 7 days a week, 24 hours a day , to allow you to quietly pocket your winnings.
Simple, but above all effective. Indeed, since it involves investing in machines, they retain a residual value: in the worst case, you never lose your entire initial investment.
You can see on the left, Mathieu Vincent, CEO and founder of the Summit group, visiting one of our mining farms.
The benefits of mining for generating passive earnings.
Cryptocurrencies are the future. Although their democratization is only just beginning, cryptocurrencies represent the future of financial transactions.
In 2024, the overall adoption rate of cryptocurrencies is 'around 15%.
The return on investment of bitcoin has reached almost 10,000,000%! !! This is the story of this young Norwegian, Kristoffer Koch, who invested around twenty dollars in 2010... and who was able to buy a magnificent apartment in the heart of Oslo in 2013! Absolutely no other asset on this planet can come close to cryptocurrencies in terms of ROI (return on investment).
Mining is simpler than trading.
The new machines available today do not require any special skills to operate. They are ready to use. Conversely, buying or trading cryptocurrencies is generally riskier and ESPECIALLY requires advanced knowledge to avoid losing your money.
You will receive passive income.
The beauty of mining ?
Receive, every month and without doing anything, the cryptos mined on your digital cryptocurrency wallet.
You do not yet have wallet ? We're here to help you create one for free... and guess what ?
It only takes a few seconds!
Yes, in just a few seconds, knowing how to do it, you are ready to receive your first payments!