Cryptocurrency mining / by Peter Kent and Tyler Bain

Format:

Book

Contributor:

Bain, Tyler.

Series:

--For dummies.

--For dummies

For dummies

Language:

English

Subjects (All):

Cryptocurrencies.

Physical Description:

1 online resource (355 pages)

Edition:

2nd edition

Other Title:

Cryptocurrency mining for dummies

Place of Publication:

Newark : Wiley, [2022]

Summary:

Untangle the steps to mine crypto, including new coins and services The cryptocurrency market moves quickly and miners and investors need the latest information to stay ahead of the game. This edition of Cryptocurrency Mining For Dummies has the insight you need to get started with mining. You'll learn what goes into building a mining rig that can complete cryptocurrency transactions and reap the rewards in the form of new coin. You also discover how to join existing mining programs. Whatever your crypto goals, Dummies will make it easy for you to understand, engage in, and invest in mining. You'll even get an up-to-date primer on the evolving legal situation and an idea of what to expect in the future of crypto. Understand the basics of mining cryptocurrency and get started with your own mining operation Explore the latest cryptocurrencies and mining services so you can mine your own or invest wisely Get involved in crypto mining with the hardware you already have, or build a new, powerful mining machine Become an expert on the latest mining trends so you can identify new ways to profit in the crypto space With this book, you've got insider advice on choosing which cryptos to mine, riding out market fluctuations, creating pool accounts, and more. There's no time like the present to get started with crypto mining.

Contents:

Intro

Title Page

Copyright Page

Table of Contents

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1 Getting Started with Cryptocurrency Mining

Chapter 1 Cryptocurrency Explained

A Short History of Digital Dollars

First, take the Internet

Add credit card confusion

Add a dash of David Chaum

Result? DigiCash, E-Gold, Millicent, CyberCash, and More

The Bitcoin white paper

Bitcoin: The first blockchain app

Who (or what) is Satoshi Nakamoto?

What's the Blockchain?

Blockchain around the world - the blockchain network

Hashing: "Fingerprinting" blocks

Blockchain is "immutable"

Where's the Money?

What's the Crypto in Cryptocurrency?

Public Key Encryption Magic

Messages to the blockchain

Signing messages with the private key

The blockchain address - your money's home

Sending a transaction message

Unraveling the message

The Basic Components of Cryptocurrency

What's in a wallet?

Private keys create public keys

Public keys create blockchain addresses

The private key controls the address

Where Does Crypto Come From? The Crypto Mines (Sometimes)

Chapter 2 Understanding Cryptocurrency Mining

Understanding Decentralized Currencies

Exploring the Role of the Crypto Miner

Making Cryptocurrency Trustworthy

Reaching Agreement through Consensus Algorithms

Looking at the Cryptocurrency Miner

Making the Crypto World Go 'Round

Chapter 3 Building Blocks: The Transaction's Journey to the Blockchain

The Cryptocurrency Network

Submitting Transactions

Looking at transaction fees

Change address

Verifying the transaction

Competing for Bitcoin, the ten-minute contest

Winning the Bitcoin

Chapter 4 Exploring the Different Forms of Mining.

Proof-of-Work Algorithms

Proof-of-work applications

Proof-of-work examples

Upsides

Downsides

Proof-of-Stake Algorithms

Proof of stake explained

Proof-of-stake selections

PoS example cryptocurrencies

Hybrid Proof of Stake/Proof of Work

Hybrids explained

Hybridized examples

Delegated Proof of Stake

Delegated Byzantine Fault Tolerance

Proof of Burn

And More . . .

Part 2 The Evolution of Cryptocurrency Mining

Chapter 5 The Evolution of Mining

Proof of Work Mining Evolution

CPU mining

Adoption of GPUs

Rise of the FPGAs

Dominance and efficiency of ASICs

The Days of Solo Mining

Pool Mining

What is a mining pool?

Choosing a pool

Pros and cons of pool mining

Cloud Mining

Pool mining versus cloud mining

Pros and cons of cloud mining

Chapter 6 The Future of Cryptocurrency Mining

Incentivization of Energy Exploration

Underutilized hydroelectric dams

Oil and gas flaring

Continued Computational Efficiency Improvements

Doing more with less

Approaching the limits of physics

Corporate and Nation State Participation

Nation states

Corporations

Future speculation

The Mythical Miner Death Spiral

Block difficulty

Block difficulty adjustment algorithm

Miners of last resort

Part 3 Becoming a Cryptocurrency Miner

Chapter 7 Mining Made Simple: Finding a Pool and Preparing an Account

Understanding How Pool Mining Works

Choosing a Pool

Pools that are good starting points

A few of the largest pools

Incentives and rewards

Pool ideology

Pool reputation

Pool fees

Pool percentage of the total network

Setting Up a Pool Account

Server choice

Mining equipment pool settings

Payout addresses

Payout thresholds

Researching Mining Pools

Cloud Mining.

Working with Cudo Miner

Chapter 8 Picking a Cryptocurrency to Mine

Determining Your Goal

Mineable? PoW? PoS?

Researching Cryptocurrencies

Mining profitability comparison sites

Algorithms and cryptocurrencies

The cryptocurrency's details page

Mining-profit calculators

The cryptocurrency's home page

GitHub

The cryptocurrency's Wikipedia page

Mining forums

Going Deep

Longevity of a cryptocurrency

Hash rate and cryptocurrency security

Community support

Knowing That Decentralization Is a Good Thing

Finding Out It's an Iterative Process

Chapter 9 Gathering Your Mining Gear

Selecting the Correct Computational Mining Hardware

Specified hash rate

Specified power consumption

Equipment cost and other considerations

Length of time your hardware will be viable

Mining Equipment Manufacturers

ASIC rig producers

Mining container producers

GPU rig producers

Finding a Wallet to Store and Protect Your Private Keys

Where to Mine? Selecting a Viable Location

Vet your home for cryptocurrency mining

Communication requirements

Power source thoughts

Data centers and other dedicated commercial locations

Chapter 10 Setting Up Your Mining Hardware

ASIC Mining Rigs

Racks

Power supply

PDUs

Network and Ethernet connection

A computer to control your rig

GPU Mining Rigs

Getting your GPU rig online

Building your own GPU miner

CPU Mining

Mining Software

Pool mining

Solo mining

Part 4 The Economics of Mining

Chapter 11 Running the Numbers: Is It Worth It?

Factors That Determine Mining Profitability

Cost of equipment

Hash rate of your equipment

Mining rig efficiency

Cost of electricity

Total network hash rate

Information about your pool

Block earnings

Cryptocurrency conversion rate

Calculating Your ROI.

Your block earnings

Your expenses

Calculating ROI

Knowing the unknowns

Online profitability calculators

Historical estimates

Chapter 12 Reducing Negatives and Gaining an Edge

Profitability through Efficiency

Upgrading aging equipment

Mining different cryptocurrencies

Using exhaust heat

Reducing electricity bills

Knowledge Is Power

Why current events are important

The "fork wars"

Your forking decisions

Here Today, Gone Tomorrow

Evaluating Your Mining Resources

Increasing mining competition

Increasing block difficulty

Diminishing returns due to halving events

Chapter 13 Running Your Cryptocurrency Business

What to Do with Your Mined Cryptocurrency

Convert your cryptocurrency

Buying equipment and paying bills

Paying with crypto when you can't pay with crypto

Expand or upgrade your mining operation

But don't forget the tax

Hodling your cryptocurrency

Invest your cryptocurrency

Donate your cryptocurrency to charity

Gift your cryptocurrency

Determining When to Sell

Cryptocurrency market indicators

Where to sell: Cryptocurrency exchanges

Dollar Cost Averaging

Dollar cost averaging your purchases

Cost averaging your exits

Custodial exchange risk

Tax and Your Mining Business

But you're mining, not investing

It gets complicated

Scaling Up?

Do not overextend

Milestones to meet before you reinvest

Planning your expansion

Part 5 The Part of Tens

Chapter 14 Ten (or So) Tips for When the Market Dips

Have a Plan, Hedge Your Mine

How Long Can You Last?

Learn from Market History

Don't Panic! (Keep Calm and Carry On?)

Buy the Dip

Look for the Advantages

Anticipate the Market Recovery

Learn From Your First Dip

Consider Market Volatility

Switch to Another Cryptocurrency

Stop Mining!.

These are simple calculations

Stop or go?

Chapter 15 Ten Ways to Boost Your Return on Investment

Doing Your Homework

Timing Your Entry

Playing the Markets

Identifying Low Hash Rate Alternative Cryptocurrencies

Mining the Start of a Chain

Starting Small

Scaling Choices

Finding Cheap Electricity

Cooling Efficiently

Scoring Hardware Deals

Chapter 16 Ten Types of Cryptocurrency Resources

Cryptocurrency Market Trackers

Mining Profitability Estimation Tools

Cryptocurrency Reddit Pages

Blockchain Explorers

Data Visualizations

Cryptocurrency Data and Statistics

Cryptocurrency Wikis

Cryptocurrency White Papers

The Satoshi Nakamoto Institute

A Cypherpunk's Manifesto

Bitcoin Guides and Walkthroughs

Chapter 17 Ten Criticisms of Cryptocurrencies and Mining

Energy Consumption

Wasted Processing

Scalability, Transaction Speed, and Throughput

Coin Distribution Fairness

Market Bubbles and Volatility

Centralization

Scams and Rip-offs

Hardware Price Inflation and Scarcity

Fire Hazards

Neighbor Complaints

Index

EULA.

Notes:

Description based upon print version of record.

Description based on publisher supplied metadata and other sources.

ISBN:

1-119-88538-8

1-119-88537-X

OCLC:

1350745218