Mining cryptocurrency is an ongoing process by which all transactions of that cryptocurrency are verified and then added to an encrypted distributed digital ledger called the “blockchain”. Miners from all around the world utilize crypto miners to verify each transaction before it is added to the blockchain.

How do miners get paid? Let’s talk about block rewards and transaction fees.

Miners provide an important service, which is transaction verification and security of the cryptocurrency network. Mining hardware keeps the network secure by means of a proof of work consensus protocol “PoW”. This service is of course, not free. Miners are incentivized to continue providing this service by receiving a reward after every block is added to the blockchain. This reward is in the form of coins of the cryptocurrency that the miners are mining and is called the “block reward”. The current block reward of mining Bitcoin is 6.25 BTC.

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Mining Pools

In order to have a higher chance of receiving this block reward, miners virtually pool their computing power with other miners by connecting their mining machines to an online service called a “mining pool”. Every participant in a mining pool gets a share of the block reward that the pool gets and this share is proportional to the amount of computing power that was contributed by the miner.

A transaction fee on the other hand is a small amount of cryptocurrency that everybody has to pay to make a transaction of that cryptocurrency. In summary, miners are paid through a combination of block rewards and transaction fees depending on which cryptocurrency they are mining.

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Cryptomining 101

A four-part educational video to begin your mining journey. The topics include the foundation on mining (Learning how miners get paid), How to install and manage an Antminer, Introduction on mining pools, and how to exchange mined cryptocurrency.

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  Learn how cryptocurrency mining works and how do miners make money

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  Learn how to install an Antminer after making your purchase

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  Learn how to connect your Antminer to a mining pool to begin mining operations

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  Learn how to exchanged your mined cryptocurrencies to fiat and other cryptocurrencies