mine bitcoin with a laptop or computer

CPU Mining: The most painless ways to mine cryptocurrency on a pc

Getting started with CPU Mining

CPU mining means using the central processing unit on a computer to mine cryptocurrency. Cryptocurrency mining on computers originally started with bitcoin(BTC) mining in 2009 when it was lesser known. Though it is no longer profitable to mine bitcoin from a simple computer, and this will likely blow up your computer, there are a few lesser know coins which were created specifically to be ASIC resistant in order to be efficient for computer mining.

Understanding cryptocurrency mining

If you are new to cryptocurrency mining,  let’s cover some basics before we move forward…

The word crypto is derived from the word ‘cryptography’ which is defined by Wikipedia, ‘The art of solving problems’.

This also known as ‘encryption’.

For a more in-depth explanation of how cryptocurrency mining works, check out this article on How cryptocurrency mining works?

Proof-of Work

Each cryptocurrency runs on a network (or blockchain) and each network uses different set of rules(algorithms) to verify transfers.

The job of the miner is to decrypt the algorithm and in the case of Bitcoin, the miners submit a maximum of guesses to solve the problem first.

This is called as Proof-of Work.

Proof of Work vs Proof of Stake

Unlike the proof-of-work system, the proof-of-stake system awards the cryptocoins based on the amount of coins owned by the miner which consequently require less computation power.

Wikipedia describes the different types of proof-of-stake algorithms.

Energy Wastage

As Bitcoin mining becomes more energy demanding and increasing electricity prices in some towns, many consider Bitcoin mining as a waste of energy as well as unsustainable.

Many believe proof-of-stake is the future of cryptocurrency mining.

The Guardian reported that in November 2017, the Bitcoin network consumed more power than the Republic of Ireland.

Why should you care?

Satoshi Nakamoto and a group of individuals created Bitcoin as a decentralized digital currency.

Greed would be used to motivate people to support the network.

However, over the years, more efficient as well as powerful mining machines called ASIC miners were created.

And the problem is the companies manufacturing the machines were also mining the coins thus centralizing Bitcoin.

Choosing which cryptocurrency to mine

The best place to start is by eliminating all the coins that you can not mine.

Which coins not to mine on CPU

Go the Bitmain Website and go through all the algorithms.

There are many popular cryptocurrencies such as Dogecoin and Litecoin which claim to be CPU mineable.

Just because you can, doesn’t mean you should.

However, the likelihood of you ever earning any cryptocoins from a simple computer is very unlikely.

Option 2:

Once you have found which coins not to mine, then you want to go to Coinmarketcap and filter out the non-mineable coins.

Cryptocurrencies which have failed to become ASIC resistant

  • Litecoin (Script)
  • Dash
  • Ethash
  • Equihash

Smart Contracts and ERC20 tokens

ERC20 tokens are smartcontract templates and were made popular by ICOs.

You might also hear the word ‘premined’ in some instances, but don’t be fooled.

These tokens are powered by Ether gas and can not be mined.

Understanding Algorithms

In very simple terms, cryptocurrency algorithms or hashing algorithms determine how the coins are verified.

The more miners the increased mining difficulty.

Pro Tip: You want to look for CryptoNight Algorithm Coins

CPU Mining Cheat Sheet

Feel free to share and remember to give Satoshilibrary.com a shoutout 😉

CPU Mining

ASIC Resistant Coins

Ideally, you are looking for projects which are constantly releasing update and the founders are very vocal about being ASIC resistant.

Pro tip: Regular forks are usually a good example that the devs are taking on the ASIC war head on.

Check the vibe in the telegram group and ask the founders directly their thoughts on ASIC mining.

Several cryptocurrencies ASIC resistant but are open to GPUs (graphic processing unit)

If you are a gamer and already have the equipment,  you are looking for are the coins that can not be mined on ASIC miners.

Possible but not profitable coins

  • Script
  • Dash
  • Dagger Hashimoto – Ethash Algorithm

Getting Started

I am going to use Ultranote (XUN) as an example as they do regular forks to ensure that their coins always remain ASIC and GPU resistant.

Also, their coins are available on several exchanges.

Disclaimer: I am not being paid or sponsored by Ultranote or any of its affiliate- I just think it’s the perfect project for this tutorial;)

What you will need

  1. Wallet
  2. Paper and pen to save your keys
  3. Laptop or computer
  4. An exchange to cashout your XUN

Create your wallet

Go to Ultranote.org

Click Wallet or Scroll down towards the wallets.

Save the file to your computer.

mining cryptocurrency with a laptop

Extract the files from the Zip folder.

Then click on UltraNoteWallet as instructed in the Wiki.

If this does not work for you, like it didn’t for me, click on the folder called vcredistx64 first and it will install a Microsoft Visual Software ( I am using Windows).

Mining with a computer or laptop

You will get a brand new Ultranote wallet.

cryptocurrency mining on a laptop
Ultranote Wallet

The next step is to encrypt your wallet by clicking on Settings=>Encrypt

cryptocurrency mining with a laptop
Encrypt your Wallet

Wait for the Green check in the lower left hand corner for your wallet to fully sync with the blockchain.

cryptocurrency wallet synchronizing with the blockchain

This may take a while so I would recommend signing up to a cryptocurrency exchange in the meantime to cash out your Ultranote (XUN).

Ultanote can be cashed in Bitcoin at TradeOgre.com.

The sign up process takes only a few minutes.

For safe measure, remember to activate Google Authenticator.

Begin Mining on your Laptop or Computer

Best coins to mine on a CPU
Start mining

Earning your first crypto

Once you have earned enough crypto satisfy the minimum required by the exchange, hit the send button

Is CPU mining profitable?

It is important to remember that investing in any cryptocurrency is a high risk investment which makes cryptocurrency mining even more high risk.

Advantages of CPU Mining

  • CPU mining is good option to see if mining is for you before investing larger amounts of money.
  • This method allows a person to understand how blockchains work.
  • Anybody with a computer can mine.
  • There are some coins which can be mined only on CPUs.
  • Entering the market early.

Disadvantages of CPU Mining

  • It may burn your processor. (not recommended on laptops for certain coins)
  • Can easily become unprofitable as operational tend to be more than the coins received.
  • Many of the block rewards are worth only a few cents.
  • Some coins won’t become profitable until a few years.

The Truth

The reason many people become rich with cryptocurrency mining is because they did it to support the network and MOST IMPORTANTLY held on to their coins.

Consider Alternatives

If you are looking for a safer investment, consider simply buying cryptocurrencies and trading or holding them.

The right mindset

Many miners will say that cryptocurrency mining is about betting on the future value of cryptocurrency.

However, I believe that the best mindset is to simply support your favorite project and the same time learn how blockchain works.

Simply because it can take years before a cryptocurrency can become profitable and as there are so many cryptocurrencies, the odds of new cryptocoins succeeding are decreasing.

In other words, you are mining X con with hope that its value will increase in the future.

Biggest Mining Mistake

The biggest mistake you can do is count on forums or google to help you find coins.

Why?

Because by the time search engines have picked it up, it is usually to late

The shoe shine boy rule

Joe Kennedy famously became famously rich when he exited the stock market before the 1929 depression.

You know it’s time to sell them the shoe shine boy gives you stock tips.- Joe Kennedy

Because cryptocurrency is still in its early phases and has not reached the shoe-shine level yet.

This rule applies to cryptocurrency mining, because the less users the cheaper the mining cost and the less mining difficulty.

ASIC Mining has MORE risks

  1. ASIC mining companies control a majority of the mining power and can potentially, in very simple terms, reject single computers
  2. The more computing power, the higher the mining difficulty and the more energy required
  3. Small miners had to shut down their operations during the 2018 bear market because they could not mine other coins.
  4. Algorithm updates may cause an ASIC miner to become useless

ASIC resistant cryptocurrencies

Because of all these problems with Bitcoin, many people have been trying to create ASIC resistant cyptocurrencies.

Remember that no algorithm is 100% ASIC resistant and companies such as Bitmain have made it their mission to decrypt popular coins.

Hard Forks

A fork is similar to a software update.

For example,  1984 Macintosh   can not run the software of the IphoneX.

So some devs of the cryptocurrencies continuously update their algorithms to make to make the ASIC miners obsolete.

Give it a try!!!

And let me know how it worked out for you.

Many thanks to @nichopp from the Ultranote telegram group for answering my questions.

Keep me posted on your progress, 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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8 proven ways to you can earn cryptocurrency as passive income

Are you interested in earning cryptocurrency as passive income but don’t know where to start?

Earning a few extra bucks wouldn’t hurt your finances, right?

Here are 8 ways to earn cryptocurrency if you are new to cryptocurrency or interested in monetizing your experience.

Affiliate Disclaimer

All of them are very easy and all you need to do is choose which one would work best for you:

1. Mine and Earn Cryptocurrency

Have an old laptop or gaming computer lying around?

Start mining cryptocurrency!

While it is no longer profitable to mine Bitcoin on a laptop, there are quite a few upcoming coins which allow you to mine from a computer.

You can also join a bitcoin mining pool however, the profits are very low because the competition is very high.

Though this method will require a bit of setting up at the beginning, but once you are ready to go, the cryptocoins will be rolling in on their own.

Cloud mining

Cloud mining became increasingly popular in 2017 with companies like Genisis Mining and Hashflare attracting millions of users.

HashFlare

If you find the tech rather daunting but still want to earn cryptocurrency as passive income, cloud mining is a good place start.

Cloud mining also allows you to focus on the finding which coins are the most profitable to mine without being overwhelmed by all the tech.

HashFlare

Before moving forward, click on both affiliates links below to set up your cloud mining accounts with Hashflare and Genesis Mining so you can see what cloud mining looks like even if you don’t buy anything.

What’s important is that you get started!

I have personally tried both and will be writing a review soon but long story short, I’ll be explaining why some people make profit and others don’t, 😉 

Hashflare:
Link: https://tinyurl.com/ycvd9wb7

And

Genesis Mining
Link: https://tinyurl.com/y8xtyfp5 

When you make you purchase you can use the following promocode FaUSrN for a 3% discount on your first purchase with Genesis Mining.

Genesis Mining-get started now

Both Genesis Mining and Hashflare accept credit cards,

2. Cryptocurrency Bounties

A bounty basically means to be rewarded cryptocurrency or crypto-tokens in exchange for carry out a small and usually easy task.

These tasks usually involve spreading the word through social media such as:

  • Sharing a post to your followers
  • Getting shares or retweets
  • Getting likes
  • Downloading the app
  • Reviews on certain websites

If you already have a high Instagram, Twitter or Facebook following, go to bitcointalkforum.com and checkout all the new bounties being offered by ICOs.

The cool part is that many ICOs will offer bonus aridrops to existing token holders for their loyalty.

Cryptocurrency Bounty hunting

3.Coin Flipping

This means to buy a coin at a relatively low price and sell it at a higher price as the market goes up.

This is also the first step milestone to day trading cryptocurrency.

Crytocoin Flipping satoshilibrary

4.Just HODL

Okay, I admit that this one requires a bit more market knowledge and self control but Ii you have a few extra bucks lying around, you can buy a few cryptocoins and forget about it for a few years.

This strategy has a made quite a few cryptocurrency millionaires over the years.

However, you need a good a cryptocurrency wallet to keep you cryptocurrency secure over extended periods.

You can click on the following affiliate link to check out the HODL Wallet: https://tinyurl.com/ybw6k7pe

The best cryptocurrency wallet

5.Add a tipping feature

Already creating content?

Do you have a blog or youtube channel?

Add a wallet address or donation button so your audience can help support your project.

Plus it is great way to monetize your site.

Steemit is a platform which pays you to create content and many bloggers use Steemit because of its reward program for publishers.

add a donate button on your site to received cryptocurrency

7.Get paid to watch content

Too lazy to invest yourself in any of the above?

Gone are the days when you sit through ads for free.

The new generation of ads are paying users to watch the content.

How awesome is that?

earn cryptocurrency as passive income with Satoshi Library

8.Faucets

Faucets are websites which offer small amount of cryptocurrency in exchange for a small task such as providing your name email.

Faucets are a great way to get your first cryptocurrency to understand how it works but the amounts given are very insignificant.

what is a cryptocurrency faucet

My Thoughts:

As they say, the journey of a thousand miles begins with the first step.

Pick one and register!

You will never know unless you try.

If it doesn’t workout, move on to the next one.

Many seasoned cryptoenthusiats have tried a few of these when they were just starting out.

But just because you make a few hundred dollars with any of these methods is no reason to put your entire life savings into cryptocurrency. 😉

Though, it’s always a good idea to diversify, the cryptocurrency market is extremely volatile and can drop 70% at any time so investing in cryptocurrency is gamble.

Therefore do not put more than you are willing to lose, this way you are less likely to make emotion-driven decisions.

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. The Cryptocurrency prices are extremely volatile so please do your due diligence before investing in any website.

Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉