How to get started mining for Cryptocurrency

How to get started Mining

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Part 1: Do I have to know what I’m doing?

This is the first of a three part blog series designed to help anyone with Crypto mining ambitions to get their first rig set up and underway. By way of general introduction, let me first explain that your ‘rig’ is what all Crypto miners refer to their mining computer set-up as, and by the end of these three blogs you’ll know everything you need to go out and buy / build your own.

While Cryptocurrency mining may at first seem daunting, and I’m sure most people think that Crypto miners must have an absurdly high level of IT and computer skills, but the truth is that it’s far simpler to become a Crypto miner and it is actually absurdly simple to build your mining PC to the required specs.

So the first thing we need to decide together is which of the many Cryptocurrencies out there are we going to be mining for? As an aside here, by the way, the term ‘mining’ isn’t an entirely accurate one. Really, what Crypto miners are doing is calculating the computations that protect the integrity and security of the distributed blockchain ledger that tracks each transaction. In exchange for completing those calculations, the miners are all paid a share of the currency transaction they’ve just verified.

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Back to your first decision: which currency are you going to mine? Bitcoin is the most popular, but is actually the least profitable to mine due to the high cost of the equipment you’ll require to mine it. Bitcoin is now so competitive for mining shares (as in, there’s so many people doing it now) that special purpose computers built with Application Specific Integrated Circuits (ASICs) are required as the norm. A general, purpose built computer is just too slow to earn you anything in the Bitcoin mining world.

Image result for crypto part 1 The second most popular and well-known Cryptocurrency is Ethereum, and it turns out that Ethereum is actually also really well known for being insanely easy to mine and really profitable too….so for me, that’s ideal for us to use in this series of set-up scenarios.

Next month’s two blogs will focus firstly on the equipment needed to set up our first ever Ethereum mining rig, and then finally on getting underway and actually beginning our mining adventure. So until then, enjoy the summer heat, and check back for parts 2 and 3 next month!

_Blog post by Bob Pattni_

 

Cryptocurrency predicting the future

Cryptocurrency: predicting the future. – a blog post by Bob Pattni.

Predictions are a shaky business at best. Predictions about something as unpredictable as Cryptocurrency are even more so. But as we come to the end of 2017 and look forward to 2018, what predictions can the experts make that we should be paying attention to?


1. Bitcoin and Ethereum are here to stay.

Image result for bob Pattni bitcoin and ethereum

Most people who are enthusiastic about Cryptocurrency appear to agree that Bitcoin and its newer rival Ethereum have staying power, though they may be more bullish on one versus the other. Although Bitcoin is outperforming Ethereum in the marketplace at the moment, expect Ethereum to continue to rise and for the gap between the two to narrow.

2. As yet unknown coins will hit the big time.

Bitcoin and Ethereum may have stolen the show at this point, but the innovation won’t end there. Expect more winners on the horizon, which also means there’ll be more losers so invest your money carefully!

Kathleen Breitman is hopeful that Tezos, her own blockchain bet, will fill a niche – and there’s some evidence to suggest she could be right. She and her project’s developers are designing Tezos to automatically push software updates out to the network, thus, in theory, avoiding the divisive feuding over upgrades that has wracked systems like Bitcoin over the past few years.

No one can say how many tokens and coins and blockchain protocols will eventually win out, but the experts seem to think there’s room for a multitude: so there could be more winners out there in the future that we just don’t know about yet. However for 2018, I’d suggest Tezos as the one to watch; while Ethereum continues to be a safe bet for investment.

3. Some people will get burned.

For the time being, Cryptocurrency might seem like a fantastic way to raise a lot of money quickly and with few questions asked. Will this lead to riches for some? Undoubtedly—and it already has. And rip-offs for others? Again yes, and again it probably already has.

There’s also a presumption that black market deals and insider trading are rife within Cryptocurrency transactions as its very nature of being unregulated attracts an unsavoury element. Although this doesn’t cover all Cryptocurrency transactions its undeniable that it does hold true for a proportion of them. So regulation is likely to come, and will likely be welcomed by the vast majority.

4. Cryptocurrency will give Silicon Valley and Wall Street a run for their money.

In a world where anyone can participate as an investor online, physical location matters much less. In the long run, what use is your bank manager or even your bank if you never need to use them to trade money?

Projects are already getting funded via Kickstarter and other similar Online methods. Breitman said she that when she set up Tezos’ token sale, she aimed to get as many people who wanted to participate in the ecosystem to contribute.” The company raised more than $200 million to date and, according to her, more than 30,000 Tezos wallets have been opened.

Will Cryptocurrencies ever replace banks and financial institutions though? It’s unlikely, even in the long run, however they will make a serious dent in the traditional power of these service providers by coming to rival them in terms of buying power.

5. Regulations will stick.

Elena Kvochko, chief information officer of the security division at Barclays, said that her bank has had talks with regulators about Bitcoin, blockchains, and their ilk. The rule-sticklers appear to be open to the idea as long as “know your customer” laws are obeyed, although it’s still early days.

Meanwhile, as governments settle on their own sets of rules, countries like Switzerland, Singapore, and Estonia are jostling to develop frameworks that easily accommodate the new technology. They’re seeking to displace geographic incumbents and become hubs for a new wave of business financing.

Until the new laws are created and decided upon, go for a policy of total honesty and keeping track of all your transactions. Honesty is, after all, always the best policy.

6. Speculation will subside as “killer apps” take hold.

As Cryptocurrency prices fluctuate wildly, speculators have been having a field day. However, there’s reason to believe the markets will become more stable, as Bitcoin gradually has over the past couple of years (despite its still big price swings).

In order for these computer coins to catch on big-time, they need a use-case that beats traditional money. And that’s where the new wave of Crypto apps, making it easier and more accessible to everyone, is going to really help this new currency take hold.

Of course Cryptocurrency is an international currency that crosses borders in the blink of a keystroke, so apps will have to be developed hand-in-hand with the developing laws and regulations within all countries of the world.

7. Cryptocurrencies will pressure traditional payment methods to improve.

Whenever a consumer swipes or dips a credit card, payment processors charge a fee.

Cryptocurrency could be the cause of big changes in traditional payment methods – changes we’re all going to feel the benefit from..

One potential outcome of the adoption of alternate systems, like Bitcoin, is to provide companies with the impetus to improve their services. Bitcoin it will make banks move toward the real cost of handling these transactions. It could also affect changes in companies like Amazon and Google in the future and the way they charge customers.

As I said at the beginning, a crystal ball to predict things with is going to be very murky at best. But the above points give a good synopsis of where the Crypto market is heading and what’s coming up for us.

_Written by Bob Pattni _

Cryptocurrency, will it fail or is it here to stay?

Will Cryptocurrency last, or will the recent backlash by mainstream media and a few big names have a long-lasting effect and be the beginning of the end for the new wave that is Cryptocurrency?

Cryptocurrency and its rise can be said to be a new type of revolution. And as we know from history, revolutions last. They change things, and nothing’s the same afterwards. That’s cryptocurrency.

It’s only feared by those who don’t understand its flexibility, its use and its purpose. And I suppose that’s why as a currency it’s mostly been embraced by savvy entrepreneur and tech types: open minded, able to see possibilities, not afraid of change. Imagine being able to buy or sell a house or car without any middle-man. Imagine making a crypto transfer for business goods to any country in the world, and the transfer of funds is free, or close to free; you can mutually agree what cryptocurrency to deal in, and almost as soon as you press the button, you’ve done the deal.

Let’s put it another way – you’re buying your shopping using a cryptocurrency that you know is going up in value as you shop, and that your shopping is actually helping it to gain value. When you get back home and check your cryptowallet, you find that your cryptocurrency value is worth more than it was before you spent some of it on your shopping: so you’ll basically be eating for free that week!

All of this, and far more is happening right now. It is mainly happening to clever people. To people with a level of focus that allows them to learn some new things that are not really that difficult to learn. It is happening to those who would rather do something than watch reality TV.

It is happening, currently, to just a fraction of the population, but word is spreading, and the revolution is gaining force.

Some key facts you may not have known:

  1. There are already hundreds of millions of people stocking and using cryptocurrencies;
  2. The distributed nature of blockchain technology  makes government control next to impossible – you can shut down one exchange or platform in your jurisdiction, and another two will spring up in its place in areas where you have no jurisdiction, and those holding or wanting to buy or exchange cryptocurrency will just go elsewhere, even if they have to do it through proxy servers to remain anonymous.
  3. The anonymity of blockchain transactions means that your private keys are yours alone, and unless you give them up, nobody, from a central bank to a government agency can touch your coins.
  4. People like having and using cryptocurrencies! They like looking in their wallets and seeing the value of their investments rising. They like that their profits cannot be monitored. When you buy coins from all over the world, certified by anonymous blockchain miners who could be anywhere, nobody can track your transactions.

So Cryptocurrency is more than just a flash in the pan. It’s not just the latest dotcom bubble that’s going to burst. It’s here to stay because the very people who use it most are the type of people who make things to last. We’re inventing ourselves a new civilisation here, and it’s not about to stop any time soon.

What is Bitcoin, And What Does it Do

Covering the Basics: What is Bitcoin, And What Does it Do?!

Article by Bob Pattni, Cryptocurrency expert.

It’s the question I’m most often asked when I tell people what I do for a living. ‘Oh’ they say, looking puzzled. Then, politely but still very puzzled, comes the same question time after time. ‘But what is a Bitcoin? What does it do?’

I’ll answer this here in the same way I answer it in conversation – quite lengthy, but in as plain English as I’m capable of giving!

Firstly, you’re going to need to understand – just briefly – what cryptocurrency actually is. A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.  It’s is a medium of monetary exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography. 

Okay so far?! Great. Now you understand the basics, let’s look at Bitcoin.

Bitcoin was created in 2009 by an unnamed individual or group of individuals known by the pseydonum of Satoshi Nakomoto. It’s a digital and global monetary system and is now a recognised form of currency. It allows people to send or receive money across the internet, even to someone they don’t know or don’t trust. Money can be exchanged without being linked to a real identity.

The mathematical field of cryptography is the basis for Bitcoin’s security. It’s not controlled by any country or bank, rather anyone can ‘mine’ for Bitcoins using specialist computer equipment to solve mathematical equations online and gather the currency.

Simply put. It’s money. Online, digital money that you can use in real transactions and is now recognised in nearly every country worldwide.

Bitcoins are electronic currency, otherwise known as ‘cryptocurrency’. Bitcoins are a form of digital public money that is created by painstaking mathematical computations and policed by millions of computer users called ‘miners’.

Bitcoins are, in essence, electricity converted into long strings of code that have money value.

But What Do Bitcoins Do?!

They do the same things as other money does – buy and sell goods or commodities. Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money.

Once you own bitcoins, they behave like physical gold coins: they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years.

Bitcoins are traded from one personal ‘wallet’ to another. A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud. Bitcoins that you win by ‘mining’ go into your personalised wallet, and are there for you to spend.

Sound complicated?! Then it’s probably not for you. But if you’re a ‘tecchy type’ then this is something you should really be thinking of investing in. For your next step, read all about what equipment you’ll need to invest in and how to get started ‘mining’.

_written by Bob Pattni_

How to Invest in Cryptocurrency

 

So you are looking to invest in Cryptocurrency? First things first, you will need your bank account logged into and ready as you need to register on Cryptocurrency exchange websites in order to buy, you cant go to the local bank and buy any.

There a multitude of websites to get you started and there are even more Cryptocurrencies to invest in but we have to start somewhere so I will be explaining how to buy Ethereum from Kraken.

Step 1

Make your way to Kraken which is where you will buy the Ethereum from.

Step 2

Register an account with Kraken

Register an account with kraken

Register an account with kraken

Step 3

Verify the email that was sent to you, if you don’t do this then you cant use the account effectively.

Step 4

Click on the Funding tab, then the currency you wish to deposit (GBP in this case), this should being you to the correct screen, if not, click on deposit then GBP.

Deposit GBP with kraken

Deposit GBP with kraken

Step 5

Choose the option of deposit that is cheapest for you. This will depend on your Bank and their fees for each type of deposit.

Step 6

Scroll down and follow the instructions given to deposit money to your account.

Step 7

Once you have the money in your account, click the Charts button at the top right to get a feel for the price of ETH at the moment. The charts will show when the last buy order was, how much it was for and how much ETH was bought was bought. Using the order book located at the bottom of the page, you can see all the people wanting to buy ETH and for how much. This allows us to undercut people and buy ETH before them.

Ethereum buy and sell

Ethereum buy and sell

Step 8

Now that we have a price for ETH, we can make out first order. Click the Trade tab on the left, then new order. Fill out how much ETH you wish to buy and at what price per ETH. If the Total GBP doesn’t exceed how much is in the account, click the BUY button and an order will be opened below. Once someone sells ETH to you, you’re done!

Step 9

Congratulations, you have just made your first step into the Cryptocurrency World.

Step 10

Read our “How to sell and deposit your Cryptocurrency” guide.

[Guide] Buying Ethereum in the UK

Okay, you have invested in Cryptocurrency or you have been mining and now want to sell off your coins for cash. This guide will be a basic way of selling almost any coins. Again, just like the last guide, we will focus on Ethereum and Kraken but the knowledge gained can be used to sell and deposit all other Cryptocurrency coins.

Lets get started.

Step 1

Load up Kraken and log in.

Kraken Home Page

Kraken Home Page

Step 2

If you have since moved your ether to other trading platforms such as Poloniex then you will need to withdraw your coins from there and deposit them to your Kraken coin address. To get your Kraken deposit address you need to click the “Funding” tab, select “Deposit” then choose the coin you want to deposit. You will be presented with the screen below, if you don’t have an address to deposit to, click “Generate new address” and you will be given one.

Rod Thomas Investment

Deposit Ether to Kraken

Step 3

Moving coins from one exchange to another can take up to 15 minutes (or longer) depending on a few factors. If you copy the transaction ID given when moving the currency and enter it on Etherscan at the top right, you can see how many confirmations the transaction has had. Once it reaches 24 confirmations, the coins will be successfully on your Kraken account.

Rod Thomas Investment

Transaction Tracker

Step 4

Next up we want to be changing to the correct currency exchange. In this case we will be exchanging Ether for Euros.

Rod Thomas Investment

Change Currency Conversion

Step 5

Next we will go onto the trading page where we can choose how much to sell for(Please see Bonus Step 7 for more advanced selling). If you want to be a little bit more advanced, you can open a second window with the charts and and manually choose a better price for yourself based on the current selling rate and amount.

Rod Thomas Investment

Sell Ether Price

As you can see, the highest someone wants to pay is 9.80971 per Ether so you can get a quick sale and sell for that exact amount, or you can look at the selling amount and undercut that guy to make a tiny bit more profit. Or you can have a higher amount in mind if you don’t mind waiting (keep in mind, there is no guarantee the price will go up to what yo want to sell it for).

Fill out how much Ether you want to sell, enter the price you want to sell it at or click the market/limit buttons for auto prices, confirm the total amount of Euros to receive if successful then click the big red “Sell” button.

Step 6

Congratulations on your sale, now lets get that money into your bank account. Select “Funding” then “Withdraw” then choose the currency you sold you coins for, in my case, “Euros”. Add you bank account details, enter amount you want to withdraw then click Submit. Funds take up to 5 working days to arrive. Please note, there is a small fee to pay for Euros withdrawal.

Rod Thomas Investment

Withdrawing Euros from Kraken

Bonus Step 7

Okay, now that you are familiar will selling your coins for money, lets get a tiny bit more into the selling side. As you will have probably seen, you can sell your coins for more than just Euro. There is also GBP and Dollars. Where I live, I use GBP so you would think I would transfer everything to GBP right? Wrong. GBP has a £10 minimum deposit fee so that much is automatically taken before I even receive my money in my bank, also my bank takes a certain fee too when it arrives. There is only one reason you should consider using GBP over Eur when selling coins, and that is if the price of the coins is selling for a good portion higher on GBP to cover that £10 deposit cost and the exchange on your bank account. As a rule of thumb, I sell about 30 Ether at a time, and if GBP doesn’t net me an extra £25+ then I use Euros as it moves a lot faster as more people use Euros.

Stay tuned for more guides, if you have any ideas, let me know on my social media accounts, links found at the top of the website.