Cryptocurrency is a digitally encrypted, and decentralized means of trade. A cryptocurrency’s Value is not managed and maintained by a central authority like the Indian Rupees or the American Dollar. Rather, these tasks are spread around the internet among the users of a cryptocurrency.
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Bitcoin
This year, cryptocurrency prices are skyrocketing. As of the end of the day on Monday, Bitcoin was up 98 percent to just over $57,000. However, this does not imply that bitcoin is the most lucrative cryptocurrency in the world.
Also Read |How to mine Bitcoin in India (2021)
Ethereum
In reality, the second-largest cryptocurrency is expanding at a much faster rate. Ethereum has risen 434 percent to just over $4,000 so far in 2021. This four-fold increase also means that Ethereum is gaining ground on becoming the most profitable crypto
Dogecoin
A meme featuring a Shiba Inu dog inspired the development of the digital currency Dogecoin. Dogecoin has now established itself as a serious rival to Bitcoin and Ethereum. After a series of tweets by Elon Musk, its price hit an all-time high in April. Now its value has increased by more than 7,800% this year alone.
How do they work
Cryptocurrency mining is time-consuming, expensive, and only occasionally profitable. Cryptocurrencies rely on decentralized which are based on the blockchain, a distributed public ledger that keeps track of all transactions and is kept by currency holders.
When a cryptocurrency is exchanged, a block of data is generated and spread across all of the network’s computers or nodes. Consider this block to be a set of such transactions. If this block has been checked, a structured record is created in the decentralized database that can be viewed by anyone on that network.
Despite the fact that blockchain is used for most cryptocurrencies, Bitcoin and Ethereum are distinct. Ethereum was not produced with the intention of competing with Bitcoin. It was created as a De-Fi Platform. Ethereum’s coin became the world’s second-largest cryptocurrency almost by mistake, thanks to the popularity of its platform.
Many people believe that dogecoin is almost a carbon copy of Bitcoin in many ways. Despite their technological similarities, these two projects were launched with somewhat different goals in mind. Bitcoin was developed to offer a viable alternative to the existing financial system to the rest of the world.
Markus, a co-founder, has confirmed that the coin was initially developed as a joke. His motives are woven into Dogecoin’s features. The token’s developers thought it would be in good spirit to further their good intentions by contributing their profits to worthy causes around the world because the project began with a comic nature.
How do we mine Crypto currency
Bitcoin
The miners in a bitcoin network are all competing to solve a mathematical puzzle in order to win a bitcoin reward. To solve the puzzle, the miner performs thousands of calculations per second before it discovers the correct answer.
The hash rate of your miner refers to the number of calculations it can perform every second. The higher the hash rate, the more puzzles it will be able to solve and the more bitcoins it will be able to win. Multiple mines have different hash rates, so when calculating profitability, you’ll need to factor in your miner’s hash rate.
When mining bitcoin, there are still a number of factors to remember. The configuration, software, energy bill, and other factors all play a role in how profitable it is.
Ethereum
Ethereum can be mined by pool mining and cloud mining, much like Bitcoin. They offer pretty much the same mining experience for both the coin but the value and the profit of the coin depends on various factors. A lot of people mines the cryptocurrency with their own rigs and customization
Dogecoin
The biggest difference between mining a dogecoin and bitcoin is that mining a dogecoin is simply easier. Dogecoins too, need hardware and software to operate a mining machine, much like the other coins. Additionally, there are mining pools that can be used to mine Dogecoins. Cloud mining is also an option, but most people choose not to do so because they would lose control over the rig’s hardware and software.
Also Read | Best Mining PC Build under 60000 in India
Conclusion
If you’re thinking of trading cryptocurrencies, you should know that they’re not the same. Despite the fact that dogecoin was created by developers who copied the same code from bitcoin software for many years, bitcoin has a large and well-funded community that dogecoin lacks.
Some characteristics, such as the restricted issuance of Bitcoin, make a currency more appealing than others, at least over time. However, cryptocurrency is motivated by emotion in the short term, so even a joke coin with limitless issuance could rally hard if a wave of interest sweeps in. We must be aware that they are extremely volatile and will result in significant losses if we invest in the wrong one.
Make sure to conduct thorough research and market analysis, particularly if you want to mine from your own rig. We can’t forecast the future of any cryptocurrency since a single meme or tweet can have a significant impact on the currency’s value.
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