1. Cryptocurrency Mining
Cryptocurrency mining is the foundation of the cryptocurrency industry — without miners, the Bitcoin network and, by extension, the entire cryptocurrency market, wouldn’t exist. Crypto miners generate some of the highest crypto earnings and profits in the crypto ecosystem.
Cryptocurrency mining is relatively straightforward. Cryptocurrency miners use dedicated crypto mining hardware called application-specific integrated circuits, or ASICs, to solve extremely complex math in order to secure a blockchain network. This process, called Proof of Work consensus, requires significant amounts of power.
Not every blockchain network uses this technique to secure the decentralized ledger that keeps track of balances and transactions — some use stake-based consensus — but the Bitcoin network, for example, operates on Proof of Stake.
Cryptocurrency mining can provide users with significant passive income, but requires an equally-significant initial investment in order to generate returns. The average cost of ASIC hardware ranges between $500 and $3,000, with profit generally calculated in under 10 dollars per day. Passive Bitcoin earning through mining isn’t impossible — but requires large power resources.
Generating passive income from Bitcoin mining requires access to cheap electricity, large storage and warehousing space for hardware, and significant capital investment. Some miners choose to mine less-popular cryptocurrencies or “altcoins” which can, in some cases, yield higher profits — should the coin they mine increase in value.
Smaller-scale mining hardware operators often combine resources into “mining pools,” which collectivize the mining process and share mining rewards.