If you are a fan of Bitcoin Cash and are intended to support the network, you can do it by mining and get some coins in return. In fact, miners play a significant role in every cryptocurrency network. Not only they verify transactions, but also they generate new tokens and bring them to the circulation.
In fact, miners solve a mathematical complex puzzle, and receive some coins in return. Currently the block reward is standing at 12.5 BCH per block.
Is it profitable to mine Bitcoin Cash?
In order to be able to mine Bitcoin Cash, you need to have specialized mining equipment. Before, start to mine you can use the online calculators in order to calculate your profit. Generally, the more hash rate you contribute with in the network, the more chances you will have to mine a block successfully. In fact, hash rate is the speed, which your equipment or computer is able to compute the output of a hash function.
Is it more profitable to mine Bitcoin Cash than Bitcoin?
However, mining Bitcoin and Bitcoin Cash has similarities, they have core differences. The most important difference is that Bitcoin Cash block size is limited to 8 MB. While it’s 1 MB for Bitcoin. As a result, mining Bitcoin Cash requires more computing power rather than Bitcoin. So, it needs more investment to mine Bitcoin Cash. On the other hand, bigger blocks have more transactions fee for the miners to earn and collect.
For those reason, Bitcoin Cash require to keep the mining difficulty significantly lower in order to attract more miners. In fact, they have to keep it low, so, it’s profitable for miners to mine it. As a result, EDA comes to help.
What is EDA?
In fact, EDA is an emergency hardness adjustment algorithm. In order to make it clearer, the time, which is required to mine a block depends on the parameter called “network difficulty”. The more processing power a miner contributes in the network with, the more block will generate in the blockchain. As a result, the network should maintain a stability. Both Bitcoin and Bitcoin Cash uses DAA in order to maintain the generating of a new block time for 10 minutes. But, Bitcoin Cash uses an algorithm called EDA as well. A validation showed that Bitcoin Cash mining difficulty is 3 times more than Bitcoin. As a result, they implemented EDA and it could attract miners to mine Bitcoin Cash for another time.
How to start mining Bitcoin Cash?
The first step is to set up a Bitcoin Cash wallet in order to store the mining rewards. For this purpose, you can use Wallebi wallet. Then, you have to consider whether you want to go solo or join one of the mining pools.
In fact, a mining pool refers to a group of miners, which combine and share their computing power in order to have a better chance of solving a block. By contributing in a mining pool, your mining hardware will receive easier and smaller algorithms to solve. The combined computing power increase the pool’s chance to solve a bigger algorithm and earn the reward. Then, the received reward will share among all miners based on their shared computing power. If you are willing to mine using mining pools, before you join the pool there are some criteria, which you should consider. For instance, how big is the pool? How often do they find a block? What are the fees, which the pool charges with withdrawals? And what is they pay structure?
Joining a mining pool
In order to join a mining pool, all you need to do is to sign up on their website. Then, you need to create a ‘worker’ and then use your ‘worker’ ID in order to track your contribution. The next step is to connect your mining rig to the pool. For this purpose, you need to run a mining software client on your computer. Now, you are the part of the pool. For the last step, just make sure that you entered your wallet address correctly to receive your mined coins in your wallet.