Ether, Bitcoin’s biggest rival is up more than 400% this year and blew past $4,000 to hit a new record high.
Mining has two uses. Firstly, it’s used to create new coins and, secondly, to maintain a log of all transactions of existing digital tokens. Miners verify and add all exchanges of ether to a private ledger or a blockchain. Once a transaction is added to ethereum, Ether’s blockchain, it cannot be altered or erased, giving a permanent record. Miners run computer programs and compete against other miners around the world to be the first to verify a block of transactions. Someone wins this every thirteen seconds and the winner is awarded two newly minted ether.
People join a mining pool which lets a single miner combine his hashing power with other miners. This substitutes for a mining rig. Next, you have to connect your rig to a power source and, then, connect it to a network. Ether will start going into your wallet in minutes.
A wallet is like a digital address for your cryptocash. It can be anything from physical hardware wallets that let you store your crypto offline, to web wallets that allow you to interact with your account via a web browser.