Ethereum Mining Tips
Cryptocurrency mining is a process of solving complicated mathematical problems. A miner is an essential cornerstone of a cryptocurrency network as he spends a lot of time in solving the math problems and providing a so-called ‘proof of work’ for the network by which Ether transactions are verified. Miners can also create new Ether tokens through this process, and as a result, they receive rewards in Ether for completing the proof of work task.
With more miners coming in the picture, the problems automatically become difficult to solve, and the rewards become smaller. For every block of transactions, miners apply their computational power to solve the puzzle.
There are three ways to mine Ethereum
Pool mining – Ethereum mining in a pool is the fastest way to start mining. A miner works together with other people. In a pool, all people agree that if one of them finds the secret number, they will distribute the reward with everyone. It depends on the pool size how often you find the blocks and share rewards.
Mining alone – Mining alone is a great idea as you don’t have to share the reward with anybody. However, because a miner has to compete with a large network of people and companies who have a lot of resources, it’s unlikely that you will succeed. Mining alone is only beneficial when you have a lot of resources at your disposal.
Cloud mining – Cloud mining means that you are paying someone else to mine for you. It means you are renting someone’s mining time, and in return, they will give you all the rewards that they get after mining.
Cryptocurrency Taxation: How To Handle Its Different Facets
Cryptocurrency experienced massive growth in the past few years, which has made many investors wonder about the tax rules. Many returns were put on hold, waiting for guidance from the higher authority. At the same time, other taxpayers have to pay unexpectedly large tax bills as a result of misconceptions surrounding the cryptocurrency taxation.
Cryptocurrency gains from trading coins are capital assets that are treated as investment income by the Government authority. A taxpayer selling coin position for cash must report a capital gain. When the coin is held for less than one year, it is considered as a short-term capital gain, which is taxed at ordinary tax rates. A coin position held for more than one year is called a long-term capital gain.
Taxpayers who make coin-to-coin trades may assume that there is no tax liability as they didn’t get any actual funds. Cryptocurrency is taken as property by the Government authority, and cryptocurrency trades are subject to the same capital losses and gains rules as other property exchanges.
Top Cryptocurrency Exchange Hacks This Year
No matter how secure cryptocurrency exchanges get, the hacks are inevitable. Here are some of the hacks that took place within the duration of 12 months:
Binance – Binance, which is one of the biggest cryptocurrency exchanges, has experienced a security breach, which resulted in a loss of $40 million. Additionally, hackers were able to obtain the API keys along with two-factor authentication codes and more user information. Later it was revealed that hackers got the possession of over 60,000 pieces of KYC data from the exchange.
GateHub – GateHub also recently announced that 100 of its users’ XRP wallets are hacked. A community member inspected the hack and discovered that around 5,23,200,000 XRP was stolen from 80-90 of wallets, which is equal to approx. $10 million.
Upbit – Upbit, which is a South Korean exchange, was hacked for 342,000 ETH, which was equal to $49,116,778. Hackers gained access to Upbit’s hot wallet and moved Ether without authorization.