Mining Crypto With A Helium Hotspot How It Works |
Posted: January 24, 2023 |
Mining cryptocurrency isn’t normally accessible to the everyday consumer. Nowadays, mining stable coins like BTC to turn a profit require the use of supercomputers, which are costly, guzzle up massive amounts of power, and simply not feasible for the average investor. But now, mining crypto as a consumer can be as simple as setting up your home Internet router—maybe even easier. Crypto Hardware for Everyday UsersCrypto-mining hardware designed for consumers is now a reality. However, you can’t just mine any crypto token as not all blockchain projects have adopted this model. In fact, there’s only one project so far where this is possible: Helium, a decentralized people-powered wireless network that runs on user-deployed devices called “hotspots.” These hotspots also double as miners for the network’s crypto currencies. Users that deploy these hotspots are rewarded with crypto tokens, in return for helping power the network and validating neighboring hotspots. There are a handful of options for Helium hotspots at a reasonable price, thanks to popular manufacturers like MNTD., Bobcat, RAKwireless, SenseCap, and Nebra. Most devices work pretty much the same way—you set up your hotspot, connect to the network, and start earning Helium crypto rewards. How Helium Mining WorksMining crypto for Helium is dependent on radio wave technology, as opposed to the use of powerful (and inaccessible) GPUs and ASICs. Helium hotspot miners provide long-range wireless coverage to the Network through LoRaWAN® transmitters. This wireless coverage is what allows the Network to run without traditional infrastructure. When these Helium miners are deployed, they transfer device data across the Network and earn Helium crypto tokens as rewards. Proof-of-coverage (PoC) also plays an important role in Helium mining. This is the process in which the Network randomly assigns PoC tests to verify the coverage being provided by the hotspot miners. When this happens, hotspot miners receive “challenges” from validators to communicate with other nearby devices and verify participation in PoC. Hotspot miners that do not have any neighboring devices typically earn less HNT, though the same can also be said for hotspots in over-saturated areas that have too many neighboring devices. So far, Helium’s most common crypto currency is HNT, but new tokens like MOBILE and IOT were introduced in 2022. Not all devices can mine all Helium cryptocurrencies. When buying a hotspot miner, consider which tokens you’d like to have the capability to earn before making your decision. Basic Requirements for Setting Up A Helium Hotspot Miner
Generally, your hotspot miner’s ability to earn Helium depends on a few factors: location, neighboring hotspots, and height of setup. Hotspots are best placed outdoors in high places, such as balconies, windows, rooftops, or poles. This is why adding an antenna to your setup can be beneficial. While it may be hard to mount a device outside, you can use an antenna to extend the range of your hotspot. All that said, manage your expectations when you’re just getting started with Helium mining. Earning crypto tokens is a long game and not a get-rich-quick scheme! As financial wisdom goes, always do your own research (DYOY) before jumping into any investment. Many factors are out of your control, but considering how affordable it is to get set up, the long-term gains including utilitiy as a network are worth the consideration.
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