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Crypto Mining

[krɪptəʊ ˈmaɪnɪŋ]



Crypto Mining rewards individuals who verify Cryptocurrency transactions with a small amount of Cryptocurrency. It may require a lot of computer power.

More detail:

Crypto Mining is the process of verifying transactions and adding them to a public ledger called the blockchain. This is done by solving complex algorithms that are created by the software behind the Cryptocurrency. In reward, you are given a small amount of Cryptocurrency. This is how Bitcoin mining works.

This type of mining uses a significant amount of computer resource which requires a lot of energy. This means it can be expensive and damaging to the planet. There are other mechanisms for mining crypto, such as the proof-of-stake method used by Ethereum.

Profit from Crypto Mining counts as an income so Income Tax and National Insurance contributions must be paid.

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