Crypto mining (cryptocurrency mining) is the process of earning cryptocurrency by using computer power to solve complex mathematical problems. Here’s how money is made through crypto mining, explained in simple terms: 1. What Is Crypto Mining? Mining is how transactions are verified and added to the blockchain (a digital ledger). It also introduces new coins into circulation. 2. How Miners Earn Money Miners earn money in two main ways: a. Block Rewards When a miner successfully solves a mathematical puzzle and adds a new block to the blockchain, they receive a reward in the form of cryptocurrency (e.g., Bitcoin). Example: As of 2025, a Bitcoin miner may earn 3.125 BTC (after halving in 2024) for each block mined. b. Transaction Fees Each transaction included in a block comes with a small fee. These fees are paid by users and collected by the miner who adds that block to the blockchain. 3. What You Need to Mine Powerful hardware (like ASIC miners or GPUs) Electricity (mining consumes a lot of energy) Mining software A crypto wallet to receive your earnings Optionally, join a mining pool to combine efforts with others and share the profits 4. Costs vs. Profits To make money, your earnings from block rewards + transaction fees must be greater than your costs, which include: Electricity Hardware purchase and maintenance Internet and cooling systems 5. Is It Still Profitable? Mining can be profitable, but: It's competitive Profits depend on the price of the cryptocurrency Higher electricity costs reduce earnings Some coins are no longer mineable (e.g., Ethereum switched to Proof of Stake)