What is crypto mining and how does it work?

Cryptocurrency mining is an exciting but often misunderstood topic. Newcomers may hear about earning coins from their computers and wonder if it’s too good to be true. Many of our customers are surprised by how challenging mining actually is, yet with the right expectations it can be a fun way to participate in the network.

This post explains the basics of crypto mining in plain language and why your results can vary dramatically.

What is crypto mining?

Imagine a giant public notebook that records every transaction of a digital currency. That notebook is called a blockchain. New transactions are grouped into pages (“blocks”), and before those pages can be added to the notebook, someone has to check that everything is correct. That checking work is called mining.

Cryptocurrencies like Bitcoin don’t use banks or a central authority; instead the network relies on volunteers (miners) to verify transactions. According to experts, Bitcoin mining is the process by which transactions are officially entered on the blockchain and new bitcoins are launched into circulation^[1]. Miners compete to solve a cryptographic puzzle, and the first one to find the right answer earns a reward^[1]. This reward currently includes 3.125 BTC per block plus transaction fees^[3]. Once the puzzle is solved, the new block is broadcast to the network, other miners verify it and the page is permanently added to the blockchain^[2].

A simple analogy

Think of mining like a raffle draw:

• Transactions are tickets. Every time someone sends crypto, a “ticket” with the details goes into the raffle drum.
• Miners shake the drum. They use computers to generate millions of random numbers (“hashes”) until one fits the very specific pattern required by the network^[1]. That pattern changes over time to keep the game challenging, so miners always have to work harder as more players join.
• First to draw the winning ticket wins. The miner who finds the lucky number first gets to add the new block to the chain and keeps the reward^[1].

This process does three important things:

• It creates new coins. Mining is the only way new bitcoins enter circulation^[2].
• It verifies and secures transactions. By solving puzzles, miners confirm that every transaction is valid and help prevent fraud or double‑spending^[2].
• It keeps the network decentralized. There is no central authority; miners all over the world maintain the ledger^[2].

Why is mining so hard?

The puzzles miners solve aren’t just for fun. They are designed to make cheating impractical. Each block’s data is put through a hash function, producing a long string of letters and numbers. Miners must find a hash that is lower than the network’s target; this requires trying countless nonces (random numbers) until something works^[1].

As more miners join the network, the system automatically increases the difficulty so that a new block is found roughly every 10 minutes^[2]. This means your chances of solving the puzzle are proportional to your share of the total “hash rate” (mining power). For example, a high‑end miner producing 140 TH/s (terahashes per second) is still just a drop in the ocean compared to the entire network (~1000 +EH/s). A Medium article calculated that at this rate, a solo miner could expect to find one block only once every 6.8 years on average^[7].

Difficulty varies by coin. Network difficulty measures how hard it is to find a valid block. For example, Bitcoin’s difficulty is currently around ~156 T, meaning miners must perform quadrillions of hashes to find a block, while smaller coins like DigiByte have difficulty around ~1.44 G. The lower difficulty makes them easier to mine, but rewards are also smaller; many miners accumulate these coins hoping their value will rise later.

Specialized hardware and high costs

Mining used to be possible with a home PC, but those days are long gone. Today, miners use application‑specific integrated circuits (ASICs) - specialized machines designed only for mining. Blockchain.com explains that CPUs and GPUs “don’t offer the computational power needed to solve the hashing puzzle at the current level of mining difficulty”^[2]. ASICs deliver massive hash rates but they are costly and energy‑hungry.

Bitmain Antminer S21 XP

An illustration of Bitmain’s Antminer S21 XP used in cryptocurrency mining hardware.

For example, the Bitmain Antminer S21 XP provides about 270 TH/s of hash power but consumes 3,645 W of electricity and costs around US$5,805 per unit. On top of hardware expenses you must pay for electricity, cooling and maintenance. That’s why Investopedia warns that Bitcoin mining requires significant time and capital investment, and profit is not guaranteed^[1], and notes that the risks are mainly financial because mining requires purchasing hundreds or thousands of dollars worth of equipment with the possibility of no return.

Solo mining vs. pool mining

Because solving a block alone is so unlikely, most miners join pools, combining their hash power to increase the chances of finding blocks. When a pool finds a block, the reward is shared among all participants according to their contribution. This provides a steady stream of small payouts, minus a pool fee, and is easier for beginners because the pool operator handles much of the setup^[4].

Solo mining is different. You connect your hardware directly to the network and try to find blocks on your own. A solo miner keeps the entire reward, but the odds of success are tiny unless you control a large portion of the network’s hash rate^[7]. The CryptoMinerBros guide points out that solo miners must invest in high‑end ASIC hardware and manage their own software and wallets. It acknowledges that solo mining can yield higher returns but requires patience and can take longer to find blocks and notes the huge upfront investment: specialized hardware can cost a few thousand dollars, and the miner must also cover electricity and maintenance. Rewards are unpredictable; you might mine nothing for months or even years^[4].

Summary of pros and cons

Approach: Solo mining

• Pros: If you hit a block, you keep the entire reward and all transaction fees. Full control over your hardware and configuration^[4].
• Cons: Very low probability of success unless you own significant hash power^[7]. Requires expensive ASIC hardware and high electricity costs^[4].

Approach: Pool mining

• Pros: Combines hash power with others, increasing chances of finding blocks. Provides steady, predictable payouts and lower variance. Easier to start; the pool handles much of the setup^[4].
• Cons: Rewards are shared among participants, so payouts are smaller. Most pools charge fees, reducing your earnings. Large pools can concentrate mining power and reduce decentralization^[4].

What OneClickMiner offers: solo mining without the expensive hardware

OneClickMiner (our mining service) provides access to solo mining without requiring you to spend thousands of dollars on your own ASICs and electricity. Here’s how it works:

• You rent hash power for solo mining. When you purchase a package (e.g., 0.0001 BTC worth of hash power), your portion of the machine works exclusively for you. It is not pooled with other customers. If your rented machine finds a block, you receive the full block reward - currently 3.125 BTC plus fees^[3].
• No guarantee of success. Renting hash power doesn’t guarantee you will find a block. It simply gives you a chance proportional to the hash rate you’ve rented. As explained above, even powerful machines may take years to hit a block^[7]. This is why small investments like 0.0001 BTC rarely result in a payout – it’s like buying a single raffle ticket. We are not a scam; we are offering access to mining machines through a few clicks.
• Transparency. You can monitor your worker’s status, see its hash rate and track whether it finds a share (a partial proof of work). If it hits the jackpot, you’ll see it immediately on the blockchain. Until then, there is always a chance you may get nothing.

Luck matters. Even small packages have hit the jackpot on our platform. For example, two Bitcoin Cash blocks were mined with Hammer packages (around $10 each), one block was mined with a Shovel package (around $20) and another with a Pickaxe package (around $40). These examples show that while probability is low, it is possible to strike it rich even with modest hash power. Mining is ultimately a game of statistics, and anyone can get lucky.

Why solo mining might still appeal to you

• All‑or‑nothing reward. If your worker hits a block, you could earn over $300,000 at current prices, which is far more than any shared pool payout. It’s like winning the lottery.
• Low barrier to entry. Instead of spending $4,000–$6,000 on an ASIC miner^[5][6] and dealing with noise, heat and electricity, you can try mining with a small amount of crypto.

Home hosting isn’t feasible for most people. Running even 1 PH (1 petahash) of mining equipment at home would require multiple high‑end ASICs, tens of thousands of watts of power, industrial‑grade cooling and significant space. The hardware alone would cost tens of thousands of dollars, and the noise and heat would overwhelm a typical household. For the vast majority of people, renting hash power remotely is the only practical way to participate in solo mining.

Reality check

Mining isn’t a “get rich quick” scheme. It is a way of participating in the network’s security while getting a chance (not a guarantee) to earn new coins. Spending 0.0001 BTC on a solo mining package buys you a tiny fraction of a high‑power ASIC’s time. It does not entitle you to an immediate payout. You might get lucky, or you might not. That uncertainty is inherent in the mining process, whether you run your own hardware or rent from someone else.

Final thoughts

Crypto mining plays a critical role in verifying transactions and issuing new coins. It relies on miners who use specialized hardware to solve difficult puzzles, and only the first one to find the solution gets rewarded^[1]. Because of the high cost of equipment and the low probability of solo success, most miners join pools. OneClickMiner offers a different path by letting you rent solo mining power without buying an expensive ASIC. However, the trade‑off is that there is no guarantee you will find a block – it’s a gamble, just like buying a raffle ticket.

We hope this explanation helps set realistic expectations. Mining can be fun and rewarding, but it’s important to understand the mechanics, the costs and the odds. If you choose to participate through OneClickMiner, please do so with the knowledge that you are taking a chance, not buying a guaranteed return.

References

1. Sabrina Jiang, How Does Bitcoin Mining Work? A Beginner’s Guide - Investopedia explainer describing how mining adds transactions to the blockchain, the need for ASIC hardware, and the financial risks of mining.
2. Blockchain.com Learning Portal, Bitcoin Mining, Explained - overview of how miners solve cryptographic puzzles, create new bitcoins and secure the network.
3. Bleap Finance, How Many Bitcoins Are Left to Mine in 2025? - provides current block reward of 3.125 BTC and explains that miners receive both new coins and transaction fees.
4. CryptoMinerBros Blog, Solo Mining vs. Pooled Mining: Which is Better? - explains solo mining and pooled mining, noting hardware costs, patience required and unpredictable rewards.
5. Arch Lending, Best Bitcoin Mining Machines in 2025 - describes Bitmain Antminer S21 Hyd specifications and price (≈US$4,200).
6. CoinLedger, 8 Best Bitcoin Mining Machines 2025 (Expert Reviewed) - lists prices and hash rates of common ASIC miners like the S19 XP Hydro (US$6,399) and S19k Pro (US$1,699).
7. The Blockchain Academy LLC, Solo Mining vs. Pool Mining: Which Approach Is Right for You? - notes that with ~140 TH/s, a solo miner’s chance to find a block is ~0.00000028 per 10‑minute round and may take years.