What is Mining?
The short answer
The process, used by Bitcoin and similar networks, of using computing power to validate transactions and earn new coins as a reward.
Miners compete to solve a computational puzzle; the winner adds the next block of transactions and receives newly created coins plus fees. This is what “proof of work” refers to, and it’s also what a network’s hash rate measures.
Related terms
Full glossaryLiquidity Pool
A pool of crypto locked in a smart contract that enables trading or lending without a traditional order…
Circulating Supply
The number of coins currently in public circulation and available to trade.
Cold Wallet
A wallet whose keys are stored completely offline, disconnected from the internet — the most secure storage option.
Stablecoin
A crypto token designed to hold a steady value, usually pegged to a currency like the US dollar.
Token
A cryptocurrency built on top of another blockchain, rather than having its own independent network.
KYC (Know Your Customer)
The identity verification process required by regulated exchanges before you can trade.
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