Learn everything there is to know about Helium miner, then decide if it’s a good fit for you. Continue reading to find out more about HNT tokens.
The Helium Network is the first to introduce a wireless network to mine crypto. In this network, nodes serve as hotspot components that enable HNT mining.
Although HNT hotspot mining gained a lot of traction, its profitability is slowly declining.
Crypto mining has proven to be a profitable way to generate passive income from the convenience of your own home. Starting with Bitcoin, several other mineable cryptocurrencies, including Dogecoin, Ethereum Classic, and even Monero, were eventually added. The convenience and lack of significant capital investment are the primary factors driving the growth of cryptocurrency mining. Numerous mineable cryptos have received attention over the years due to their high profitability, but none of them have persisted for very long. But in 2019, a brand-new blockchain-based cryptocurrency called the Helium network came onto the scene and raised interest in Helium miners.
The Technology Behind Helium Mining
In order to mine HNT tokens and generate income, Helium Network has been providing a decentralized wireless infrastructure. For this reason, helium mining has grown considerably since the day it first came out. The early adopters of helium mining fared better than most and set a record by gaining a substantial amount of HNT, the reward for mining Helium network.
This project is a dispersed network with every node being a hotspot with LoRaWAN capability (hence the name “Helium network”). LoRaWAN (long-range WAN), which is essentially a network protocol using long-range radio modulation technology, is one of the Internet of Things connections with the fastest rate of growth. Both the Helium network and HNT tokens are based on the proof-of-coverage algorithm, which makes it a decentralized Internet of Things.
Helium, a sizable LoRaWAN network, connects data across the internet using actual hardware, called helium miners. In a sense, Helium network has adopted a practical approach to the IoT, which was previously only applicable to the modernization of homes and logistics.
Helium Network: What is It?
It is crucial to discuss what a helium network is in order to comprehend how a helium miner operates. The first ever decentralized wireless network that enables HNT mining is known in the crypto community as Helium Miner. These IoT-connected miners have access to the helium network, which consists of long-range wireless hotspots.
Helium Network is an intelligent application of wireless technology that fixes Wi-Fi’s connectivity problems. The helium network has access to a much wider variety of connections, which makes it possible. Since every device can automatically and directly connect to other nearby ones, a centralized hub (typically a router) is not required in this scenario.
How Does a Helium Miner Work?
Before helium, crypto miners relied on costly mining rigs that reduced their ROI considerably. But after the Helium network emerged, it allowed people to mine HNT tokens using a very different means, i.e., with a wireless device called a hotspot. HNT tokens are given as a mining reward to helium miners in exchange for their coverage.
Due to the fact that the Helium network is essentially decentralized, anyone can set up hotspots (helium miners). The Helium blockchain relies on a still-novel Proof-of-Coverage algorithm to verify the location of hotspots and their network coverage. The Helium Network Explorer tool is frequently used to view data connected to POC.
In the case of mining helium, radio waves take the place of CPUs and ASICs. For miners, Helium hotspots use LoRaWAN transmitters to set up long-range wireless coverage. Earning HNT as mining rewards takes place in two ways:
- when miners send data to other Helium network-connected devices.
- When a hotspot nearby often run proof-of-coverage challenges
You require a special gadget called a LoRaWAN transmitter in order to mine HNT. But a helium miner’s geo-location is the most crucial factor in determining how much they make. To increase your mining rewards, you must obtain an antenna.
To be able to mine HNT profitably, one has to keep in mind that:
- There are 3 types of helium miners or wireless plug-and-play hotspots used for mining HNT: full hotspots, light hotspots, and data-only hotspots.
- Earning HNT tokens is possible by expanding Helium’s network coverage, which comes down to transferring more data in return for more rewards.
Pros and Cons of Helium Mining
The helium miner can use radio technologies and print HNT tokens because it is wireless. Anyone can set it up and begin mining to earn rewards thanks to its proof-of-coverage model. Anyone interested can start mining HNT cryptos and make a reliable passive income thanks to this truly disruptive piece of technology. A helium hotspot must be joined in order to begin mining; otherwise, no capital investment is needed.
HNT earnings cannot be withdrawn directly from an individual’s Helium wallet. Transferring the HNT to a compatible exchange is required to accomplish this. In addition, too many arbitrary variables, such as the antenna’s position, height, etc., affect the overall earnings.
How to Set Up a Helium Miner?
The prerequisites to set up a Helium miner are a hotspot miner, antenna (and its location), cables, a smartphone, and a router, as mentioned in the sections above. How, then, do you locate the top helium miner? Finding a suitable Helium miner depends heavily on one’s geographic location and the position of one’s antennas. The below steps provide an understanding of how one can set up a Helium miner:
Download and Set Up a Helium App
The first step entails downloading the Helium app, which is available for both iOS and Android devices, and creating an account. User information can then be stored in a Helium wallet that will be generated afterward.
A 12-word seed phrase will be generated by a program to backup your Helium wallet. The app will also ask you to set up a six-digit pin that you will need to enter each time you log in as an additional security measure.
Add a Helium Miner
Finding the plus (+) symbol to add a Helium miner, such as the Bobcat miner 300, to the app is the next step. The chosen miner must be plugged in to function, and a tiny red light will show when it is. Then, press the Bluetooth pairing button on the device’s back. Alternately, you can set up Wi-Fi by selecting one of the network settings in the Helium app.
Select the Hotspot, Verify Its Location and Set Up the Antenna
Now, the list will include the chosen Hotspot Miner. To proceed, select “Hotspot.” A prompt to add a hotspot will then appear. Add the Hotspot, confirm its location, and set the antenna.
The first assertion is free (paid by manufacturers), and users are responsible for paying the transaction fee for further assertions. Press “Skip” if you still need to get ready to set a location. If you are good to go, select “Continue.” The mobile app’s Hotspots tab allows users to view and manage newly added Hotspots.
Is It Worth Mining Helium?
Helium mining profitability today versus profitability in the future must be taken into account when deciding whether it is worthwhile. then. The total number of Helium hotspots was 14,000 in January 2021, but today there are 900,000 of them, with the same rewards being distributed. New miners join the helium network every day, greatly lowering profitability and the total mining rewards.
The Helium network’s early adopters appear to have reaped the greatest benefits from mining HNT in this situation. All newcomers, however, need to make sure that the network properly rewards their mining efforts.
The Future of Helium Mining
Although there is no way in which helium mining can guarantee profits, that is the cryptocurrency market for you. The market is extremely volatile, and everything is subject to sudden, unforeseen change. While it is true that helium miners present an innovative way to generate passive income, depending on how earnings change from person to person, we are yet to see any changes in this project.