Mining is the process of validating cryptocurrency transaction data and recording the correct transaction data on the blockchain.
(Those who perform this mining are called miners.)

For example, in a transaction where "Alice sends 1 BTC to Bob",
This information is then hashed by applying a calculation formula called a hash function.
This will output a value consisting of a series of alphanumeric characters (a hash value).

"Alice sends 1 BTC to Bob" ⇒ B123HI9374H6G87GD9BNA…

To approve this transaction data, the hash values ① to ③ below are required.
① Hash value of the previous block
② All transaction data for the new block
③ Any numerical value = Nonce value
Mining is the process of substituting the nonce value from ③ and searching for a nonce value that results in a hash value with 16 leading zeros.

The person who completes this calculation the fastest receives a reward.

[Types of Mining]
There are three ways to perform cryptocurrency mining:

① Solo mining: A method of mining by yourself.
High risk, high reward.
If successful, you can keep all the rewards, but setting up the mining equipment is difficult, and the electricity costs are quite high.
Furthermore, because it is less powerful than options ② and ③, the chances of success are said to be considerably lower.

② Pool mining: A method of mining by working together as a team. (This group is called a mining pool.)
Rewards are distributed according to computational ability.
Therefore, it is possible to earn relatively stable profits, but you will need to acquire mining equipment.

③ Cloud mining: A method of investing in organizations or teams that perform mining and having them do the mining for you.
You will receive rewards based on your investment amount.
Since you don't need to prepare any equipment, it's easy to get started.
Of course, there are no electricity costs.
However, if you don't carefully choose where to invest, you could fall victim to fraud.