If you want to conduct successful cryptocurrency mining, you need to find the best cryptocurrency to mine on your own and earn crypto quickly.
For this, the best advice is to know what you are getting into, what your goals and limits are.
Moreover, knowing that the global economy is so fragile, it’s not even surprising that there’s so much hype around cryptocurrency – especially since it offers solutions independent of centralized entities.
However, now that more and more people have become aware of the need for independence, the competition for cryptocurrency mining is much greater, resulting in smaller rewards.
But before we get to the list, we need to understand what crypto mining is all about.
So let’s start with a brief guide on cryptocurrency mining. What is cryptocurrency mining?
In the simplest terms, cryptocurrency mining is the process of solving complex mathematical equations in order to validate crypto transactions. For every new crypto mined, users who participated in the process are rewarded with a fraction.
Contrary to popular belief, cryptocurrency mining does not mean the creation of a new currency, but the release of one from the total supply.
The most crypto project has a limited supply of currencies, which leads to an increase in value as they become rarer, just like gold.
Crypto mining exists because developers wanted to find a way to verify transactions while eliminating the most common problem associated with digital currencies – the problem of double spending.
In short, a double spend occurs when a bad actor disrupts the blockchain and manages to spend the exact same units of a cryptocurrency twice. And since it tempers the allocation of funds across the entire blockchain, the double-spend event can even impact crypto wallet data.
However, once the crypto-miners validated a transaction, the currencies involved could no longer be spent by the same user. It’s as simple as it sounds.
Another misconception is that users need to have a broad technical knowledge if they want to exploit, which is not entirely true.
The equations needed to validate transactions are actually solved by computers, so all a miner needs is sufficient hash power and a bit of technical knowledge.
Now that we’ve covered the basics, let’s see how many types of cryptocurrency mining exist. What types of cryptocurrency mining are there?
In fact, there are two ways to approach the subject, depending on your interests of course. Some people are interested in the computer components responsible for the mining process, while others are interested in the methods used.
Whichever side you are on, we have explained below each type of cryptocurrency mining. Are we going to start? Cryptocurrency mining as a process
Technically speaking, there are three computer components that you can use for cryptocurrency mining:
- Application-specific ASIC or integrated circuit;
- GPU or graphics processing unit;
- CPU or central processing unit.
Each of them has achieved amazing results over the years, but the answer to the question “Which is better” depends on how much you are willing to invest to start mining.
Also, some of the best cryptocurrencies to mine use ASIC, some use GPU.
In addition, you need to take into account the space available for the equipment, the profit you hope to make and the cryptocurrencies you want to work with. So let’s see what it is.
As the name suggests, ASIC is an integrated computing component designed for a specific type of application. You may be more familiar with the term “microchip,” which is exactly what it is.
Those specific to the field of cryptography are designed with the aim of mining a specific cryptocurrency. For example, the only way to mine Bitcoin with ASIC is simply with a Bitcoin ASIC miner.
In terms of performance, asic is significantly superior to the GPU or CPU, having the ability to run 100,000 times faster than the better of the two. And, of course, this leads to big profits since mining rewards are distributed to the first crypto users who validate a transaction.
Looking at whattomine.com, profits can range from a few dollars a month to a few thousand. Ultimately, the profit will depend on the coins you extract, the quality of the material, and various market factors such as price changes.
When it comes to affordability, it depends on the brand, model, and how it was developed.
For example, a standard ASIC such as Antminer s17 costs about $2,000 and can generate 60 Th/s.
When you read all this, you’re probably wondering why people are willing to buy CPUs and GPUs at a higher price for lower performance and profitability.
The answer is pretty simple, though. Not all cryptocurrencies allow ASIC mining. In addition, you are limited to mining cryptocurrencies with the mining algorithm for which your ASIC is designed.
Many cryptocurrency developers have resorted to restricting ASIC miners (such as Vertcoin or Monero) to encourage network decentralization.
In addition, not everything is rosy when it comes to ASIC. If the cost/performance ratio is very attractive, it has a short lifespan, and it is not scalable. Exploitation GPU
GPU stands for Graphics Processing Unit, and it’s practically your computer’s video card.
GPU extraction is not as good as ASIC. For example, an NVIDIA GTX 1660 Ti has a hash rate of 26 MH/s and costs around $300. However, GPU miners are very flexible, having the ability to mine different cryptocurrencies, allowing you to switch between cryptocurrencies.
What’s more, it also offers benefits in other areas (like gaming, streaming, or video editing), so you don’t just invest in cryptocurrency mining.
On the profitability side, it’s not bad either. Depending on the cryptocurrency, this can vary between $30 and $700/month.
However, despite its complex calculation, there are also some drawbacks.
First of all, it consumes much more energy than an ASIC. Second, it may take some time before you recoup your investment, as a prefabricated GPU mining platform can be found at around $3,000. CPU operation
The central cryptocurrency mining machine was the first type of cryptocurrency mining, and as you may have guessed, it is a bit obsolete.
It’s no wonder why. CPU extraction is extremely slow, with an average hash rate of 0.7 MH/sec, well below gpu and ASIC.
There is little or no chance of successfully validating transactions with him. And if you do, fine, you can make a maximum profit of a few dollars a month. And that’s with the use of a computer.
If we take a look at the crypto mining kit, things look even more disastrous.
Its average price of $300 should also not be tempting because it “compensates” with a very high power consumption. Add to that its throttling performance, as it is easily overloaded.
But if you just want to practice cryptocurrency mining before investing in ASIC or GPU, there’s nothing wrong with getting a processor. Just make sure you don’t burn your device during overclocking. And keep in mind that none of the best crypto to mine anymore uses CPU mining.
If you are not very interested in the technical information behind the curtains and just want to enjoy the show, then let’s take a different approach. Cryptocurrency mining as a method
