Cryptocurrency mining, in its most basic definition, is the approval of cryptocurrency transfer transactions by solving complex problems by devices with special software and hardware, and as a result, rewarding with newly produced cryptocurrency. In theory, anyone with a computer and internet can mine.When Bitcoin was launched in 2009, anyone with a standard PC could compete with other miners to predict a valid hash that would generate the next block. This was because the mining difficulty was low. The hash rate of the network was not very high. Therefore, no special hardware was needed to add new blocks to the blockchain. However, computers that could logically calculate the most hashes per second found more blocks. As a result, there was a big change in the ecosystem. The miners got into a sort of great device race as they struggled to gain a competitive advantage.
After experimenting with different types of hardware (CPUs, GPUs), Bitcoin miners settled on ASICs (Application Specific Integrated Circuits).
There are many methods of mining today. It is possible to separate these methods in terms of profitability, cost and difficulty. These;
CPU Mining :
We can say that this mining method is one of the oldest known methods. It is a type of mining that anyone with a high-processor desktop computer can do. That’s why it was very preferable, but now we can say that it is outdated. Because it is a high consumption type of mining and it is quite slow. However, it must be said that it is one of the easiest ways to learn mining.
All you need for CPU mining is a computer and a few programs. At this point, you may be considering CPU mining with your case computer or even your laptop, but this method is definitely not recommended. Because while mining with a personal computer does not provide any gain as it is thought, your overheated computer may break / burn.
One of the most known and most preferred mining methods is GPU mining. If you ask why it is so known and preferred, the answer is quite clear: it is extremely efficient and the investment cost is quite low.
You can prepare the necessary environment for mining with equipment such as processor, mainboard, multiple graphics cards, hardware frame and cooling. The return on the investment made, the efficiency received is quite high and satisfactory.
Most of the companies or individuals providing cloud mining services use GPU equipment. These companies or individuals own hundreds of thousands of equipment. Although putting a GPU rig is costly, it is cost-effective to build a GPU mining rig given the hash rate and overall workforce.
Cloud Mining :
Cloud mining is a type of mining that is most suitable for the technology of our age and is very popular. In this mining method, it proves our discourse worthy of technology, and it can be done without tiring.
What actually happens in the cloud mining method is that a GPU mining company or person leases the mining to you. You start the rental process for a period of time you want, and after deducting the expenses from the earnings during that process, the remaining money is transferred to your cryptocurrency wallet. Trust and reliability are very important here. For this reason, you should carefully research the person or company you work with while cloud mining. You should carefully examine and scrutinize what are the promises given. You have to be extremely selective in cloud mining so that your investment to make money is not wasted.Companies come up with different fees in different time zones. Generally, standard cloud mining plans cost $500 to $5,000. The service period also varies considerably, from 1 or 2 years to lifetime.In cloud mining, the investment is usually expected to pay off in 6 to 12 months, but no one can say for sure. Because the prices of cryptocurrencies are extremely volatile.
ASIC Mining :
It is the most powerful and individually definable type of mining in the mining world. Asic, Application-Specific Integrated Circuits are systems focused on cryptocurrency mining. The software and special hardware in them make these circuits special hardware to perform cryptocurrency mining. Although ASIC devices, which consist of many processors, have high computational capacity, they consume a lot of energy. For this reason, miners mining with ASIC devices need strong electrical infrastructures to meet their electricity consumption.
Proof-of-Work mining-based cryptocurrencies such as Bitcoin and Litecoin can now only be produced with ASIC mining devices due to the need for high computational capacity.
ASICs, as the name suggests, were created to perform a single task: computing hashes. But since they are specially designed for this purpose, they fulfill their duties extremely successfully.
“Given all this, which mining method is better?” If you ask, we can say that it is more correct to decide according to your personal preferences and expectations. Because once done well, it is possible to profit from each of them.
Generally people prefer cloud and GPU mining. While CPU mining is slow and cumbersome, making it less desirable, ASIC mining is also very popular lately.
- If you want to build your own mining device, you should choose GPU mining.
- If you want to mine instantly without spending money, you can give CPU mining a chance.
- However, if you say “I will take the risk and want to start right away”, try to turn to ASIC mining.
- If you do not want to deal with any equipment and want to mine in an easy way, you should choose cloud mining.
For mining, it would be logical to turn to less popular cryptocurrencies such as Ethereum compared to Bitcoin. You should calculate the investment cost and your profit rate according to the mining method you prefer. You can use CryptoCompare’s free tool here for this. CryptoCompare offers mining profitability calculation tool for BTC, ETH, ETC, ZEC, DASH and LTC. Through this tool, you will need to enter the hash power, the power consumption of the device you will use, the KWh cost and the fees such as the pool fee. Accordingly, a daily, weekly, monthly and yearly calculation will be made for you.
In summary; There is no such thing as an optimal method in cryptocurrency mining. It depends on what you want, what you expect, and how you’re going to use your resources. That’s why you should be careful while making your choice and make your account well.
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