The number of miners in the world is constantly growing. Recently, hash speed has grown significantly and this means that some large miners can return to business.
So if you suddenly thought about ordering parts, launching your own drilling rig or creating your own mining farm, then now is the time.
But before you start doing any business, you need to find out its basics of crypto and mining. Because each cryptocurrency has its own algorithm, with compromises in centralization, equipment and network security.
Many people think that mining is just another way to make money, but miners also perform an important function in the crypto network.
Cryptocurrency mining is done by enumerating numbers, for each of which a so-called hash is calculated. It is often used to verify data integrity, for example, when downloading from the network. If it matches the given template, then a new cryptocurrency unit is released – its mining. For each block (found number), the miner receives a reward.
- Solo mining
You yourself buy certain equipment, such as crypto farms, video cards or ASICs. Next, look for a suitable coin, a special mining program, and all the rewards go only to you.
However, this is a high cost for the purchase of devices and payment of electricity bills.
- Mining on a pool
Due to the high cost of work, miners often quite often merge in a virtual way into a team – the mining pool. They connect the resources of their mining machines and collectively extract crypto. Profit is divided according to the share of each user.
- Cloud mining
This is a way where the technical side of the issue is not needed by the user. A miner buys a mining contract, leased equipment and remotely extracts a crypto asset, which can then be withdrawn to your account.
In all cases, except for cloud mining, you need to have good equipment such as a modern video card and processor. But you can also mine coins using your PC or even build your small home crypto farm from video cards and asics. It all depends on your budget and desire.
But before you buy any device, first study the requirements of cryptocurrencies for its mining.
Here is also what you need to know about mining equipment:
- CPU mining
Previously, the first crypto coins were mined using processors. They were more flexible and could execute any algorithm that was needed to solve the mining task for a reward.
This is called “proof of work” because the computer must solve the puzzle in order to add transactions to the workbook.
- GPU mining
Video cards or GPUs are what provide more power than processors. They will do more calculations at the same time. Moreover, there are cards that perform some algorithms better than others, but it all depends on the model and manufacturer. We can say that GPUs have greater efficiency and mining power, but they are less flexible.
- FPGA mining
The next step in the evolution of mining was the FPGA – Field Programmable Gate Arrays. These devices are even more powerful than video cards and can be programmed to develop algorithms. FPGAs work more efficiently than GPUs, although not as popular as them or ASICs.
- ASIC mining
ASICs are specialized integrated circuits that are considered quite popular because of their power. ASICs were also created for the purpose of computing one particular algorithm. They can perform only one task and perform it very well.
ASICs often perform certain calculations many times faster than competing devices and consume less power for calculations.