Lately, we hear a lot about cryptocurrency mining, but how it works is still quite vague, especially for the uninitiated. In addition, mining cryptocurrency is not an easy task either since it requires suitable and particularly efficient hardware. If you are considering getting into cryptocurrency mining for any reason, you have come to the right page. Here are some tips regarding the hardware needed to become a cryptocurrency miner.
Cryptocurrency mining, what is it?
Before knowing the hardware needed to mine cryptocurrency, it is important to understand the concept of mining. The principle of crypto-currency mining is not very difficult to define. In fact, cryptocurrency mining is an operation aimed at verifying and validating one or more transactions on a blockchain network by means of a mathematical calculation.. Mining, technically nicknamed “Proof of work” makes it possible to secure the blockchain. People who perform these checks are called miners. After each validation, they are rewarded with new tokens.
To date, cryptocurrency miners can mine:
- Bitcoin (BTC);
- Ethereum (ETH);
- Monero (XRM).
- Litceoin (LTC);
- Zcash (ZEC).
What is a cryptocurrency mining platform?
For simplicity, a mining rig is an arrangement of hardware elements that have been specifically arranged to be able to mine cryptocurrency. These material elements can be a:
- CPU or Processor;
- RIG GPU or with graphics cards;
- ASIC or Application-Specific Integrated Circuit.
A mining rig is generally categorized by the type of hardware it uses to mine a cryptocurrency.
Rigs: mining via graphics card or GPU
Right now, platforms that use graphics cards are some of the most popular with cryptocurrency miners. They are widely used to mine cryptocurrencies such as Bitcoin, Ethereum or Zcash. Also called RIG, graphics card mining is considered artisanal mining. Indeed, a mining RIG is ultimately just a normal computer, but equipped with several graphics cards. It is these graphics cards that will allow the computer to have the power necessary to carry out the mining.. Each graphics card acts as a mining loop that provides exceptional power, and this is multiplied by the number of graphics cards installed in the computer or “RIG”.
Given their ease of assembly, rigs using graphics cards are ideal for new virtual currency miners. In addition, they are very versatile and require very little maintenance. For example, if a miner specializes in mining Bitcoin with an RIG and that RIG is no longer very profitable, that is not a problem. He can still use the RIG to mine another cryptocurrency. To do this, he only has to change the mining program by directing it to another crypto than Bitcoin.
Application-Specific Integrated Circuit or ASIC
Although graphics card mining is still used today, miners increasingly prefer to use ASICs or ICs for specific applications.
The ASIC is a peripheral hardware specially designed to mine a single type of cryptocurrency. It can only perform one type of calculation, which makes it even more powerful.
For example, if you started mining Bitcoin with your ASIC hardware, you will no longer be able to change to Ethereum or Zcash.
Thanks to its computing power, ASIC mining is considered professional mining. However, compared to an RIG consisting of several graphics cards, the ASIC consumes a significant amount of electrical energy and generates a lot of noise during mining..
One of the easiest mining rigs to install and use is arguably the Processor rig. It is simply a matter of installing several conventional computers together to harness their power. By adding multi-processor motherboards or multi-core processors, miners somehow managed to maximize the mining power of their devices. However, this platform was left aside by miners after the arrival of RIG GPU mining and especially ASIC.
Once the materials have been acquired, you must now know the best ways to mine a cryptocurrency and thus make your business profitable. Be aware that you can always try to mine yourself, but it can take you a long time to find a block, even with the best materials.
Join a mining pool
A mining pool or mining pool is a space that allows several miners around the world to work together to find and extract a block of cryptocurrency. By joining a mining pool, you can therefore combine your own power with that of other miners in order to validate blocks more quickly. Therefore, you maximize your chances of getting a reward once the block mining is complete. However, note that your reward will depend on the power you have provided during the calculation time of this block.
do cloud mining
If you don’t have the ability to acquire or maintain your own mining hardware, cloud mining can still allow you to mine cryptocurrencies. Indeed, this concept consists of renting the facilities of a company specializing in the mining of bitcoin or other cryptocurrencies. These companies are nicknamed cloud mining providers.
This type of investment allows you to start mining bitcoin or another type of cryptocurrency in just a few clicks. You just need to find the right cloud mining provider for you. Once you find the company, all you have to do is select and buy a contract that suits your capacity. You have all the necessary equipment available to mine the cryptocurrency of your choice, without worrying about electricity or maintenance. Depending on your mining capacity, you will be able to obtain a stable passive income, far from the risks and difficulties associated with independent mining.
Regardless of the hardware you choose to start mining cryptocurrency, keep in mind that the profitability of mining virtual currencies is quite volatile. So have a long-term vision and don’t hesitate to invest in quality materials, even if they are more expensive.