For crypto passionate aficionados, this is the second part of the article, here will share privy on disparate ways to mine crypto and the best currencies to mine- be the next millionaire in the troop. As cryptocurrencies are touted as the future of finance, and with their mainstream acceptance more and more people are driven to enter the mysterious world of blockchain. Let’s revise mining in simpler terms; it is a process by which new coins are launched into circulation via solving complex mathematical equations. And individuals who mine the coins are called miners. These miners’ transactions are validated and accepted, then added to a public ledger. Miners are rewarded with compensation for the work.
Is There Any Effective Way To Mine Cryptocurrency?
Mining is getting more powerful with each passing day! Bitcoin mining has come a long way; now it’s no longer viable to mine a Bitcoin with a laptop. Additionally, the whole mining process involves no standard formula in lieu it is based on guesswork. So, the only game plan which may amplify your chance of procuring a coin is by joining a mining pool.
To add, a mining pool – is a group of miners who are connected over a network to share their computational resources and divide the reward according to the amount of work they have done to obtain the block or coin.
If you are planning to be a crypto miner, you need a high-performance computer, software, and some additional equipment.
Here are some Cryptocurrency Mining Terms
If you aren’t acquainted with cryptocurrency mining terms, you don’t need to worry as we’ve got you covered. Keep reading below:
- Hash rate– The crypto miner is given an opportunity to make a guess at the hash of the block. This step is also entitled to a hash rate with which people dealing with cryptocurrencies are usually familiar.
- GPU– What is known to be a superior alternative to CPU, a graphic processing unit is fabricated in a way to bestow a 3D design. What’s more, it can even make more guesses when contrasted with its counterpart- CPU.
- CPU– It is a mundane term with which most of the population out there is anticipated to be apprised. The central processing unit, which is dime a dozen abbreviated as CPU, is known to be the brain of the computer. It performs accordingly to the commands given to it. A vital piece of information; it is considered to be the most economical technique to mine cryptocurrency.
- ASIC– Concise as ASIC, an application integrated circuit is designed for a particular purpose, rather than for general use. Albeit, these so-called chips are acclaimed to be one of the best sources of mining; however, are notorious for consuming heavy power.
- Mining rig– When talking about a mining rig, its fundamental intent is to augment the miner’s hash rate as it blends the chips of CPU, GPU, and ASIC streaming together seamlessly.
- Proof of work– For enhancing the security of any cryptocurrency, the proof of work algorithm is highly relied upon. This mechanism is hailed for making it quite bling and almost impossible to deceive the crypto platform. In simpler words: proof of network is the mechanism of furnishing extra shielding to the majority of Blockchain networks.
Is CryptoMining Legal or not?
The legality of mining depends upon your geographical location. As the first cryptocurrency Bitcoin was considered as a potential threat to the centralized banking system and dominance of fiat currencies, every country has its own set of rules and regulations for the same.
The largest crypto market exists in the United States, where digital currency is an asset for many, making it legal in most parts of the country. However, trading, using, and buying virtual currency in the US may differ as per province, but mining is allowed in all states.
As mentioned earlier, due to potential threats every country has different laws for crypto. For example, in countries like Saudi Arabia, Canada, Russia, and Nigeria – mining is legal but commercial using virtual currency is illegal. Plus, in countries such as Nepal, Morocco, Algeria, Pakistan, and Bolivia – it’s completely banned to use and mine any cryptocurrency.
It’s recommended to check your country’s laws and regulations before deciding to mine.
What are the Best-fitted pertinent ways to mine cryptocurrencies?
There are myriads of methods one can start with cryptocurrency mining. Let’s embark on the journey with the easiest one!
- Cloud Mining
One of the easiest and well-known methods to mine a cryptocurrency is via a cloud mining firm. In this digital era, the fastest growing technology is cloud computing, allowing services like processors, database servers, file storage, and software shared over the cloud.
To add, in this cloud mining method you need not install any heavy hardware, no – noise, heat, and power consumption, all it requires is to pay a fee to the firm for mining the block.
In return, the cloud company’s prerequisite is a long-term commitment from the miner. Moreover, the coin mined by you will not be kept by the company instead you pay the fees. Despite many advantages, there are some cons associated with cloud mining, such as scams and fraud.
Therefore, before investing in cloud computing you must inspect whether the company is trustworthy or not, as many cryptocurrencies cloud mining providers are not offering the services they advertise.
- CPU Mining
CPU Mining is an old-school method of mining coins, a computer processor is employed to mine crypto coins. This method was profitable in the early days of virtual currency or simply put when Bitcoin was the only currency to mine. But now this option is not feasible due to plethoras of reasons.
First, the process is terribly slow- it may take up to months to witness any revenue. Second, it’s extremely expensive as it needs lots of electricity and a proper cooling mechanism.
Howbeit, people are still using CPU mining because some blockchains like Loki, Monero, and Nimiq can be mined with CPU even today. In addition to this, anyone with a desktop can enter the mining world without investing a hefty amount in high-end equipment.
Besides this, the most imperative advantage of CPU mining is that anyone can start and learn the mining process before investing a copious amount in ASIC, cloud, and GPU.
- GPU Mining
GPU aka graphic processing units, a video card-based mining is the most powerful, popular, and renowned method of mining any cryptocurrencies. It’s more effective than the CPU in solving difficult mathematical calculations.
Apart from this, GPU miners can mine different cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Litecoin (LTC) when the market is bearish and bullish.
Also, the market is flooded with varied graphic cards, but the cards used for GPU mining are specially designed to mine crypto the most efficiently. To add, GPU mining has become a hot topic since 2017 when everyone under the sun was babbling about Bitcoin and its skyrocket price reaching $30,000. And people around the globe look for the best GPU to earn their crypto mine reward.
Here’s the catch with GPU mining- first, a well-performing gaming card is comparatively costly at around $1400. Second, the power consumption to run a mining gig is significantly high, making people ponder if mining is profitable or not?
On top of this, another major concern new miners often encounter is choosing the virtual currency to mine via GPU mining. There are some underlying factors one should consider if planning to start the journey as a miner. Like, invest and mine in those cryptocurrencies only that can make up for the electricity bill along with rig maintenance charges.
- ASIC Mining
Application-Specific Integrated Circuit aka ASIC is a device using microprocessors solely designed for crypto mining. They are constructed to mine specific virtual currency only like Bitcoin ASIC miner will mine Bitcoin efficiently. Similarly, Litecoin will be mined by employing ASIC chips, plus no other tasks can be performed on the ASIC device.
Furthermore, ASIC is used by large-scale miners only to mine specific coins according to their unique cryptographic hash algorithm. Some major benefits of ASIC include easy setup, low power consumption, and high return on investment.
Also worth noting, it is the most costly mining method as compared to CPU and GPU.
Let’s Talk About The Top 4 Cryptocurrencies to Mine In 2021!
Whilst, Bitcoin appears to be the world’s strongest and the oldest cryptocurrency, but it is not certainly the only one for investment purposes. There are other copious options up for grabs that unquestionably can thrill you. Although, it remains to be the personal choice of an investor about which one to choose, below we have decided to spill beans on some of the monikers of cryptocurrency that can be your safest bet. Plowing your hard earned money in one of them is expected to give you substantial returns in a shorter run.
- RavenCoin (RVN)
Assumed to be one of the most profitable coins to mine, this cryptocurrency was officially established on the ninth anniversary of Bitcoin i.e. 3rd January 2018. And ever since its launch, RVN has made its significant mark on a congregating number of individuals.
At the onset, the coin was designed with a purpose to propel seamless transactions, ditching any existing flaws. By 2019, RVN embraced special attributes in the shape of enabled messaging, mobile wallet with seed phrase, and better compatibility-for instance.
RavenCoin works on a peer-to-peer network without the involvement of third parties. The primary reason for it to be endorsed by myriad aficionados is the very fact that it uses the X16R algorithm and the KawPoW protocol. These are considered to be the refined versions of their previous counterparts.
- Monero (XMR)
Throwing light on its standing in the current market; this cryptocurrency ranks at 14th. Plus, with a market capitalization of more than $3 billion, plowing your hard money in Monero can turn out to be highly beneficial.
To continue, Monero employs the fairest and square RandomX hash function. No wonder, why more and more people are intrigued to infuse their money into this cryptocurrency.
Coming to the heart of Monero, setting up a mining rig for this crypto is never an uphill battle. All that’s required is: set the seal on the mining hardware along with the wallet, and you can enjoy configuring the system.
- LiteCoin (LTC)
Unveiled under the MIT/X11 license, it is another peer-to-peer cryptocurrency that was thrown open to the public in the year 2011. LiteCoin is somewhat quite identical to its analog, the most popular in the market-Bitcoin.
If you’re pondering to mine this particular cryptocurrency, you’ll surely be rewarded for your actions over a course of time. LiteCoin typically wields the SCRYPT protocol, heralding that you don’t need to snap ASIC chips. Instead, it can be easily mined with the brace of GPU.
Above all this, LiteCoin is observed to be less volatile in contrast to other altcoins. Consequently, the user is empowered to exchange them on an eclectic range of distinct platforms.
- Ethereum Classic (ETC)
Just after Monero, it proudly stands at number 16th position. With a market capitalization of more than $13 billion, Ethereum Classic made it to the market in July 2016.
Delving a bit deeper; Ethereum Classic is the reshaped model of algorithm EtcHash, fundamentally supporting DApps and Smart Contracts. And when it comes to its mining, things continue to remain pretty simple. Get hold of the wallet and a graphic card that underpins Ethereum Classic, and you’re good to proceed. Additionally, its block time comes out to be around 13 seconds, way less than other crypto’s.
For Now, The Future Of Cryptocurrency Looks Promising, People Will Carry On Making their Rigs Robust, Mining Is Profitable and Powerful!
The above were only a few choices discussed, with many other alternatives still yet to be talked about. For information on them, stay tuned to our blog section that is relentlessly updated.