Humans always want to gain more and more, and after the emergence of cryptocurrencies with a bang, everyone wants to try a hand at it. People are taking an interest in learning about the blockchain world.
But the first question that you can ask is, “What is Mining Cryptocurrency?” Well, here, through this post, we are going to tell you everything about Mining Cryptocurrency.
What is Crypto Mining?
In simple words, it is the process of a machine performing certain tasks to acquire a small amount of cryptocurrency. We will look at the different types of such “machines” later but just, for instance, it could be your computer and you trying to find how to make more Cryptocurrency. This system could be called a “machine” in the above definition.
The machine will perform various “tasks”, also called “Proof of work,” which will help it to earn a little amount of cryptocurrency. These tasks are structured to arrange a fair field for millions of miners in the market. The tasks are mostly mathematical formulations and equations. In order to mine deeper(earning more cryptocurrency), the computer of the miner has to solve tougher equations.
Methods of Cryptocurrency Mining
There are several ways through which you can start your cryptocurrency mining future. The following list contains the most popular and fundamental types of mining:
Method 1: Cloud Mining
Cloud mining is the easiest and popular way to mine cryptocurrency. It is a process where you pay, and someone else on your behalf does the job. This “someone” is most of the time a big company that provides a platform for the miners who actually do not have much knowledge of the subject or the money to buy all the rigs and resources.
It is a kind of renting process and lasts for a fixed amount of time. All the earnings minus the resource cost are transferred to the cryptocurrency wallet of the user who is opting for the service. These companies have huge mining facilities installed and skilled employees to mine the cryptocurrency correctly.
Method 2: CPU Mining
CPU mining is the process of mining cryptocurrencies using computers. It used to be a feasible choice but nowadays, very few people go for this method of mining cryptocurrency.
There are a number of explanations for this. Below are some of them:
- CPU mining is VERY slow. You have to work hard for months to see the slightest amount of profit.
- It is, many times, not worth it because of the resources it takes without any output generation. You might have to spend ten times money to maintain the system.
- Very time-consuming.
However, the benefit of this type of process is that anyone with a desktop system with a couple of programs could do it, but it is NOT AT ALL RECOMMENDED.
Method 3: GPU Mining
GPU mining is the most well-known process for mining cryptocurrencies. The complex math problems are solved using the Graphics card in this case and are both efficient and relatively cheap.
Method 4: ASIC Mining
In this method, we perform the mining task with ASICs (Application-Specific Integrated Circuits). These are the devices that are exclusively designed to perform a particular task.
ASICs are well-known and valued for producing massive quantities of cryptocurrency.