So, you want to be a Cryptominer! In that case, you would want to read this article thoroughly to sought out which is best for you ASIC Litecoin mining pool vs solo Vs GPU Mining ?
As you all know, Crypto-mining or Mining is one of the ways to actually earn Cryptocurrencies, be it Bitcoin or any Altcoin, besides other methods like trading or buying Crypto coins for fiat currency. Your graphic card or ASIC Rig will be on their way to finding new blockchain blocks while you will be making money by practically doing nothing. By mining you can add more amount to your existing coin assets and thus more profit. This also makes you unafraid of the market fluctuations as in a way you will always get more coins if you incur losses. Best GPU For Mining in 2018?
What is Crypto Mining in Layman Terms? ASIC Mining : Everything you should know5. Should you invest in ASIC Mining? GPU Mining : Everything you should know6.
Should you invest in GPU Mining? Conclusion : Best Way to Go? If you don’t have time to read this post in detail then here’s a brief summary of this post. This table explains in short what is the main difference between ASIC Mining Vs GPU Mining.
So before we start with our main article let’s first understand What is Cryptocurrency Mining? Unlike trading or simply buying, Mining is a different process where specialized computers are used to find blocks by solving extremely complex math problems. By solving the problem, the miners receive the right to add a new Block to the existing Block-chain which in turn legitimizes the transactions. This confirmation of a transaction is needed to prevent problems like double spending etc. For this work done, you as a miner get the particular coin as a reward or incentive for your effort and hardware used. The mining difficulty becomes harder and harder as the number of miners increase.
For some coins like Bitcoin, the block reward is halved after fixed intervals. The next halving of Bitcoin block reward will happen in the mid-2020. In short, Mining becomes more difficult and less rewarding with time due to more miners joining and finite amount of coins left for mining, much like mining resources in the real world. So basically, Miners are nodes in a large peer to peer network whose sole aim is to solve a PoW Problem so that the transaction is processed effectively. This in turn earns the miner a reward in the form of coins. Now that you know about mining Let’s hop on to the very motive of this article and talk about the different types of mining based on Hardware used. In the initial years of Bitcoin’s launch, mining could be easily done via any computer component that had processing power and memory.
As of today, you can still mine using older methods but the fact is there will be non-significant profitability and hence useless effort. There was a time when home desktops were more than enough for Bitcoin Mining. With time people switched to GPU’s for more hashrate and desktop PC’s became obsolete for mining. As of now we have specially designed hardware available for Mining known as ASIC’s. Some coins are ASIC resistant and can be mined using GPU’s only. So, let’s classify the ways you can still mine at present. So, these were the various ways we can do crypto mining at present and for each type the Algorithm of a coin decides which type of mining is apt for it.