Today, everyone knows about cryptocurrencies and more and more people are inquiring about cryptocurrency mining. Many are wondering how and where to start, and that is why we decided to write this text and shed some light on the problem. Given that cryptocurrency mining changes from year to year, we will focus on 2021.
Cryptocurrency mining simply means that your computer is connected to a cryptocurrency network and that its operation helps to conduct transactions and keep the network secure. For this work, the electricity consumed, and the time, the miners receive the transaction costs they confirm and the rewards for the blocks they confirm. Some cryptocurrencies pay off to mine more than others.
Before you even start, you should take into account the price of the necessary equipment, the price of electricity, and the current price of a certain cryptocurrency. That is the minimum that needs to be thought about. In addition to these basic ones, there are additional topics that need to be considered, such as cooling or airflow, ways of withdrawing money (similar to withdrawing money from the best Bitcoin betting sites in 2021 that can be found here), etc. The cryptocurrency itself, the news that surrounds it, and predictions for the future should also be taken into account. Just because mining a certain cryptocurrency is not profitable today, it does not mean it will not be tomorrow as well.
Different Ways and Equipment for Cryptocurrency Mining in 2021
There are several different ways to mine cryptocurrencies:
- ASIC mining. This method of cryptocurrency mining involves the use of specialized equipment, i.e. ASIC. This type of equipment is very popular because of its hash rate which it can produce, which leads to higher profits. ASIC is rather expensive and not exactly for everyone’s pocket.
- Mining via graphics cards (GPU). This is the most common way of mining cryptocurrencies. Most cloud companies providing mining services, actually provide GPU services for cryptocurrency mining. It is very popular because it is cheaper, efficient, and simple. Some of the most well-known cryptocurrencies for mining via GPU methods are Ethereum, Monero, Electroneum, etc. Apart from the fact that cloud companies often use graphics cards for mining, you can also connect them yourself and make the so-called rig and mine that way.
- Processor Mining (CPU). A processor on a computer performs cryptocurrency mining. This method was very popular a few years ago, less so today. Some of the most famous cryptocurrencies that you can mine this way are Safex Cash, AEON, Zcash, Vertcoin, etc.
- Cloud mining. In this case, you are not buying mining equipment, but you are renting it. You pay a cloud company to mine a cryptocurrency on your behalf. There is no investment in equipment and no payment of electricity bills, you just rent their machines.
Before you buy equipment for mining a particular cryptocurrency, be sure that that equipment can mine that particular cryptocurrency for sure. Some cryptocurrencies can be mined both through ASIC equipment and through GPU equipment, and some exclusively with one type of equipment. Check when halving occurs and whether hard-fork is in sight (because often, after a hard-fork event, the way of mining changes). Examples of the latter are Siacoin and SiaClassic. These two cryptocurrencies used to be on one blockchain, and now different equipment is needed for their mining.
On top of that, explore what other cryptocurrencies can be mined with that equipment in case you decide not to stop mining, buy reliable equipment, or explore a mining pool.
Cryptocurrency Mining in 2021 – Top 5
1. Bitcoin Mining (BTC)
Everyone has heard of Bitcoin so far. This largest cryptocurrency in the world has started a technological and financial revolution. Now everyone is talking about blockchain technology and cryptocurrencies. Bitcoin mining is a more expensive investment due to equipment and electricity bills, but it is still profitable today.
- Bitcoin mining is only possible through ASIC machines.
- The mining algorithm is SHA 256.
- The current reward for the block is 6.25 BTC.
Beginners google about Bitcoin mining and Bitcoin mining is profitable (if it was not, there would be no active miners), however, the equipment is very expensive, as well as its maintenance, cooling is mandatory, while retail mining is not worth it.
2. Ethereum Mining (ETH)
Ethereum is currently the second most popular cryptocurrency and will remain there for the foreseeable future. Ethereum is the first cryptocurrency to enable the creation of smart contracts and dapps. The world of decentralized finance (DeFi) is in great expansion and is very often built on the Ethereum platform.
- Ethereum is mined via GPU equipment – graphics cards.
- The mining algorithm is Ethash and is designed to be resistant to ASIC mining.
- The prize for the block is currently 2 ETH.
As we are currently in the bull market, the price of the equipment is rising and the equipment that could have been bought a year ago by one price is now much more expensive. If you have the equipment, mining will be very profitable, but if you don’t have it – recalculate well. Keep in mind that mining Ethreum will not last forever, and if you are interested in it, think about what to do next.
3. Safex Cash Mining (SFX)
Safex Cash is a cryptocurrency that can be used as a medium of exchange on the Safex e-Commerce platform. Safex is another in a series of open-source projects like BTC or ETH. Safex Cash uses a technology similar to Monero to conceal identities between participants in transactions in order to protect the identities of participants in the Safex market.
- Safex Cash can be mined via CPU equipment and is specifically designed to make mining accessible to everyone, which is not the case with ASIC and GPU mining.
- The algorithm is RandomSFX.
- The current block prize is 200 SFX coins.
CPU mining seems simple – just turn on your computer or connect processors for even more rewards. As with graphics card mining, the better the processor the more mined blocks. What to do next with those Safex Cash coins? Should you sell them on a stock exchange or buy products and services on the Safex e-Commerce platform? Remember, only a coin that can be sold on a stock exchange or spent on a platform is a coin worth mining.
4. RavenCoin Mining (RVN)
RavenCoin was created in 2018, and the idea behind the project was to allow people to transfer ownership through a blockchain. It has been very popular lately, and its platform now also provides options for sending messages, voting, etc.
- The algorithm is X16R.
- Like Ethereum, it is mined via GPU equipment and is made to be ASIC resistant.
- The prize pool currently amounts to RVN 5,000.
5. Cardano – Investing in ADA?
This is another way to earn cryptocurrency, but this is not about mining. Cardano is not a PoW system, so there is no mining. It is a PoS system where anyone who has the cryptocurrency of the Cardano network – ADA can invest their coins in a node (or mining pool) and thus earn more ADA in proportion to their role. That annual salary can be up to 10 % of the stake.
Your ADA cryptocurrency always remains at your disposal, no one has your private key, and you can dispose of your coins whenever you want. Of course, before you start using a mining pool, research it well.
Featured image: Photo by Executium on Unsplash
