You’ve probably heard a lot about cryptocurrency mining. So much so that you have come across statements such as that this form of income is incredible and that the maker is rich. So is it really like this? Specifically, what is this cryptocurrency mining? And let’s take a closer look at how to mine cryptocurrencies. Crypto money mining info.
What is Crypto Money Mining? How is Crypto Money Mining Done? CPU Mining GPU Mining Cloud Mining ASIC Mining What Is The Best Cryptocurrency Mining Method? Which Cryptocurrency Should I Mining? Expert Comments On Cryptocurrency Mining
What is Crypto Money Mining?
To define briefly; All of the mathematical verification processes for crypto money production and transfers on the blockchain; It is called crypto money mining. The hardware / system used in performing these operations is also called a miner.
Cryptocurrency mining, in its most basic definition, is that devices with special software and hardware solve complex problems and approve cryptocurrency transfer transactions, and as a result, they are rewarded with newly produced cryptocurrency. In theory, anyone who has a computer and the Internet can mine.
Transfers between wallets are transferred to a transaction pool (mempool) before being approved on most blockchains. Then, these transactions are combined to create a block. These blocks are written to the blockchain. After they are verified and confirmed by devices connected to the network.
Cryptocurrency miners verify and verify transfer transactions and keep a copy of the blockchain.
Crypto Money Mining
To elaborate with a little example; Imagine that you are trading on the stock exchange for an Ethereum investment. To perform these transactions, fiat, namely fiat money, to the account; You have to deposit (such as US Dollars, Turkish Lira) and convert your money to Ether (ETH). As you give instructions for this to happen; Miners verify the realization of your Ether investment and transfer. Regardless of the crypto currency; If there is a mining process there, no transfer can be made without the verification and approval of the miners.
The mining type and miner density of each cryptocurrency is different. Many things such as the technology it uses, the type of cryptocurrency, and the details in the software directly affect mining. Of course, this also affects the processing speed of the network.
How is Crypto Money Mining Done?
There are multiple ways to mine crypto money. Let’s continue by taking them briefly.
CPU Mining – Crypto Money Mining
We can say that this mining method is one of the oldest known methods. It is a type of mining that anyone with a high processor desktop computer can do. Therefore, it was very preferred, but we can say that it remains old now.
Why does it stay old? Because it is a high consumption type of mining and it is very slow. However, it would not be wrong to say that it is one of the easiest ways to learn mining.
All you need for CPU mining is a computer and a few programs. At this point, you may be thinking of doing CPU mining with your computer, even your laptop; but we strongly do not recommend this method. Because while mining with a personal computer does not provide any return as expected, your overheated computer may break down or burn. While on the road to gain something; We strongly recommend that you avoid this so that you do not have the computer at hand.
It is also possible to mine with the CPU, that is, the central processing unit (processor). By installing a mining software on the computers used at home, CPU mining can be done easily.
However, today this method is almost never used because it has a very low performance compared to other methods. Mining with processors has become impossible for the vast majority of popular cryptocurrencies.
Computer processors are now used in Proof of Stake (PoS) mining, instead of being used in proof-of-work mining. In this type of mining, it is sufficient to have the mining software running and have enough cryptocurrency in the wallet to generate revenue as high computing power is not required.
One of the best known and most preferred mining methods is GPU mining. If you ask why it is so known and preferred, the answer is quite clear; extremely efficient and very low investment cost.
Processor, main board, multiple graphics cards; You can prepare the necessary environment for mining with equipment such as rig frame and cooling. The return on the investment made, the yield received is quite high and satisfactory.
Most of the companies or individuals that provide cloud mining services use GPU rigs. These companies or individuals have hundreds of thousands of equipment because they are aware of what they are dealing with. Although it is costly to put a GPU rig in the middle; Looking at the hash rate and overall workforce; It is cost effective to build GPU mining rig.
HOW MANY DOLAR?
GPU rigs use graphics cards for cryptocurrency mining. One processor, one motherboard, cooling in standard equipment; The rig frame and of course a few (2-8) graphics cards. The average cost of a well-functioning GPU mining rig ranges from $ 3000 to $ 5000. Higher the expectation, the higher this cost will be; and this cost does not have an upper limit.
The processors of the graphics cards of computers are called the Graphics Processing Unit (GPU). GPU mining is also a type of mining in which the processes of the graphics cards are verified by calculating the processors. The processors of graphics cards are much more powerful than the processors of computers and are computationally oriented. For this reason, graphic cards are used to verify the transactions of Proof of Work mining based cryptocurrencies such as Ethereum and Zcash.
Graphics cards are very affordable compared to ASIC devices. However, miners use devices that combine multiple graphics cards and combine multiple graphics cards called “Rig”.
Cloud mining; It is a type of mining that best suits the technology of our age and is very popular. In this mining method, it is evident that our discourse befitting the technology is that it can be done without getting tired.
What actually happens in the cloud mining method is that a GPU mining company or person leases you the mining they own. You start the rental process for a period of time you want; and after deducting the costs from the profits gained during that process; The remaining money is transferred to your crypto money wallet. Trust and reliability are very important here. For this reason, you should carefully research the person or company you work with while doing cloud mining. You should definitely stay away from cloud mining companies that can be described as under the stairs. You should carefully examine and examine what is the commitment made. The investment you make to make money is not wasted; You have to be extremely selective in cloud mining to avoid the money you invested while hoping to make money.
Companies come across with different fees in different time zones. Generally, the price of standard cloud mining plans; It appears to range from $ 500 to $ 5000. The service period also varies considerably from 1 or 2 years to a lifetime.
In cloud mining, the investment amount is generally expected to be mined within 6 months to 12 months; but nobody can speak confidently about it. Because the prices of cryptocurrencies are extremely variable.
Cloud mining is an alternative mining service offered for those who want to mine cryptocurrency but do not have sufficient hardware, time, knowledge or capital.
Users who want to mine can rent processing power from cloud mining services and can mine cryptocurrency by directing this processing power to the mining pool of their choice.
Cloud mining services lease processing power for different types of cryptocurrency mining with periodic contracts. It offers various contracts with users considering different costs such as hardware, software, cooling, maintenance and software. Mining revenues are higher, although contracts for which a fee is paid for operating costs may appear more expensive. Mining revenues decrease even more in contract packages with lower fees and some of the operating costs are covered by mining revenues.
Although it seems less costly than other types of mining, it is getting more and more difficult for users who prefer the cloud mining method to profit.
It is the most powerful and individually identifiable type of mining in the mining world. ASIC stands for; Application-Specific Integrated Circuits. We can translate this as a specially designed application.
This system has the infrastructure to generate more cryptocurrencies than GPU and CPU. However, it can be said that it has shaken the economic balances in the cryptocurrency world due to its “personalized” system. Imagine one person getting ¾ of the cake in a crowded environment. There is a little bit of that in this too. Therefore, we can say that it is preferred, it is not preferred.
With all of this, the cryptocurrency community thinks that ASIC devices should be banned. ASICs, which are well known and beloved tools; It can generate much more cryptocurrencies compared to GPU and CPU. This disrupts the progress of the mining economy in cryptocurrencies. Most of the earnings in the mining process of a cryptocurrency; Imagine going to a single miner with an ASIC farm? On the other hand, ASICs are undesirable devices in terms of causing centralization in mining.
“Which mining method is better considering all this?” If you ask, we can say that it is better to decide according to your personal preferences and expectations. Because after they are done well, it is possible to gain from each of them.
ASIC, or Application Specific Integrated Circuits, are systems focused on cryptocurrency mining. The software and special hardware in them turn these circuits into special hardware for cryptocurrency mining. Consisting of many processors, ASIC devices consume a lot of energy despite their high computing capacity. Therefore, miners mining with ASIC devices need strong electrical infrastructures to meet their electricity consumption.
Proof of Work mining-based cryptocurrencies such as Bitcoin and Litecoin can now be produced only with ASIC mining devices due to the need for high computing capacity.
What Is The Best Cryptocurrency Mining Method?
If you have read the part of the guide up to here, you probably know how to mine cryptocurrency now; You have learned what to pay attention to… Which is the best way in Pen crypto money mining? Let’s take a closer look.
Leaving aside the main details, we must first find the method that works for you. First of all, how much do you want to invest in this business? Do you want to own a device? You should answer questions such as how much return on investment do you expect. With these and such questions, you will have determined the crypto money mining method that is best for you.
Generally, people prefer cloud and GPU mining. While CPU mining is slow and troublesome, it makes it less preferred; ASIC mining is also very popular lately.
If you want to create your own mining device, you should opt for GPU mining. If you want to mine instantly without spending money, you can also give CPU mining a shot. However, if you say “I’m going to take risks and want to start right away”, try turning to ASIC mining. If you do not want to deal with any equipment; if you want to mine in an easy way, you should prefer cloud mining.
Which Cryptocurrency Should I Mining?
The cryptocurrency you will mine is as important as the method you will use for mining. Popular cryptocurrencies among people are Bitcoin, Ethereum. At this point, Bitcoin mining has the most difficult mining process. The popularity of the largest cryptocurrency; caused Bitcoin mining business to turn into pools around the world; and that means there are too many miners. With mining, you may have to wait hours or even days to earn your first Bitcoin.
Compared to Bitcoin like Ethereum for mining; It would make sense to turn to less popular cryptocurrencies. You should calculate the investment cost and profit rate according to the mining method you prefer. You can use CryptoCompare’s free tool here for this . CryptoCompare offers mining profitability calculation tool for BTC, ETH, ETC, ZEC, DASH and LTC. You will need to enter the hash power on this tool, the power consumption of the device you will use, the KWh cost and the pool fee. Accordingly, a daily, weekly, monthly and yearly calculation will be made for you.
How Much Does Cryptocurrency Mining Earn?
Although it depends on the type of mining you choose, the cryptocurrency and the prices, it takes time to make a profit from cryptocurrency mining. It is necessary to purchase hardware and wait for it to pay for its cost or to pay off for the fees paid for cloud mining. Although the possibility of generating revenue increases as the processor power increases, electricity consumption increases, it becomes difficult to operate and cool more devices together. As the number of devices increases, so does the time spent on operating, controlling and maintaining the devices.
In order to gain profit from cryptocurrency mining, it is necessary to have sufficient hardware and infrastructure, the area to accommodate and cool the devices, and the technical knowledge to operate the devices. Especially when mining Proof of Work, it’s important to remember that as the difficulty level increases, revenues will decrease. To protect revenue in proof-of-work mining, it is necessary to invest in hardware regularly and renew devices whose performance is declining.
It is increasingly common among users to do Proof of Stake mining instead of Proof of Work mining instead of high hardware costs and electricity consumption.
Do you know?
In order to do mining, it is necessary to purchase hardware, to be able to run mining software, to have the infrastructure that can cool the devices that are heated while working and meet the electricity consumption of the devices. If you do not have enough hardware and processing power, the cryptocurrencies you will get from production may not be able to cover the costs of purchasing hardware and electricity.
Is mining Bitcoin Cash profitable?
If you want to profit from mining Bitcoin Cash, you should buy mining equipment specifically developed for this job.
Before doing this, it would be useful to use the calculator here to understand how much your profit will be and to calculate your income roughly. To use this calculator efficiently, you need to know the hash rate level of your computer or the equipment you plan to invest in. The higher the hash rate level of the device you are using, the more you share from the block created.
Is mining Bitcoin Cash more profitable than Bitcoin mining?
The BCH mining process and Bitcoin mining are very similar. Still, there are a few key differences. First and foremost, the limit to Bitcoin Cash’s block size is 8MB. Bitcoin is only 1 MB. Of course, larger blocks mean more processing power and therefore more investment in building blocks. On the other hand, larger blocks significantly increase the transaction commission miners receive.
As both cryptocurrencies share the same blockchain, the reward per block created is the same: currently 12.5 tokens. However, at the time of writing this article, the price of Bitcoin was $ 10,513.38 and that of Bitcoin Cash was $ 1,584.54. There is an important difference. Therefore, in order to attract miners, the mining difficulty of the BCH community must be kept lower than Bitcoin. At this point, the importance of EDAs emerges.
As Bitcoin Cash mining became 300 percent more difficult, the automatic difficulty adjustment system EDA was put into operation, allowing many miners to return to BCH. Interestingly though, many miners took the risk to process transactions at a loss. This shows that miners believe in Bitcoin Cash and support hard fork.
According to BitInfoCharts data, 1 THash / s (1 trillion hashes per second) transaction in Bitcoin Cash mining yields an average of $ 1.3526 per day in profit. In Bitcoin, this number is expressed as $ 1.2275. These amounts do not include transaction commissions. On average, users pay around $ 28 in a Bitcoin transaction . In Bitcoin Cash, this amount is much less.
How to start mining Bitcoin Cash?
By now, you should know how much you should invest in your mining equipment and roughly how much return you will receive. If you’re still thinking about mining Bitcoin Cash, it’s time to explain what to do.
First of all, you will need a Bitcoin Cash wallet to receive the mining rewards you will earn. For security reasons, it is recommended that you choose a wallet that stores your private key on a device.
Also, be sure to back up the “wallet.dat” file to a separate device. It may also be helpful to print a copy and store it in a safe place. In case your computer crashes or gets stolen, you won’t be able to get your money without this file. Without this information, the money you obtain will remain unusable forever. To learn more about Bitcoin Cash wallets, you can take a look at our guide we prepared on the subject.
At this point, you have to determine whether you want to mine on your own or to join a mining pool.
Bitcoin Cash mining pool
The mining pool is called groups of Bitcoin Cash miners who join forces of their computers to increase their chances of solving that “big transaction” that requires huge computing power. When you join a pool, your mining rig will focus on solving relatively small algorithms that contain small pieces of the big puzzle, and the combination of all devices will give you enormous processing power. The higher the total processing power, the higher the probability of winning a prize. Whoever has supported the total processing power, when the pool receives a prize, everyone gets as much cryptocurrency as their share.
However, if you can uncover a transaction block on your own, you will receive 12.5 BCH alone, which is the amount of reward for the period when we wrote the post. But the problem is that you will need so much processing power and therefore need to spend so much electricity to create the block alone, it’s almost impossible to do something like this in practice. This is why the absolute majority of mid-level miners choose to join the mining pool.
When choosing the mining pool; You need to consider how big they are, how often they can create blocks, what their payment structure is, how much they charge, and what kind of statistics they get. To join one of the Bitcoin Cash mining pool, all you have to do is log in to the relevant website, register and create an account. After this point, you need to add a “worker” to your account. You should use different “worker” IDs for each mining device you run.
Thus, your contributions to the pool can be followed clearly.
Once you’ve successfully completed all the processes, you’re ready to plug in your mining hardware, connect it to your computer, and run it.
You will need Bitcoin Cash mining software to run on your computer to control your mining device and monitor transactions. Which is the right software depends on your operating system and the mining hardware you have.
The pool you plan to join may have its own software. Some even deliver software in the form of a pre-configured package, including the wallet address. In this case, all you have to do is install the software and plug in your device.
If you’ve been in a pool; You must enter your username, password and address of the pool into the software. After completing these configurations, you can start the excavation process. If you are mining alone, the token awarded as a reward will automatically appear in your digital wallet as soon as you manage to create a block. If you are part of a pool, your portion of the reward will be automatically added to your account after it is calculated. Just make sure that you enter your wallet address correctly in the required fields when registering for the pool.
Bitcoin Cash mining hardware
(Bitcoin Cash mining hardware)
Nowadays, crypto money mining can be profitable if you invest in mining computers called “ASIC miners” that are produced solely for mining purposes. When purchasing these devices, you should not only look at the price, but also the hash rate and of course the electricity consumption. Below you can find a comparative chart of some of the best ASIC mining hardware available on the market.
|Brand||Power consumption||Hash rate||Approximate price|
|Antminer S9||1375W + – 7%||12.93 TH / s||$ 2,000|
|Antminer R4||845W + -9%||8.6 TH / s||1,000 $|
|Avalon 7||850-1000W||6 TH / s||880 $|
|Antminer S7||1293W||4.73 TH / s||599 $|
|Antminer S5||590W||1.155 TH / s||199 $|
|Avalon 6||1100W||3.5 TH / s||700 $|
|Antrouter R1||Very low||5.5 GH / s||39 $|
Bitcoin Cash mining software
Bitcoin Cash mining software
If the command line interface is too complex for you, you can use EasyMiner, which makes CGminer or BFGminer software easier to use, allowing mining both individually and via pool.
As we mentioned earlier, when choosing mining software, you will need to check if it is compatible with your hardware. For this reason, you need to look for programs that are compatible with the mining hardware you have. If you are mining in a pool, the software offered by the rate can also do the trick.
Bitcoin Cash mining pools
Currently, the most preferred Bitcoin Cash mining pools that generate the most blocks are listed as follows:
Bitcoin Cash cloud mining
Cloud mining can be a good alternative if you want to invest in Bitcoin Cash mining but do not prefer to buy hardware for the mining business alone. In the simplest terms, cloud mining is carried out by the use of co-processing power running on remote data centers. Compared to the actual mining method, this method is much more practical, as you do not need to buy mining hardware that is noisy and consumes a lot of energy.
In cloud mining, all you have to do is purchase a contract and link your account to your Bitcoin Cash wallet, and that’s it!
Although it is extremely easy to use, cloud mining has its drawbacks. There are some risks, especially for inexperienced investors to be careful before purchasing a contract. Because there have been too many Bitcoin cloud mining scams to date. Since you can never control the real physical hardware in cloud mining, you have no choice but to trust the company providing the service. In addition, service providers cut their payments to cover their own expenses. Consequently, less profit is obtained in cloud mining.
Cloud mining sites
Hashflare and Genesis Mining are among the most popular cloud mining sites . In order to check if the Bitcoin mining contract on offer is good, it may be wise to research it on the CryptoCompare site, which offers a comprehensive list of all cryptocurrencies .