The process of mining cryptocurrencies involves solving complex mathematical problems, to ascertain the validity of transactions and operations using cryptocurrencies. In return, miners are getting new cryptocurrencies, so at some point, mining has been very lucrative, and although things have changed recently, it is still an option for some.
Cryptocurrency mining is both important and simple, but as time goes on, cryptocurrency mining has become more complex and mathematical operations have become more complex. To make a big profit.
In fact, there are two ways to mining cryptocurrencies: the first is mining cryptocurrencies using physical equipment, that is, you must buy equipment and prepare the appropriate environment for mining cryptocurrencies, and the second is cloud mining, which does not have to buy equipment for mining cryptocurrencies yourself, but you, In fact, you rent existing tools to do it.
Today we will focus on the first method, and in more detail, we will talk about the equipment and equipment you need in case you want to work in the mining of cryptocurrencies.
What do you need to start mining cryptocurrencies?
You need a lot of things at first, but what you need is to make the right decision first of all. Of course, you can mine several coins together but when you customize the order and select a specific currency, it will be simpler for you when you buy the right equipment.
After selecting the right cryptocurrency, you need to select the software you want to work on. There are many options when searching for the right software tools. Thirdly, you need the mining equipment, which tools you will use to cryptocurrency mining.
What is the equipment for mining cryptocurrencies?
There are many options when you want to choose the right equipment to set up your mining environment.
Mining using the CPU
The mainframe CPU is the first cryptocurrency mining tool ever used. When cryptocurrencies were new to the technical arena, and very few cryptocurrencies were used, the CPU was enough to cryptocurrency mining.
Today, we can still use the CPU in mining cryptocurrencies, but it is a very far-off option as electricity will be far more expensive than any revenue you could get, and even if you don’t care about the energy consumed, the processor will need longer than its operating life to reap the price. Until.
Mining using the GPU
After discovering that CPUs were gradually dampening their performance with increasing complexity, cryptocurrency makers realized that they could use GPUs used in games and video. Fortunately, the GPU was very useful in mining cryptocurrencies, despite its high energy consumption. You can use the GPU today for cryptocurrency mining and AMD’s global products have proved to be better than others in terms of quality and productivity.
In general, even graphics processors are no longer a real option today for major currencies. “Mining difficulty” is constantly increasing, gradually making graphics processors less efficient.
Mining using the FPGA
Despite the change in cryptocurrency mining after the transition to GPU usage, we have faced a very serious problem: the power consumption rate is large enough to make mining a lost process.
The FPGA programmable portal panel has emerged as a radical solution to this problem, and by comparing the GPU to FPGA we note that FPGA outperforms the GPU as it is capable of mining more digital currencies with clearly lower power consumption. Of course, there is a fundamental disadvantage here, that this type of tool requires an independent purchase, and will not benefit from anything but mining.
Mining using integrated circuits intended for specific applications ASIC
If you are seriously considering mining cryptocurrencies, ASIC seems to be the best option among all other options. These chips are specifically designed for cryptocurrency mining, and cannot be used in any other field and have been unanimously recognized as the best way to cryptocurrency mining. If you want to make a big profit, it has produced very impressive results in terms of productivity and power consumption.
What should you consider when choosing your mining machine?
There are several indicators to consider when choosing the right mining device:
Physical cost is one of the most important things to look at when you want to create your mining environment. You should think about it this way: the more you plan to get more money from cryptocurrency mining, the cost of mining will increase gradually, and because the costs are too high. Cryptocurrencies work in groups and share profits among themselves, so different benefits include sharing hardware costs among them.
The second most important factor is efficiency and productivity.No one wants to work for free and no one wants to lose money too. When you start working in cryptocurrency mining, try to find the right combination of retail rate and power consumption so that the retail rate of your device is as high as possible. Electrical power as little as possible.
Of course, the ideal combination has not yet been found. It should also be noted that better-efficient devices cost more money and therefore involve greater financial risk.
The purchase of mining equipment is part of this process but not all. Electric power is the second most vital factor when you consider mining cryptocurrencies. The cost of electric power consumption is one of the most costly, as mining equipment consumes too much power. Overall, in some countries, mining may already be a bad idea if energy prices are relatively high.
Cost of other equipment
Mining devices not only consume a lot of electricity but also generate a lot of heat. Additional costs include air conditioning and other equipment that keeps the mining equipment cool and at a reasonable temperature. They will not have to pay these high costs for cooling systems.
The risk of sudden price fluctuations
One of the important things to calculate is the bitcoin price or the currency you chose to work with. It can be equivalent to $ 5,000 and it’s very profitable for you, but tomorrow the price can drop to $ 3,000, so if you want By actually working in mining, you have to think about it a lot before investing.