Very interesting subject in cryptocoin market. Almost every single person like to know what is mining and how to mine crypto coin. Well like the word ” Mining ” simple by meaning but typical in its working. Yes i am right , miners are design to solve typical algorithm on which a coin and blockchain designed.
What is crypto coin miner ?
A miner can be any chip which can solve algorithm. It can be a CPU or GPU or an specially designed miner for that purpose like Asic Miners. Like the image given below is a Bitmain AntMiner specially designed miner for bitcoin mining. Bitmain is the company name which is making product name AntMiner. And they are available in markets to buy and use. They are coming in Frequency of Ghs (Giga Hash) , Ths (Tera Hash)
The image given below is a customized GPU mining rig. Six graphic cards are parallel installed with a long cord extension to plug with motherboard.
These miners are specially created by individuals or manufactured by companies for crypto coin mining only. They are not cheap and can vary from $1000 to more high in cost. Also they consume good amount of electricity to operate.
Types of Mining ?
Mining are of many types some of them are :-
- Cloud mining
- CPU Mining
- GPU Mining
- Asic Mining
Cloud Mining :- Cloud mining means a cluster of miners installed in a place and people are able to buy small small parts from those mining hash power. Cloud mining is specially designed by big firms to provide facility of mining , users are able to buy small to big hashpowers from Cloud mining supplier.
In present days majority of cloud mining sites are fake and they are just another HYIP ( High Yield Investment Plans ). Make sure to check cloudmining site before buying from there.
CPU Mining :- CPU Mining is based on Machine processor in which CPU is solving the hashes of blockchain to earn reward for the block. There was specially designed coins for CPU mining also.
GPU Mining :- GPU Mining are mining which required a graphic card. There are many gaming Graphic cards giving good amount of Hash power to mine Cryptocoins like Litecoin , Ethereum etc. Many coins which are restricted for SHA256 algorithm are getting solved their blocks by either CPU or GPU.
Asic Mining :- Asic Miners are specially designed to mine Bitcoin or coin using SHA256 Algorithm for example Most popular after Bitcoin is Bitcoin Cash which is also using SHA256 algorithm and having good user base. One old and unique coin name is Unobatium also using SHA256 algo.
How to mine crypto coin ?
Lets come to important question how to mine crypto coins. As i already wrote above types of mining , now question is ” how to mine ? ” .
We bought either a ready made mining machine or assembled our own mining rig or going to use available machine to mine some coin.
Specially designed miners are mostly designed for plug and play facility , all we need to buy mining rig from market or e-commerce sites like Amazon. plug them into power and plugin internet connection. Either mine solo or with pool and to select coin from drop down.
Assembled mining rig need special software to maintain those GPU / CPU and to give them command line to execute hashpower. How many cores to use and on what coin to mine. Same thing to be use for available machine mining like from Desktop or Laptop or Mobile.
Difference between Solo Mining and Pool Mining ? Which one is better ?
Very good question either we mine solo ( on my own ) or mine with other miners in a pool ? It is totally depends on which coin we are mining and how much hashpower we have. If we have too big hashpower and coin is new and not yet popular i will recommend Solo mining, as full block coins will come to us, due to our big hash power. But if coin is old valuable in market already like Litecoin , Ethereum etc . Then my suggestion is to mine with pool due to High number of miners to find block and high number of difficulty for the coin block. It might be our hashpower will get short for such a popular coin.
Solo mining is profitable only when competition for block is less and we have big hashpower to solve the block.
In Pool mining our hashpower is getting combined with other miner’s hashpower and we are going to get whatever share we give to pool as hashpower.
So it is totally depends on which coin we like to use on our miners. I will recommend to use pool mining it finds (solve) the block quicker comparison to solo miners.
Crypto coin mining calculator
These are some ready calculator websites through which we can check which coin is profitable for us as per electricity / difficulty :-
- CryptUnit ( List of coins with difficulty pools etc , also available mining softwares )
How to use mining software ?
Most of the software are giving help/FAQ section with them and majority of those softwares are similar in configuration. Which contains :-
- Coin address
- Mining pool or URL to send hashpower from miners
- Number of CPU to be used if having multi threads. ( Specially for CPU mining )
Pools are providing config file with softwares to use.
For Example : https://help.nanopool.org/article/24-step-by-step-guide
Nanominer to be used by above link which is very old and reliable mining software with easiest configuration. Nanominer is designed to handle AMD Graphic cards as well as NVidia graphic cards to mine crypto coins. Same config file below.
[Ethash] wallet=YOUR_ETH_ADDRESS coin=ETH rigName=YOUR_WORKER email=YOUR_EMAIL
pool1 = eth-eu1.nanopool.org:9999
pool2 = eth-eu2.nanopool.org:9999
pool3 = eth-us-east1.nanopool.org:9999
pool4 = eth-us-west1.nanopool.org:9999
pool5 = eth-asia1.nanopool.org:9999
in the above config file , rigName and email are optional. Wallet address and Coin name is must.
Is cryptocoin mining profitable ? Is crypto coin mining risky ?
This is totally depends on which country we are residing and condition of the country as well as restriction by government over there. Mining rigs are consuming high amount of electricity due to that many countries make crackdown on firms which are handling mining works.
Many other news are available in google search in different countries. So it is 100% depends on nation to nation if they allow mining or not. But yes Individual miners with small machines living in homes can mine any where in world.
Crypto coin mining profit is fully based on electricity consumption and the cost of electricity in the country we are residing. Those above given calculators are designed to check which coin is profitable with the Difficulty of coin / Electicity charges etc . That calculator will suggest best coin to mine.
Hope this article will help to understand readers. Have a great day and happy crypto coin mining.