To be successful at crypto mining, you need “quality tools” – Mining Hardware to operate. In this case, we are talking about the equipment on which mining will take place – hardware that solves a particular mining algorithm. You also need software that will control the device. In this article, we will focus on what types of hardware you can use to mine cryptocurrencies.
CPU – Crypto Mining
Although the processor can be found in every computer, today is the less used method of crypto mining. This type of mining is no longer profitable in the well-known cryptocurrencies. You can find CPU mining for cryptocurrencies that have an algorithm immune to another type of extraction, such as the VeriumReserve and Hexx cryptocurrencies.
CoinHive offers a revolutionary service in this respect. The user place it on a website, and it automatically starts to extract the Monero cryptocurrency on the CPU of any computer your user is currently visiting. This is a kind of earnings for the site.
GPU – Graphic Card Mining
Graphics chip for crypto mining is one of the most popular ways of mining cryptocurrencies today. Graphics chips are up to 100 times more powerful than CPUs.
The graphics card architecture allows parallel connection to a PC. Which in practice looks like there are up to 6 video cards or more on one computer. It has caused a high demand for powerful graphics cards that is still unsatisfied. For example, in the Czech computer market, it is almost impossible to get the most powerful graphics cards.
Mining on GPU is especially suitable for cryptocurrencies that are not based on script or SHA-256, which uses Bitcoin, for example.
FGPA – Mining
It is a type of logic integrated circuit. I would call it an “alternative” to a processor for “non-people”. Most applications use FPGAs due to their programmability, gate speed and flexibility. Compared to the most powerful GPUs, they offer approximately ten times more power with less power consumption. As another advantage in FPGA mining, I see that the gate fields are smalland quiet. Often passive cooling is enough.
On the contrary, the disadvantage at running an FPGA mining, the user must be programmatically proficient. This type is not really for everyone. Programmable gate arrays are especially suitable for crypto mining using the SHA-256 algorithm, or its closest version.
ASIC – mining
The ASIC device is a dedicated customer integrated circuit designed for the user’s specific needs. In our case, the extraction of cryptocurrencies.
The ASIC mining equipment achieves many times higher output with less power consumption and smaller dimensions than the GPU. These features make ASICs the most profitable cryptocurrency mining equipment.
However, their disadvantage is that their main purpose is the extraction of only one particular cryptocurrency. Currently, ASIC devices are only available for SHA-256 and some Scrypt mining.
What is the best way for cryptocurrency mining
As we can see in the picture above, ASIC is by far the most powerful.
We also have to keep in mind that, in order to be profitable in the long term, the profits from the extracted and subsequently sold cryptocurrencies must be higher than the electricity bill that supplies the computing power.
Crypto Mining – Conclusions
Purely in terms of performance, ASIC performs best. However, when we look around, we find that each type of hardware have different purpose for different types of cryptocurrencies, as well as “different types of miners”. So it is up to you, at what level you control computer technology, and what cryptocurrency you plan to mine.
Are you interested in cryptocurrency mining? Then, bee sure to follow us during the next weeks. We will describe the different types of mining, and how it differs for you as an user. That way you would be able to choose the most suitable option.
Information about GPU mining: https://www.investopedia.com/tech/gpu-cryptocurrency-mining/