What is Mining?
Mining is a unique way where miner corset computing power to confirm transactions on a public ledger and increase security on the network. Miners rival not only to confirm transactions but to solve calculations that typically grow more difficult overheen time. Spil a prize for doing all thesis work, miners are rewarded. They are rewarded te transaction fees and freshly minted coins.
Where to find list of Mineable Coins?
To state the visible, you can only embark off with coins that are mineable. Even that, different mineable coins have different requirements te terms of hardware and software. To find a list of mineable coins, one good resource webpagina is Coinmarketcap.com. The top coins which are mineable te terms of market capitalisation are Bitcoin, Ethereum, Litecoin, Ethereum Classic, Dash, Monero, Zcash and Bytecoin to name a few.
Types of Calculation / Algorithm
Spil mentioned above, miners corset computing power to solve calculations. Thesis are mainly cryptographic algorithms that varies te different coins. For example, Bitcoin uses SHA-256 while Ethereum uses Ethash.
Thesis cryptographic calculations are associated with the term hash. You can read more about hash te my previous article here. Algorithm are generally divided into Two types. GPU and ASIC. Wij will come to the differences te the next section. GPU algo includes Ethash, CryptoNight, Equihash, X11Gost, LBRY, Groestl, Lyra2REv2, NeoScrypt, Decred, SiaCoin and Pascal. ASIC algo includes Sha-256, Scrypt, X11, Qubit and Quark.
Types of hardware mining
Spil mentioned above, there are different types of algorithm. Te order to run thesis algorithm swift and efficiently, different hardware are employed to run the calculations, depending on which algorithm. You can mine mainly with ASIC, GPU and CPU hardware.
Application-specific intergrated circuit (ASIC) is an integrated circuit customised for mining coins like Bitcoin. Thesis specialized IC will outperform other hardware ter terms of both speed and efficiency. It has since bot a serious industry where a few big players monopolize the mining power presently, making hobbyist miners near unlikely to accomplish.
On the other mitt, GPU (Graphic Processing Unit) mining make use of the processing power of graphic cards. Thesis hardware are suitable for ASIC-resistant mining coins. A good example is to Ethereum mining.
There are still coins that can be mined by CPU. Thesis permits the average person to use any PC to mine coins without needing to invest ter high end graphic cards. An example of such coin is Monero.
This is a very significant consideration on how successful a miner is. The higher the hashrate, it means the miner is able to calculate more hashes vanaf 2nd. This will increase his chances of winning the competition of guessing the keurig hash and hence get rewarded. Due to the competitive nature of mining and the increase difficulty spil time goes by, mining pools has evolved so that instead of solo mining, you can join a mining pool to combine the hashrates collectively with other miners. You will be rewarded a share for you contribution.
Know Your Power Consumption
After the hardware cost, I would say this is the 2nd largest cost, the cost of electro-stimulation on power usage. You should know how much you are charged vanaf K/watt ter your utility bills. With that, you can calculate how much is your power consumption going to cost you vanaf month. Spil this is worth an article on its own, I have covered this ter a separate blog posting. Please visit this listig for the calculation details.
Useful Online Calculators
After finding out your Hashrate and Power Cost, you can calculate how efficient and profitable you are with lightly available online calculators. I would urge you to visit the following leading sites to calculate before investing money on a mining equipment.