What is Cryptomining? And What are different types of Cryptomining

Aug 04,2022
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#Crypto

Cryptocurrencies seem to be developing with each passing year, and many people are developing a great interest in this unique blockchain network. The main reason people are interested in cryptocurrencies is the possibility of making a lot of money with them.

What is cryptocurrency mining?

In simple terms, bitcoin minen is something in which certain tasks are conducted by the machine to gain some cryptocurrency. The machines are of different types, and they can also be your PC that conducts specified tasks so that cryptocurrencies are received. These tasks are usually referred to as "proof-of-work" and have a fair-play design for all the existing miners. The proof-of-work mainly includes the math equations. If the miners try to mine a particular mining pool, the equations become tougher to solve.

This is a very short description of how mining is conducted, which also has a deeper understanding. Now, let's move on to the techniques used to mine cryptocurrency.

Cloud mining

If you are searching for methods of crypto mining, then cloud mining is the easiest and most convenient one. It is a process in which you need to pay a big corporation or someone similar a sum of money and get their mining machine rented along with the process of mining. The mining machine is known as a "rig."

This type of mining is profitable for those who cannot afford a rig or do not wish to have one. The companies that offer such mining have the most advanced mining facilities and large farms consisting of hundreds of rigs working at the same time.

The profit that is earned through the mining of the cryptocurrency by a rig is transferred to your crypto wallet, excluding the electricity and the maintenance cost.

CPU mining

In CPU mining, processors are used to mining cryptocurrency. But this method was quite popular earlier and now has very limited usage. The reason behind it is its slow processing. Even if there are months of mining, you will see only a small increase in revenue with CPU mining.

GPU mining

This method is the most popular method of mining cryptocurrencies. It is mainly used by cloud miners as GPU rigs to get faster services. Graphic cards are used in GPU mining, which makes it a relatively cheaper and highly efficient technique. The investment made in GPU mining will pay off in no time as compared to the CPU miner.

ASIC mining

Are you aware of ASIC? The ASIC (application-specific integrated circuits) is a unique device mainly designed to undertake one task at a time, which is usually nothing but crypto mining. When compared to CPU and GPU, ASIC produces significantly more cryptocurrencies and does so much faster.

But it is not a preferable technique used by the miners as, because of its powerful processing, it can rob other miners who are performing CPU or GPU mining.

Now as you know what is cryptocurrency mining and its different technique which one are you going to use for some good earnings?