Best Crypto Methods for Mining Cryptocurrencies in 2020
The use of cryptocurrencies has grown over the recent past years. Coupled with the growing desire to make money online, cryptocurrency mining has emerged as a new avenue of making money. Essentially crypto miners validate transactions taking place on cryptocurrency platforms to prevent users from double-spending tokens. If you want to learn the best cryptocurrencies mining methods in 2020, you have come to the right place.
Cryptocurrency Mining Requirements
Before you embark on mining cryptocurrency, you will need specialized mining equipment and enough electrical power. The mining equipment solves complex mathematical problems to validate transactions taking place on the platform. The solutions to the mathematical issues are known as proof of work. The miners are rewarded with cryptocurrencies if they get current proof of work.
To earn you a reward, you must:
Verify IMB transactions
Be first to verify the transactions and complete proof of work.
So, how do you mine cryptocurrency?
Below are the three main methods of mining cryptocurrency.
Application-specific Integrated Circuit (ASIC) is a special computer or device designed to perform a specific task. In this case, the computers are used to exclusively mine crypto. ASICs are highly effective and produce an insane amount of crypto in comparison to CPU and GPU. As a result, they are among the most popular methods among crypto miners.
However, there are several drawbacks to ASIC mining.
First, they are expensive, costing about $5000. Only miners who can afford the machines can mine, which leads to unequal distribution of mining rewards.
Another problem is mining farms, which have relatively more resources than solo miners. ASCI makes it hard for individual miners to succeed.
Cloud Mining involves renting mining equipment or rigs. Miners endear this method because it is less expensive. You do not have to purchase the whole equipment or incur maintenance costs.
To use the equipment, you must register and buy a contract for a period of time. Once you get rewards from rigs, it is transferred to your cryptocurrency wallet. Mining farms usually offer the rig renting service to help them earn an extra buck.
On the downside, maintenance and electricity cost are deducted from the reward. However, it is a relatively cheap and suitable mining method for beginners.
GPU Mining is one of the most popular crypto mining methods thanks to efficacy and relatively low cost. While construction a rig can be quite costly, GPU mining has an incredible general workforce and hash speed incredible. You may have to incur a “$3000” initial investment for purchasing a topnotch GPU mining rig. However, you will have a quick and high ROI.
While CPU mining was initially used for mining it is no longer popular. The method tends to be tedious and slow.
If you are looking to venture into crypto mining, you should understand the three major mining methods. Generally, it would help if you focused on cloud mining and GPU mining. ASCI mining is surrounded by controversy hence unpredictable. GPU is a suitable choice if you plan to build a rig. However, if you want a relatively cheap option that has nothing to do with rigs, Cloud mining is your best bet. The bottom line is that cloud mining a great way of making money online.