Crypto mining is a process whereby you can earn crypto rewards by verifying various crypto transactions and adding them to the blockchain.
But it’s not all just auditing and rewards there are many components to crypto mining that include things like the quality of your hardware that will need to include the latest ASICs. We took a closer look at what crypto mining in 2021 was like and found it could be worthwhile if you don’t mind the grind (and the initial investment!).
At TradersBest.com ZA we strive to create a comparison that will not only serve those who are new to crypto mining but those who are more familiar with the concept as well. For our readers who are new to the idea of crypto mining, you can use our crypto reviews and comparisons to better understand just what crypto mining is. As it can appear to be quite a daunting subject at first, you will quickly realise just how easy it is to grasp after enough reading. We provide you with the information to feel more confident in giving crypto mining a go!
For the more experienced crypto fans out there, our comparison will also provide you with more detail on what the best rigs are to use for those looking to mine with hardware and software. We also give you more insight into crypto cloud farming as well. All in all, we leave no man behind with our comparison tool as we shed more light on the subject of crypto mining and the crypto mining meaning.
For those who are only just getting into the idea of crypto mining 2023, the question still remains, what is crypto mining? The term “crypto mining” immediately makes one think of a sweaty man in a cave somewhere digging for something. It is quite the opposite when it comes to crypto mining, as it is essentially the miners getting paid to be auditors. What this means is that these miners/people are verifying the legitimacy of for the sake of argument, Bitcoin transactions. They verify the legitimacy of these transactions by essentially solving a numerical problem. It is largely guesswork but if you are the first miner to solve the numeric problem then you will be eligible to be paid out. Of course, the amount of data contained in each of these numeric problems count towards meeting a block requirement.
For each 1MB (megabyte) worth of transactions that a miner verifies, that miner is then eligible to be rewarded with a certain quantity of cryptocurrency. This 1MB amount is known as a block so for every “block” mined the miner can receive a reward in Bitcoin or whatever crypto they are mining for should they have solved the numeric problem first. Should there ever be a time where two miners solve the numeric problem simultaneously then the miner who has completed the most transactions in the past will be awarded the crypto reward.
When Bitcoin was first officially released and the first mining started taking place in 2009, the work vs rewards was absolutely worth it. You could mine Bitcoin using a very basic CPU and still turn a very decent profit for your efforts. However, as the idea of buying crypto currency online and mining began to gain traction and grow in popularity it naturally started becoming more and more difficult for miners to do as well as they had done from the offset. Essentially, the start of Bitcoin mining was on a far more even keel as miners were only competing with other miners from their home PCs with effectively zero start-up costs making crypto mining profitability an attainable goal.
Once bigger companies and groups of individuals started to join the trend, it became more and more difficult to turn a profit with Bitcoin mining. This is because of the arrival of the crypto mining farm and mining pools you are now competing against. As an individual, the costs of maintaining the costs of electricity to run your rig are very high. So, not only are you having to pay your own way to compete but the odds are stacked against you as you compete against crypto mining companies with far more capital investment and manpower.
This does not mean that crypto mining 2023 is not worth your while. The best way to go about it these days is to either get in early on lesser-known crypto that has the potential to spike in value or join a mining pool where you will share in a percentage of the mining profits of the collective. You can always go another way and check out some cryptocurrency exchanges where you can buy and sell cryptos with other like-minded individuals.
What Do You Need For Crypto Mining?
If you want to start crypto mining today as an individual or contributing towards a crypto mining farm then you will need to purchase the right gear to do so. In the past, you could simply use your own standard laptop or PC with its built-in graphics card. These days, you will not be able to keep up with that kind of rig.
So, what should you be using? You can now purchase something called Application-Specific Integrated Circuit chips or ASICs. It uses far less energy than your standard rig and mines far more efficiently. The best ASIC chips will solve 14 terahashes per second. That is 1012 efforts to try and solve a block per second. Truly phenomenal technology. Naturally, a rig of that quality is rather expensive but of course, you don’t need to get the best of the best.
If you are looking to purchase an ASIC chip then you will need to consider a couple of parameters before going ahead. Namely try to consider the performance (hash rate), consumption of electric power, and price. All of these parameters will contribute towards your longevity in crypto mining 2023. Try to calculate your overall profitability by using one of the numerous online calculators online. There are a number of ways to set up your rig so be sure to play around with an online calculator to see what the most feasible and efficient rig is for you before jumping straight into purchasing one.
You can also consider using cloud mining where you can lease or purchase mining equipment from a third-party cloud provider. The third-party will then be responsible for maintaining the equipment. However, this method of mining has been known to attract scams as well as garner far lower earnings than hardware mining.
Assuming that you have gone ahead and purchased yourself a sweet new rig you will now need to get your hands on the right software to pair nicely with that lovely new hardware of yours. There are a number of different options for you to choose from that will connect you to the Blockchain and Bitcoin network. Mining software will help to deliver work to miners, as well as collect the results of their work and add it all back into the Blockchain. It can also give you details on things like your mining speed, your hash rate and the current temperature of your rig.
There are a bunch of free programmes online that can perform this role for you. Softwares that have become the favourites of individual miners and mining centres alike are NiceHash, MinerGater, CGMiner, Genesis Mining, Slush Pool and Easy Miner to name but a few. Each of these software programmes have their own strengths and weaknesses so check out some reviews from what experienced miners have to say.
At the end of the day, these decisions fall squarely on you. You need to decide what you want from the software you are going to use and what software is going to best suit your needs.
As we have covered most of the basics when it comes to crypto mining you should have a decent overall grasp of the concept and how to move forward with starting your own mining endeavours. We don’t stop there though as we want to give you a little extra push in the right direction with our 3 expert tips for crypto mining.
Look, there is absolutely no doubt that Bitcoin is far and away the most valuable cryptocurrency around. This has been the case since the inception of cryptocurrency and Bitcoin by Satoshi Nakamoto. However, that does not mean you need to necessarily chase the Bitcoin dream. It is by far the most competitive crypto market which means it is naturally the most difficult market to turn a profit from.
There are heaps of different cryptocurrencies and altcoins for you to mine. The trick here is to try and find the one that has a decent balance between competition and profit. You can do so by reading a decent crypto mining blog online. Try to take a look at some of the rankings of cryptocurrencies and decide which one you want to try and go for. Remember, always use an online calculator to help you figure out what some of the costs vs rewards are going to look like in the long run.
As we have described, the competition for crypto mining is intense with the crypto mining companies and massive mining farms. This doesn’t mean that there is no crypto mining profitability left to speak of, it just means you need to be a little bit smarter in how you go about your mission. Trying to go it alone as an up and comer right now is, quite frankly, near impossible. It’s not that you won’t mine any Bitcoin or other crypto; it’s just that the process will be slow and the rewards nominal at best.
So, how can you get the best out of your newly purchased rig? You can join a mining pool where you will contribute to a greater whole. Once crypto has been successfully mined, the rewards will be shared out based on the output of each individual member of the team. Overall, you will certainly see more rewards for working in a team than you would for working on your own.
Once you have started to reap the benefits of your crypto mining 2023, you will need to store your profits in a safe space. That is where crypto wallets come in. There are a number of different wallets to choose from and much like the software for your rig, each has its own advantages and disadvantages.
Once you have set up your crypto wallet it is also definitely worth checking out a “cold storage” wallet as well which essentially keeps your crypto offline completely and out of the hands of any potential hackers or malware threats.
That brings us to the end of our comparison for crypto mining. Crypto mining can be an absolutely painstaking grind but if you build the right environment consisting of a quality rig, quality mining pool and the right plan for your costs you can really reap the benefits. Even in today’s competitive markets, you can still answer yes to the question “is crypto mining profitable?”
Hopefully, you can walk away from this comparison with the feeling that you have had crypto mining explained and that you can now take steps to start your own crypto mining endeavours in the right way. If crypto mining sounds a little too hectic for you then we suggest taking a look at our crypto trading page which is a far more manageable way to work with cryptocurrencies, allowing you to buy Bitcoin without any fuss.