Cryptocurrency mining is now one of the most lucrative investments in the crypto market today. The growing adoption of cryptocurrencies particularly BTC (bitcoin) as payment, created an increasing demand for these digital assets. Mining cryptocurrencies is the process of recording and verifying transactions on a public digital record of transactions, known as a blockchain. The people involved in this process are called “miners”. They solve complex mathematical problems and they receive cryptocurrency as a “reward”. One can mine cryptocurrencies in three different ways. What are these?

Three Types of Crypto Mining

  • Individual Mining

With this mining, the miner is engaged in an individual own equipment-based mining and all the mined coins including the transaction fees will be owned solely by the miner. This is ideal for relatively new cryptocurrencies. But that the equipment power is enough since a large hash rate is required to ensure the computational complexity.

  • Collective Mining in Pools

According to Investopedia, a mining pool is a group of crypto miners that have combined their computational resources over a network to strengthen the probability of finding a block or otherwise successfully mining for cryptocurrency.

If you have decided to join a pool, you might want to consider joining one of the 26 mining pools below that supports the cryptocurrency of your choice.

  • Antpool 
  • F2Pool
  • OKex Pool
  • Huobi Pool
  • ViaBTC
  • Cruxpool
  • Slush Pool
  • Poolin 
  • MinerGate
  • Binance Pool
  • NiceHash
  • Phoenixmax
  • Coinfoundry
  • Flypool
  • Kirinpool
  • Whalesburg
  • Ethermine
  • MaxHash
  • HashLoft
  • 2Miners
  • Nanopool
  • Luxor Mining
  • Litecoinpool
  • SiaMining
  • SandPool

These pools support most of the top cryptocurrencies like BTC (bitcoin), ETH (ethereum), BCH (bitcoin cash), LTC (litecoin), DOGE (dogecoin), and XMR (Monero).

  • Cloud mining

This is a mechanism used to mine a cryptocurrency by using rented computing power from a service that mines itself on an industrial scale. For this, there is no need to set up your farm. You just need to pay for someone else’s power crypto mine equipment and get compensated by receiving coins. This type of mining does not require a large amount of investment. 

If you are considering this type of mining, here are the top cloud mining sites that you may want to check.

  • Shamining
  • HashShiny
  • IQ Mining
  • ECOS
  • Crypto Universe
  • Genesis Mining
  • Hashing24
  • BeMine
  • Eobot

Cloud mining is very convenient and easy too since all you need to do is choose the plan that best suits your budget. But you have to watch out for schemes like the Ponzi scheme to avoid falling victim to scammers that operate with this kind of investment.

There are three mining processes or methods that miners can opt to use. These methods are GPU mining (video cards-based mining), CPU mining (processor-based mining), and ASIC-based mining. What are the differences between these methods? Let’s discuss these methods one by one.

Three Methods of Mining Cryptos

Here are the three methods of crypto mining that miners can choose from.

GPU Mining

This is the most widely used and well-known method of crypto mining. For one, it is popular due to its efficiency and relatively cheap cost in terms of hash speed and the general workforce. GPU rigs use video cards to mine cryptocurrencies. A standard GPU rig is usually composed of a processor, a motherboard, cooling, rig frame and, 2 – 8 video cards. The NVIDIA GeForce GTX 1070 is one of the most popular cryptocurrency mining GPUs due to its electricity usage. There was a time when you can mine BTC (bitcoin) using GPUs though it’s no longer the case now. Here is a list of top cryptocurrencies you can mine using GPU.

  • XMR (Monero)
  • VTC (Vertcoin)
  • RVN (Ravencoin)
  • XHV (Haven Protocol)
  • ETC (Ethereum Classic)
  • MONA (Monacoin)
  • AE (Aeternity)
  • BEAM (beam)
  • KMD (Komodo)
  • FTC (Feathercoin)

CPU Mining

CPU stands for “central processing unit”. This type of mining is processor-based and it can be done by getting a CPU and getting your hands-on on the mining process. In the early days, you can use the CPU to mine BTC (bitcoin) but it is now unlikely since mining became more competitive. You can still use the CPU to mine the following cryptocurrencies.

  • ZEN (Horizen)
  • AEON (Aeon)
  • VTC (Vertcoin)

With this list of cryptocurrencies, XMR (Monero)  is the best cryptocurrency to mine using both CPU and GPU.

ASIC-based Mining

ASIC mining works on particular algorithms and is done using special equipment. It is a computer component built for a particular kind of application but better than CPU and GPU in terms of performance. It operates up to 14 TH/s hash rate which translates to greater profits. Despite the growing competitiveness in the field of crypto mining, ASIC mining remains superior to other types of mining due to its low energy consumption, ease of setup, and performance. ASIC miner or device is dedicated solely to the mining of only one particular cryptocurrency like BTC (bitcoin) and cannot be used to mine other cryptocurrencies. Here is a list of top cryptocurrencies you can mine using ASIC.

  • BTC (bitcoin)
  • LTC (litecoin)
  • ETH (ethereum)

Before engaging in the mining investment, you need to decide which type and method of crypto mining you will be using. Also, you have to choose the cryptocurrency that you want to mine. But always be reminded that an investment that presents high profit comes with high risk. The market’s volatility is another factor to consider. Though crypto mining is a profitable investment, due diligence is needed for anyone who wants to invest.