Mining methods

Many people are wondering what kind of mining methods there are, we will try to tell you about it as informative as possible. There are many ways from POS to POW mining on your hardware to cloud mining. All of these types of cryptology help to make a profit, i.e. we will consider working mining.

Ways of Mining Cryptovalut

Let’s start with the little known POS mining. Proof of Stake (Pos) – this method of mining allows you to get coins without buying special equipment, not servicing it, and not following the novelties of iron. All you need to do is to download wallets of coins that I support POS minting, buy coins and keep them (hold them), and earn a percentage from them, or rather from each generated unit. As a deposit in the bank. You have to block them and you can’t spend them to get interest. Naturally, the larger the amount you put in, the more you will earn, but the interest ratio is quite different. If, for example, you have 2% of all coins mined on your wallet, then you will receive 2% for each generated block.

But there are disadvantages to this method. For example, it’s inflation, the coins are getting cheaper, although there is a big increase. And the more coins you get, your percentage drops, you have to add coins. In addition, a passion for network complexity, which reduces the number of produced blocks.

What’s the bottom line? All you need is a computer, you don’t need a powerful one. And for it to always be online. It doesn’t consume the power of a computer. On your earnings is the total number of coins, and the complexity of the network.

And now POW mining. Proof of Work is the most popular and the very first method and type of mining on which the bitcoins mining is based. Let’s not go too deep, this method gathers all the capacity in a common decentralized network. Its work and transactions protect miners with equipment for mining, which are rewarded for their work in coins, depending on the algorithm on which you are mining, these coins in turn are needed for the work of this system.

You need equipment that you can use to mine in a solo, or to dine with others in pools.

Solo Mining is when you mine one, and you get the whole reward for the block you found. The number of coins for a found block depends on the network and the marshalling algorithm. But in a solo mining for example the same ether is not possible, because the complexity and power of the network is very large, you need a lot of equipment to make something in a solo. At least there were cases when two video cards were on the air in mini solo, and you found a block in a week. But this is a very rare case. There are networks with low power where you can minimize the solo and find the blocks, but not the fact that it will be more profitable than to minimize the air on a bullet.

Mining on a pool – a pool is a server where a large number of miners are combined, no matter who finds the block, the reward will be distributed to all, but in the amount of what power you have invested. Simply put, the more power you have, the more you will get. Also, don’t forget that the pool must have a good total power.

I think it’s clear here, now let’s move on to the equipment.

Equipment Mining

We can use different hardware – processor, graphics card and even hard drives. As well as special devices called asyk, and FPGA chips – which have lost their relevance. There are many other devices, such as a smartphone, but they are not very relevant.

CPU – or CPU, with which you can minimize. But remember, even with a powerful processor, not all the coins you will be able to profitably minimize. There are special coins that can be minted only on the CPU, as well as coins that can be minted well with the CPU and graphics card, such as monero coin. On our site there is a more detailed article about – processor-based mining. You can also see examples of processor-based mining in the section – Processors.

GPU – or video card. They are the most miniaturized on them, make a system of two or more video cards, and call them mining farms. There are interesting articles – How to Maintain Beginners, a very informative article for those who have a video card or a farm.. Currencies for GPU – вThis section describes the different currencies and algorithms to be used for mapping on video cards. Video cards -there are tests of different video cards in mining, their income and consumption. Video cards are the main way to mint the airwaves.

Hard drives – there is a BURST currency that is mined on hard drives, but so far it is not a very profitable way, because good costs, long payback and it is not known how long they will last.

FPGA chips – now obsolete equipment, previously differed in that it consumed a penny, and gave a little less video cards. But with increasing complexity and the emergence of asyks, it became irrelevant.

Ashik miners – a very popular equipment, for example, bitcoin at the moment is minted only with the help of asyks. Came to replace video cards, but not on all algorithms and not all the coins can be minted with asykes. They share the competition with video cards. We have useful articles on asykes, this. – Antminer s9 обзор, of the popular asyca, as well as- setup and connection Antminer s9. Same section Asik miners, will be replenished.

There’s also another way to cloud-mine.

Mining by cloud

Cloud mining is good, you don’t have to buy equipment. Look for room for it, think about where to clean up the heat generated and adjust it. You just rent the power, and you make money. It used to be a very lucrative way to do it. As of today (04.09.2018), it is not very profitable, and sometimes you can go even to zero or minus, you have to calculate. But if the course grows, there will be a good profit. There are more detailed articles – Reliable cloud mining, as well as

Translated with www.DeepL.com/Translator (free version) Real cloud mining.There are examples, and deductions.

New ways of mining.

New types of mining are appearing, of which Forging can be distinguished. More write that it is an alternative to mining, here you get coins in the form of commissions, which are in the found block. You can use this method to produce coins based on the POS method. If you have more coins, you have a better chance of getting commissions from the next block. As long as it is not a very popular method, we are waiting for its development. So far, there are few coins that support it.

And we’ll write a couple more lines about a popular question separately.

The way the bitcoins are mined…

I’ll answer this question separately, or with the help of Bitcoin mining equipment – these are asykes, example. Antminer s9. Or with the help of… cloud mining.

So we looked at the basis of the working mining.

If you disagree with me on something, or have any questions about the article, write comments. If you have any other questions related to mining and cryptocurrency, then you’re on… Forum, there’s a quick response.