Several DeFi platforms offer enhanced crypto mining experience to ease the potential miners into their journey. However, regardless of professional help, it is vital to understand the basics of crypto mining so that you can use your resources more smartly.
What is Crypto Mining?
Crypto mining is the process of yielding cryptocurrencies by solving cryptographic equations using specialized and targeted machines. The mining process involves leveraging the computing power of your machines to perform specific tasks (Proof of Work) that will reward you with a certain amount of cryptocurrency.
To receive the reward amount, you have to solve certain mathematical equations. More complex the equations, the more time and computing it will require to solve them. The complexity of these mathematical equations depends upon the mining pool you are currently on. The equations will become tougher as the number of miners on that particular pool increases.
However, the process of crypto mining is a little more complicated than that as it involves several other factors. As all the cryptocurrency are decentralized, they must be verified through a peer-to-peer connection before recording in the public transaction database called the blockchain. Miners help to record these transactions on block after verifying them and earn rewards for their efforts and contribution.
Platforms such as Zionodes make this whole process simpler by providing customizable mining pools to the miners. These pools require comparatively less cost and time to maintain and will yield better rewards over time. Also, these platforms enable small businesses to start crypto mining without a significant investment.
What do you require for Crypto mining?
Earlier crypto mining was done using the computing power of CPUs. However, as the demand for more innovative machines arose, several manufacturers launched robust devices capable of mining more significant numbers of cryptocurrency in less time.
The evolutionary journey of crypto mining machines has been an interesting one. It started from CPUs to moving to GPUs (Graphics Processing Units) to FPGAs (Field Programmable Gate Array) to finally landing on ASICs (Application Specific Integrated Circuits).
ASICs are the latest edition to the long line of crypto mining hardware that is more robust and effective than ever before. These machines are dedicated mining machines with a single purpose of mining cryptocurrency faster with improved hash rates.
ASICs can churn out better hash rates than any other hardware used before while consuming less power and reducing the overall costs. Currently, ASICs are the best hardware for crypto mining in the market and are less likely to be replaced in a few years.
So to mine cryptocurrencies, you require an internet connection and a robust mining device. Here are a few of the best ASIC devices currently available in the market.
- Ebang EBIT E11++
- ASICminer 8 Nano
- INNOSILICON T3+57T BTC Miner
- WhatsMiner M10V1
- Bitmain Antminer S15
Zionodes gives you the easiest way to start mining
Theoretically, to start crypto mining, all you require is your computer with internet access. By joining a peer-to-peer network, you should be able to become a node and start mining. But as discussed above, in reality, your computer is not capable enough to compete in this competitive market.
Decentralized marketplaces like Zionodes provides you with everything that you need to start your mining process. Whether its the data centers, hardwares or the miners, it's a one stop shop to get all your mining requirements fulfilled and that too without any hidden fees and incomprehensible contract work.
How to start earning from crypto mining?
Crypto miners earn a cryptocurrency by finding PoW in the mining pool and creating blocks. Miners are rewarded with crypto coins for every block creation and the transaction fees for every block they computed. Usually, miners using ASICs can earn their money back for the machine in just 15 days.
However, your earning potential is determined by your machine's capacity and the number of miners in the pool. So if you are using a personal computer for crypto mining, you will not earn any substantial amount even if you compute for several weeks.
Also, if you are looking to invest in mining hardware, you must consider the additional maintenance charges and inevitable hardware upgrade.mWhen the number of miners in the pool will increase, the complexity of the mathematical equations will also increase, ultimately reducing your hash rate. To maintain efficiency, you will have to upgrade your equipment with time.
The other smart option is to join a mining platform such as Zionodes that can help you start your mining business without having to invest heavily in equipment. These marketplaces aggregate data centres, hardware sellers and miners with smart contracts to help small or large scale projects start mining.
So, if you are looking to start crypto mining with a single click without having to invest largely in machines, crypto marketplaces are your best bet.
While the lure of crypto mining has attracted several enthusiasts over time, only a few have succeeded in establishing a viable business model. It is essential to check your long-term goal before making any investment or decision.
While setting up a mining farm is expensive, it will definitely yield you greater rewards. However, if you are a small scale business and do not have the resources to invest or manage a mining farm, a mining marketplace such as Zionodes is the way to go. Click here to send us your doubts regarding mining.