Cryptocurrency Mining explained
The process of “mining” in the “crypto” world is a system of processing the various “transactions” that have been created on a network. It’s called “mining” predominantly because of how any successfully processed transactions are rewarded with tokens of the system you’re contributing computing resources to…
Specifically, each time you “mine” a “crypto” system, the miner is basically using their computer equipment to calculate the “hash” of a series of “cryptographic” (encryption) transactions.
These transactions are the transactions within the network itself, generated by the way in which you’re able to send “Bitcoin” (or other “currencies”) to different users. The point is that the “hashing” process is the same regardless of which system you end up doing it for, or even which equipment you end up using.
To briefly explain its history, CPU’s were originally used to calculate Bitcoin “blocks”, but as the complexity of the operations increased, people discovered that GPU’s (Graphics Processing Units) were better disposed to handle the “hashing” algorithms required by the various “cryptographic” systems.
From here, other people discovered that you could use FPGAs (field-programmable gate array) and ASICs (application-specific integrated circuit) to create even more powerful hashing systems.
The latter of these (ASICs) has actually become somewhat recognizable as the “go-to” method of crypto mining. The various AntMiner systems (the majority of which being USB-powered) have long since taken over as the “default” mining system…
Types Of Mining Equipment
Whilst the process of “mining” the various “tokens” is the same regardless of which type of system you do it on, there are a number of systems that have been created solely to “mine” the various “crypto” tokens that are available.
The point here is that it doesn’t matter if you see someone with a PC/GPU “mining” setup, or a custom ASIC – the way in which the system works is the same (the only difference lies in the speed through which it’s processed).
This means that if you’re interested in how to “mine” the various “crypto” systems, it’s important to discern the various ways through which you can do it. There are several:
1. PC-based (CPU/GPU)
This is the most standard form of “mining”, as you can just use over-the-counter PC components for it…
Whilst these types of setup work well for many of the smaller “coins”, they’ve been long since superseded by the ASIC-powered “cloud” mining solutions now dominating the Bitcoin space.If you are looking at getting into “mining” (in any capacity), you’ll want to look at the above as a major investment. Whilst you may argue that you could end up using the components yourself, the reality is that they are very highly-priced and ultimately become degraded extremely quickly. They’re also power-hungry.Ultimately, you should consider that if you want to potentially mine “coins” for a cryptosystem, you should be looking at this as a last resort (typically if you don’t want to pay for an ASIC or just simply don’t feel they’re worth the price).The most important element of this setup is having a large array of GPUs (Graphics Processing Units). You’ll be able to find more specifics online; the point is that if you have them all working from one motherboard, it should work well for you
2. ASIC Based (Antminer etc)
As mentioned, all the “hashing” algorithms are the same, which means that you’re able to use the ASICs for any “crypto” system you want.The main supplier of these systems is “BitMain”, which produces the “AntMiner” range of ASIC systems. There are many types of “Antminer”, with the ones pictured above being most powerful (have the largest number of chips).
These are left to operate on their own (you just plug them into a power outlet and ethernet port) – to which you’re able to achieve fast “hashing” which is more energy-efficient & reliable than the various other systems that may be available.
As mentioned, as a “standalone” mining method, the ASIC is by far the most effective at present. Whilst there are rumors of other systems being developed, this is the most efficient available.
3. “Cloud Mining” / “Mining Pools” (ASIC)
Finally, the ASIC paradigm has been boosted with “cloud” / “pool” mining. This is where groups of miners are linked together to essentially form a “supercomputer” – allowing for faster and more accurate processing:
Whilst this is the realm of larger operations, as an individual user/investor, you are able to put money into one of these operations in order to enhance your mining capacity. Whether you feel it an appropriate investment is up to you.
Cloud Mining is a way to mine bitcoin (or different cryptocurrencies) without the need of owning a miner (or mining hardware). Simply said, you buy yourself some shares of mining power – like a mining pool – and profit together with the pool. This means that you only need a contract with someone who offers Cloud Mining Services and a bitcoin wallet
Cloud Mining services are for you if you want to invest in bitcoin mining without the hassle of managing your own hardware, or, in some cases can’t invest in high-priced ASIC mining hardware. You can use cloud mining to earn your coins.
Cloud mining or cloud hashing is a common concept and What it means is that it uses (in most cases) shared hashing power run from remote data centers which allow users to buy mining power of the hardware placed in. All Bitcoin mining is done in the cloud, without any offline hassle, such as electricity, hosting issues, or installation and upkeep trouble.
Here is a short list of the best Cloud mining providers based on my own experience, read my reviews if you are not already familiar with these names.
Shamining – Best for renewable energy mining.
Shamining cloud mining company was launched in 2018 and serves beginner to professional crypto miners. Based on reviews, the company operates three data centers in Cape Town, California, and London. In addition to Bitcoin cloud mining, you get Ethereum cloud mining, Litecoin cloud mining, etc.
Based on their website, they also use wind turbines and solar panels in the mining of digital assets.
Besides the minimum investment amount of $150, the company can organize for custom mining operations when the investment amount is above $100,000. Also, according to the cloud mining site, you can withdraw a minimum of $0.001 BTC.
- Like other cloud mining companies, it has instant payouts available 24/7.
- With an average income multiplier, you can multiply earnings on investments by 1.43 times.
- Like most cloud mining companies on the list, there is a calculator with which you can estimate your earnings before investing in renting cloud mining equipment.
Minimum Investment: $150.
Pricing: Starts at $0.0109 per 1 GH/S for ASIC miners and $ 0.0113 per 1 GH/S on GPU and $ 0.0120/$ 0.0113 per 1 GH/S for GPU mining contract.=> Visit Shamining Website
GMINERS is a worldwide cloud mining company with a head office in London, England. The up-and-coming platform has attracted 3000+ users so far, and it is most promising in the field at the moment.
The company runs three data center parks in Iceland, Kazakhstan, and Georgia. Focusing on ethical and environmentally-friendly cloud mining, GMINERS uses mostly green-energy technologies in their data centers (just like solar panels and wind power generators).
Let’s take a look at the return from cloud mining under GMINERS’ contracts. Investing $5000 in a one-year option, you get $600 as a monthly earning (with 117926 GH/s). So within a year of cloud mining, you can reach $7200 as an easy, steady passive income.
To put it another way, you earn Bitcoins day after day by doing nothing. The minimum deposit amount is only $500 here. And it turns GMINERS into one of the best cloud mining websites for beginner crypto investors.
Bitcoin options with current profitability rates
- Start: 143% (90 000 GH/s)
- Professional: 149% (450 000 GH/s)
- Smart: 156% (2 000 000 GH/s)
- VIP: 170+% (with unlimited power)
The price per 1 GH/s is $0.0120 for all plans.
Also, GMINERS provides a personal manager for every user.
The other features include daily instant payouts, 24h support, 99.98% uptime. Users can join an affiliate program to get an extra income from the Bitcoin cloud mining process. We found it’s easy to start, control the process and withdraw funds from this fast-growing cloud mining platform.
Users can check profitability statistics and statements of income on the account at any time. Currently, there is 30% off prices for all types of miners on Gminers. If you want to dive into the Bitcoin cloud mining experience with better pricing, sign up now.=> Visit GMINERS Website
Best for beginner miners without mining hardware.
Hashlists is a cloud mining site on which a user can buy mining plans or packages and watch their mining earnings grow in their wallets. With the platform, you can mine Bitcoin, Litecoin, Ethereum, Dash, Dogecoin, Filecoin, and ETH without having to buy expensive mining hardware that also requires maintenance and setups. You can also mine stablecoins – USDC and USDT.
It has a free mining option. The investment or crypto mining plans/packages start from a free experience daily plan at a price of $8 with a fixed return of $0.8. Once you register, you get the $8 for free and can invest it and start earning. However, this plan only allows 1 order. With other mining packages, you can buy more than one order each.
Otherwise, LTC mining plans cost $100 for three days with a total return of $5.4; ETH mining plans $520 for 10 days at a return rate of $97.03. To mine BTC, you will need to invest away $1,800 for 20 days and you earn a fixed return of $700.02 on top of the invested amount. Mining Dogecoin costs $6,500 for 60 days at a return of $8,200.
- Earnings are deposited in the wallet daily rather than when the contract term ends.
- Withdrawal minimum $100. Once reached, simply visit the Withdraw section and enter your withdrawal wallet address, and the transaction will be processed within an hour.
- No credit card or PayPal payments – must deposit crypto to invest in the mining plans.
- The minimal deposit is $100.
- The service is browser-based. No need to run the app.
- Online customer support through chat and email.
- Simple registration process. To start mining, simply click on Plans, select a plan, deposit, and proceed to buy.
- You can track your orders and earnings from the dashboard.
- Earning leaderboards.
- No management or electricity fee is charged.
Minimum investment: $8
Pricing: From $8 to $6,500 on Dogecoin mining. The price depends on the mining plan.=> Visit Hashlists Website
Pionex is not a cloud mining site but a crypto trading platform that also supports 12 bots that you can use to leverage or margin trade crypto. These bots can also be used to trade crypto spot futures. Therefore, if you have been using cloud mining sites to generate Bitcoins or other cryptos, you can send them to Pionex wallet for auto trading.
Pionex would be a favorite cryptocurrency exchange for those who want to swap their crypto automatically. It works great for trading with USDT and USDC stable coins as well as USD. In addition to supporting direct deposits with credit cards – which take a day to complete – you can buy them on the Android and iOS Pionex Lite app.
- Grid trading bot
- Leverage trading bot
- Spot futures arbitrage bot
- Spot trading bot
- Arbitrage trading bot
ECOS is the only legit cloud mining company. It was established in 2017 in Armenia in the Free Economic Zone. ECOS has more than 100 000 users from all over the world.
You can easily use a convenient mining calculator to estimate mining returns and choose the best option for you. ECOS is available on both web versions and mobile apps.
In addition to the mining contracts and equipment hosting, the company offers crypto indexes in which people can invest. These include the NFT Index, Elon Musk Index, Top 10 Index, DeFi Protocols Index, Metaverse Index, and many others. The mobile app also offers a multi-currency crypto wallet for storing and exchanging 247 cryptocurrencies.
- Daily payments
- Customized contract purchasing – you can customize your contract in terms of duration, hash rate amount, and profit using a simple slider on the website.
- Android and iOS apps to manage your mining contracts and other crypto assets.
- The very low minimum withdrawal from the wallet is 0,001 BTC.
- 180 days warranty of their equipment for the equipment and hosting service. Gadgets can mine for 5 years.
- Free trial mining contract for 1 month to test the platform.
Minimum Investment: $100
Pricing: Customized. The minimum price is 100$=> Visit ECOS Website
Minedollars is mobile cloud-mining software that enables anyone to mine Bitcoin from the comfort of their own home. It is a cloud mining platform with over 320,000 users, and it is quickly becoming a popular choice. Over 1 million transactions since it was founded.
Minedollars uses advanced mining technology to let users mine different tokens at competitive costs. They thus garner the highest possible return on investment from the mining operation.
Here are a few reasons why users should use MineDollars as their Cloud Mining platform:
- Over 320,000 customers from 100 countries as claimed on the website. Over 1 million transactions since it was founded.
- You can mine over 10 cryptos with the platform.
- Multiple investment packages – Hash rates contracts for different cryptos including stable coin USDC and Bitcoin; and customized package for newbies cloud miners.
- It rewards all users with a sign-up bonus of $10 that can be withdrawn.
- It offers a referral program where you get a 3% commission for referring friends.
- Payouts starting from $100 and processing within an hour.
- No deposit or maintenance fees. Withdrawal fees depend on the crypto in question.
- The system is secured and protected using DDos protection and SSL.
- Purchase contracts as low as $10 for daily contracts that earn a fixed return of $10+$0.6 or a profit of $0.6; then Eth Hashrate $100 (with a profit of $6 for 3 days contract) up to $20,000.
Supported Coins: BTC, BCH, LTC, ETH, XRP, USDT, USDC, DASH, etc.
Price: Starting From $10 Free Trial + Paid Plans
Users can sign up for accounts on the platform and start earning passive income every day.=> Visit Minedollars Website
Recommended Crypto Exchanges
CoinSmart – Best for crypto to fiat exchanging.
CoinSmart is also a crypto trading platform that allows users to trade digital assets on the spot market and with fiat. There is no mining or staking supported on the exchange. For miners, the most beneficial way you can use this exchange is to convert your mining earnings to other digital assets instantly.
You can also use it to convert any crypto mining rewards to fiat via the bank. Simply deposit the exchange, convert it to Bitcoin if it is a different crypto, then withdraw as a fiat via a bank. CoinSmart guarantees a same-day bank fiat deposit when you do this.
- Buy crypto with fiat instantly via credit and debit card. Also buy using SEPA, wire transfers, e-transfers, and direct crypto deposits. Deposit crypto and swap for any other supported cryptos. Supports about 14 cryptos and tokens.
- Withdrawal fees for selling crypto for fiat are 1% or $15 for Electronic Funds Transfer, 1% for Wire, and 0% for SEPA.
- Deposit fiat at a fee of 8.75% with credit card, 0% with SEPA and Wire; and 1.5% (for $100 – $1999) and 0% (for $2000 and above) with Interac e-Transfer.
- Over-the-counter trading service for those who want to trade orders of $25,000 or more.
- Dedicated account representatives, discounted fees, and optimal pricing for over-the-counter trading.
Crypto.com – Best for trading cryptos.
Crypto.com is not a cloud mining site and does not allow anyone to mine digital assets. Instead, it supports the trading of cryptocurrencies. You can also rely on this crypto exchange to instantly convert any crypto for fiat and spend it on any Visa store or ATM outlet. The exchange supports over 250+ cryptocurrencies and is available in over 100 countries.
For those using other cloud mining sites listed, you can also directly send the mined crypto to the crypto.com wallets. Simply find the deposit wallet address from your account for the crypto desired, and use that as the withdrawal address on your cloud mining site.
For those willing to explore further, the platform can be used for staking coins, which is an alternative to mining.
- Monitor your trading history from within the wallet.
- Send your mining rewards to this wallet and convert them to CRO or stake them in any crypto. You earn rewards of up to 14.5%.
- Trade crypto on spot and futures markets with leverage of up to 10 times initial order capital.
Minimum investment: For stakers, the minimum is 10,000 CRO for 6 months.
Pricing: Free to stake=> Get USD $10 Sign Up Bonus on Crypto.com