The cryptocurrency mining process involves solving complex mathematical problems, with the goal of ensuring the correctness of transactions and operations using digital currencies. In return, miners get new digital currencies, so in a period of time, mining was very profitable, and although things have changed recently, it is still an option for some.
Cryptocurrency mining is one of the important and simple things at the same time, but with the advancement of time, cryptocurrency mining has become more complex than before and mathematical operations have become more complex as well. By making big profits.
In fact, there are only two ways to mine digital currencies: the first is to mine digital currencies using physical equipment, that is, you must purchase equipment and prepare the appropriate environment for mining digital currencies, and the second is cloud mining, meaning you do not have to buy equipment for digital currency mining yourself, but you In fact, it rents out existing tools to do this.
Today we will focus in our conversation on the first method, and in more detail we will talk about the devices and equipment you need in case you want to work in cryptocurrency mining.
What do you need to start mining cryptocurrencies?
You need many things at the beginning, but what you really need is to make the right decision first of all. In the beginning, you have to test the digital currency that you want to mine. Of course, you can mine several digital currencies together, but when you customize the order and specify a specific currency, it will be simpler for you when you buy the appropriate equipment.
After you have chosen the appropriate digital currency, you must select the program that you want to work on, and there are many options when searching for the appropriate software tools, and thirdly you need mining equipment, i.e. the tools that you will use in mining digital currencies, and the more carefully you choose your equipment, the better.
What are the facilities for cryptocurrency mining?
In fact, there are many options. When you want to choose the appropriate equipment to set up your mining environment, we will mention the most popular options.
The ordinary computer CPU was the first cryptocurrency mining tool used in the past.
Today we can still use the CPU in cryptocurrency mining, but it is a very far from the process as you will spend electricity much more expensive than any revenues you can get, and even if you do not care about the energy consumed, the processor will need a longer operating life to reap what is equivalent to its price. Until.
After discovering that CPUs gradually damped their performance with increasing complexity, cryptocurrency miners realized that they could use GPUs that are used in games and videos, and fortunately the GPU was very useful in cryptocurrency mining, despite its high energy consumption but You can use the GPU today to mine cryptocurrencies and it turns out that AMD’s global products are better than others in terms of quality and productivity.
In general, even GPUs are not a real option today for major currencies. As the “mining difficulty” is constantly increasing, the graphics processors are gradually becoming less efficient.
Mining with FPGA Programmable Gate Array
Despite the change in cryptocurrency mining after moving to the use of the GPU, we have faced a very serious problem, which is the rate of electrical energy consumption large enough to make mining a losing process.
The FPGA programmable gates board emerged as a fundamental solution to this problem, and by comparing the GPU and FPGA, we notice that FPGA is clearly superior to the GPU as it is able to mine more digital currencies with clearly lower power consumption. Of course there is a major drawback here, which is that this type of tool requires independent purchase, and you will not really benefit from it for anything but mining.
Mining using custom integrated circuits for specific ASIC applications
If you are seriously considering mining cryptocurrencies, it seems that ASIC is the best option among all other options, as these chips are designed specifically for cryptocurrency mining, and they cannot be used in any other field and they are unanimously agreed as the best way to mine cryptocurrencies. If you want to get a big profit, it gave very amazing results in terms of productivity and electrical energy consumption.
What should you consider when choosing your mining rig?
There are a set of pointers that you should consider when choosing a suitable mining rig:
The financial cost is one of the most important things that you should look at with interest when you want to create your own mining environment, and you should think about it this way: Whenever you plan to get more money from mining digital currencies, the cost of mining will gradually increase, and because the costs are very high, miners resort to Digital currencies to work in groups and they share profits among them, and therefore various benefits, including sharing the costs of devices among themselves, and the most important benefit is the profit faster with the increase in the number of participants.
Electric energy consumption
Purchasing mining equipment is part of this process, but not all, as electric power is the second most vital factor when you consider working in cryptocurrency mining. The cost of electrical energy is one of the most expensive that you will face because mining equipment consumes a very large amount of energy. In general, and in some countries, mining may already be a bad idea if energy prices are relatively high.
Other equipment cost
Mining devices not only consume a lot of electricity, but they also generate a very large amount of heat, and additional costs include the costs of air conditioners and other equipment that keep mining equipment cool and within a reasonable temperature. They will not suffer from these exorbitant costs of building cooling systems.
Risks of sudden price fluctuations
One of the important things that you must calculate is the price of the bitcoin or the price of the currency that you choose to work with, it is possible that Bitcoin equals 5,000 dollars and it will be very profitable for you, but tomorrow the price may drop to 3000 dollars, so if you want If you really work in currency mining, you should think about this aspect a lot before investing, there are many rewards for high prices, but there are also dire consequences due to lower prices.