If you’re interested in cryptocurrency mining, you have probably done the research into the hardware that’s required. You know about Bitcoin mining but you’ve noticed that other cryptocurrencies are trending upwards and you’re wondering if there’s an opportunity to use the same equipment for Ethereum or Monero? We break down the various mining techniques used for altcoins.
Unfortunately, one size does not fit all but no need to worry
Bitcoin mining uses ASIC chips which are specially designed for a specific hashing algorithm unique to Bitcoin mining and therefore will not work for any other kind of cryptocurrency. Mining Bitcoin will still give you the biggest return on investment but that doesn’t mean there is no value in mining other currencies.
So what do you need to mine other cryptocurrencies such as Ripple, Ethereum, Monero, DASH and Litecoin?
Bitcoin miners moved from using their own CPU to Graphics Cards – predominantly used for gaming – to the dedicated ASIC hardware, as more people started mining and the equations got more difficult to solve. However, you are still able to mine Ether – Ethereum’s coin – using a graphics card. Ethereum is the second biggest cryptocurrency after Bitcoin, so it’s no surprise that it will net you the second biggest gains, but you could be earning in the region of $17 a week.
There is no dedicated hardware for mining Monero and there is no agreement about what hardware works best to mine this currency. Monero uses a type of ‘Proof of Work’ called CryptoNight, which was designed to make it easier for users of casual computer hardware. The mining algorithm lowers the performance gap between GPUs (graphics cards) and CPUs (your regular computer processor), making ASICs an unnecessary expense and lowering the barrier for entry.
The best way to mine Monero is to buy a few decent, yet cheap CPUs and stack them together. Of the three minable currencies on this list Monero will give the third highest returns, netting you about $1.20 a day depending on exchange rates.
Dash is mined using ASICs, however these are specially designed for Dash – the ones you already have for Bitcoin will not work. CPU and GPU mining is not cost effective for Dash, but if you want to try it’s best to get the best CPUs or GPUs, you can order online, even though we warn you the results will be very slow.
Ripple is not mined. A set amount of coins were released by the owner and as it stands, there are no plans to release any more.
Litecoin, like Monero, was made to be easy to mine using your average CPU. In fact, when it started, it was created to only be mined using a CPU but it was modified to also work with a GPU. It does not support ASIC mining, making it a good cryptocurrency for first time miners.
Cryptocurrency mining doesn’t only have to be for the computer whizzes among us, anyone can give it a try. Even you.
For cloud mining, HashFlare is a tried and trusted cloud mining service provider. There are options for every type of crypto miner and is an easy and affordable option.
You can select the package that suits you. These include different options for Wi-Fi packages based on the speed and data cap you you want. There are levels of packages for HashFlare based on minimum hashrate – the speed at which the computer completes an operation in the code – maintenance fees and type of hardware.