Interested in mining for cryptocurrency, but don't know where to start? In this guide, we'll cover the basics of choosing the right GPU for crypto mining
Interested in mining for cryptocurrency, but don't know where to start? In this guide, we'll cover the basics of choosing the right GPU for crypto mining
Since Bitcoin’s phenomenal rise in 2017, many people have been wondering how they can get in on the cryptocurrency action. One way to get involved in the revolution is by mining cryptocurrency.
However, before you can get started with mining, you first need to know the basics and get the equipment. In this guide, we’ll cover some of the best GPUs on the market that you can use to mine cryptocurrency.
GPU stands for ‘Graphics Processing Unit’. For a time, GPUs were incredibly popular in the mining space. These days, Application-Specific Integrated Circuits (ASICs) are used for more efficient Bitcoin mining as they are better at handling the ever-increasing amount of power involved in mining Bitcoin. However, many popular cryptocurrencies still utilise GPUs, such as Ethereum. While this means you may struggle to mine Bitcoin with GPUs, they are more popular for beginners as they require less power to use and are a lot cheaper than ASICs, and they can still be used to mine a huge number of altcoins efficiently.
Mining is the process of solving mathematical algorithms that serve as a puzzle to successfully add a cryptocurrency transaction to a blockchain. Transparency is one of the most vital aspects in this space, so legitimate transactions being recorded on a blockchain is essential. When a transaction occurs, it is broadcasted to everyone on that token’s network. This informs the miners that there is work to be done.
Miners will then begin solving the puzzles to play the role of a ‘digital accountant’ and add the transactions to the blockchain. This is the process of cryptocurrency mining. The incentives for miners to complete this work are the transaction fee offered by those who want to record their transaction and the block reward. A block reward is awarded to successful miners for completing their job. For example, Bitcoin’s current block reward is 12.5 Bitcoin, whereas Ethereum’s reward is 3 Ether.
Different cryptocurrencies have different algorithms for how they function, and as such, is it important to ensure you do the correct research before you embark on a mining quest.
For guides on how to choose the right mining hardware or general mining strategies, click the links provided.
As you might have guessed, the GPU market is dominated by Nvidia and AMD. In general, AMD typically make faster products and get better performance rates from their GPUs by adding more ALUs that function at a lower clock speed. However, Nvidia make use of more complex ALUs that are more powerful. Another thing worth noting is that Bitcoin, for example, uses an SHA-256 encryption algorithm, and AMD products only need a single hardware instruction to mine using the SHA-256 hash, whereas Nvidia needs three.
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