✔️ Information reviewed and updated in November 2023 by Eduardo López
To obtain cryptocurrencies there are two main ways to obtain it, the first is by buying or exchanging them and the second, by mining. That is why more and more people seek to enter the world of cryptocurrency mining in order to take advantage of all its benefits and potential.
Although it might seem simple, cryptocurrency mining is not such an easy process, as it requires advanced equipment and knowledge. For you to fully understand cryptocurrency mining, here we will tell you everything you need to know about this innovative way to obtain virtual currencies.
➡✨What is cryptocurrency mining?
Cryptocurrency mining is a process where users, through advanced hardware equipment, seek to solve mathematical problems of the Blockchain. By solving these complex algorithms, the user contributes to the construction of the blockchain and, in turn, receives cryptocurrencies as a reward.
Usually, The process involves the validation and resolution of the blockchain, thus adding results to the Blockchain itself. Let's say it is as if we will take care of validating and processing the Blockchain in our infrastructure and cryptocurrencies pay us with virtual currencies for our services, such as rent.
➡✨ What do I need to mine cryptocurrencies?
Cryptocurrency mining is a somewhat complex process that requires specialized equipment. Next, we will tell you what you need to be able to start your machine to generate cryptocurrencies. You will be able to know what you need to assemble your RIG to be able to mine.
- Graphics Cards: Most of the processes to solve the algorithm are done here, on the graphics cards. These cards must have great power so it is very common to find that Gaming cards are used for this. Its composition with powerful hardware and its own heat sinks.
- Motherboard: The motherboard is in charge of joining all the parts and coordinating their operation both in power supply and in sending data. There are a large number of motherboards on the market, although for RIG construction it is advisable to use a high capacity and quality motherboard.
- Processors: Although they are not as necessary, there are users who include the use of processors within their RIGs to have much greater power and improve the coordination of each card. As with graphics cards, The processor must have a high power at the level of a Gamer processor.
- Power supply: For the entire system to work, it is necessary to power the motherboards, processors and graphics cards, so you will need a power source. Consumption, as we will see later, is quite high so you need a higher capacity power source.
- Other accessories: You will also need a place to mount your boards, cards, processors and power supply. As usual, This type of frame is made of wood because it can be adapted quickly. There are also metal frames which are more expensive, but look better.
➡✨Alternatives to mining with RIG
If you do not want to invest in mining with a RIG, because this turns out to be very expensive, you should know that there are alternatives for it. Here we will tell you what are the 3 options available to mine cryptocurrencies without using a RIG or spending on it.
- Online mining: That's right, there is an option available to mine from your computer using someone else's infrastructure. This is mining on the line which allows you to mine without having to use a RIG, thus taking advantage of existing internet platforms.
- Cloud Mining: This innovative technology is thought to be the evolution of the previous option. Cloud-based, cloud mining allows you to mine cryptocurrencies thus taking advantage of the internet infrastructure. As with the previous point, it is likely that we will have to pay to use this platform.
- SO C: Finally, we have the ASIC, a kind of RIC that is already sold pre-assembled, which is a great advantage for the user. This pre-assembled box just makes it necessary to plug it in and go, you will be able to start trading cryptocurrency mining easily.
➡✨ What do I need to mine cryptocurrencies?
As we already told you, you not only need a really powerful hardware equipment to be able to mine cryptocurrencies. You will also need a suitable space with a high-power source of electricity. In addition, it will be necessary to have good ventilation as this equipment usually generates a lot of heat.
Another point that you should take into account is having adequate knowledge, since cryptocurrency mining is not as simple as it seems. So it is necessary to have both the equipment and the necessary knowledge to be able to mine cryptocurrencies efficiently.
➡✨The main problem of mining cryptocurrencies
While the payoff is attractive, cryptocurrency mining has many downsides. First of all, it is necessary to make a strong investment, either in RIC or ASIC, since this type of computer equipment is really expensive. So, you will need money to get it going.
Electricity consumption is another point to take into account, since the amount of electrical energy required to run your mines is enormous. Not only will you pay a lot of money for it, you will also be responsible for the pollution due to the high consumption of electricity.
➡✨What kind of cryptocurrencies can I mine?
Also, you should know that Not all cryptocurrencies are available for mining, so we must verify which ones are and which ones are not.. One of the most common, and also the most mined, is Bitcoin for the rewards that this task offers.
ZCash, Litecoin, Ethereum, Monero, Dash, Ethereum Classic, Bitcoin Gold, Grin and DogeCoin are other cryptocurrencies that we can also use to mine. The process, complexity, and rewards vary greatly from currency to currency, as well as to its blockchain. That is why you should pay close attention to each cryptocurrency.