So you've looked into mining, complicated right? Well, we're here to help.
We're going to talk about everything you need to know about cryptocurrency mining, the benefits of mining different types of coins, which coin is the best and how you can set up your own mining rig. We'll get you started on the basics as well as help you learn about how you can make some serious profits mining cryptocurrency at home.
A brief overview of cryptocurrency mining
Many cryptocurrencies are produced by a process called "mining". Mining in many ways is simply an analogy, it's easiest to think of the process as being similar to a miner with a pickaxe breaking a rock looking for gold.
Cryptocurrency mining is similar in a sense. The pickaxe is a mining rig, the rock is the mining algorithm and the gold is the potential crypto coins that can be acquired.
Do I need a technical background to mine cryptocurrency?
Not at all. In fact, part of why we're not going to delve too deeply into how mining works is simply because it's not necessary for your job as a cryptocurrency miner. Your job is to simply run the mining machine and maintain the software and produce cryptocurrency coins.
So what is the best cryptocurrency to mine in 2021?
Ethereum. If you're looking for the most profitable coin to mine, Ethereum is the best cryptocurrency to mine in 2021.
Ethereum as a coin has exploded in popularity in 2021, largely due to the growth of DeFi. The price of Ethereum has gone up well over 400% in the past year; even outperforming Bitcoin, the king of crypto.Ethereum mining profitability
At the time of writing the profitability of mining ethereum is incredible. A basic mining rig could net you $600 in profits a month. Not bad!
The profitability is driven largely by the massive adoption of DeFi (Decentralized Finance) which many predict will come to dominate financial services in the future.
This is pretty exciting and explains a lot of the uptick in profitability in mining ethereum.
To check out the current mining profitability and calculate how much you'll make with your mining rig, check out this page
.How do I get started?
There are three ways you can get started with cryptocurrency mining:
Individual Mining - Perhaps the simplest way to get started; with individual mining you are mining on your own with your own machine. This form of mining is popular for smaller cryptocurrencies but becomes extremely unviable when trying to mine large cryptos like bitcoin or ethereum.
Mining Pools - The most popular way to mine cryptocurrency is to join a mining pool. A mining pool is a group of miners connected by a network working together to mine cryptocurrencies. Since the miners are all working together there's a much higher chance of actually mining coins. Mining pools pay all their miners a share of every coin mined.
Cloud Mining - Cloud mining is the easiest to do but the most risky and the most dangerous. You own none of the machines and you are relying on a third party to provide an honest service with little accountability. There have been numerous cloud mining scams so make sure you don't fall victim to one.
What we recommend.
We recommend joining a mining pool for the best results. I would avoid cloud mining at all costs personally. Mining pools offer the best chance of success and profit.
There we have it, the best cryptocurrency to mine in 2021 is ethereum. Thank you for reading this article and happy mining!