Mining a cryptocurrency is a profitable business and this trend is gradually gaining popularity across the world. Although few nations have banned cryptocurrency one can always continue such operations offshore, where it is legal, and still be able to reap the rewards.
There are many cryptocurrencies available that one can mine. Depending on your budget, you need to buy hardware as well.
For instance, if you choose to proceed with cryptocurrency such as Litecoin, then you need to buy a hardware which offers a good hash rate, preferably an application specific integrated circuit (ASIC). There are many ASIC hardware available in the market but one brand which has performed exceptionally well in the market is Bitmain.
Although Bitmain has many variants available in the market Antminer I3+ performs exceptionally well. The reason behind the requirement for ASIC hardware to mine cryptocurrency is because most currencies, including Litecoin, are based on Proof of Work.
In Proof of Work, the miner has to solve a complex problem, which requires more computational power. After the complex problem is solved, a block is awarded to the miner or group of miners, whichever is applicable. The ASIC mining Litecoin makes sense due to this very reason.
However, ASIC is not the only option available to you. You can invest to build your own mining rig as well. For instance, other than ASIC, people prefer CPU mining as well as GPU mining. Although CPU mining takes more time than GPU mining, it is a cost-effective solution. Building a rig for GPU is quite easy.
All you need to do is assemble different parts such as CPU, RAM, GPU x 5 (minimum), etc. To house multiple GPUs, ensure the motherboard supports such a number. As of now, ASIC provides the maximum hash rate and people, who don’t want to wait for months can join mining pools, where multiple people mine together to reap the benefits in a short span of time.
Most experts recommend choosing an open rig as the process of mining utilizes the processor to its maximum limit. Hence, the open rig helps to keep the system under safe temperature limit.
If you are new to cryptocurrency, then above-mentioned information will help you make an informed decision.