How to mine cryptocurrencies?

Cryptocurrency mining

Would you like to get into cryptocurrency mining, but don’t know where to start? You’ve come to the right place! In this article, we will explain what cryptocurrency “mining” is and what equipment you need to start mining cryptocurrencies. 

What is cryptocurrency mining?

Cryptocurrency mining is nothing more than performing complex mathematical calculations. Solving a mathematical puzzle is, in other words, “breaking the block”. Computers with high computing power are used for this purpose. In order to mine cryptocurrencies, we can use several different devices that are built into your computer. In the next paragraph, we will introduce the most popular ones, namely: CPU, GPU and ASIC. 


The most popular device used to “mine” cryptocurrency will obviously be the CPU, which is the processor built into your computer. Historically, this is the first unit used to mine Bitcoin (BTC). In later years, mining cryptocurrencies using the CPU waned in favor of other tools, but there is now a resurgence of this method. Some cryptocurrencies, such as Monero (XMR) for example, are optimizing their hash algorithm to run more efficiently just on CPUs.


The second popular tool for mining cryptocurrencies is graphics cards, or GPUs. Using the design of a graphics card, it is possible to process thousands of threads simultaneously, resulting in massive computing power. These are leading mining devices due to the fact that they are relatively cheap and easy to set up. 


The last tool we mentioned for mining Bitcoin (BTC) as well as other cryptocurrencies are ASICs. An ASIC, or Application Specific Integrated Circuit, has the advantage of being the most powerful of the three devices we mentioned. Unfortunately, such circuits are designed to perform only one type of task. So they lack flexibility and, consequently, are not universal. They also consume a lot of power and are relatively noisy. 

Two ways to mine cryptocurrencies

Now that we’ve talked about the different tools we can use to mine cryptocurrencies like Bitcoin (BTC), let’s move on to the two different ways we can do it. 

Proof of Work (POW)

The first is what is known as Proof of Work, which is the use of what are known as excavators. Excavators are special computers designed for digging, offering very high computing power. Several excavators connected together form a mine or, in other words, a farm. Such a farm has much more computing power than a single computer, and thus has a greater chance of “breaking the block”, i.e. solving the mathematical task. 

Proof of Stake (POS)

To mine cryptocurrencies using the Proof of Stake method, you only need a desktop or laptop computer. So you don’t need to spend money on buying a copter. All you need to do is install a wallet containing the entire blockchain of a particular coin that exists so far to start digging more coins. The only inconvenience associated with this method is the synchronization and downloading of data. These processes can take up to several days due to the large amount of data being downloaded. 

What about China? 

Now you know what mining cryptocurrencies is and what tools are used for this purpose. If you are interested in cryptocurrencies on a regular basis, you surely got the information that at the beginning of 2021 an unusual situation occurred in China: gaming laptops with Nvidia GeForce RTX 3000 graphics card are being bought up en masse. Well, it turns out that Chinese miners, due to the lack of other kinds of tools, began to create mines based on laptops equipped with this particular GPU. For now, it is difficult to predict what consequences this situation will have. 

DisclaimerBlockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More Guides

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are…
All articles loaded
No more articles to load

Latest News

What lies ahead for Cardano in 2022

What lies ahead for Cardano in 2022?

Charles Hoskinson, the creator of Cardano, shared what lays ahead for the smart contract ecosystem during one of his regular appearances on YouTube. So what is in…

Crypto trends that may occur in 2022

The beginning of a new year is a time of speculation about the future of the cryptocurrency market. The trends in 2021 were pretty clear, but will…
All articles loaded
No more articles to load


Bitcoin Price on a Larger Scale

Bitcoin Price on a Larger Scale

Short-term analysis can often make you shudder. Daily news, both positive and negative, puts the Bitcoin price in dynamic upward as well as downward movements.…
All articles loaded
No more articles to load

Knowledge Base

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain for investors. What distinguishes the…

What are stablecoins and how can you use them?

In recent years, cryptocurrencies are experiencing a real “boom”! And not just for cryptocurrencies – the rise in popularity applies to blockchain technology in general.…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are talking about Sandbox and SAND…

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity constantly growing? Support for Ethereum…

What is Shiba Inu (SHIB)

Shiba Inu (SHIB) is one of the most sought-after coins on the market. This is evidenced by its dynamic rallies and global interest. But does…

Who is Satoshi Nakamoto?

The world’s biggest cryptographic mystery remains unsolved to this day. It is speculated whether Satoshi Nakamoto is a single person or perhaps the name of…
All articles loaded
No more articles to load