What are the common ways of mining? What if you want to mine?

What are the common ways of mining? What if you want to mine?

Once, you could easily mine Bitcoin at home. All you need is a laptop to operate some software, and if you're lucky, you can create this "fun online currency" out of thin air. Now, as more and more people enter the field, Bitcoin mining is becoming more and more difficult. So what if you start mining now?

Common ways of mining

ASIC mining: ASIC mining is the use of specific integrated circuit equipment, which is used for mining for the sole purpose of mining BTC and other cryptocurrencies. This hardware comes in various ways; some are much more expensive than others. However, their most significant advantage is to minimize electricity costs while delivering extraordinary hash rates. At present, the miner brands that users seek mainly include Antminer, Innosilicon, Whatsminer, etc.

Join a mining pool: You can also choose to join a mining pool. A mining pool is a group of miners who share their hash rate on the internet and are rewarded based on each person's contribution. Therefore, mining pools can make miners' income more predictable.

Note: Joining a mining pool is not the same as "cloud mining." A mining pool involves a group of miners who share the rewards according to their share, but cloud mining involves a service provider, and you need to pay him a mining fee to get the reward. While there are legitimate companies selling hash rates this way, you need to be wary of deception. Even if your maintenance costs are low, you may need to sign a lengthy contract and pay a hefty monthly fee.

Some popular mining pools include F2Pool, Poolin, AntPool, Huobi.pool, ViaBTC, 1THash & 58COIN, SluchPool, and NovaBlock.

But before joining a mining pool, you need to understand the different reward structures and payment schemes.

The following are the main reward structures:

1. Pay per share (PPS): Each user's amount is fixed and will be paid every time a share is submitted.

2. Proportional distribution: Users are rewarded proportionally according to the number of shares they contribute.

3. Distribution by score: This method is more beneficial to new users than old users, and users are rewarded proportionally according to the time of submitting shares.

4. Pay by Last N Shares (PPLNS): Similar to proportional distribution, each share gets different rewards in each round.

5. Full Pay Per Share (FPPS): Similar to PPS but includes transaction fees and rewards distribution among miners. Transaction fees are distributed based on miners’ hash rate.

6. Shared Maximum Payout Per Share (SMPPS): Similar to PPS, but pays you less pool revenue.

Another way to earn bitcoin

If you want to accumulate more bitcoins without overly active trading, there are other ways to earn bitcoins. The easiest way to do this is to deposit your bitcoins into AAX wealth management products. No lock is required so that you can withdraw your funds anytime. Interest is calculated by the minute, and the annual rate is higher than all other cryptocurrency exchanges.

Epilogue

The above content is all about the common mining methods and their differences. For more details on Bitcoin mining, check out the blog for more content.