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Blockchain technology offers an open, immutable ledger that processes transactions through an incentive-driven infrastructure known as cryptocurrency mining. It can be daunting to figure out which retailer is the best place to buy different crypto mining equipment without tons of experience. If you want to get into mining crypto for profit, read on to learn more.
Cryptocurrency Mining Basics: ASICs vs. GPUs
Cryptocurrency miners use two primary methods: application-specific integrated circuit (ASIC) mining and GPU mining. According to Benzinga’s Henry Stater, ASIC miners generally mine one specific cryptocurrency. GPUs can mine pretty much any proof-of-work (PoW) crypto, unlike ASIC miners, which can only mine whichever crypto they are designed for. GPU mining computers can be upgraded easily, unlike ASIC miners, by adding better graphics cards. ASIC miners also use high amounts of electricity, so they are less profitable in regions with high electricity costs. However, for warehouse owners with low electricity costs and fast access to new ASIC models, ASIC miners are much more profitable than scaled-up GPU rigs. This is because ASIC miners are much more powerful than GPUs –– GPUs typically can’t compete with proof of work cryptocurrencies that can be mined with ASIC miners.
Most Profitable Cryptocurrency Mining Equipment
Although ASIC miners are generally more expensive than GPUs, they are much more efficient. As a supplier in the secondary market, Benzinga recommends Musk Miners for its competitive prices and reliability. Many scam websites offer mining machines at a discount; however, if it sounds too good to be true, it probably is.
Most Efficient Sensibly Priced Miner: Bitmain Antminer S19 Pro: ~$6,400+
The Bitmain Antminer S19 Pro miner is one of the most efficient and powerful Bitcoin miners you can get your hands on. The Antminer S19 Pro is an industrial-grade miner that uses a lot of electricity. The S19 Pro has an average hash rate of 110 terahash per second (Th/s). The best place to buy this premium piece of crypto mining equipment is actually Amazon.
In terms of profitability, the S19 Pro uses just over 3,200 watts (W) and can bring in just under $20 a day with an average electricity rate of $.12 per kilowatt hour (KWh).
Cheap but in Profit: Bitcoin Miner T19 Hydro $2,900
The Bitcoin Miner T19 Hydro is made by the same company as the Antminer S19 Pro but is significantly cheaper while also having a decent hashrate. It has one of the best values for its price on the lower end of ASIC Bitcoin miners.
Ethereum (Ethash)
The Ethereum network is looking to migrate into the PoS consensus mechanism, rendering proof-of-work (PoW) devices useless. However, the timing of this transition is uncertain. For right now, Ethereum is generally the most profitable cryptocurrency to mine, making it even more important to know which retailer is the best place to buy crypto mining equipment.
Most Efficient Ethereum ASIC Miner: Innosilicon A11 Pro $13,300+
The Innosilicon A11 Pro uses 2,350W and has a hash rate of 1,500 megahash. This miner can bring in just under $20 a day given the average U.S. electricity rate. Right now the best place to buy this crypto mining equipment is Newegg.
Litecoin, Dogecoin, DigiByte (Scrypt)
The Scrypt algorithm mines several cryptocurrencies, including Litecoin, Dogecoin and DigiByte.
Most Efficient Miner: Bitmain Antminer L7: $25,000
This miner is extraordinarily expensive for the average person, and although it has the potential to rake in over $55 a day without the $10 in electricity; given the U.S. average electricity rate, this machine is profitable in under two years.
Cheap but in Profit: Bitmain Antimer L3+: $1,050+
The Bitmain Antminer L3+ makes about a dollar per day with the average U.S. electricity rate; if your electricity is free, however, it can make over $3 per day. That means the amortization can be well under two years. Mining can be done with the machine for two years with the free electricity and then the machine has the potential to be sold for an almost 100% return on investment.
Kadena
One of the newer PoW cryptocurrencies, Kadena, is promising.
Kadena Miner: Goldshell KD6: $65,000+
This miner racks in by far the most money of any miner, which is why why its price point is so ridiculously high. Profitability determines the price of the machines because the demand is uncanny. It can bring in about $45,000 annually including the average U.S. electricity rate.
Most Profitable Cryptocurrencies to Mine
The Scrypt algorithm for Litecoin mining seems to be the smartest choice. Although Kadena has arguably more room for growth, the setup cost is volatile, and the algorithm is not time-tested. Scrypt and SHA-256 algorithms have a safer return because Bitcoin, Dogecoin and Litecoin are less likely to deviate significantly from one another. Buying Ethereum mining equipment is probably unwise in view of Ethereum’s goal of transitioning to PoS. Although SHA-256’s Bitcoin reward has shown itself to be safer than Scrypt’s reward, the two seem to be close enough in safety that taking the higher-paying algorithm is the better choice.
Mine Cryptocurrency With Kryptex
Kryptex, a Windows app that pays you for the computing power of your PC, can assist you in getting started with seeing mining rewards. It offers applications that can be installed to enable you to start mining Bitcoin. Although this method isn't as effective as having custom-built equipment for mining, such as an ASIC miner, it's a good place to start.
Kryptex provides this service in a user-friendly manner, with a low-resource mode that allows you to continue using your computer while it mines. Although the convenience reduces potential earnings, once you get going, you may be inspired to try more intense mining endeavors.
Is Mining Cryptocurrency a Good Idea?
Initially, mining cryptocurrency can be a hassle if you want to nail down strong returns. It’s hardly passive income if you haven’t searched for, ordered and set up a miner before. Buying a dedicated machine is pretty much a necessity to profitably take part in mining. If you want to learn the process of setting up a miner and have some free space in a garage, basement or separate facility, then it could be for you.
Is Cryptocurrency Mining Dangerous?
Cryptocurrency mining with hardware is not dangerous, although setting up the electrical infrastructure to support mining machines should be done by a professional. PoS mining isn’t physically dangerous, but many scam websites exist in the Web3 space, making the practice potentially dangerous for the safety of your funds. YouTube videos offer guidance and assistance to avoid scams, but it’s difficult to avoid all malicious content. Proceeding with caution is advised.
Most mining requires a steady power supply and a surge protector. Some of the beefier miners require a 220v to 240v outlet, which is what most washing machines are hooked up to rather than the common 110v to 120v outlets seen everywhere else. Installing an additional 240v outlet would require the help of a professional and should be budgeted into your mining operation.
How to Make Money from Cryptocurrency Mining
Cryptocurrency mining is nothing to look past as a possible money-making activity. It’s a fun aspect of the emerging blockchain space to be a part of. Assuming the price of the coin you mine remains about the same, you’ll likely make back the price of the mining machine you buy in under two years and can potentially sell it for cash when you decide to stop mining.
Frequently Asked Questions
Can anyone mine cryptocurrency?
Anyone, in theory, can mine cryptocurrencies, but they require quite a lot of computing power, monetary resources and time to make a profit.
Is cryptocurrency mining profitable?
Cryptocurrency mining can be profitable, but there’s no way to know how much you can make until you have set up your mining devices and determined the costs of running those machines.
About Jack Fineman
Jack Fineman is an undergraduate student studying economics at UCSB, President of the Blockchain at UCSB club and starting player for UCSB in the Collegiate Chess League. Jack primarily works on project creation and managerial work for his club and produces Web3 content for Benzinga. Jack is highly passionate about DeFi and blockchain technology, one of his favorite projects is The Helium Network.