Cryptocurrency presents an opportunity to earn significantly more. If you are thinking about investing and have not considered cryptocurrency as a suitable means to earn higher returns, you are definitely missing out of a very good opportunity. If you are an investor, who keeps an eye out for investment opportunities, then cryptocurrency trading and cryptocurrency mining are two possibilities, which you can consider to diversify your portfolio.
However, there is a significant difference between trading and mining. Many cryptocurrency enthusiasts will consider trading to be volatile, whereas, mining is somewhat safe. If you check the past history of bitcoin miner antminer, you will know how the price can jump or drop in an instant. Mining, on the other hand, is an entirely different story. If you want to enter the world of cryptocurrency, then establishing a mining operation requires an initial investment.
For instance, to mine a cryptocurrency, you need to buy a system capable enough to provide higher computational power. There are four different types of mining that you should know about, such as CPU (central processing unit) mining, GPU (graphical processing unit) mining, FAGA (field programmable gate array) mining, and the most recent addition to this list is ASIC (application specific integrated circuit) mining.
How efficiently you can mine a cryptocurrency depends entirely upon the type. For instance, mining Bitcoin requires proof of work and the same goes for its cousin - Dash and Litecoin asic mining. An alternate option can be to mine any cryptocurrency based on proof of stake. The latter requires less computational power as compared to proof of work cryptocurrencies. To mine such altcoins, GPU or ASIC mining is recommended.
As of 2018, prices of graphical processing units have gone up due to a significant increase in the demand by cryptocurrency miners such as bitcoin miner antminer spread across the world. If you want to build your own cryptocurrency mining rig, then you may have to pay more as well as wait addition weeks just to get your hands on the hardware. To avoid such a situation, you can choose ASIC mining, which provides much superior performance than GPU mining.
If you are wondering about the difference between the computational power of GPU and Litecoin ASIC mining, then you will be surprised. GPU provides around 2 KH/z hash rate, whereas, ASIC provides around 40 KH/z depending on the algorithm. It goes without saying that in the world of cryptocurrency, speed matters as the profit being generated is directly proportional to computational power your system packs with it.