How to mine cryptocurrency in 2021, Mining prospects and relevance. Is it worth mining right now

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Mining is participation in the Proof-of-Work (PoW) consensus mechanism to help validate transactions and generate new blocks from them. The combined efforts of all miners guarantee the integrity of the blockchain and the irreversibility of all transactions. Every time a block is generated, the miner receives a reward. In some cryptocurrencies, notably Bitcoin, this reward shrinks over time, creating scarcity and ensuring the price will rise in the long term.

Today, the editorial staff of Btcnewsweb.com proposes to consider how to mine cryptocurrency in 2021 – what methods are relevant, what coins can be mined and how profitable it is.

What you need to start mining

First, let’s briefly go through the main steps that any miner will need to go through:

  1. Choose the cryptocurrency that you will mine from among the most promising at the moment.
  2. Calculate the yield. This is the most important thing – before buying equipment, you must be sure that it will bring profit. Use special mining calculators.
  3. Start a cryptocurrency wallet where earnings will be transferred. For these purposes, you can use wallets on crypto exchanges, for example, on the Binance exchange.
  4. Buy equipment – below we will tell you what equipment is relevant in 2021.
  5. Select a mining pool and register. To find the best pool for the selected cryptocurrency, use services such as Miningpoolstats.
  6. Select and install software responsible for mining cryptocurrency. For example, consider Gminer for NVIDIA and AMD graphics cards. Download the archive for the required operating system (Windows or Lunix), unzip it. Next, enter your address and pool (2miners pool is used by default). To do this, right-click on the file with the .bat extension and select Change. To start mining, run the miner.exe file.
  7. Set up your equipment. If mining on video cards, then they definitely need reasonable overclocking. Without this measure, your income will be 20-30% lower than possible. For overclocking use the Msi Afterburner program.

After that, it remains to launch the program and start mining, specifying your wallet address for crediting funds.

Types of mining and their relevance

Processor mining

Some of the protocols used by blockchains still allow for CPU mining without having to buy high-powered hardware. By assembling a rig with a quality processor, video card and motherboard, you can earn enough to recoup the hardware and energy consumption, even while making some profit.

What can be mined on the processor: Bytecoin, Zcash, Monero and other cryptocurrencies.

CPU mining software: MinerGate, EasyMiner, AwesomeMiner and others.

Which processors are the most efficient for mining cryptocurrency:

  • AMD Ryzen Threadripper 3970X. Price: 190,000 rubles. 32 cores, 64 threads. Base frequency 3.7 GHz. Overclocked frequency 4.5 GHz. Cache 144 MB. Consumption: 280 watts. An expensive and energy-consuming processor, but it pays for itself relatively quickly. Extremely easy to install.
  • AMD Ryzen 9 3950X. Price: 68,000 rubles. 16 cores, 32 threads. Base frequency 3.5 GHz. The overclocked frequency is 4.7 GHz. 64 MB cache. Consumption: 105W The processor demonstrates excellent performance of all cores, however, according to user reviews, it needs additional cooling.
  • Intel Pentium Gold G-6400. Price: 5300 rubles. 2 cores, 4 threads. The base frequency is 4 GHz. does not accelerate. 4 MB cache. Consumption: 54W A cheap low-power processor that is suitable for beginners or for those who do not buy a device specifically for mining.
  • AMD Ryzen 5 3600X. Price: 20,000 rubles. 6 cores, 12 threads. 3.8 GHz base frequency. Overclocked 4.4 GHz. Cache 32 MB. Consumption: 95W An excellent mid-range variant, the bundle includes a Wraith cooler. The downside is that overclocking this processor is quite difficult and requires a lot of time.
  • AMD Ryzen Threadripper 3960X. Price: 136,000 rubles. 24 cores, 48 ​​threads. 3.8 GHz base frequency. Overclocked frequency 4.5 GHz. Cache 128 MB. Consumption: 280 watts. Close to Threadripper 3970X in performance, but much cheaper
amd ryzen threadripper 3960x

Mining on video cards

GPUs are much more powerful than CPUs, so they have long and firmly established themselves as an effective mining tool. Full-fledged farms of 4-12 copies are created from video cards. GPUs can work with any mining algorithms, thus, the choice of cryptocurrencies available for them is very wide. Everything is limited only by the power of the farm and the complexity of the network of a particular coin.

What can be mined on a video card: Ravencoin, Grin, Ethereum, Monero, Bitcoin Gold, Dogecoin and other cryptocurrencies.

GPU mining software: MinerGate, EasyMiner, CGMiner, AwesomeMiner and others.

What video cards are most effective for cryptocurrency mining:

  • NVIDIA GeForce RTX 3060 Ti. Price: 60,000 rubles. 8 GB GDDR6 VRAM. Consumption 200 watts. The device is equally well suited for gaming and mining. The hash rate is not the highest, but it can provide a stable monthly income with relatively low energy costs. The disadvantage is the inconvenient 12-pin connector.
  • AMD Radeon RX 5700 XT. Price: 40,000 rubles. 8 GB GDDR6 VRAM. Consumption 225 watts. In terms of mining efficiency, this video card is practically the same as the previous version, and thanks to the lower price, it will pay off faster. Unfortunately, users have noticed some stability problems with this model.
  • NVIDIA GeForce RTX 3090. Price: 250,000 rubles. 24 GB GDDR6 VRAM. Consumption 350 watts. The best option in terms of performance, but the price will not suit every miner. A large amount of memory is the main parameter responsible for efficient mining. The power consumption is also high, in line with the power.
  • NVIDIA GeForce GTX 1660 SUPER. Price: 50,000 rubles. 6 GB GDDR6 VRAM. Consumption 125 watts. A relatively budget option, which also differs in economical consumption of electricity. The hash rate is lower than that of expensive competitors, but this does not affect profits so much due to energy savings.
  • MSI Gaming GeForce RTX 2070. Price: 40,000 rubles. 8 GB GDDR6 VRAM. Consumption 225 watts. One of the important advantages of this model is an efficient heat sink for heat dissipation, as well as Zero Frozr technology, which can pause the fan at low workloads to reduce noise.

A combination of CPU and GPU mining is allowed, so you can mine quite effectively on a gaming computer when it is not used for its intended purpose, and get additional income.

ASIC mining

Asiki is the choice of professionals. It is a high-power equipment consisting of a highly directional integrated circuit; due to the fact that the scheme is focused on performing only one task, its performance is extremely high. Top cryptocurrencies today can only be mined on ASICs, since their high complexity makes it impossible to mine coins on video cards or processors.

What can be mined on ASIC: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Digibyte, Decred and other cryptocurrencies.

ASIC mining software: CGMiner, BFGMiner, AwesomeMiner and others.

Which ASICs are most effective for mining cryptocurrency (according to the WhatToMine website as of April 2021):

  • Goldshell KD Price: 730,000 rubles. Hashrate 18.70 Th / s. Power consumption 2250 W. Mining algorithm – Kadena. Focused strictly on mining the Kadena cryptocurrency (KDA).
  • Goldshell CK5. Price: 670,000 rubles. Hashrate 12.00 Th / s. Power consumption 2250 W. Mining algorithm – Eaglesong. Relevant for mining Nervos Coin (CKB).
  • iBeLink BM-N1. Price: 530,000 rubles. Hashrate 6.60 Th / s. Power consumption 2400 W. Mining algorithm – Eaglesong. Like the previous option, it allows you to profitably mine Nervos (CKB).
  • Innosilicon A10 Pro + 7GB. Price: 1 800 000 rubles. Hashrate 750.00 Mh / s. Power consumption 1350 W. Mining algorithm – Ethash. By far the best option for mining Ethereum.
  • Goldshell KD2. Price: 300,000 rubles. Hashrate 6.40 Th / s. Power consumption 830 W. Mining algorithm – Kadena. Earlier version of Goldshell KD5, which has less power but also less power consumption.

Of course, the listed devices are relevant at the time of this writing. You must independently study the prospects of this or that ASIC, as well as the coins mined by it, before making a purchase.

Outdated types of mining

In 2021, there is no point in trying to mine in the following ways:

  • on a mobile phone / tablet;
  • through a browser;
  • on your hard drive.

All these methods bring absolutely meager income, for the sake of which it is not worth damaging equipment and wasting electricity. It is wiser to allocate a reasonable amount for the purchase of a high-quality processor or video card, this will bring more profit, and in addition, you will get really promising cryptocurrencies that can grow (such as Monero), and not little-known tokens of dubious value.

How to calculate profitability

In order to find out in advance how profitable it will be and how long it will pay off without buying equipment, you can and should use special mining calculators. Calculators allow you to specify parameters such as the hashrate of the equipment, its energy consumption (or even choose specific models, where the necessary data is already stored), the cost of a kilowatt of electricity in your region, the pool commission, etc.

As a result of the calculations, the calculator will show how profitable it is to mine this or that cryptocurrency, how much income it will bring per day, week, month, year. The calculation takes into account the data at the current time: the rate of the cryptocurrency, the complexity of the network. Since this information fluctuates every day, this must be taken into account.

Examples of mining calculators:

Mining pools

Mining cryptocurrency will be much more efficient if you join a pool. A pool is a group of individual miners who have combined their computing power and directed them to mine a specific coin. With a high network complexity, mining a block in solo can take a long time. Moreover, with a high degree of probability, you will never get it alone.

Of course, the temptation to single-handedly get a few bitcoins is great – but in fact, you will simply waste a huge amount of electricity. As for the pool, someone regularly extracts a block in it, and the profit is fairly divided among all participants, depending on the capacities they have invested. Thus, the income is stable.

The best Bitcoin pools for today:

The best Ethereum pools:

  • SparkPool
  • Ethermine
  • F2Pool
  • SpiderPool
  • NanoPool

Pools statistics

Up-to-date statistics of mining pools:

https://btc.com/stats/pool, https://miningpoolstats.stream/bitcoin, https://www.blockchain.com/pools.

mining pool statsistics

Mining Industry Outlook

For the last couple of years, mining has been a largely unprofitable venture. However, with the bull market at the end of 2020 and beginning of 2021, the rate of most coins has grown significantly, and with it the profitability of the process. Experts believe that the market will continue to grow, as will the relevance of cryptocurrency mining.

Key provisions for mining in 2021:

  • Market growth is clearly correlated with mining growth. At the moment, the industry is growing at an accelerated pace, and analysts assume that this will continue for the next year.
  • The main risk is a sharp drop in the value of cryptocurrencies, which may happen due to certain changes in politics and economics. Another difficulty is the difficulty of supplying equipment from abroad to some countries.
  • A trend is expected towards the consolidation of mining, that is, its concentration in the hands of large organizations. This was observed before, and now it is even more pronounced. Some big players are aiming to grab their piece of the pie.
  • The mining industry is spreading all over the world, while it used to be concentrated in China.
  • With regard to new technologies, it seems that no technical breakthroughs await us yet. The sector will develop at the same pace, experts do not foresee any significant increases in capacity.
  • However, there is development in a different direction – the use of renewable energy sources. Mining with solar energy or with the help of wind turbines is no longer news. So cryptocurrency mining is becoming much more environmentally friendly.

It should also be noted that mining will be significantly more regulated in 2021. True, at the moment, in almost no countries, the legislation does not mention mining, since it is difficult to formulate its essence from a legal, economic and technical point of view.

Conclusion

So, in 2021, mining is a very relevant type of earnings that can really bring income. The main condition: a good cryptocurrency exchange rate and low prices for mining equipment. Now the market is showing a bullish trend, and according to the assurances of analysts, it will be so in the near future. However, things can change, even if no one expects it. For this reason, at home, users are less and less at risk of buying expensive equipment, because it will be problematic to sell it later. This is another factor that brings mining to the institutional level.

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