If you are only starting to learn about Bitcoin and how you can make money with this invention, then we have some bad news for you – unfortunately, you are a bit too late if you wish to start mining Bitcoin today without owning very expensive hardware, known as ASIC processors. This means that you will have to undergo a lot of expenses if you wish to mine Bitcoin in the modern day – and if you simply want to “dip your toes” into Bitcoin mining, then such expenses may not be worth your money. There is some good news, however. Bitcoin is not the only cryptocurrency on the market anymore, and many of the alternative choices, often dubbed as “altcoins”, have a lot of potential, without the requirements for ASIC processors and other extremely expensive hardware or equipment. In this guide, we’ll dig a little deeper into how you can get started with mining altcoins, including the most popular alternative to Bitcoin, named Litecoin.
A Guide To Alternative Cryptocurrency Mining
Mining Bitcoin is becoming more difficult by the day. With more people buying expensive and powerful hardware, it becomes extremely difficult for the average or beginner miner to even mine an insignificant amount of Bitcoin. For this reason, looking into mining altcoins may be a more appropriate option, especially if your budget does not allow for the ASIC processors required to mine Bitcoin in the modern day.
One of the most popular altcoin to mine as an alternative to Bitcoin is Litecoin, a cryptocurrency that was designed to perfect some of the flaws that have been observed with Bitcoin and the original blockchain technology that was created to hold a record of Bitcoin transactions. Litecoin is quickly becoming popular and also gaining in value.
Before you start to mine for altcoins, including Litecoin, first decide what method you would like to use. Many people choose to buy and operate their own hardware when it comes to altcoins since the power requirements are much lower than with Bitcoin, but it may still take a while for you to break even when you decide to use your own equipment. You will also have to do some research to find out what particular hardware requirements best fit the specific type of altcoin you would like to mine. The technology and algorithms used for these altcoins often defer. Where one altcoin may utilize processing power primarily, another may rather focus on memory or graphics processing power.
Many people choose to rather opt for a contract. With a contract, you can rent processing power from another company and let their computers mine altcoins for you. A relatively new method is called cloud mining, which works similar to a standard contract, but the costs with cloud mining are usually much lower as compared to renting a dedicated server and paying someone to manage the server for you on a daily basis. According to Virtual Banking, some of the most trusted cloud mining companies that offer customers altcoin mining features include Genesis Mining, Eobot, OXBTC and NiceHash.
While Bitcoin mining has become an extremely expensive task to perform, due to the expensive hardware that is required for the successful mining of these cryptocoins, many people are finding that rather opting to mine altcoins has more advantages in store for them. Even though the Bitcoin price is constantly rising, some of the altcoins that can be mined without expensive equipment are also seeing a constant rise in value; thus providing an excellent alternative, especially for those who are simply looking to get an idea of how cryptocurrency mining works.