During the first few years after the introduction of blockchain and popular cryptocurrencies like Bitcoin, Ethereum, and more, the best method for getting these digital currencies was mining. However, with many improvements and development of the systems, the mining process became more complicated with various factors that affect its lower efficiency. That is the main reason why so many people prefer other methods for making a profit on the crypto market, such as trading, which is the most popular option today. You can click here to learn more about trading with Bitcoin and some other cryptocurrencies.
Mining is a very important process that allows the whole platform to operate efficiently. Every miner has a responsibility to store information on the blockchain by using cryptography and solving mathematical queries. Also, you will need the proper equipment for the faster processing of this data. Both Bitcoin and Ethereum mining processes were very profitable for a long time. We are going to introduce you to some of the most important factors that affect mining efficiency and is there a chance to make a profit from mining these cryptocurrencies in 2024.
You Will Need a Proper Hardware
The main difference between mining the Ether and Bitcoin is related to the required hardware in your PC. The mining of Bitcoin demands a high-end specification and additional equipment specially designed for the mining of this cryptocurrency. Some of the best hardware options for BTC are Ant Miner T9, Bitmain L3, Dragonmint t1, Avalon 6, and more. On the other side, a regular high-quality graphics card along with a good processor and motherboard are enough for efficient mining of Ethereum.
The transaction fees can have a great effect on your profit as a miner. Therefore, you should choose only those exchanges where you can sell crypto with lower fees. This factor is constantly changing according to the current values of BTC and ETH on the market. Both of these digital currencies are very popular on the market, which means that you should never have a problem with selling them. Also, you should always create a calculation related to the potential of profitability from this process before you select which type of token to mine.
Electricity is a Very Important Factor
Since you will have to install high-end upgrades in your PC for proper mining, you can expect higher electricity bills as well. This factor creates a situation where there are many countries in which the expenses of mining a single token are much higher than its price on the market. For example, the expenses of electricity in South Korea for mining the 1BTC are over $25,000, while the current price of it is around $19,000. Also, mining in countries like Germany, Denmark, or the Solomon Islands, where the electricity is cheaper, could make you only a couple of thousands when you mine 1 unit. On the other side, creating a mining station in Venezuela, Saudi Arabia, Kuwait, and many other countries with cheap electricity can provide you with a much bigger profit.
Choose a Reliable Mining Pool
Since the requirements for mining, a single unit in the system became much more complex over years, the chances that you can create 1 BTC or ETH by yourself are very low. Therefore, the best option is to become a part of a big mining pool and share your progression with other people, while all of you will share the reward based on the capabilities. The average mining hardware for Bitcoin will need years to create one block of code, while that chance is improved where many people share their computers to make this process fast and profitable. On the other hand, mining the ETH can be much more profitable with the current speed and cost of electricity. Either way, joining a group on some mining pool can bring you much better success in this field, especially if you want to create an additional income from selling cryptocurrencies.
Which Option is Better?
Both ETH and BTC are very popular on the market, and many people choose to trade with these options. The main factor that can affect your choice is the amount of money you are prepared to invest in the equipment necessary for this process. In that matter, if you are not ready to invest more than $1,000 on the graphics card and other devices, the best solution is to choose ETH. On the other side, people interested in bigger investments could earn more from Bitcoin. For example, you can earn around $1,000 per year from mining ETH with the equipment that costs around $3,000. However, a BTC mining rig that costs the same can make you at least $3,000 annually. In that matter, it might seem like a more affordable solution to choose Ethereum, but Bitcoin can currently bring you significantly higher profit.
The basics related to the method of creating both digital currencies are the same. Also, the difficulty of creating 1 BTC is bigger than in the case of ETH. On the other hand, the price of 1 Bitcoin is around $19,000, while the current value of ETH is near $600. Various factors can affect your profitability in both cases. Moreover, both of these cryptos has the potential to become much more valuable in the future. Nevertheless, the current situation leads to the conclusion that it can be much more effective to invest in the proper gear for mining Bitcoin rather than Ethereum. on the other side, you can create a steady income much faster with a second option.
Besides these two options, you should also check other alternatives because there are some less-known types of cryptocurrencies with great potential to become more expensive over time. According to the most recent trends and researches, the best mining options in 2024 are ZCash, Monero, Grin, Ethereum Classic, and Raven Coin, because these tokens have much faster mining processes which means that you will create more tokens over time, which might bring you even bigger earnings.