Hello,
I’m new and trying to understand how to select the right mining to purchase. Also wondering if I’m correct when thinking that if the cryptocurrency is going up in value that mean you will make more money mining it and of course the opposite affect if its value drops you wont?
Thanks in advance
Your assumption is generally correct. The more value a crypto has the more profitable mining it will be. But that’s almost a single layer to the topic.
Knowing what to mine with based on your idea of what might happen in the future is half the magic or gut feeling. This is kind of why many miners recommend starting slow, even if you have 1 million dollars and big dreams. Even with great teachers, experience is the best teacher.
On a simple level you have GPU’s, ASIC’s [SHA-256 & Scrypt] (other people would probably add to that, but keeping it simple…)
A ASIC scrypt miner (Bitmain/L3++ for instance) will mine numerous coins that all use Scrypt hashing. Most people mine LTC with it (or doge) , more adventurous people mine one of the hundreds of others. Obviously people mining non-mainstream Scrypt algo coins think they know something or are investing in a fringe (maybe lucrative) idea.
My point being, I could never explain to you how and why to mine Fireants (ANTS) with a scrypt miner or how/why we would wrapp a Coin into a ERC token network, until you are in the water swimming. Good planning matters, and I’m not saying “go buy” . I’m just suggesting a simple/cheap mainstream miner. I tell everybody “get a HNT miner” , “every miner has one”. But that info is void and lame if you don’t already mine and see the picture (HNT miner is HNT only, can’t be stacking in 1 location [tricky/debatable], has other “tech” issues outside of normal skillset).
I often recommend mining from the home computer or building a rig, first. That idea is getting old and is not as profitable as newer styled miners [debatable]. So … you know… Take it cheap/slow and learn. Run a miner for 1-3 months before you start purchasing a miner army.
Thank you, I will take it slow and continue my research.