Before Starting Mining: Core Decision-Making Framework
The essence of cryptocurrency mining is the process of verifying transactions, protecting the network, and earning rewards through computational power. While this process may seem simple, it involves multiple dimensions of trade-offs—from technical choices to economic costs and environmental considerations. To find the best coins to mine for yourself, you first need to understand the mathematical model behind mining profitability.
Mining Profit = Block Reward × Probability of Winning - Electricity Costs - Equipment Depreciation. This formula determines whether you can profit from mining. To maximize this result, consider the following dimensions:
Key Factors Influencing Mining Choices
Difficulty Level and Hash Rate Requirements
The mining difficulty varies greatly among different cryptocurrencies. Bitcoin, due to its massive total network hash rate, has continuously increasing difficulty, meaning more hardware investment is needed to achieve stable profits. Compared to