There are several types of crypto mining, primarily categorized by the hardware used (CPU, GPU, ASIC) and operational methods (Solo, Pool, Cloud), all centered around Proof-of-Work (PoW) or newer consensus mechanisms like Proof-of-Stake (PoS); the main distinctions involve using general-purpose processors (CPU/GPU), specialized machines (ASICs), renting power (Cloud), or working in groups (Pools).
By Hardware (for Proof-of-Work)
By Hardware (for Proof-of-Work)
- CPU Mining: Uses your computer's central processor; now largely inefficient for major coins but good for some smaller ones.
- GPU Mining: Uses powerful graphics cards, more efficient than CPUs, popular for altcoins.
- ASIC Mining: Employs Application-Specific Integrated Circuits, highly efficient for specific algorithms (like Bitcoin's SHA-256) but less versatile.
- Solo Mining: Mining independently, keeping all rewards but facing a lower chance of finding a block.
- Pool Mining: Joining a group (pool) to combine power, sharing rewards proportionally.
- Cloud Mining: Renting computing power from a company, avoiding hardware costs but with potential contract issues.
- Browser Mining/Mobile Mining: Using a web browser or mobile app to mine is generally very low-power/low-profit.
- Proof-of-Stake (PoS): Not technically "mining," but validating transactions by "staking" (locking up) coins, used by newer blockchains like Ethereum.
- Delegated Proof-of-Stake (DPoS): A variation where users vote for delegates to validate transactions.