Cryptocurrency Mining: The Complete Guide

What Is Cryptocurrency Mining and How It Works

Cryptocurrency mining is the process by which new coins are created and transactions are verified and added to a blockchain. Miners use computational power to solve complex mathematical puzzles, and in return they receive newly minted cryptocurrency as a reward. Mining is the backbone of Proof of Work (PoW) blockchains — the consensus mechanism that Bitcoin, Litecoin, and several other major cryptocurrencies rely on to operate without a central authority.

At a fundamental level, mining serves two critical functions: it secures the network by making it computationally expensive to attack, and it provides a fair and decentralized method of distributing new coins into circulation. Without miners, Proof of Work blockchains would cease to function.

Proof of Work Explained

Proof of Work is the original consensus mechanism, introduced by Bitcoin's creator Satoshi Nakamoto in 2008. Here is how the process works step by step:

1. Transaction collection: Miners gather unconfirmed transactions from the network's memory pool (mempool) and assemble them into a candidate block
2. Hash puzzle: Each miner attempts to find a special number called a nonce that, when combined with the block data and passed through a cryptographic hash function (SHA-256 for Bitcoin), produces a hash value below a target threshold
3. Brute force computation: Because hash functions are one-way, the only method is trial and error — miners compute billions of hashes per second, each with a different nonce, hoping to find one that satisfies the difficulty target
4. Block discovery: The first miner to find a valid nonce broadcasts their block to the network. Other nodes verify that the hash is valid and the transactions are legitimate
5. Reward: The successful miner receives the block reward (newly minted coins) plus all transaction fees from the included transactions
6. Difficulty adjustment: The network periodically adjusts the difficulty target to maintain a consistent block time (approximately 10 minutes for Bitcoin), regardless of how much total computational power is on the network

Why Mining Requires So Much Energy

The security of Proof of Work is directly proportional to the amount of computational effort required to produce blocks. To reverse a confirmed transaction, an attacker would need to redo all the work that went into the block containing that transaction plus every subsequent block — faster than the rest of the network combined. This makes attacks prohibitively expensive, but it also means legitimate mining consumes enormous amounts of electricity. Bitcoin mining alone consumes roughly as much electricity as a mid-sized country.

Mining Hardware Evolution: CPUs to ASICs

The history of mining hardware is a story of relentless optimization, where each generation delivered orders of magnitude more performance per watt than its predecessor.

CPU Mining (2009 – 2010)

In Bitcoin's earliest days, mining was done using ordinary desktop CPUs. Satoshi Nakamoto mined the genesis block on a standard computer. A typical CPU could produce a few megahashes per second (MH/s). At this stage, anyone with a computer could profitably mine Bitcoin. Today, CPU mining is only viable for a handful of cryptocurrencies specifically designed to resist hardware specialization, such as Monero (XMR) with its RandomX algorithm.

GPU Mining (2010 – 2013 for BTC, still active for altcoins)

Miners quickly discovered that graphics processing units (GPUs) were far better suited to the parallel computations required for hashing. A single GPU could deliver 10 to 100 times the hash rate of a CPU. GPU mining democratized the process somewhat — gamers and enthusiasts could repurpose their graphics cards. GPUs remain the dominant hardware for mining many altcoins, including Ravencoin (KawPow), Ethereum Classic (Etchash), and others.

FPGA Mining (2011 – 2012, resurgent in niche coins)

Field-Programmable Gate Arrays (FPGAs) offered a middle ground between GPUs and dedicated hardware. FPGAs are chips that can be reprogrammed for specific tasks, providing better efficiency than GPUs while retaining some flexibility. They saw brief popularity for Bitcoin mining before being supplanted by ASICs, but have seen a resurgence in mining coins with less-established algorithms where dedicated ASICs do not yet exist.

ASIC Mining (2013 – present)

Application-Specific Integrated Circuits (ASICs) are custom-built chips designed to do one thing and one thing only: mine a specific hashing algorithm as efficiently as possible. ASICs made all previous hardware obsolete for Bitcoin mining practically overnight. Modern Bitcoin ASICs deliver terahashes per second (TH/s) while consuming a fraction of the electricity per hash that GPUs required. The major ASIC manufacturers include Bitmain (Antminer series), MicroBT (Whatsminer series), and Canaan (Avalon series).

Types of Mining: Solo, Pool, and Cloud

There are three primary approaches to cryptocurrency mining, each with distinct trade-offs in terms of cost, complexity, and reward consistency.

Solo Mining

In solo mining, you operate independently and compete against the entire network to find blocks. When you successfully mine a block, you keep the entire block reward and all transaction fees. However, for major cryptocurrencies like Bitcoin, the odds of a solo miner finding a block are astronomically low — you could mine for years without earning a single reward. Solo mining is only practical for coins with very low network difficulty or for miners with very large hash rate operations.

Pool Mining

Mining pools aggregate the hash power of many miners, dramatically increasing the collective chance of finding blocks. Rewards are then distributed among pool members proportional to their contributed hash rate. Pools charge a fee (typically 1–3%) but provide much more consistent, predictable income. For the vast majority of miners, pool mining is the only sensible approach.

Cloud Mining

Cloud mining involves renting hash power from a provider that operates the actual hardware in a data center. You pay a contract fee and receive a share of the mined coins. While this eliminates the need for hardware, electricity management, and technical knowledge, cloud mining has a troubled history — many providers have turned out to be scams, and legitimate contracts often deliver lower returns than simply buying the cryptocurrency directly.

Feature	Solo Mining	Pool Mining	Cloud Mining
Upfront cost	High (hardware + setup)	High (hardware + setup)	Low to medium (contract fee)
Technical knowledge	High	Medium	Low
Reward consistency	Very low (all-or-nothing)	High (regular payouts)	Medium (depends on provider)
Fees	None	1 – 3% pool fee	Embedded in contract price
Hardware control	Full	Full	None
Scam risk	None	Low (verify pool reputation)	High (many fraudulent providers)
Best for	Large-scale operators, low-difficulty coins	Most individual miners	Beginners willing to accept lower returns

Top Mineable Cryptocurrencies in 2026

While thousands of cryptocurrencies exist, only a subset use Proof of Work and are actively mined. Here are the most significant mineable cryptocurrencies, ranked by market relevance.

Cryptocurrency	Algorithm	Hardware	Profitability	Network Difficulty
Bitcoin (BTC)	SHA-256	ASIC only	Moderate (requires cheap electricity)	Extremely high
Litecoin (LTC)	Scrypt	ASIC only	Low to moderate	High
Dogecoin (DOGE)	Scrypt (merge-mined with LTC)	ASIC only	Low to moderate (bonus on top of LTC)	High
Kaspa (KAS)	kHeavyHash	ASIC (GPU being phased out)	Moderate to high	Medium-high (growing rapidly)
Ethereum Classic (ETC)	Etchash	GPU or ASIC	Low to moderate	Medium
Monero (XMR)	RandomX	CPU (by design)	Low (best for privacy, not profit)	Medium
Ravencoin (RVN)	KawPow	GPU	Low	Low-medium

Mining Profitability: How to Calculate Whether Mining Pays

Mining profitability depends on several interconnected variables. Understanding these factors is essential before investing in any mining operation, no matter how small.

The Core Variables

• Hash rate: Your hardware's computational output, measured in H/s, KH/s, MH/s, GH/s, or TH/s depending on the algorithm. Higher hash rate means a larger share of the network's total mining power and more frequent rewards
• Electricity cost: Measured in kilowatt-hours (kWh), this is typically the single largest ongoing expense. Mining profitability varies dramatically based on local electricity rates — the difference between $0.04/kWh and $0.12/kWh can determine whether an operation is profitable or losing money
• Network difficulty: A measure of how hard it is to find a valid block hash. Difficulty adjusts automatically based on total network hash rate — as more miners join, difficulty increases and your share of rewards decreases
• Block reward: The number of new coins minted per block. For Bitcoin, this started at 50 BTC and halves approximately every four years (currently 3.125 BTC after the April 2024 halving)
• Coin price: The market value of the mined cryptocurrency. Even if you mine profitably in coin terms, a price decline can wipe out gains when measured in fiat currency
• Hardware cost: The initial investment in mining equipment, which must be amortized over its useful life (typically 2–4 years for ASICs, 3–5 years for GPUs)
• Pool fees: Typically 1–3% of your mining rewards go to the pool operator

The Profitability Formula

Daily mining revenue can be estimated with this simplified formula:

Daily Revenue = (Your Hash Rate / Network Hash Rate) × Daily Block Rewards × Coin Price

Daily Profit = Daily Revenue − Daily Electricity Cost − Pool Fees

For a complete picture, factor in hardware depreciation:

Monthly Profit = (Daily Profit × 30) − (Hardware Cost / Expected Lifespan in Months)

Break-Even Analysis

Before purchasing hardware, calculate your break-even point — the time it takes for cumulative mining revenue to exceed the total cost of hardware plus accumulated electricity. A common benchmark is that mining hardware should pay for itself within 12–18 months. If the break-even timeline stretches beyond 24 months at current prices and difficulty, the investment carries significant risk because hardware efficiency improves rapidly, potentially rendering your equipment uncompetitive before it pays for itself.

Setting Up a Mining Rig: Step-by-Step Hardware Guide

Building a mining rig is a hands-on project that requires both technical knowledge and careful planning. This section walks through the process for a GPU mining rig, the most accessible entry point for individual miners.

Step 1: Define Your Budget and Goals

Before purchasing any components, decide how much you are willing to invest and which cryptocurrency you plan to mine. Your target coin determines the algorithm, which in turn dictates the optimal hardware. A basic GPU mining rig can be built for $2,000–$5,000, while a competitive multi-GPU setup can cost $8,000–$15,000 or more.

Step 2: Select Your GPUs

The GPU is the most important component of your rig. Key factors to evaluate:

• Hash rate: Higher is better for your target algorithm
• Power consumption: Measured in watts — directly impacts electricity costs
• Efficiency: Hash rate per watt (MH/W or similar) — the single most important metric for profitability
• VRAM: Some algorithms require minimum VRAM (e.g., Etchash requires 4GB+, with DAG size growing over time)
• Price and availability: Factor in market conditions — GPU prices fluctuate with mining demand

Step 3: Choose Supporting Components

• Motherboard: Select a board with enough PCIe slots for your planned number of GPUs. Mining-specific motherboards like the ASUS B250 Mining Expert support up to 19 GPUs
• CPU: A basic, low-power CPU is sufficient — the GPUs do the heavy lifting. An Intel Celeron or AMD Athlon is adequate
• RAM: 8GB is sufficient for most mining operating systems
• Storage: A small SSD (120–240GB) for the operating system and mining software
• Power supply (PSU): Critical component — calculate total system power draw and add a 20% margin. Use high-quality 80+ Gold or Platinum rated units. For multi-GPU rigs, you may need server-grade PSUs or dual PSU setups
• PCIe risers: USB-powered risers connect GPUs to the motherboard when physical space prevents direct installation
• Frame: Open-air mining frames provide better airflow than enclosed cases. Aluminum frames are lightweight and effective

Step 4: Assembly and Ventilation

Assemble the rig in a well-ventilated area. Mining GPUs generate substantial heat — a six-GPU rig can produce 1,500 watts or more of heat, equivalent to a large space heater running continuously. Ensure adequate airflow with additional fans, and consider the ambient temperature of your mining location. Ideal operating temperature for GPUs is below 70°C under load.

Step 5: Install the Operating System and Mining Software

You have several options for your mining operating system:

• Windows 10/11: Familiar and easy to set up, but less stable for long-term unattended mining
• HiveOS: Purpose-built Linux-based mining OS with remote management, monitoring, and auto-switching. Free for up to 4 rigs
• minerstat: Similar to HiveOS with a web-based dashboard for fleet management
• SimpleMining: Lightweight Linux mining distribution with easy setup

Mining Pool Comparison

Choosing the right mining pool affects your rewards, payout frequency, and overall experience. Here are the top pools organized by cryptocurrency.

Pool	Supported Coins	Fee	Payout Method	Min. Payout
Foundry USA	BTC	0%	FPPS	0.01 BTC
F2Pool	BTC, LTC, ETC, KAS, + 40 more	2 – 4%	PPS+	0.005 BTC
Antpool	BTC, LTC, ETC, DOGE	1 – 4%	PPLNS / PPS+	0.001 BTC
ViaBTC	BTC, LTC, ETC, KAS, DOGE	1 – 4%	PPS+ / PPLNS	0.001 BTC
2Miners	ETC, RVN, KAS, XMR, + 20 more	1%	PPLNS / Solo	Varies by coin
Litecoinpool	LTC (merge-mines DOGE)	0%	PPS	0.01 LTC
P2Pool (XMR)	XMR	0%	PPLNS (decentralized)	~0.0003 XMR

Electricity Costs and Environmental Concerns

Electricity is the dominant ongoing cost of mining and the primary source of environmental criticism. Understanding the energy dimension of mining is essential for both profitability analysis and informed participation in the broader debate.

Electricity Costs by Region

Mining profitability varies enormously by location due to electricity price differences:

• Cheapest regions: Parts of the Middle East, Central Asia, and select US states (Texas, Wyoming, Washington) offer rates below $0.05/kWh, making large-scale mining viable
• Moderate regions: Most of the United States ($0.08–$0.15/kWh), Canada, and Northern Europe fall into a range where profitability depends heavily on hardware efficiency and coin prices
• Expensive regions: Western Europe ($0.20–$0.40/kWh), Japan, and Australia generally make mining unprofitable except for the most efficient operations or during bull markets

Environmental Impact

Bitcoin mining's energy consumption is a legitimate concern. The network consumes an estimated 120–180 TWh annually, comparable to the electricity usage of countries like Argentina or Norway. However, the environmental picture is nuanced:

• Renewable energy adoption: Industry estimates suggest that 50–60% of Bitcoin mining now uses renewable energy sources, driven by the economic incentive to find the cheapest power available — which is increasingly solar, wind, and hydroelectric
• Stranded energy utilization: Miners can monetize energy that would otherwise be wasted, such as flared natural gas at oil wells or excess hydroelectric power in remote areas during low-demand seasons
• Grid stabilization: In Texas and other deregulated energy markets, miners act as flexible load — they can rapidly shut down during peak demand periods, helping to stabilize the grid
• E-waste: ASIC miners have a limited useful lifespan (2–5 years) and are difficult to repurpose, creating an electronic waste problem

The Bitcoin Halving Cycle and Mining Economics

The Bitcoin halving is the single most important event in Bitcoin mining economics. Approximately every 210,000 blocks (roughly every four years), the block reward paid to miners is cut in half. This is hardcoded into Bitcoin's protocol and is the mechanism that enforces Bitcoin's fixed supply cap of 21 million coins.

Halving History and Impact

• 2009 (Genesis): Block reward: 50 BTC
• 2012 (First halving): Block reward reduced to 25 BTC. Price rose from ~$12 to ~$1,100 over the following year
• 2016 (Second halving): Block reward reduced to 12.5 BTC. Price rose from ~$650 to ~$20,000 over the next 18 months
• 2020 (Third halving): Block reward reduced to 6.25 BTC. Price rose from ~$8,700 to ~$69,000 over the next 18 months
• 2024 (Fourth halving): Block reward reduced to 3.125 BTC. The current halving cycle is still playing out
• ~2028 (Fifth halving): Block reward will reduce to 1.5625 BTC

Impact on Mining Economics

Each halving instantly cuts miners' primary revenue source in half. The immediate aftermath typically plays out as follows:

1. Profit squeeze: Miners with the highest costs (oldest hardware, most expensive electricity) become unprofitable and are forced to shut down
2. Difficulty adjustment: As unprofitable miners exit, the network hash rate drops, and difficulty adjusts downward, making mining slightly easier for those who remain
3. Supply shock: The reduced rate of new coin issuance, combined with steady or growing demand, has historically led to significant price appreciation in the 12–18 months following each halving
4. New equilibrium: If the price rises sufficiently, mining becomes profitable again even at the reduced block reward, and hash rate recovers and eventually exceeds pre-halving levels

GPU Mining vs ASIC Mining

The choice between GPU and ASIC mining is one of the most fundamental decisions a miner must make. Each approach has distinct advantages and drawbacks.

Feature	GPU Mining	ASIC Mining
Flexibility	Can mine many different algorithms and coins; can switch freely	Locked to one specific algorithm; cannot be repurposed
Efficiency	Lower hash rate per watt compared to ASICs for the same algorithm	Maximum efficiency for the target algorithm
Initial cost	$300 – $2,000 per GPU; full rig $2,000 – $15,000	$2,000 – $15,000+ per unit
Resale value	High — GPUs can be sold to gamers and creators	Low — rapid depreciation, no alternative use
Noise level	Moderate (manageable in a home environment with good fans)	Very high (70–80+ dB, requires dedicated space or soundproofing)
Maintenance	Moderate (driver updates, thermal paste, cleaning)	Low (fewer components, but parts harder to source)
Lifespan	3 – 5+ years	2 – 4 years (often rendered obsolete by newer models)
Decentralization impact	More accessible to individuals, promotes decentralization	Tends toward centralization (manufacturing concentrated in few companies)
Best for	Altcoin miners, flexibility seekers, home miners	Bitcoin/Litecoin miners, large-scale operations, maximum efficiency

Mining Software Guide

Mining software connects your hardware to the blockchain network (or mining pool) and manages the actual hashing process. The right software can make a meaningful difference in hash rate, stability, and ease of use.

CGMiner

One of the oldest and most established mining programs. CGMiner is open-source, written in C, and supports ASIC and FPGA mining. It runs on Windows, Linux, and macOS. While powerful, CGMiner uses a command-line interface and has a steep learning curve for beginners. It is widely used for Bitcoin ASIC mining and offers advanced features like fan speed control, overclocking, and remote management.

NiceHash

NiceHash is not a traditional miner — it is a hash power marketplace that automatically benchmarks your hardware and sells your hash rate to the highest bidder. You get paid in Bitcoin regardless of which coin your hardware is actually mining. NiceHash offers the lowest barrier to entry of any mining solution: install, click start, and receive Bitcoin. The trade-off is that NiceHash takes a larger cut than mining directly, and you have no control over which coins are being mined. It is ideal for beginners and those who simply want the easiest path to mining income.

PhoenixMiner

A highly optimized GPU miner focused on Ethash-family algorithms (Etchash for Ethereum Classic). PhoenixMiner is known for delivering slightly higher hash rates than competitors on the same hardware, with extensive overclocking and tuning options. It supports both AMD and NVIDIA GPUs and offers dual mining capabilities (mining two coins simultaneously on the same GPU). Closed-source, with a built-in 0.65% developer fee.

T-Rex Miner

A popular closed-source NVIDIA GPU miner that supports a wide range of algorithms including KawPow (Ravencoin), Etchash (Ethereum Classic), Autolykos2 (Ergo), and many others. T-Rex is known for excellent NVIDIA optimization, stability, and a built-in web interface for monitoring. It charges a 1% developer fee. T-Rex does not support AMD GPUs — AMD users should look at TeamRedMiner or lolMiner instead.

Other Notable Mining Software

• TeamRedMiner: Optimized specifically for AMD GPUs, supporting Etchash, KawPow, and other popular algorithms
• lolMiner: Supports both AMD and NVIDIA GPUs with good performance across a broad range of algorithms
• XMRig: The standard CPU miner for Monero (RandomX algorithm), also supports GPU mining for some algorithms. Open-source with an optional developer donation
• BFGMiner: Similar to CGMiner but with additional features for FPGA and ASIC miners, including dynamic clocking and monitoring

Legal Considerations and Tax Implications of Mining

Cryptocurrency mining exists in a complex and evolving legal landscape. Regulations vary widely by jurisdiction, and miners must understand both the legality of their operations and their tax obligations.

Legal Status by Region

• United States: Mining is legal in all states, though some states have enacted specific regulations. New York imposed a moratorium on new PoW mining operations that use fossil fuel-powered energy, and some municipalities have enacted zoning restrictions or electricity surcharges for mining operations
• European Union: Mining is legal but subject to increasing environmental scrutiny. The EU's Markets in Crypto-Assets (MiCA) regulation does not ban mining but requires disclosure of energy consumption and environmental impact
• China: Mining was banned in 2021. Operating a mining facility in China is illegal and subject to criminal penalties
• Russia: Legal in designated regions with specific licensing requirements. Russia has become one of the largest Bitcoin mining countries following a 2024 law legalizing mining in certain energy-surplus regions
• El Salvador: Mining is encouraged, particularly using geothermal energy from volcanoes, as part of the country's Bitcoin adoption strategy

Tax Treatment of Mining Income

In most jurisdictions, mined cryptocurrency is treated as taxable income at the fair market value of the coins at the time they are received. Key tax considerations include:

• Income tax: Mined coins are generally taxable as ordinary income (or self-employment income if mining is a business activity) when received
• Capital gains tax: When you later sell mined coins, any appreciation from the value at the time of mining is subject to capital gains tax
• Deductible expenses: Mining-related costs may be deductible if you treat mining as a business — including electricity, hardware depreciation, rent for mining space, cooling equipment, and internet costs
• Self-employment tax: In the US, if mining constitutes a trade or business, net mining income is subject to self-employment tax (15.3%) in addition to income tax

Record-Keeping Requirements

Maintain detailed records of all mining activity including: dates and amounts of coins received, fair market value at time of receipt, electricity costs, hardware purchase receipts, pool fees paid, and any coins sold or exchanged. Crypto tax software such as Koinly, CoinTracker, or TokenTax can automate much of this tracking by connecting to wallet addresses and exchange accounts.

The Future of Mining After Ethereum's Transition to PoS

Ethereum's transition from Proof of Work to Proof of Stake in September 2022 ("The Merge") was the most significant event in mining history since Bitcoin's launch. Ethereum had been the most profitable GPU-minable cryptocurrency, and its departure from PoW sent shockwaves through the mining industry.

The Post-Merge Mining Landscape

When Ethereum moved to PoS, an enormous amount of GPU hash power — previously earning billions of dollars annually — was suddenly without a home. The immediate effects were dramatic:

• Hash rate migration: GPU miners flooded into alternative coins like Ethereum Classic, Ravencoin, and Ergo, causing their difficulty to spike 5–10x overnight and cratering individual miner profitability
• GPU price collapse: Used GPUs flooded the secondary market, with prices dropping 50–70% as miners liquidated hardware
• Industry consolidation: Many small and medium mining operations shut down, unable to find profitable alternatives
• New coin emergence: Projects like Kaspa gained significant traction by attracting displaced mining hash power with favorable economics

Where Is Mining Headed?

Several trends are shaping the future of cryptocurrency mining:

• Bitcoin dominance: Bitcoin mining continues to grow and professionalize, with publicly traded mining companies, institutional investors, and sovereign adoption (El Salvador). The mining industry is increasingly industrial-scale
• Renewable energy integration: Mining operations are increasingly co-located with renewable energy sources. Some miners are building their own solar farms or partnering with wind energy providers to lock in cheap, clean electricity
• Regulatory evolution: Expect more jurisdictions to establish clear regulatory frameworks for mining, including environmental impact requirements, licensing regimes, and energy consumption reporting
• AI and mining convergence: Some mining companies are pivoting to offer AI computing services alongside or instead of cryptocurrency mining, leveraging their existing GPU infrastructure and energy access
• Shrinking GPU mining market: As more algorithms get ASIC miners developed for them, the window for profitable GPU mining continues to narrow. Miners who value flexibility should watch for new ASIC-resistant projects

Mining Alternatives: Other Ways to Earn Crypto

If the costs, complexity, or environmental impact of mining give you pause, several alternative methods allow you to earn cryptocurrency using your existing hardware or capital.

Staking

Staking is the Proof of Stake equivalent of mining. Instead of contributing computational power, you lock up tokens as collateral to help secure the network and validate transactions. Staking requires no specialized hardware, uses negligible electricity, and provides relatively predictable returns (typically 3–15% APY depending on the network). Ethereum, Solana, Cardano, Polkadot, and Cosmos are among the most popular staking networks. For a complete guide, see our Staking Guide.

Running Nodes

Some blockchain networks reward participants for running full nodes that store and propagate blockchain data. While most major blockchains do not directly pay node operators (running a Bitcoin full node, for example, earns no direct income), several newer projects have incentivized node operation:

• Flux: Rewards node operators for providing decentralized compute infrastructure
• Presearch: Pays node operators who help power their decentralized search engine
• Pocket Network: Rewards nodes that serve RPC requests for blockchain applications
• Helium: Rewards hotspot operators who provide wireless network coverage (IoT and mobile)

Providing Bandwidth and Storage

Decentralized infrastructure networks (sometimes called DePIN — Decentralized Physical Infrastructure Networks) reward participants for contributing physical resources:

• Filecoin / Arweave: Earn tokens by providing storage space for decentralized file hosting
• Render Network: Earn tokens by contributing GPU power for 3D rendering jobs
• Akash Network: Earn tokens by providing cloud computing resources on a decentralized marketplace
• Grass / Nillion: Earn tokens by contributing idle bandwidth or compute for AI and data applications

Liquidity Provision and Yield Farming

In decentralized finance (DeFi), you can earn returns by providing liquidity to decentralized exchanges or lending protocols. This involves risk (including impermanent loss and smart contract vulnerabilities) but requires no hardware beyond a wallet. See our DeFi Explained guide for details.