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7 Things to Consider Before Buying an ASIC Miner

July 28, 2023


When deciding which ASIC miner to go for, there are several important factors based on which an informed decision can be made. These help you in maximising your mining profitability as well as efficiency. You can ensure that your investment yields optimal results by carefully assessing key aspects such as hash rate, power consumption, and cost and choosing which coin to mine. Considering these factors will guide you toward choosing the right ASIC miner for your mining needs.

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    To leave a footprint in the crypto mining industry, it is essential to optimise the mining processes. Such processes can be optimised using the right set of technology, equipment and infrastructure, as they are ones helping in sustaining the high computational requests. Additionally, one needs to consider several important factors for productive mining operations. One such crucial aspect is selecting the appropriate ASIC miner. This blog will explore things to consider before buying an ASIC miner. By analysing these factors, one can make an informed decision and initiate their mining journey confidently and easily.

    Overview of Different ASIC Manufacturers

    Before diving into the factors worth considering before choosing an ASIC miner, let us explore different Bitcoin ASIC miners from different manufacturers, showcasing their energy efficiency in terms of their measurement in joules per terahash(J/TH). These values hold quite a significance when comparing different mining hardware’s performance and cost-effectiveness.

    Also, it is crucial to consider both the Capital Expenditure(CapEX), which is the initial cost of purchasing the miner, along with the Operational Expenditure(OpEx), which is nothing but the ongoing electricity expense – when it comes to analysing the overall profitability of the mining operation. As the mining space keeps evolving, more efficient models are being released regularly. Some of the popular beings :

    • Bitmain

    Bitmain, a leading manufacturer of Bitcoin hardware, is well-known for the performance of its Antminer series of ASIC miners and their widespread use in the mining community. Bitmain has raised $950M over three rounds of funding. The first funding was initiated on September 04, 2017, and the latest funding was a Series C round on August 13, 2018, for $ 560 M. Bitmain has close to 26 institutional investors, including Sequoia Capital, Coatue, and EDBI, and doesn’t have any Angel Investors. Bitmain’s valuation stands at $14.5B as on August 13, 2018, and it mostly serves in the B2B space in the FinTech, High Tech, and Blockchain Technology market segments.

    • MicroBT

    The Whatsminer series of ASIC miners, which have gained popularity for their efficiency and competitive performance, are produced by MicroBT, one of the rivals of Bitmain. Recently MicroBT unveiled three new mining rigs at the Bitcoin2023 conference in Miami. The WhatsMiner M53S ++ can deliver 320 terahash per second (TH/s) of computing power, having an efficiency of 22 joules per terahash(J/T). The other two models were the M50S++, specifically designed for air cooling, having computing power of up to 150 TH/s, and the other one designed for immersion cooling, which can deliver up to 230 TH/s.

    • Canaan Creative

    Popularly known for its AvalonMiner series of ASIC miners, Canaan Creative seems to offer numerous options when it comes to mining requirements. It is also identified as one that has extensively worked to develop Bitcoin mining hardware. The first mining machine manufacturer to debut on the Nasdaq, Cannan Inc. is said to have developed the first ASIC Bitcoin miner in the world.

    • Goldshell

    To become the best provider of blockchain computing services, Goldshell has developed an effective operating system based on a strong core team with outstanding capabilities, spanning algorithm development, batch production, and delivery.

    The production of the Goldshell HS series, which includes miners like the Goldshell HS1, HS3, HS 1 Plus, and HS3 SE, is one of Goldshell’s notable accomplishments. Due to their impressive performance and small size, these miners have attracted much attention.

    • Innosilicon

    A famous mining equipment maker, Innosilicon produces ASIC diggers for various digital currencies, including the T2 and T3 series explicitly intended for Bitcoin mining. Innosilicon has its Terminator Sha256 Bitcoin mining ASIC series that utilises Samsung Foundry’s advanced low-power FinFET technology.

    What is an ASIC?

    Application Specific Integrated Circuit is abbreviated as ASIC. In layman’s terms, an ASIC is a chip designed to perform a single function, whereas a CPU, for instance, can perform multiple functions. In mining, ASIC is intended to circle through the nonce number( the number used in a hash to confirm the block’s transactions and other data.) as quickly as conceivable to track down the right arrangement and approve a block of exchanges.

    7 Things to Consider Before Buying an ASIC Miner

    Crypto mining can make for a truly productive venture. Placing new coins into the blockchain network and validating those transactions keeps the network going. So it’s nothing unexpected that miners get rewarded for their work. But mining isn’t free and involves a lot of factors worth considering. So, let’s explore the factors in detail before starting to mine cryptocurrency.

    1. Choosing Which Coin to Mine

    Several cryptocurrencies can be mined through the process of mining. However, few are profitable because of intense competition from other miners. Before delving into mining, it is important to set the base of which cryptocurrency one will mine, how it works, whether it is cheaper, power consumption, and other associated factors. The best miner for mining a particular coin changes constantly; before making a purchase, ensure that you do your homework on the best miner and the brand available. Some of the popular PoW coins to mine as per their current market capitalization include : Bitcoin(BTC), Dogecoin(DOGE), Litecoin(LTC), Bitcoin Cash(BCH), Monero(XMR) and more.popular coins

    2. Knowing the Up-Front Costs

    It takes specialised hardware to mine cryptocurrencies. Using the CPU on your smartphone can appear handy, but it is becoming obsolete since it overheats and is inefficient. For mining, a lot of individuals like using GPUs or ASICs. Older ASICs can cost a few hundred dollars, whereas GPUs can range from a few hundred dollars to high-end alternatives in the thousands.

    However, ASIC miners that are more recent and effective can cost as much as a vehicle. Due to the high cost of such gear, completing your homework on how much it will cost you to get started is important.

    3. Evaluating Hashrate

    When purchasing an ASIC miner, it is essential to consider the hash rate. A competitive advantage, faster computations, and increased mining efficiency are all guaranteed by a higher hash rate. It builds the opportunities to effectively mine blocks and earn rewards, improving productivity in the cryptocurrency mining industry. Therefore, maximising an ASIC miner’s mining capabilities and remaining competitive in the market necessitates evaluating its hash rate. For examples popular ASIC mining machines in the market include Bitmain Antminer L7 having a maximum hashrate of 9.5Gh/s, Jasminer X-16 P having a maximum hashrate of 5.8Gh/s, Bitmain Antminer K7 having a maximum hashrate of 63.5Th/s, and more.

    4. The Energy Consumption of Mining

    The cost and energy requirements of cryptocurrency mining may not be suitable for people on a tight budget or concerned about sustainability. Due to initial hardware expenditures and extended usage, power prices may soar. Block time and hash rate matter; longer block periods and higher hash rates use more energy. Selecting technology that uses less energy, such as GPUs rather than CPUs, can reduce the cost of power. To control your energy costs when mining cryptocurrency, consider these factors.

    Both hashrate and power consumption are crucial factors in determining mining efficiency. The formula for the same is Efficiency = Power Consumption / Hash rate.

    5. Quantity of Machines

    There is no right answer to how many machines you should deploy at once. The decision should be strategic and consider your machines’ potential return on investment. Based on your static operational costs and the BTC production based on the TH of the machine, we recommend creating a model that conservatively predicts a steady increase in Bitcoin price and difficulty.

    In mining, there are numerous mistakes to be made. Using capital in stages, you can learn without putting a lot of capital at risk. You can scale more effectively as you gain expertise and experience.

    If you decide to deploy your capital immediately, you will have more leverage to negotiate a better deal with the ASIC seller, hosting provider, and pool operator. Your overall costs would be strategically reduced as a result of this.

    6. Whether to Opt for Solo Mining or Join A Pool

    Solo mining is working alone to mine cryptocurrency, whereas pool mining entails joining a team of miners. Given that rewards are given according to each miner’s participation, pool mining provides a steady revenue stream. The expenses associated with pool mining, however, significantly reduce the overall earnings. Due to decreased computer power, solo mining delivers larger payouts but reduces the likelihood of finding blocks. The decision between the two is based on risk tolerance and financial objectives.

    Top 10 Popular Crypto Mining Pools

    Below listed are some of the popular crypto mining pools as per their share in the entire mining pool community.

    • Foundry USA

    It’s a popular US-based mining pool that is focused on security and reliability, is built by miners for miners, and has an overall stake of 17.2 % in the entire mining pool.

    • AntPool

    It’s the world’s leading BTC mining pool offering users high-quality mining services and having a share of 14.8% in the entire mining pool community.

    • F2Pool

    It’s a geographically distributed mining pool helping miners all over the globe to secure Bitcoin and 40 + other proof-of-work networks since 2015. It has a stake of 14.6 percent among the entire mining pool community.

    • Binance Pool

    Binance pool serves users interested in Bitcoin mining and offers the opportunity to earn rewards with cryptocurrency, having a share of 11.4 % among the entire mining pool community.

    • Poolin

    It’s a popular and multi-cryptocurrency mining pool having a share of 11.2% among the crypto mining pool community.

    • ViaBTC

    It serves as a leading global cryptocurrency mining pool serving users from 130 + countries globally, having a share of 10.7% among the crypto mining pool community.

    • pool is a popular choice for Bitcoin mining, offering stable architecture, lower fees, and better user experience, having a share of 6.5 % among the crypto mining pool community.

    • Slush Pool

    It is another popular choice for Bitcoin mining, offering a customised payout system for miners with a share of 5,8 % among the crypto mining pool community.

    • SBI Crypto

    SBI Crypto pool is a cryptocurrency mining pool and a wholly-owned subsidiary of the publicly traded SBI Group, having a share of 2.6% among the crypto mining pool community.

    • Luxor

    Luxor mining pool is a cryptocurrency mining pool built for advanced miners for industrial and individual mining, with a share of 1.4% among the crypto mining pool community.

    Popular crypto mining pools

    7. Research Before Starting Crypto Mining

    While considering crypto mining as a source of income, it’s important to assess different factors that might impact expenses, profit, and the time expected to earn those benefits. It is essential to conduct extensive research on your preferred cryptocurrency and mining hardware to guarantee a well-informed decision. You will be able to make a well-informed decision and not miss any important details if you consider these points and conduct a thorough analysis.

    7 things to consider before buying an asic miner

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    Summing up we can say that before buying an ASIC miner, there exist several factors that might influence your decision and are crucial to think upon. These include factors like miner’s hashrate, power consumption, cost, reliability and more.

    ASIC miners offer significant advantages over other mining hardware due to their specialised design and high computational power. So, why buy an ASIC miner? Because it provides an efficient and profitable means of mining specific cryptocurrencies, maximising your mining capabilities and potential returns.

    Frequently Asked Questions When Buying an ASIC Miner

    • What to know before buying an ASIC miner?

      Consider the upfront costs, mining profitability, electricity consumption, hash rate, and the cryptocurrency you intend to mine before purchasing an ASIC miner. Additionally, research the miner’s hash rate, energy efficiency, the manufacturer’s reputation, and customer support.

    • Is buying an ASIC miner worth it?

      Purchasing an ASIC miner may be smart if you have access to reasonably priced electricity, have access to cryptocurrencies that are suited for mining, and are aware of the risks involved. Profitability, however, can be impacted by market fluctuations and technical improvements.

    • Is ASIC mining still profitable in 2023?

      Yes, ASIC mining could still be profitable in 2023. Although the general profitability relies upon variables like power costs, coin prices, and mining difficulty, proficient ASIC miners can create considerable profits in specific cryptocurrencies.