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As different Crypto-Currencies have different underlying Algorithms (e.g. SHA256, Scrypt, CryptoNight, etc : Source). Does this mean that if I am looking to buy cryptocurrency mining hardware, I need to decide the hardware after I decide which currency I am looking to mine? For example, a GPU setup may be good for Ethereum but for LiteCoin, I need some ASIC hardware?
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Yes, it is true that different coins can require entirely different mining hardware. Some coins use sha, scrypt or some other algorithm; others use a different protocol altogether; and some are privately mined and can only be purchased.
If you want to participate in mining, you need to settle on a coin first. One consideration is whether the hardware for that coin can easily be turned toward a different coin. A lot of coins use sha or scrypt, so you'll have a lot of choices if you choose one of those.
After that comes the difficult and highly speculative part: the profit analysis. Good luck and happy mining.
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Yes, decide coins first then the hardware. As for Ethereum, they will soon be switching over to Proof-Of-Stake(not mineable). As for LiteCoin, anything other than Antminer L3+ will be a waste of time and money. You can check with mining calculator to determine if your intended setup is profitable.
– Chak – 2017-12-13T15:16:50.280Predict how much the coins will be worth ten years later. Choose coins while keeping this in mind. – MCCCS – 2017-12-13T16:34:17.087