OMining is one of the most effective ways to earn decent income on cryptocurrency. It allows you to operate the network and earn tokens as rewards. However, before you start mining, you need to answer a few questions: what type of mining is the most efficient? How to identify benefits? What hardware to mine? What cryptocurrency? In other words, you need a strategy.
To start mining on your own, you will need three things: mining hardware (central processing unit (CPU), graphics processing unit (GPU) or ASIC), mining software, and a mining client/wallet. cryptocurrency.
Different types of cryptocurrencies may require different hardware to achieve the best results. For example, ASIC equipment is configured to confirm transactions for cryptocurrencies such as Bitcoin and Bitcoin Cash. For cryptocurrencies like Ethereum, Zcash, and BitcoinGold, Graphics Processing Units (GPUs) are fine.
To choose mining software, you need to understand the algorithms and hardware it supports.
Deciding which mining equipment to buy, which mining software to choose and whether it is better to mine by joining a mining pool or by taking risks and starting a solo journey is a much more serious question that can also be researched, for example, on popular cryptocurrency forums. Experienced miners will gladly share their experience with a newbie, depending on your needs.
5 steps of the mining process:
Open an electronic crypto wallet;
Configure the equipment using special software;
Connect to a miner pool (if required, depending on the coin); Run the program.
Bitcoin is one of the most popular and profitable cryptocurrencies for mining. The largest mining farms are located in China (although some have already migrated to Europe and Canada), and their scale is exceptional. Mining BTC on a personal computer is an obviously losing business, hence the need for farms.
Most suitable equipment – ASIC, powerful and energy efficient. Namely, the ASIC S19Pro, Antminer S19Pro, Antminer S17+, Antminer S19j and WhatsMiner M30S models.
How much can you earn?
As of August 2022, the price of BTC is around $24,000, which means you could theoretically earn $150,000 (6.25 x 24,000) per block.
To calculate how much you can earn today mining bitcoins on a specific piece of equipment, you need to know the following: hash rate, daily cost per BTC, power consumption of the equipment and cost per kWh . For convenience, it is easier to use one of the many calculators that are in the first place in Google.
Important to know that in addition to buying, fitting out and installing equipment, care must be taken over maintenance, sound and heat insulation, unforeseen expenses (repairs), and also take into account the rise in the price of electricity. Would mining be profitable? Certainly yes, but taking into account that you know this “inner kitchen”, or hire a consultant to advise you, then you could have an impressive capital to start and manage your farm.
Is it possible to mine cryptocurrency without a big starting capital? If you are looking to make your initial mining capital.
There is an alternative: cloud mining.
Cloud mining is an alternative to the traditional method of mining cryptocurrency using special equipment. You rent the required amount of energy from the owners of the mining farm, in return – you passively accumulate cryptocurrency. However, you should be careful and choose only trusted services.
One of the main representatives of cloud mining is Sun Mining. They were one of the first to start mining cryptocurrency using solar power. A wide range of contracts (ability to rent) and sponsorship levels makes this service accessible to anyone who wants it.
First, you must register on the site and familiarize yourself with the equipment and contracts available (they differ in price, contract length, amount of electricity leased, and baseline). The more capacity you rent, the higher your profit. Next, you need to decide what you want to do with the bitcoins after mining – you can store them on an exchange or wallet, use them as a long-term investment, or immediately convert them into currency. Act according to your needs.