Today, many people are interested in the question of how to mine cryptocurrency. It should be noted that this process is quite time-consuming and costly in money, because you need to purchase the necessary equipment, which is very expensive. In our material we will tell you where to start.
How to become a miner
Before you start to get cryptocurrency, you should first find out the main nuances of such earnings. First of all, it should be remembered that in addition to such well-known cryptocurrencies, like bitcoin and ethereum, many others rotate on the stock exchange. The expediency of the choice and further production depends on many factors:
- production complexity (i.e. equipment requirements);
- exchange rate on the stock exchange;
- development prospects.
Therefore, before you make a farm for mining, you must first select the currency that you will mine. For example, if you want to get bitcoins, but you can only use a central processor or a video card, the resulting benefit will not overlap all costs, since in this case you will need more powerful equipment - ASIC. The only drawback of this technique is that it is used only for the extraction of cryptocurrency.
Mining on a home computer with a high-quality and powerful video card can be called a less risky investment. In this case, you can get a cryptocurrency, and use the computer for personal needs.
The main thing is to equip the PC with a powerful video card or several (in this case, it will be possible to increase your earnings).
You will also need good access to the Internet, and you should not use mobile networks in this case, since even the slightest failure can cause a significant decrease in earnings.
Cryptocurrency Mining Step-by-Step Guide
The instruction given by us for "teapots" will allow you to start earning. The main thing is to properly configure and start the system, as we will describe below.
Currency selection
As we have said, the choice of cryptocurrency depends on the profitability, that is, how many coins can be obtained using the available equipment. The second factor is liquidity. If the coins are hard to sell or exchange, you have to spend a lot of effort and finance on it. After selecting a coin, open the wallet.
Pool selection
A pool is a resource that unites those who mine cryptocurrency. With its help, all computational processes are carried out and the remuneration is distributed to participants depending on the power spent. Choosing a pool, you should pay attention to the following points:
- commission amount for withdrawal of funds;
- opportunity to study statistics.
To get started, you must register and get access data.
If you are going to mine on several PCs, it is better for each of them to get an individual login, which will allow you to follow the statistics with convenience.
Also in the service you need to select the appropriate program.
There are two largest pools:
- Deepbit. Its main advantages are high power, as well as the fact that users can choose among two ways to earn money: fixed or proportional.
- Bitcoin The power is weaker, but the rate is fixed - the user gets 12.5 bitcoins for the mined block.
Run and configure
The execution of this procedure depends on the installed OS and on the selected program. For example, if you are working on Linux, the most well-known program is CGMiner, and it doesn’t even have an interface, it is launched via the command line, where the pool address and login data are entered.
More detailed instructions are always on the sites-pools.
Withdrawal to the wallet
To display a cryptocurrency, you must download and install the wallet. He will independently generate a key that cannot be lost, since this is the only way to get to the earned coins. Remember that you can not restore it, and if you lose the key, you will lose access to the cryptocurrency.
From theory to practice
After reviewing the theoretical recommendations given by us, you can proceed to the direct mining. If you are going to mine cryptocurrency at home, we recommend spending money to buy a cooling system (it is better to choose a water one, even though it is quite expensive). This will reduce the noise from the constantly working equipment.
Also remember about the quality of the Internet: it is better to spend a little more money to purchase a powerful router. And if there are possible disruptions in electricity, in order not to lose profits, set up the automatic switching on of the computer, and put the program for the extraction of coins into autoload.
After that, you just have to turn on the computer, start the program by clicking "Start".
If you are just starting to work in this area and are not willing to spend huge amounts of money to acquire the necessary equipment, you can use such a service as "cloud mining".
The owners of such services provide computing power for rent: you just pay them for it and get the bitcoins mined using the power.
No need to buy any equipment, to undergo training: just register with the service, replenish the wallet and that's it. And the greater the amount of your deposit, the higher the income.
This service has one important advantage. For example, in the event of a fall in the exchange rate, when it becomes unprofitable to get cryptocurrency, you can simply stop paying for the rent of a cloud service.
Is it profitable to mine now independently
To understand how profitable it is to engage in bitcoin mining at home, you need to calculate the approximate amount of expenses and try to predict how long they will pay off. Taking into account the fact that since the appearance of this process on the market, there have been many changes, it is necessary to take into account a number of factors that influence the economic viability of this event:
- Due to the increasing complexity of production, it is necessary to constantly acquire more powerful equipment, which naturally affects the cost.
- At home it is very difficult to ensure competitive speed.
- The constant emergence of new members who are direct competitors.
- In case of a sharp fall in value, it will be difficult to cover the invested funds.
It is impossible to answer this question precisely, because so much depends on such factors as:
- rate fluctuation;
- the relevance of the method of obtaining bitcoins;
- cost of electricity.
To calculate the approximate cost, it is best to use special services that can produce a result based on the entered data for these indicators. But it should always be remembered that in the event of a change in the Bitcoin rate, the obtained calculations will not be relevant.
Let's take a closer look at the main costs that will have to be borne by those who decide to make money in this way.
Purchase of equipment
Cryptocurrency mining equipment must be competitive. Due to the fact that today many people are engaged in such earnings, the cost of the equipment necessary for operation has greatly increased. The main equipment that will be needed for work: video card, modules, programs for temperature monitoring, cooling systems.
Electricity
To extract bitcoins, all equipment must work without interruption (and the more powerful the equipment, the more it consumes). As a result, this leads to serious electricity bills.
Home PC Wear
If you will extract cryptocurrency on your own computer, it is worth remembering that in this case the load on the main components of the PC will seriously increase. Due to constantly overheating of the main elements, their wear is accelerated, as a result of which it will be necessary to repair equipment more often, to purchase new elements.
Advantages and disadvantages
Before you start buying equipment for mining, it is advisable to know first its positive and negative sides that can be encountered when mining cryptocurrency.
Among the benefits note:
- Stable income in a passive form, since you can get Bitcoins without human intervention.
- It is not always necessary to spend your own money when mining bitcoins - there are free mining methods, but in this case it is impossible to make a big profit.
But there are also disadvantages:
- With active mining, equipment can quickly fail.
- High power consumption due to the fact that the equipment is constantly running, as a result of which the miners pay huge bills.
- Risk. It is worth noting that investing in cryptocurrency mining is a risky business, because if the Bitcoin rate drops, you can lose all the money invested.
Thus, in order to start mining, you must first invest in the purchase of equipment and only after that get the benefit.
