How To Start Mining Cryptocurrency?

Mining 101

by DailyCryptoInfo 212 Views

How To Start Mining Cryptocurrency?

Mining 101

by DailyCryptoInfo 212 Views

You can start off with your PC. There are cryptocurrencies like Monero, Electroneum which promote CPU mining.

Later you can increase the processing capacity which is measured in Hashes/second by upgrading your CPU.

If you want to invest some amount, then you can go for GPU mining. A comparatively more efficient technique. You need to setup a mining rig consisting of basic computer hardware :

Multi PCIe Slot Motherboard,

RAM, CPU, Power Supply,SSD

GPU and Riser Cards to extend the PCIe Slots.

I am also giving you a decent config which can give you atleast 15–20 USD per day on mining ethereum. However, that keeps on fluctuating. You can always go to www.whattomine.com to know which is the most profitable crypto to mine at that time.

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Using WhatToMine’s website you can check how profitable it is to mine selected altcoins in comparison to ethereum or bitcoin. Now, profitability depends on type of miner used. As far as pure return on investment, ASIC miners currently provide the best return. The downside of ASIC miners is that they are not versatile because they are specifically designed to hash a single cryptocurrency algorithm. Also, they typically do not keep resale value as well as GPU miners because graphic cards can be sold to video gamers directly to recoup some of the cost.


With that in mind, there are basically a couple ways. I’ll outline them first, then explain a bit more below.

You can use an existing computer you own, or build or buy a mining rig of your own - In this option you’ll buying a completely build mining rig or parts and assembling it on your own. Then, you’ll learn about mining software and likely how to select a pool for the cryptocurrency you wish to mine.
You can buy a mining contract - In this option as opposed to investing in hardware you’ll instead be buying a contract that allows you to mine using someone else’s hardware. This is generally done through large operations. One that you may have heard of is Genesis Mining. The contract has a price and a length of time commitment.

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ASIC mining dominates mining of Bitcoin and Litecoin; using an off-the-shelf computer to mine Bitcoin or Litecoin wouldn’t be putting it to good work. They wouldn’t do nearly what an ASIC miner can do for the same amount of investment.

ASIC miners don’t look like a traditional computer. They’re a bit smaller, and are a self-contained unit for the most part. A good example for reference would be BitMain’s Antminer S9.

Making the Decision what to Mine

  1. Decide WHY you are mining - are you mining as a hobby or to support the ecosystem, or are you in it to make money? This will help determine what you’re willing to invest (if anything) to get started.
  2. Identify WHAT you want to mine - your motives from #1 will help with this more than anything. This is likely going to require some education on your part.
  3. Determine to use/build/buy or lease - Whether you are mining a GPU-friendly cryptocurrency or an ASIC-based one, you still have that option of using hardware you have, buying it, building it, or leasing it.
  • If you are going to mine from your own home make sure you understand the power requirements and impacts on your electric bill.
  • If you are going to lease be sure you understand the terms of the contract.
  • Finally, the biggest difference between leasing, or contract mining, and mining on your own is the hardware. In leasing, you forgo both the risk and the benefit of owning your own hardware. In owning, you take that risk on. The reason miners take that risk on themselves is because once the hardware is paid off, assuming component failures are nominal, the cost of mining is just electricity at that point. Those contracts at Genesis Mining do work out if you do the math. But, at the end of the contract, of course, Genesis has the hardware, not you. That doesn’t make it bad or good; it’s just a fact you need to be clear on.
  1. Learn about the path you’ve chosen - Whether you choose to use a company like Genesis Mining and get a mining contact, or get hardware of your own, you’ll want to educate yourself about how all this works. Things you should focus on:
  • What cryptocurrency is at a high level.
  • How cryptocurrency functions and the role of miners.
  • How and where to store your cryptocurrency (a wallet).
  • How to calculate profitability.

Hopefully you find mining to be a great experience. I hope that what is outlined above helps you grasp the options available. To that end, there is of course on other option: Don’t mine.

See also: Which cryptocurrency mining is best

See also: How profitable is mining cryptocurrency

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