One of the most effective ways to get decent earnings on cryptocurrency is mining. It allows you to keep the network running and earn tokens as a reward. However, before starting mining, you need to answer a few questions: what kind of mining is the most effective? How to identify the benefits? On which hardware to mine? Which 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 cryptocurrency client/coin wallet.
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 suitable.
To choose mining software, you need to understand what algorithms and hardware it supports.
Deciding what mining equipment to buy, what mining software to choose, and whether it is better to mine by joining a mining pool or getting risk and starting a solo journey is a much more serious question that can be additionally searched for, for example, on popular cryptocurrencies forums. Experienced miners will gladly share their experience with a newbie, depending on your needs.
5 Steps of the mining process:
Open an electronic cryptographic wallet;
Set up equipment using special software;
Connect to a pool of miners (if necessary, 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 outstanding. Mining BTC on a home computer is an obviously losing business, hence farms are needed.
Most suitable equipment – ASIC, powerful and energy-saving. Namely, ASIC S19Pro, Antminer S19Pro, Antminer S17+, Antminer S19j, and WhatsMiner M30S models.
How much can you earn?
In August 2022, the price of BTC is around $24,000, which means you could theoretically earn $150,000 (6.25 x 24k.) per block.
To calculate how much you can earn today on bitcoin mining on specific equipment, you need to know the following: the hash rate, the daily cost per BTC, the power consumption of the equipment, and the cost of 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, setting up, and installing equipment, you must take care of maintenance, sound and heat insulation, unexpected expenses (repairs), and also take into account the rising price of electricity. Would be mining profitable? Definitely yes, but taking into account the fact that you know this “inside kitchen”, or hire a consultant to advise, then you might have an impressive capital to start and run your farm.
Is it possible to mine cryptocurrency without a large starting capital? If you are looking to make your initial capital mining.
There is an alternative – it is cloud mining.
Cloud mining is an alternative to the traditional way of mining cryptocurrency with the help of special equipment. You rent the required amount of power 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 major representatives of cloud mining is SunMining. They were one of the first to start mining cryptocurrency using solar energy. A wide range of contracts (capacity for rent) and referral levels makes this service available to everyone who wants to do it.
Firstly, you need to register on the site and familiarize yourself with the equipment and available contracts (they differ in price, contract duration, amount of rented power, and referral level). The more capacity you rent, the higher your profit is. Next, you must decide what you want to do with bitcoins after mining – you can store them on an exchange or wallet, use them as a long-term investment, or immediately convert them into a currency. Act according to your needs.