Long gone are the days where miners had proud beards, were kinda short and hated elves. Gold, gems, rubies and other precious stones were also replaced. Now, in their replacement are rows and rows of PC with the hope of getting money that don’t even exist physically.
Those days, the miners would be risking life and limb. They would also have to be wary of awakening slumbering beasts deep in the mines or attracting horde of orcs and goblins. Now, miners only fear the equally frightening horrors of electricity bills and loss of profit.
Mining is actually the procedure of authenticating other bitcoin transactions, which users (miners) are rewarded in the form of cryptocurrencies.
Here a few pointers before you consider mining:
- Cryptocoin mining is NOT a quick way to made significant money overnight
- It requires time for the underlying cryptocurrencies to appreciate in value over a few years
- Mining is a 24/7 process
- Mining rigs goes for at least $1000+ and can soar up to $4000+ for a decent hash rate\
- But if you set up your rig correctly, you should be able to break even in a year in most casing or even faster if the cryptocurrencies appreciates.
- A mining hardware. To mine efficiently, custom hardware such as the ASIC (Application-Specific Integrated Circuit) is the most common hardware now as it solves the block faster which mines bitcoins faster which equates to faster money. This, coupled with electricity bills proves that ASIC is the best hardware out there making GPU mining financially unwise. Also, ensure that the PC is not suited close to a wall to allow for good air flow.
- A good guide on how to assemble a mining PC https://video.vice.com/en_us/video/motherboard-how-to-build-an-ethereum-mining-rig/594d45dff2295274693adb76
- Get a wallet.To store the wealth that you have amassed from mining, you’ll need an online wallet in relation to what you are mining. So, if you are mining for Bitcoins, then you’ll need a Bitcoin wallet which you can from the Bitcoin website. Be sure to enable two-factor authentication and store the wallet on a computer that doesn’t have internet access or in a memory stick or SD to have the wallet on the go.
- Signing for a mining pool. A mining pool is a way for Bitcoin miners to pool their resources together and cooperate with one another. They then share the block rewards after it is done. You may go a year or more without earning any Bitcoins if you’re not in a pool.
- Install mining software: Mining software available depends on the type of hardware you are using. They are used to run in the command line. Currently, the most popular mining programs are CGminer and BFGminer.
- Mining (finally): Once your miner is configured, you can start mining. Keep an eye on the temperature level as mining generates substantial heat. Your hardware will be kept running 24/7 so it is wise to invest in cooling tubes surrounding the hardware or just have the air conditioner fully running. Mounting fans to cool the case will help as well.
- Monitoring: Like I have mentioned, the probability is a slow and unforeseeable one. The value of these coins can drop and rise at a moment notice. That being said, it’d be wise to monitor the progress of what you earn and the accumulated bills. Always remember that there is no profit unless your gains clear out whatever you have spent for the hardware and bills.