Mining cryptocurrencies is a process of solving complex cryptographic problems. By solving these problems, as a miner, you are providing “proof of work,” and you will be rewarded for your work with the digital currency. In the mining process, there are two ways through which you can give “proof of work” through the hash algorithms. One, Scrypt and two SHA – 256. However, there are other lesser hash algorithms which can be used in mining, but these two are the major ones.
The Cryptocurrency Mining Profitability depends to a large degree on how much money you put into it and the kind of equipment that you use. In this post, you will discover on how to mine the digital currency in the most profitable manner.
There are two primary crypto mining rigs. However, depending on the kind of coin that you want to mine and your budget, you can select the rig that will suit your needs.
- ASIC – in many cases, they are sold as ready-made by their manufacturers, and it is a self-contained rig. It comes with a USB and an Ethernet port. For this reason, it is expensive as compared to a self-assembled rig. Moreover, they are mostly manufactured in the US hence if you are outside the US, you will incur an extra cost to import it.
- DIY rig – mostly this is a self-assembled rig, and you can put as many graphics cards as you can. Besides that, you can use any kind of frame when assembling it. For this reason, it is cheaper as compared to the ASIC rig.
Check out these mining rigs;
Digital currency mining consumes a lot of electricity. Therefore, if you are assembling your own mining rig, then you will be getting an ATX power supply unit. So, you need to invest in the most efficient power supply that you can afford.
For this reason, when you are assembling a mining rig, you should know the power requirements of all the apparatus that you intend to use more especially the GPU cards. In addition to that, it is advisable that to make room for extra power capacity that will be able to meet unexpected events which might require more energy to run.
On the other hand, the ASICs can be more economical due to the fact that they are designed in such a way as to do more calculations while using less power. Additionally, they have power adaptors hence they are energy efficient.
Do Your Math
After you have either bought or assembled your mining rig, do your calculations as compared to the amount of energy you are using. You can do this by comparing your electricity bill. If you find out that you are spending more on electricity than what you are earning, then you can know for sure your Cryptocurrency Mining Profitability is low.
Join a Mining Pool
Instead of doing all the mining by yourself, it is advisable that you join a pool. The advantage of entering a pool is that you combine resources for the mining process and hence increasing the Cryptocurrency Mining Profitability. In addition to that, you will get a share from every coin that you mine together. Also, it is easier solving a block as a pool as opposed to an individual.
Mining requires money – that is a fact. Just as we have highlighted above, you need a rig and electricity. However, there are some additional costs that you will incur during the Cryptocurrency Mining Profitability and they are:
- Accessories – you require thing like cables, GPU, and adaptors among others and they cost money.
- Cooling – as mentioned above, mining requires a lot of power. In addition to that, you will need electricity for running the fan or air conditioner in that case for cooling.
- Customs and Delivery – if you want to use an ASIC as your mining rig, you need to import it if you are outside the US. If you are importing an electronic, you must pay the customs and the shipping costs.
For you to calculate the Cryptocurrency Mining Profitability of your mining business, several websites provide mining calculators for Cryptocurrency Mining Profitability calculations. In order for you to know your gain, you will need to know some mining parameters such as the current cost of the currency you are mining, cost of the equipment you are using, hash rates and power consumption. To learn more about the different types of websites that provide profit calculators, read Crypto Mining Calculators.