A cryptocurrency mining rig is a complicated unit that consists of a computer, specialized software and hardware. It’s used to mine bitcoins and alternative digital coins. Mining is the process of verifying bitcoin transactions on a ledger known as a ‘blockchain’.
Why is Mining Important?
Bitcoin mining was first proposed by its founder, Satoshi Nakamoto. Satoshi argued that verifying transactions made by bitcoin users was the best way to keep transactions transparent and free of abuse. Mining also helps:
- Prevent double spending- Double spending is the possibility that a bitcoin user could make copies of their bitcoins and use the copied coins to complete multiple transactions illegally.
- It’s through mining that new tokens are introduced into the bitcoin system.
How to Get Started in Mining
Anyone can participate in cryptocurrency mining. All you need is a combination of the right hardware and software. Bitcoin miners, however, no longer use the typical GPU rigs used to mine other types of cryptocurrencies. Instead, a bitcoin miner needs to invest in a more sophisticated, ready-made mining rig.
The guide below takes you through a step by step process of how to build a mining rig for altcoins like Etherium. Etherium is one of the top five most common digital coins in the market. It’s also one of the most profitable coins for miners.
- Motherboard – A motherboard is the platform on which your computer’s most important parts such as the CPU are based. It functions as the brain of your computer. For mining purposes, consider a motherboard with many GPU slots. The higher the number of GPU slots, the more graphics cards you can fit in it. On average, a good rig requires a GPU that can hold 3 graphic cards or more.
- Graphic Cards – Graphics cards are the engines that help you verify transactions. You need quality graphics cards and a powerful GPU to verify more transactions. In cryptocurrency language, this process of solving mathematical problems is known as hashing. A hash is the number of math problems your GPU and graphic cards can solve.
- Hard Drive – This is the device that houses your software and normal computer hardware. Since the size of records and software you work with are not huge, an 80GB hard drive could do the job.
- Computer RAM – Have a computer with at least 4GB worth of Random Access Memory. RAM is the hardware that stores temporary data to help your computer load and process records fast.
- Power Supply Unit – A power Supply Unit is the system that distributes power to your GPU and other components on a need to need basis. Calculate the amount of power each component in your rig demands before buying a PSU. Your goal is to buy a PSU that can feed your rig with enough power at all times.
- An optional case – To avoid fire hazards from the heat associated with bitcoin mining, purchase a case. A good case should hold each component in the rig safely while providing room for ventilation. As an alternative option, assemble your components properly and leave your rig open to cool naturally.
- Accessories – These are normal computer accessories such as your computer keyboard and mouse, a monitor and USB cables.
The second step of assembling your mining rig is to install software programs. Get applications specially designed to help you mine Etherium or any other altcoins you are interested in. Take time and research for the most reputable, safe and easy to use software application.
EthOS is a software worth mentioning to people who plan to mine altcoins on a GPU based mining rig. Available exclusively on Linux operating system, the application supports mining for Etherium, Monero, Zcash and a variety of other tokens.
Start the Mining Process
Once you assemble your mining rig, familiarize yourself with the language used in bitcoin mining. Here are some of the terms you will find useful and what they mean.
Solo mining – Solo mining simply means mining bitcoins alone. At the moment, no one still mines bitcoins alone. This is because the adjustments made to complete a blockchain these days make it impossible to make any sensible amount of money.
Pool Mining – A pool is a group of miners who unite to complete blockchains and share rewards.
Bitcoins per block – This refers to the number of bitcoins you get by completing a blockchain. Currently, the rate of Bitcoins per block is 12.5 bitcoins.
Mining difficulty – This is the ease or difficulty of verifying toke transactions. Difficulties increase as more miners join the network.
Hash rate – Refers to the speed at which your mining rig can verify transactions. The more powerful your rig, the higher the hash rates per second it can achieve.
Pool fees – Since you will probably be mining as a member of a pool, expect to charge joining fees or maintenance fees. In a pool, you are paid depending on your hash rate.
Profitability Stability – This refers to the ability to make profits years after you invest in your rig. It’s an important consideration as the higher the number of miners who join your network, the lower the profits you will make down the line.
Coin value – This refers to the value of the coins you mine when compared to the US dollar.
How to make Money with your Mining Rig?
One of the challenges of mining bitcoins in 2018 will be the profitability factor. The cost of setting up a mining rig is too high but profitability in the mining industry keeps going down.
What to do to make Profits
- Invest in quality hardware – Miners with most sophisticated hardware will stand to make more money than those with “outdated for 2018” bitcoin mining rigs.
- Join a great pool – Work with a pool that charges reasonable fees.
- Lower your energy bills – Consider using solar as an alternative means of electricity.
- Keep your rig clean and safe – Ensure that nothing ever damages your mining rig. Its components can be very expensive.
Although mining bitcoin may be painstaking and expensive, most altcoins can offer your great profits using a normal rig. Carry out research to know which coins offer the best rewards for verifying transactions. Hopefully, setting up your actual mining rig won’t give your troubles. But should you experience any issues, consult our guide above. Also, learn new trends in bitcoin mining by reading more articles here.
You can also learn in detail, about the best products to buy for your mining rig here: https://www.abitgreedy.com/