Interest in cryptocurrency mining is increasing as more coins are available to mine, many offering good investment opportunities. If you would like to learn the important basics of crypto mining, you’re in the right place. This guide will help you through the most important things to know and do.
- Get your hardware
Whilst in the past it was possible to mine crypto with a simple computer graphics card, mining most currencies today requires specialised equipment. ASIC hardware is used to mine Bitcoin and other currencies which use the same algorithm. This equipment does not come cheap, but its speed is astonishing whilst using up less energy than other hardware.
When choosing your rig you need to focus on the following specifications:
Hash Rate / Performance
Check out reviews of individual pieces of hardware to establish the reliability and any other feedback. Be careful not to fall into the trap of choosing solely on price. The hardware’s performance can make a massive difference in the coins you create. Your preferred rig might not be instantly available, as this hardware has a long manufacturing process, so always have a backup if you’re not willing to wait.
- Get your crypto wallet
Once you start mining coins you need a safe place to store them in, and crypto wallets are your best option. There are different kinds of wallets which have particular features and properties. Whichever wallet you choose, make sure that it accepts the currency you are mining. Practically all wallets accept Bitcoin, but you may face more limitations if you mine other coins.
- Get a mining software
The next step is to get yourself a mining client to run on your computer. This software will connect your hardware to the Blockchain network of your chosen currency. You can then start receiving work, send completed algorithms, and upload results to the Blockchain.
- Get into a mining pool
Due to the nature of competitive mining, even the top-end ASIC hardware cannot guarantee that you will be the first to solve an algorithm and receive the coins. This is because you are often competing against groups of ASIC rigs called pools. As the saying goes, if you can’t beat them, join them.
You can join one of these pools and collaborate in order to solve algorithms faster. The coins are then distributed amongst the members, based on the performance of their individual rigs. Although you might receive lower income from pools, it is more regular. Pool owners also normally charge a fee, which is a small percentage of the reward.
Slushpool is one of the best pools for beginners. Apart from being the first mining pool, it has also built a reputation for being reliable, fair, and easy to join.
- Get an exchange account
Once you start mining Bitcoin and other currencies you should open an account with a major exchange suitable for beginners, such as CEX, Indacoin, or Coinbase in order to trade your currency or simply sell it. This will ensure that your investment in mining hardware and resources is duly rewarded.