How to start mining
Most of those who for the first time deciding to figure out how to start mining, do not understand exactly from where to start. There is a lot of literature, scattered knowledge and mining proposals on the Internet. Sometimes it is difficult for an inexperienced user to figure out it on his own and it takes months to try to find something sensible and useful on the following topic. Let’s look in details all questions for beginner miners.
Where to start mining?
Mining is the mining of cryptocurrencies. But how exactly do you get it? First, you need to clearly understand what kind of cryptocurrency you plan to mine. Most are targeting bitcoin, but the complexity of mining this cryptocurrency is constantly growing and it takes a lot of power per unit of time to mine 1 BTC. That is, investments in equipment for bitcoin mining are significant and not every beginner can afford to invest such amounts. On the other hand, you can mine bitcoins on ready-made mining farms, which pay off on average in 6-8 months and then work in a plus.
Also read : How Long Would It Take To Mine 1 Bitcoin?
The payback of mining farms depends on the bitcoin rate, and therefore you need to guess the moment when the bitcoin rate starts to grow and then the payback period will be shorter. The pitfall here is the growth of mining difficulty. To mine some coins, you need specialized video cards for mining. For bitcoin and a number of other cryptocurrencies, there are processors called ASICs. Having dealt with the currency that you plan to mine, you can proceed to the choice of equipment.
ASIC miner is a specialized computer for mining bitcoins and other cryptocurrencies, which exceeds the capacity of conventional computers by a factor of thousands. As with early mining on ordinary computers, ASICs are engaged in decoding the blockchain, mining blocks, and so on. The difference lies in the fact that the calculations do not take place with the help of video cards or other devices, but with the help of special chips. Before the advent of ASICs, mining was mainly carried out on video cards. It is also possible to mine on processors, but this type of mining very quickly becomes unprofitable.
The constant increase in the complexity of mining cryptocurrencies and energy consumption led the developers of mining equipment to a revolutionary solution – the creation of specialized chips, ASICs, which would solve a large number of tasks, but at the same time had relatively low power consumption.
Also see : How To Mine Bitcoin On Mac
ASIC stands for “Application Specific Integrated Circuit”. In fact, ASIC is a chip that does only one type of work, but faster and more efficiently than similar chips that perform a variety of tasks. Manufacturers of ASIC miners have developed microcircuits “sharpened” for decoding algorithms underlying the functioning of a particular blockchain.
Mining using video cards
It attracts, first of all, beginners by the fact that a mining farm on video cards can be expanded and modernized over time. If ASICs are usually sold already in a “box”, then the farm on video cards can be expanded by adding new video cards, upgraded by replacing older cards with new ones. You can start with 2 video cards, test, try, seeing the economic indicators and moving on. Usually a farm is assembled for 6 or 8 video cards, but there is no standard requirement for the number of cards, more often all individually from the possibilities. As in the case of ASICs, video card manufacturers began to produce specialized video cards for mining. On average, a video card farm pays for itself in 5-6 months.
Let’s look to some examples of cryptocurrency which you can start mining
Probably you have heard about Bitcoin. It is number one in terms of its market capitalization. But this does not mean that it best in terms of getting profit. If you are not ready to invest millions of dollars on hardware, so it does not worth mining BTC.
Other Crypto currency which you can start mining with great long term potential is Ethereum. Someone believes that EtH will overtake a BTC. ETH is very good in term of long term play.
Monero is a cryptocurrency with a very real use case already in existence in the real world.
There are Lots of Other Coins too!
Certainly, it is not the entire complete list of crypto available to mine. There are a plenty of other coins which you can start mining. And selecting the best coin for you to mine is depends on your goals as a miner.