Mining cryptocurrency is producing virtual currency with the power of computers. The amount of combinations for mining strategies are endless.
If you are a newbie and you want to get into crypto mining in general, there are a few things you should look at. Before you buy your first mining rig or GPU, you should look at:
- the ROI (Return on Investment)
- Price of Cards
- Coin Flexibility and Versatility
- Coin Difficulty
- Mining Efficiency
- Electrical Consumption
Just to name a few. So, let’s take a look at what it takes to start mining crypto.
Understand the Process
The first thing you must learn before mining crypto is to understand how it works. Due to the increase of miners, mining has become less lucrative than it used to be. You need to understand what coin can be mined and which can’t.
Also, you must understand the essential components that cover a mining task. They are the mining software, wallet and hardware.
The market is usually not stable. The prices are super volatile as it goes up and down, so there is no way to predict how much a particular coin will cost in the next year. It could be lower or higher the price, but there can be a rough estimate on how much to expect. Do not forget to track your mining income as throughout the whole process.
Conclusion: Don’t get overwhelmed. There are many aspects to consider.
Price of Graphic Cards
This point correlates to the ROI. You need to think about the kind of cards you want to buy and the resale value. For example, if you’re going to buy newer cards like the Radeon 7, it will cost you $700, and you may sell them when the most recent version of GPU comes out.
Consider the type of cards you want to get and how much they cost. You should also make sure to calculate the resale of the cards in the coming months or years. There might be a need to sell laptop to upgrade to the next level of GPUs that will come out.
Conclusion: Plan for the future in your beginning purchases.
Coin Flexibility and Versatility
There is a difference between AMD cards and NVIDIA cards, and there are coins that are good on each of them.
For example, AMD cards are perfect for kryptonite. NVIDIA has many algorithms associated with it, such as
- Bitcoin Z
- RavenCoin etc.
NVIDIA cards are incredibly versatile in a lot of different coins
It is crucial to consider the kind of coins you want to mine. Not only based on profit, but on what you have to mine them with. Also, consider the ROI on the price of these coins.
Conclusion: Your hardware will determine what you will go after.
The highest amount of electrical cost is up to 20cents per kilowatt-hour, which it is still a profitable deal. Make sure you factor in your cost per kilowatt/ hour and the power consumption that your potential mining rig will take. Figure out how many amps, or power, that you will be utilizing in the process of mining crypto. The cost of electricity and hardware have the most impact on how much profit you will make on your crypto journey.
Conclusion: Be prepared for the cost of searching for your wealth.
Mining Efficiency and Hash Rate
This correlates to the cost per kilowatt/hour, the amount of coins you can mine, and the coin’s profitability. You will need to look at how much MH you are getting per hour and the wattage.
You also need to look at the number of rewards you are getting. For example, if you are mining Ethereum Classic, you will be reaching 0.6332 in 24 hours. And if you are mining Ethereum, you will be getting 0.0206 Ethereum per day.
Conclusion: How much you mine is connected to how much time is going into it.
Not the biggest issue, but it is good to understand the hash rate of the network of the coin you are mining. Miningpoolstats.stream is an excellent website to see how much the entire network of a hash rate is.
It would be best to look at block rewards and mining rewards, then calculate the coin you will make per day on a mining calculator. Because it is not every digital coin can be mined, so make sure you do a lot of research.
Conclusion: Do your research to see which coins are most beneficial for you.
There are many things to consider when starting as a new crypto miner. For any of this to be beneficial, you must be extremely interested in crypto mining. While almost everybody is in it for the money, it is important to be motivated.
Also, keep in mind that crypto mining is not a get rich quick scheme. You are mining for the future, and I hope this article helps you with a bit of perspective.
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