January 30, 2018 by Jacob Tuwiner
Did you know that over 3,000 new Bitcoins are mined every day?
That being said, it’s safe to say you can’t waste any more time before you get in on the action.
Cryptocurrencies are in, and they’re here to stay.
This guide is designed to provide you with the best cryptocurrency mining hardware.
Don’t get left behind, start mining now!
Most Popular Cryptocurrencies:
In today’s economy, every transaction we make must go through a bank or credit card company.
They take a cut of the transaction, and we must believe that they won’t make a mistake.
That’s where Bitcoin comes in.
At the heart of bitcoin, there is a mathematical problem. Miners solve these problems.
Every time a solution is acquired the reward is given as a bitcoin.
Bitcoin, like other cryptocurrencies, is mined with powerful graphics cards.
Ethereum is a platform specifically designed for people to build decentralized applications.
Ethereum has become extremely valuable in the past month, rendering it a great choice for beginner miners.
It allows for peer-to-peer messaging, and a generalized blockchain.
The blockchain has a built in programming language. This allows people to use the blockchain for any kind of decentralized application.
It is online, and cryptographically secure. Similarly to Vertcoin, there aren’t any ASICs designed for Ethereum.
Does this mean you can’t make money? Of course not!
If you’re mining with one of our suggested mining GPUs, you’ll generate over $1,400 annually per card.
Litecoin is a decentralized cryptocurrency. There is a finite amount in existence, only 84 million.
It has low transaction fees and fast transaction times. It can be bought and sold among other people, and through exchanges.
Lastly, it can be spent on almost anything.
With the Antminer specified in our guide, you’ll generate nearly $6,000 annually.
Dash is the first form of digital cash that works like physical cash.
You hold your own money, maintaining full control. You maintain total privacy, and your transactions can’t be tracked.
Furthermore, transactions are instantaneous.
Fees are virtually non-exisistent, as you control your own money.
If you mine with one of the ASICs specified in our guide, you’ll generate over $1,000 per year.
Monero is focused on fungibility and the privacy of its users. With the value steadily increasing, it may be time to consider investing in Monero mining hardware.
If you use one of the mining GPUs specified in our guide, you’ll generate over $1,400 annually!
Unlike bitcoin, Zcash gives the user the option to encrypt the transaction.
This means that the sender address, recipient address, and the amount sent is hidden from public view.
NOTE: There will only ever be 21 million coins, so start mining NOW!
Crypto Mining Guide
This guide will teach you the basics of mining for cryptocurrencies.
These are the 3 MOST important parts of a cryptocurrency mining PC:
- The Graphics Card
- The Motherboard
- The Power Supply
Here’s the deal:
Originally, the CPU was used to mine for cryptocurrencies.
However, very early on, miners discovered that the CPU was not very efficient for mining.
In fact, it was virtually useless.
The graphics card is used for solving the complex algorithms that form cryptocurrency.
How Mining Works
Cryptocurrency mining may seem complicated, but it’s really quite simple.
Let’s say Bob sends one Bitcoin to Bill. The transaction, like all other crypto transactions, is announced to everyone on the Bitcoin network. The transaction is posted on a huge database known as the blockchain, also commonly referred to as the ledger.
Everyone can see the sender wallet address, recipient wallet address, and the amount of Bitcoins sent. However, the sender’s name, location, etc. are kept private.
Everyone has their own copy of the blockchain, and everyone compares their information to ensure they have the same thing.
The network is legitimized by miners. Different currencies use different algorithms, Bitcoin’s algorithm being SHA-256. Miners use their computer hardware (GPUs or ASICs) to rapidly guess and check solutions to the algorithm. It’s so difficult that it’d be next to impossible for humans to solve it.
The faster the GPU can guess and check solutions, the more likely it is to successfully solve the problem. When this happens, a block reward is received. This means the miner who successfully solves the block receives 12.5 Bitcoins directly deposited into their mining wallet.
Your GPU also consumes electricity. It’s important to make sure your GPU has a high hashrate and low power consumption, as this ratio really determines your profits. If you pay more in electricity than you generate in mined cryptocurrency, you’ll lose money!
It takes about 10 minutes for miners to verify one block. Every time a block is added to the blockchain, the previous layer is sealed off. This ensures the same person can’t send the same Bitcoin twice.
There are only 21 million Bitcoins that can exist, and currently about 16 million have been mined. Every 210,000 blocks, the block reward splits in half. When Bitcoin first came out, the block reward was 50 Bitcoins. 210,000 blocks later it became 25 Bitcoins, and now it’s 12.5 Bitcoins.
As the block reward halves, theoretically the price of Bitcoin (or whatever currency you’re mining) should increase accordingly. Once all Bitcoin are mined, the price should be much higher. At this point in time, miners will receive rewards in the form of transaction fees which are deducted from every transaction.
This ensures the mining incentive is generally the same at all times. Cryptocurrencies couldn’t exist without miners!
You might find the information in this video useful:
Importance of a Powerful and Efficient GPU
Considering the information above, the importance of a powerful GPU is clear. The more powerful your GPU is, the faster you’ll successfully mine coins.
However, powerful cards tend to use lots of electricity. That’s why the efficiency of a card is equally important to consider. Sometimes, it’s better to buy multiple low end GPUs with a great power/hash ratio. It may yield higher profits. The GTX 1050 Ti is a perfect example.
With the difficulty of mining increasing each day, an efficient GPU is critical. Some GPUs cost more in electricity than they generate in revenue. You can find efficient mining GPUs with the guides above.
Factors that Affect the Efficiency of your GPU
You can’t mine with any old graphics card.
There are important stats to be considered including:
MHash/s is equal to the amount of number-crunching the card can do while mining. If your hash rate is high, you’ll go through hashes faster than if your hash rate was low.
What does this mean for you?
A higher hash rate equals faster results.
MHash/j is the amount of hashes the card can process per joule of energy. If you didn’t already know, mining uses a lot of electricity. It is important that your graphics card can mine enough for you to make a profit after you’ve paid your electricity bill.
A higher number means your card is more power efficient. If your card is more power efficient, you’ll save money on electricity. I’m sure you see where this is going.
MHash/s/$ is basically a way for you to see the price to performance ratio of the card. If the number is higher, it means you are getting more for your money. A card that uses too much electricity with a low hash rate won’t generate much revenue, if any at all.
It is important to make sure you find a card with a good balance of these stats for the right price.
Mining for cryptocurrency, including bitcoin, litecoin, and ethereum, requires a powerful graphics card.
Actually, it requires multiple powerful graphics cards. Consequently, you will also need a motherboard with enough PCI slots to house these graphics cards.
Lastly, using the right power supply is crucial. If your mining rig is not provided sufficient power, it will short out.
Is Mining The Right Choice for You?
Mining may sound like a great idea. Just get a mining GPU, and let the profits roll in.
- Most Popular Cryptocurrencies:
- Crypto Mining Guide
- How Mining Works
- Importance of a Powerful and Efficient GPU
- Factors that Affect the Efficiency of your GPU
- Is Mining The Right Choice for You?
- How to Trade Monero, Dash, & Other Altcoins for Other Cryptocurrencies & USD
There are huge mining warehouses in countries with extremely low electricity cost. These warehouses have thousands of mining GPUs, and cost hundreds of thousands if not millions of dollars.
On such a huge scale, mining is extremely profitable and the investors are making lots of money. However, when mining with one or two GPUs in your house, you might not see a great return on your investment, if anything at all.
Mining still has its benefits. Some miners are doing so as a hobby that pays them something in return. However, unless you’re doing it on a large scale, you probably won’t see much profit. If you just want cryptcurrency, we recommend you buy them.
How to Trade Monero, Dash, & Other Altcoins for Other Cryptocurrencies & USD
You’re going to have to exchange your (insert your altcoin here) for Bitcoin first. Here’s how:
Step 1. Sign up for an account on an online exchange such as Binance.
Step 2. Once you have created your account, it’s time to acquire your Decred (or whichever currency you’re mining) wallet address on Binance. You’ll use this address in your mining software. All of the currency you mine will be deposited into your Binance wallet. From here, you can exchange it for Bitcoin, and eventually, regular currency (USD). In this example I’ll be using other cryptocurrencies, but the process is the same for any cryptocurrency.
Hover over the Funds tab, and a dropdown menu will appear. Click Deposits Withdrawls.
Search for your desired cryptocurrency. In this case, we’re using Monero. Then, simply click “Deposit”. When prompted, agree and continue.
You should be taken to a page that shows your unique XMR Deposit Address. Copy the code indicated in the graphic below:
Now, point your mining software to this address.
Step 3: Once you’ve deposited Monero into your Binance account, you can exchange it for Bitcoin. Here’s how:
Navigate to the Binance homepage by clicking the big logo in the top left corner. Navigate over to BTC Markets, and search for your desired currency. (I don’t own any Monero for this example, but I do own TRON, or TRX. I’ll be using this for the tutorial from here on out, but it can be applied to any currency on Binance).
After you’ve searched for your currency, you should see it pop up in the search results like so:
Click on it. Now you should be here:
Within the “Sell” box highlighted in the graphic above, you can exchange your cryptocurrency for Bitcoin. In my example, I’m using TRON, or TRX. If you want to convert all of your cryptocurrency into Bitcoin, just click 100% and then sell.
Awesome! Now it’s time for the third step. Almost done!
Step 3: You need to transfer your Bitcoin from Binance to another exchange such as Coinbase or Gemini. Once it’s transferred to Coinbase or Gemini, you’ll be able to exchange the Bitcoin for regular currency. Here’s how:
Navigate back to the Deposits Withdrawals page. Withdraw from your newly acquired Bitcoin wallet like so:
You’ll be asked for the BTC Withdrawal Address. Now, navigate over to Coinbase or Gemini. For this example, we’re using Coinbase. After you’ve completed the registration, click “Accounts”. Under your BTC Wallet, click “Receive”.
Now, you should see something like this:
The address you see is your Coinbase wallet address. Copy and paste the address into the “BTC Withdrawal Address” on Binance. Select the desired amount, and submit.
Finally, our fourth and final step.
Step 4: The last step is to simply sell your Bitcoin on Coinbase for regular currency.
Navigate to “Buy/Sell” on Coinbase. Then, click Sell. Now, all you have to do is select the bank to which you’d like your currency deposited. Select the amount of BTC to deposit, and hit “Sell Bitcoin”. It’s that easy!