Getting started in Crypto Mining can be a daunting task filled with lots of questions. Here at PerfectHashrate.com we want that process to be smooth and as easy as possible for you. To that end, we have put together this Getting Started Guide with answers to some of the most popular questions and concerns. This guide will be updated regularly with the most up to date information as this space changes so often.
What is Crypto Mining?
To simply explain it, crypto mining is a way of confirming and verifying transactions using cryptocurrencies. Crypto currencies record all financial transactions with the use of distributed public ledgers that creates a chain of time-stamped records known as “blockchain.”
The validation process involves complex and unique mathematical problems that are difficult to solve but can easily be verified with algorithms that always prevent fraud.
What do I need to start getting into crypto mining?
Building your own crypto mining rig has been one of the hottest trends nowadays, because who would say no to owning your mini (crypto) mining rigs from home that will earn you good money?
There are different resources online that will give you all the information you need to get started but it can be overwhelming. In this article we did all the hard work of doing the research, gathering the information and consolidating it in just one article.
Mining rigs can be intimidating and tricky at first but it’s really not. It’s always good to know what your options are by knowing the different types of mining rigs:
CPU (Central Processing Unit)
This is the simplest rig when it comes to crypto mining especially if you want to start mining straight from your computer then problem solved, with just a few things you can already start mining. There are several programs that you can download and easily set up to get started. This is best if you know that you already have a PC unit and are not really looking into investing a lot of money.
Some drawbacks according to most users is that this method will definitely affect your electricity bill and a proper cooling setup is mandatory to avoid issues caused by overheating.
GPU (Graphics Processing Unit)
This is something you might be reading a lot because it is the absolute favorite crypto mining rig — especially by those who are experienced in crypto mining. A GPU uses a graphics card to mine data from the blockchain.
One thing to be prepared for is this setup is costly due to the low supply in the market to keep up with the demand. Aside from the actual rigs itself, it is also recommended to have a proper exhaust feature and cooling system in this setup.
ASIC (Application-Specific Integrated Unit)
This device is created for one purpose — Bit mining and making a lump-sum of profit from crypto mining. ASIC creates a whole ecosystem of crypto mining with its pieces of machinery and setup that will do all the work for you. This is a very popular rig but getting your hands on one is gonna be a challenge due scarcity.
Things to know before building your first rig:
When we talk of mining rigs the term “hashrate” is always associated. Hashrate defines the power and capacity of your rig, this is the amount of calculations your rig can perform within a specific time , usually in seconds. There’s no doubt that the higher the power and the capacity your rig can take on means better output, but always keep in mind that more power means more energy consumption your rig needs to perform at its best.
Building your rig is just the first step and it doesn’t end there. One must never underestimate the energy consumption that is tied with hashrates, one common mistake of newbie crypto miners is not being able to estimate the expense of their electricity bill when they start putting their rig to work and come to the conclusion that they will not make a profit at all.
Cryptomining is one of the most competitive businesses and having balance on both hashrates and power consumption is key to have a consistent and stable profit. Know the specs and consider the power resources you have.
Protect your cryptocurrencies with a reliable hardware wallet. It’s like your bank and like what you do with any asset you own — keep it safe at all cost.
Gear Requirements for Crypto Mining
Here is a list of the parts and what you will need to get kick start your journey of building your own mining rig from scratch:
Motherboard – this is the main component and what you should look into as this will factor in all the other parts you should use in building your rig. All the other parts should be compatible with your motherboard.
Graphic Card (GPU) – technically it should actually be a graphic card — yes with an s! This is the horsepower of your crypto mining rig and investing in a top-notch graphic card is always a good decision. A good tip shared by the pro is to always consider what GPU to get for the cryptocurrency you will be mining.
Power supply – having a powerful rig and a good power supply goes hand in hand with each other. If you’re going for a top notch rig be prepared to have an abundant power supply for it to pull from to be able to maximize its potential.
Cooling and exhaust – keeping your mining rig cool is crucial. Ensuring that your rig stays cool and releases heat while working prevents disruptions from crypto mining and from overheating. Overheating can cause serious problems that will impact your finances.
Central Processing Unit (CPU) – now that you know all the hardware and parts to get your rig, you have to ensure that it will run smoothly. Having a good CPU will help you save more time in encountering and troubleshooting errors while mining.
Frame – once you have finalized how you want your mining rig to be set up you need a sturdy frame that will keep everything together. The best part about frames is there is a wide variety of designs and styles you can choose from and you can customize it any way you like.
Now that we tackled the hardware side, we can’t forget the software side. It is highly recommended to get a cloud based software.
Why should I invest in crypto mining software?
This is the command center of your crypto farm. These are applications and tools that allow users to setup and and configure their crypto mining rig to meet their goals. These connect users’ equipment with the proper mining pools.
Here are some cryptominning software that is worth looking into and highly recommend by reviews:
This is recommended for if you are just starting because of the low entry amount that allows users to mine bitcoin. There is no need for complex downloading and setting up requirements and processes nor are you required to invest in the most expensive ASIC and GPU hardware. All you need to do is to choose a cloud mining contract, create an account and get verified.
According to users (both newbies and professional cryptominers) this is one of the most profitable platforms. It is designed to lease hash power from different mining contracts, and runs it’s own facilities in multiple data centers.
This is consider as one of the top choice by most because of the availability of downloading it for free. It is open-source software and is available for several mining devised that makes it flexible for cross-platform cryptomining.
The best feature of this crypto mining software is the real time analytics and independent power distribution.