Creating cryptocurrencies is possible via a process called mining wherein computers solve complicated math equations in order to produce digital coins. In return, miners can keep, cash out, or exchange these coins for other virtual currencies. Cryptocurrency mining requires a certain set of equipments and expectations. It also takes a lot of time and energy. If you are prepared to start crypto mining, best to read the below information and see if you can handle all the responsibilities crypto mining entails.
1. Expensive equipment and electricity
Stable electricity and solid hardware are necessary requirements when mining cryptocurrency. Expect to fork up enough money for 4 ASIC processors or four AMD radeon graphic processing units. Each brand new GPU or ASIC chip could cost approximately $90 to $3,000. These essentials provide the necessary mining work and accounting services. You also need to have a stable internet connection with a speed of at least 2 megabits per second. It is preferred if you have a dedicated desktop computer or a custom-built one because you will not be able to use it for anything else while mining. A laptop or any gaming device are not powerful enough to mine cryptocurrency.
Also, your electricity bills are can go up but do try to keep your electricity expenses below $0.11 per kilowatt-hour. With four GPU cards, you can earn anywhere from $8 to $10 per day or as much as $300 each month. One college student invested anywhere from $4,000 to $5,000 on hardware for his mining rigs and began mining anywhere he possibly could. He mined in his parents’ house and in school. Now, he claims he uses the digital coins he earned to pay for his tuition as well as “diversify his investment portfolio”.
2. Be prepared to take the heat
Cryptocurrency mining produces a lot of heat so it is best to mine in an air conditioned room as the hardware used for the process requires cooling. A house fan that would blow cool air across the computers you are using is best. Regardless of how the rigs are efficiently built, mining still generates tons of heat. Luc Roberts, a Fairleigh Dickison University sophomore, always points a fan towards his crypto mining computers while the air conditioning is running in order to keep the temperature in his room cool. He described the scenario of mining as extremely hot, literally: “I just opened my window and would turn a fan on even at night and I’d still be sweating in my room. It’d be really hot in there.”
3. Have endless patience and a desire to learn
Changes in technology happen fast and novel ways of cryptocurrency mining emerge constantly. Successful miners always spend many hours each week studying the industry and looking for methods to improve their process. You also need to keep yourself updated of your own numbers, such as, are you earning enough from mining to pay for your electric bills? Is the temperature in your room cool enough so your hardware won’t burn out? Senior Fairleigh Dickison University student Alex Gilarde mines cryptocurrency and makes sure he spreads out the graphic cards he uses in order for it to not consume too much power and sound the alarm. He also ensures that he regularly monitors his energy use via a cloud-based tracking system.