The popularity of cryptocurrencies has led many individuals to explore different ways to earn money through it, such as becoming day traders or mining crypto themselves. While the idea of mining crypto may seem impractical to some, it is worth considering how individuals who are currently mining are able to make significant profits. If you are interested in trading you should learn more about regulation in the crypto and forex markets.
It’s important to note that crypto miners are not inherently different from anyone else, and they likely had similar resources and opportunities as others who are interested in mining. Therefore, it’s natural to wonder how they are able to generate substantial income from mining crypto on a regular basis.
That’s what we’ll talk about below: what it takes to become a crypto miner and whether it’s worth it for you to become one yourself!
How Does Crypto Mining Work?
You should first know that there are several ways mining works. Proof-of-Work algorithms, Proof-of-Stake algorithms, and a hundred other things introduce variables into the process.
Most of the time, however, mining boils down to the simple process: using your computer to solve complex equations and record data on a public ledger. A few complicated steps later, you’re awarded a small amount of crypto.
Why Mine Cryptocurrency?
In addition to the fact that it’s going to be making you a LOT of money (at least, when you’re mining profitable cryptocurrencies), there’s also the fact that mining is essentially the minting process for cryptocurrencies.
Miners bring new blocks of coins into circulation, which means they release new crypto into circulation and thus ensure adequate supply for the demand worldwide.
What Is a Crypto Mining Rig?
A cryptocurrency mining rig is a computer that is used to mine cryptocurrencies. These will often have different types of hardware installed, as there’s no set rulebook for the construction of mining rigs.
As mining is a very competitive, decentralized industry that rewards early adopters and developers, you’ll often find people with rigs with six to eight GPUs!
What Will You Need for a Mining Rig?
Here’s a look at some critical components of building a mining rig:
- GPUs (Graphics Processing Units)
As we said before, GPUs are the building blocks of any decent mining rig, and that’s because these are often 800 times as effective as CPUs at solving the complex equations involved in mining.
Remember that the number of GPUs you’ll need in your rig depends on the hash rate you want, but you’ll want to start small with one or two.
The foundation of any computer, including a mining rig, is its motherboard. It is crucial that the motherboard can accommodate all the GPUs and ASICs that will be installed in the rig, and skimping on this component can compromise the overall efficiency of the mining rig. It is important to note, however, that there are cost-effective options available for motherboards. The Z370-A and certain mid-grade MSI motherboards such as the MSI Pro Series Intel Z270 and MSI Arsenal Gaming AMD Ryzen are good choices that can fit within a budget while still providing the necessary support for the rig’s components.
ASICs are the final piece of your mining rig. These little computers do all the work, crunching through algorithms and processing data so you can collect cryptocurrency in your wallet. There are a few different options: You can buy them pre-built with all their components already installed or build them yourself from scratch.
They are, however, costly, to the point where your ASIC will be the most expensive component of your rig.
If you’re using GPUs for mining, a mid-grade CPU on the cheaper side will do just fine. Think of an 8th-gen Intel Core i5-9400 or something similar, so you don’t end up breaking the bank.
This varies depending on how good your mining rig is, but you’ll generally want 12GB of RAM to start with and upgrade as you see fit. 8GB is the absolute lowest, but we don’t recommend it.
Your power supply unit is up there with your GPUs and ASICs in terms of importance. It needs to support multiple GPUs and the ASIC, so you’re looking at a PSU with a rating of at least 1200w (preferably platinum for energy savings) for your rig.
This one’s not that much of a priority. Any SSD of 240GB or above should be much more than good enough for your mining rig.
Crypto mining is one of the easiest ways to get into cryptocurrency. With a few critical pieces of hardware and some software, you can be well on your way to earning money from mining in no time at all!