How to start mining for Crypto-currency?
If you’re shopping for a new GPU, you might have noticed that the prices of most cards are rapidly increasing day by day. If you’re reading this, there is a very good chance you might already know about that. The reason behind this is the sudden increase of price in crypto-currency mining. If you’re shopping for a new GPU, you might have noticed that the prices of most cards are rapidly increasing day by day. If you’re reading this, there is a very good chance you might already know about that. The reason behind this is the sudden increase of interest in crypto currency mining.
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Some famous examples are Bitcoin (BTC/XBT), Ethereum (ETH) and Litecoin (LTC). Their prices are subject to change like gold and let me tell you it’s pretty unstable. As of today, the price of 1 BTC is 192673.95 BDT, but a year it was 44,535 BDT and last month it was 241,691.99 BDT. This is a sample graph of the hour I was writing this blog.
So, now you know why people are jumping on the hype train of Crypto-mining. I guess you want to too, because who doesn’t want free money! At least for mining, you don’t have to physically do any job. You’ll just have to setup a mining system and for it to generate money for you.
Let’s discuss what do we need to get started with mining. You’ll need:
- A mining RIG
- A crypto-currency wallet. Preferably Bitcoin (BTC).
- A mining software.
I’m not an expert in this. So, I’m going to keep things simple. Let’s get started with our own gaming rigs. They have a powerful CPU and a GPU. Mining with a CPU is really tough and it may never get you enough revenue to be profitable. So, we will start with a GPU. At the moment, AMD cards are doing much better in the case of crypto-mining (sorry, NVIDIA). So, if your gaming PC is rocking anything above RX 460 you’re good to go. But you have a NVIDIA card, anything above GTX 1060 will work just fine. It’s just you’ll need much time to get profitable.
Full disclaimer: It is illegal to mine or owns any crypto-currency in some countries. So do it at your own risk. Here is a Wikipedia page for the legality of cryptocurrency according to the territory.
For popularity and simplicity, I’ll discuss only Windows, setting up a Linux mining rig is very complicated but much efficient than windows in terms of performance.
First of all, you’ll need a Bitcoin wallet. Bitcoin wallets can be of four types: Mobile wallet, Desktop wallet, web-based wallet, and hardware wallet.
The mobile wallet is an app installed on your phone (iOS, Android, Windows Phone, and Blackberry), which manages your crypto-currency. You can ONLY DO TRANSACTIONS from the wallet using your phone only. It means if you lose the phone all your Bitcoin is gone. For examples: Airbitz, BTC.com.
The desktop wallet is a program installed in your PC which works similarly like Mobile wallet. You can only do transactions using that software. If you lose the Desktop or anything happens all your Bitcoin is gone. For examples: BitGo, ArcBit.
The web-based wallet is a website where you sign in and get a bitcoin wallet address. You can login to your bitcoin wallet from any PC/Mobile using your username and password. But like every website on the internet, it can be hacked too. But you choose a well-reputed website and be careful about your credentials and all, the chances of getting hacked is close to zero. Examples: CoinBase, Green Address.
Hardware wallets are physical devices which can be carried around and use like credit cards. These can be used to any PC’s USB stick or other interfaces to interact with it. This is the safest and the best way to store your crypto-currencies. I’d suggest you wait till you earn a few BTC before investing in a hardware wallet because they are not cheap. They can even go up to 350$. For example LedgerNano, KeepKey.
I’d personally recommend you to start with a web-based wallet. I’d start with Coinbase. Just visit Coinbase and create an account. Now, you’ll have to get your Bitcoin Wallet number and copy it in your text editor. The Bitcoin wallet address is something like this “1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2”, they consist of 26-35 alphanumeric characters which start with 1 or 3.
Now, you’ll have to visit NiceHash and download NiceHash Miner for Windows and install that on your PC. Wait for it to download all its miners. *Be sure to turn your anti-virus software off or add NiceHash to the exclusion list. Then just paste your Bitcoin wallet address and start mining. Keep in mind that your GPU will be always in 100% usage. NiceHash will take 3% for every 0.1 BTC payment and 4% from 0.01 BTC payment.
You can even create a bitcoin wallet from NiceHash too. They’ll pay you for even 0.001 BTC (1 mBTC) and take only 2% of your mining.
You can read more about this here: https://www.nicehash.com/index.jsp?utm_source=NHM&p=faq#faqs15
Bitcoin might give you a few extra bucks now. But this market is very unstable. The prices rise and fall every few minutes. I won’t really encourage anyone to buy specific hardware for crypto-mining, do it with your gaming rig if you need the money. But make sure you’re not breaking the law. Most importantly, have adequate cooling to your PC, because it literally is hammering her.
Or if you care so much about your PC, then buy a lifetime cloud mining service.