How to Start Mining Bitcoin

19.01.2022

how to start mining cryptocurrency

From being worth less than a dollar just over a decade ago, bitcoin has touched nearly $70,000 in price, leading other cryptocurrencies in the race for value. But at the core of bitcoin’s value is the proof-of-work (PoW) mining protocol that allows a global network of miners to cope with the increasing demand for new bitcoins to be minted.

Today, many people want to know how to start mining cryptocurrency. Perhaps you are on the lookout for the perfect bitcoin mining guide that can help you kickstart your bitcoin mining financial operation. As risky as the crypto space is today, investing in crypto mining is one of the most profitable financial mechanisms because you can easily earn profits. Bitcoin mining is a great way to earn bitcoin without actively trading the market.

However, knowing what cryptocurrency to mine and the way to go about mining it can be the difference between making profits or not. If you want to invest in bitcoin mining, there are four available options:

  • CPU mining: Central processing units provide mining power for some cryptocurrencies that are coded to allow CPU mining. For example, Monero, ZCash, and Bytecoin can be mined using a CPU. As of now, only some cryptocurrencies with simple mining requirements can be mined using CPU. Most CPUs provide less than 20 kilohashes per second (kh/s) mining power.
  • GPU mining: Graphics processing unit (GPU) provides more computing power for mining cryptocurrencies such as Ethereum. GPUs pack more power than CPUs and are measured in megahashes per second (mh/s), meaning that they are x1000s more powerful than CPUs.
  • ASIC mining: Application-specific integrated circuit miners are even more powerful than GPUs, reaching computing power measured in terahashes per second (th/s). But ASIC miners also cost far more than GPUs and CPUs, itching up to $15,000.
  • Hosted mining: Hosted mining is a type of crypto mining service in which ASIC miners are managed in a dedicated data center. This mining service is great for people who want to profit from crypto mining without doing the work.
  • Cloud mining: Cloud mining uses rented and shared computing power to mine cryptocurrencies. Investors simply purchase a plan according to the hash rate and earn mining profits.

You can make profits from bitcoin mining using most of these methods. However, to start mining Bitcoins, you need to know the best path to take.

how to start mining

Getting Started Bitcoin Mining with Own ASICS

You can accumulate cryptocurrencies through mining. Today, both individuals and crypto firms engage in crypto mining to earn profits. For individuals seeking to mine Bitcoin, the method that seems best at first glance is to start mining yourself. However, the debate around the profitability of home mining cryptocurrency requires an in-depth look.

The Process of Mining Cryptocurrency

To illustrate crypto mining, the process of mining bitcoin will be used. When bitcoin transactions are made, they are recorded on a public ledger. Strings of transactions are recorded to make a block, and the mathematical complexity of making each block requires some heavy computational power. This is why high-performance computers and ASICs are used to mine bitcoin. Miners then get rewarded with bitcoin after every block is successful. Bitcoin mining, for example, can be profitable in the short and long term if the conditions are right.

Mining equipment costs good money to purchase and set up, and when you add other costs such as electricity charges, cooling systems (ASICS generate a lot of heat), and other maintenance costs, the overall costs in home mining crypto are substantial. The cost of running ASIC miners at home might extend the period before you begin to earn profits.

how to start mining cryptocurrency

Pros and Cons of home mining Cryptocurrency

If you want to start mining cryptocurrency yourself, here are the benefits and potential disadvantages that you can expect.

Pros of home mining cryptocurrency

  • Freedom to mine at any time: If you mine crypto by yourself, you can choose your mining schedule to mine only when comfortable. In this way, you can cope with the noise and heat generated by ASIC miners.
  • Choice of cryptocurrency to mine: The choice of what cryptocurrency to mine greatly influences the profitability of crypto mining. After researching to determine the profitability, you can choose any coin at your pace. You have complete control over your mining rigs. You can choose to start, pause, or stop mining at any time.
  • Relative safety: It is safe to home mine crypto. You only need to maintain your rigs in optimal conditions at all times.

Cons of home mining cryptocurrency

  • Large capital: The initial capital required to start profitable crypto mining is quite large. You will need to buy more ASIC miners to increase the total profit. Other inclusive costs may increase the initial capital. You will also need to put in some hard work, studying more about crypto mining to know what works best.
  • Space considerations: You need more room to keep the ASIC and computer hardware for mining. Most people typically build extra rooms or outdoor tents to house the mining setups. This can increase the mining costs.
  • Heat and cooling: ASIC miners generate much heat that quickly makes your environment unconducive. You’ll have to provide cooling equipment to cool the air, and your ASIC miners overheating can reduce their lifespan.
  • Grid costs: Crypto mining consumes large amounts of electricity around the world. If you have no alternative energy source, you have to plug your mining rigs into the grid at a typically huge cost.
  • Maintenance: Although regular maintenance learned from a bitcoin mining guide is easy to perform; you might become stuck with some problems with your ASIC miners if you have no technical skills to fix them. If that happens, you may not generate profits for some time.

Many people home mine bitcoin and turn out some profit. But for the majority who do so, the stress and hard work might not be worth it. That is why if you are getting started mining bitcoin, you should consider hosted mining.

How to Start Mining with Crypto Hosting Service

The increasing difficulty of mining cryptocurrency means that people are looking for better ways to profit from crypto mining. Hosted mining meets that need. In the last few years, hosted crypto mining has completely changed the game for people looking to make profits without mining by themselves.

Hosted mining is done by renting or purchasing mining equipment (computers, software, and ASIC miners) located in a data center where all mining activities take place. A firm or team runs a data center consisting of members with different skills and roles to facilitate smooth mining. The popularity of hosted mining is increasing because of the numerous advantages over home mining.

Mechanism of Hosted Mining

A data center purchases and installs thousands of ASIC miners and high-end computers on which a compatible crypto mining software is installed. The ASIC miners are then powered up to solve the complex mathematical equations needed to string bitcoin transactions into blocks. Data centers are typically located close to a power source; many crypto firms adopt renewable energy sources such as solar, wind, and hydro-powered energy plants.

The thousands of ASIC miners contribute their computing power to create a mining pool, effectively lowering the mining cost-per-coin. The cost-per-coin refers to the average cost at which each coin is mined. Although both methods use ASIC miners, the mechanism of hosted crypto mining gives far more benefits than home mining. Below, both mining methods are compared with one another.

start bitcoin mining

Home mining Vs. Hosted Mining

Similarities

Here are the similarities between both mining methods:

  • Both methods use ASIC miners. ASIC miners are profitable under the right conditions as they are the most efficient crypto miners in the industry today.
  • Noise and heat challenges. Whether at home or in data centers, ASIC miners produce noise and heat.
  • High electricity consumption. The amount only increases in hosted mining.
  • Need for regular care and maintenance to prolong the lifespan of mining equipment.
  • Long-term use: Both mining methods can last a long time if well-maintained.
  • They both require substantial initial capital.

Differences

Here are the key differences between both mining methods:

Home mining

Hosted mining

Freedom to choose which coins to mine

Hosting firms mostly choose what coins to mine

Typically uses one or a few mining units

Typically uses thousands of miners

No technical team on hand

The technical team is always on hand to fix issues

There’s a possibility of negative profits

Hosting firms try to keep investors in profit

Mostly located within the home

Data centers are mostly located in dedicated areas

Long payback period due to low profits

Short payback period since profits are maximized

Reduced efficiency or total shutdown as mining equipment become obsolete

Obsolete mining equipment are easily replaced to keep mining efficiency up

Requires deep knowledge of cryptocurrency and mining

Investors don’t need to know much about cryptocurrency

Constant daily care by the owner

Investors don’t need to perform maintenance. The mining firm takes care of everything

Hosted Mining with Minery

Minery’s hosted mining brings the power of crypto mining to help investors make profits without the responsibility of performing hard work on mining rigs. In Siberia, where electric energy is cheap and temperature low, Minery’s data center requires low cooling costs, allowing investors to retain a healthy profit margin with a low entry barrier.

The low entry barrier means that anyone can invest in Minery’s hosted mining service without distance limitation. Minery has thousands of profitable ASIC miners utilizing up-to-date mining software running on powerful computers. Investors can choose their preferred ASICS and see all billing information via the dedicated web app.

Minery maintains industry best standards, deploys a standby team to proactively maintain the data center. With Minery, you can profit from crypto mining without worrying about extra spaces for mining rigs, noise, cooling, and maintenance. What is more? Minery allows investors to sell off their ASIC miners at any time and keep control of their mining.

With Minery’s hosted mining, you can significantly lower your mining costs; the cost-per-coin is greatly lowered because the overall costs for running thousands of ASIC miners are low compared to the total costs of running mining rigs at home. All investors get connected to Minery through email, phone, and messenger, receiving personalized attention from Minery’s qualified service agents.

A Final Word on How to Start Bitcoin Mining

Hosted mining is a great way to begin your bitcoin mining operations. While you can choose to set up a mining rig at home, your best chance to make profits consistently and without physical labor is to engage in hosted crypto mining. In terms of benefits, hosted mining trumps home mining. The most important benefits that you enjoy with hosted mining are comfort, low capital, and making profits.

You can plan your finances and set short and long-term goals with hosted mining. Hosted mining gives you the chance to start mining bitcoins and do more with ease by reducing the initial capital that you need to get your mining journey underway; you can choose to invest more as your portfolio grows. You get all these without investing energy into the sometimes vigorous maintenance of mining rigs. Hosted mining saves you time and energy to pour into other endeavors.

Indeed, the crypto mining industry has come a long way from just over a decade ago when Bitcoin and Litecoin could be mined using a simple PC. Today, the complexity of mining cryptocurrencies demands more powerful machines, where the respected ASIC miners are making a huge difference.

If you want to mine crypto safely and easily, hosted mining is the path for you. You can begin your mining journey today by contacting Minery. You have access to resources and online agents to assist you. Begin your journey to making profits with crypto mining.

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