Mining cryptocurrencies used to be more straightforward. In the early days, you could mine hundreds of Bitcoins using an old Pentium 4 PC.
As the mining complexity becomes difficult, more processing power is needed to mine coins.
Before you start mining, here are some considerations:
Initial Investment: The two most significant costs to start out with mining cryptocurrency is mining hardware and electricity costs.
A powerful mining PC can cost hundreds of dollars and it will take you a long time, even up to a year to mine back your initial investment.
To make a profit, you will need a place with cheap or subsidized electricity costs.
In case you are planning to get dedicated mining hardware, be prepared to spend thousands of dollars. Though this option will allow you to earn back your investment considerably faster.
You would also need to purchase a reliable cooling solution which can cost a few hundred dollars depending on your hardware and the overall temperature of your city and home.
Cooling: You need to have a robust cooling solution in place for your mining hardware as the process generates plenty of heat. If proper cooling is not provided, you may face decreased performance and even hardware failure.
Miners have used submersible mining hardware to gain the most performance out of their setup.
Internet speeds: mining can take considerable bandwidth to work at peak performance, so it’s better to get a higher limit internet plan for your home; otherwise you will end up paying extra for exceeding your data usage limits.
Also, if your nature of work on the computer is internet heavy, be prepared to face slow page loading times and buffering.
Noise: The miner is supposed to run 24 hours every day of the week, prepare for constant fan noise.
Here are some problems that you might face
- Power cuts
- Hardware failure
- Safety risks
- Short circuits due to overheating
You can mine cryptocurrency on your existing hardware; However, the overall speed and power-to-cost ratio should be accounted before making a decision.
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Otherwise, you will end up paying huge electricity bills. This can eat into your mining time, resulting in diminished returns.
To make a decent profit, you need powerful hardware and probably multiple miners. A more reasonable way to earn coins is by joining a cloud-based solution.
Mining pools are also optimal for home-based miners because multiple rigs increase your chances of making a profit.