How to Become a Miner
Survival of the fittest applied not only to evolution but to the finance sector as well. Evolution is the ability to adapt and survive in an ever-changing environment. To gain a competitive edge in mining, it’s essential to perform a detailed analysis of all possibilities, aspects and nuances involved.
There are three main ways to obtain digital currency:
1) Buying cryptocurrency on exchanges;
2) Offering products/services and accepting crypto payments;
3) Mining utilizing cryptocurrency mining hardware.
Mining is a process of generating cryptocurrency by solving complex mathematical problems which are the core of blockchain technology. Blockchain technology serves to prevent changes in a distributed transaction ledger and use “proof of work”.
If you want to start mining cryptocurrency, you have two options: use your own mining hardware or rent it from a cloud mining provider. In this article we’ll discuss both options, briefly refer to the history of crypto mining, and together try to answer the most important question: How to become a miner?
Let’s begin with the theory
When Bitcoin was first created in 2009, a basic desktop computer, not even a fast one, was enough to start mining. Today, the barrier for entry is far higher if you want to make any kind of profit doing it. That doesn’t mean it’s impossible, only that the industry has gone through some major changes.
Methods to mine cryptocurrency
Before you start mining, you need to decide which mining method you want to use.
Method 1. Cloud Mining
Cloud mining is one of the mining methods which require the least amount of effort.
Cloud mining is the practice of renting high-speed mining machines combined into “farms” for an agreed period of time. Throughout the rental period all the profit from your farms (less electricity and maintenance costs) is transferred to your cryptocurrency wallet.
Most cloud mining providers run large mining facilities with dozens of farms (dozens or hundreds of mining machines) and have sufficient mining experience.
Apart from the obvious advantages, cloud mining has some disadvantages:
● It has little transparency, so fraud is common: promises of high hashing powers and huge profits may be a scam;
● Cloud mining companies are targets for hackers;
● There is a chance that your investment will be lost due to high electricity and maintenance costs and the ever-growing mining difficulty;
● You can’t control the machines, so you can’t, for example, change the cryptocurrency whenever you want.
Method 2. CPU Mining
CPU (Central Processing Unit) mining isn’t a viable option anymore. It’s becoming obsolete for a number of reasons:
1. It’s very slow and you can mine for months without getting any profit;
2. You earn very little but your electricity and cooling costs are off the charts.
Why are miners still using this method at all then? The reason is that it’s very easy and can be done by anyone with a desktop computer. All you need is to download a couple of programs. You can even do it with a laptop, although it’s not recommended because it will probably overheat.
Method 3. GPU Mining
GPU (Graphics Processing Unit) mining utilizes a gaming computer’s graphics processing unit to mine coins.
As a rule, building a farm is quite expensive and requires certain technical skills. It also requires more space and takes a long time before mining becomes profitable.
On the other hand, GPU mining is very popular because it’s effective and has a low cost of entry. It offers more assembly options, supports more crypto algorithms, and is easier to accommodate: it doesn’t make too much noise and doesn’t overheat.
Method 4. ASIC Mining
ASIC miners (Application-Specific Integrated Circuits) are integrated circuits designed for the sole purpose of hashing (math function) of a sequence of numbers utilizing a special algorithm. This process is called mining.
ASIC miners are popular with miners because they’re easy to use and more power-efficient than GPUs or CPUs.
Below are some tips for miners choosing a mining method:
● Due to the high costs involved, mining coins yourself is only recommended if you have access to cheap or electricity;
● Before investing in any hardware or mining setups, use a Bitcoin mining calculator to see if you can actually turn a profit with all costs considered, as well as consider the changes in mining complexity: as more people start to mine, it causes a surge in the hashrate, so mining requires more computing power;
● If you want to mine with GPUs and ASICs, choose the right ASIC model. The best way is to see which mining equipment currently brings the most profit.
Be careful because there is no guarantee that your investment will pay off.
Let’s move to the practical part
We’re almost there!
You’re just a few steps away from becoming a miner.
Step 1. Choose a mining method
The following steps are valid if you’ve opted for cloud mining, GPU or ASIC mining (if you’ve chosen CPU mining, then welcome to the world of low profits and high costs but with no investment).
Step 2. Build a farm and/or rent computing power and/or equipment from a mining company
Note: It’s essential to do your research and try to find the best price-performance ratio as there are many companies out there which claim to be the best among some of the largest competitors.
Step 3. Choose a mining package (for cloud mining)
Once you’ve picked a cloud mining provider and signed up, you need to pick a mining package. That will typically include choosing a certain amount of hashing power, renting mining equipment and/or space, software, maintenance, mining pool services, remote control service for ASICs, etc.
Most cloud mining companies will help you decide by giving you a calculation based on the current market value of your cryptocurrency and the difficulty of its mining.
Step 4. Choose a mining pool
Because solo mining isn’t profitable anymore, more miners turn to mining pools which combine computing power and organize search and solution of blockchain on mutually beneficial terms.
Miners are increasing their odds to earn cryptocurrency through teamwork and improved performance and efficiency.
EMCD Mining Pool is an established mining community welcoming new miners.
Its advantages include:
● 24/7 Technical Support by qualified specialists
● Remote control of workers
● Fixed payment schedule
● No minimum withdrawal limits
● EMCD users have a bigger total profit (by several percent) than users of other mining pools
Step 4: Select a wallet
Once you’ve selected a mining package, your mining begins and you start mining digital gold. At this point you need to decide what to do with it: sell, exchange or hold.
However you choose, you’ll need to decide what to do with your cryptocurrency in the long term.
Evolution doesn’t begin or end in one day. It’s a daily process that requires thinking through every step and planning every action.