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There are many myths surrounding crypto currencies regarding how expensive it is to start, and how volatile the market is. As a crypto investment company, we decided that a discussion regarding how one can make money by mining crypto currency, by building and setting up an inexpensive cryptocurrency farm.
There are thousands of cryptocurrencies in the world and the potential to make money is huge. Investors can buy and sell currencies, or interested parties can begin crypto mining.
If you are amongst the former, then you must watch and analyze the trends, but invest only what you can afford to lose. Also, with smaller market exposure and less experience, the gain expected will rely more on luck and falls in a restricted bracket.
But, if you are amongst the latter, this blog is for you. This blog will concentrate on how to build a low cost(by some standards) a cryptomining rig, or a mining farm.
What is mining and how does it work.
In our last blog, we discussed the different types of cryptomining and in a continuation to that, we are here to discuss how to set up your own cryptomining farm.
For cryptocurrencies to work, transactions need to be verified and if the information is not verified people may end up spending their currency more than once. This verification is done by allowing the users on the network to verify the transaction/information. If a miner is able to verify the transaction, they are awarded with spoils of that particular currency as payment.
Here, the question arises, how does this verification work, and how does a miner earn the coins, the answer to this is fairly simple, by solving complex mathematical equations. To solve these complex equations, something called a rig is needed, the faster the performance of the rig, the chances of you completing the equation is increased and earning cryptocurrency.
Now the question arises, how difficult is to build that and how much can that cost
Rigs are not much different from a PC, with special mining software. The basic components of a rig are very similar to that of a a PC. Basic components of any rig are a computer that has multiple graphic cards. The computer cases are filled with GPU cards, a power-generating unit, a motherboard and a cooling system. But, to enclose the parts, rather than a sealed unit, an open-frame is considered a better option as during the processing, components generate a lot of heat and the system can overheat. To avoid overheating, either an open frame, an aluminum rig or even a milk carton can be used.
On this hardware, cryptomining software is installed, this software is the method which is used to add new blocks to an existing blockchain and to create a new cryptocurrency. Once the block is added, the new currency is validated and is rewarded to the miner for their contribution to the blockchain.
When it comes to motherboard, any gaming motherboard will work fine, depending on the number of graphic cards, the motherboard can support. If your wallet allows, you can buy a dedicated mining motherboards that are specifically built to handle multiple graphic cards, and these come with BIOS settings that are already set up for mining.
When it comes to CPU power, even a dual-core Celeron will give enough processing to get the mining done. When talking about
power supply, a a minimum of 1000W output is needed because the components need a lot of power.
To conserve power, you can opt for connecting multiple power supplies to a single motherboard.
RAM which is a major part for any performing PC is not needed in abundance, 8GB is enough to start with. If your budget does not allow for something as large as 8GB, you can start with 4GB.
Here comes the most important component, GPUs: these are the heart of any mining rig. These are the most important part along hash rate, Mining Hash Rate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. To solve the equations in order to make money, the graphic card to chosen depends on the factors you are considering; ease of use, low cost, simple to configure, good scope of overclocking, power, and efficiency to solve algorithms.
The main question now, how much does it cost? The cost, ultimately depends upon, how much you want to spend! Nice open frames start from $100 or use a free milk carton. A dedicated mining motherboard runs about $200 or you can use your old gaming motherboard. A Power supply, a good one for $200. 4GB RAM for $50. Or you can use a refurbished PC for aprox. $150, add or remove the components of your liking to create your rig and try using a cheaper currency. But, one thing which needs maximum focus from you is choosing the graphic cards; a good one usually starts at $ 250.
Now the question is how much can you earn? This is not an objective question and depends on various factors; 1. number of people currently mining in the farm, 2. Cost of electricity in your area, 3. Price of the currency you are mining and how many coins you will be rewarded with if you solve the puzzle.
Use an online available profitability calculator, set your target, select the currency, know the power rates and coins you can earn.
Which currencies can you mine?
The answer to this question is, All major (around 1/3rd) currencies can be mined to earn coin rewards like bitcoin, ethereum, litecoin and monero whereas, some currencies like Ripple work on a different protocol and cant be mined for rewards like coins, but you can become a validator for the transaction and can generate earnings.
Can one improves the farm performance?
Yes, easily by modifying a few values
1. Modifying the drivers for performance: To start with set the drivers to compute mode, this will optimize the GPU to handle computations rather than graphics. The best setting for your farm depends on many factors like the currency to be mined, complexity, power rates etc. To optimize the performance, look for more resources.
2. Overclocking: GPUs are limited to the software used. Make sure these don't get overheated. With the use of special soft ware, GPUs can process faster, but at the same time can overheat. So by tweaking the settings a GPU can process faster, handle the heat and won't be fried up in the process.
If you want to know more about the world of investing and cryptocurrency, we’are here to help.
Feel free to contact us anytime for any assistance needed for investing in cryptocurrency.
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