A Start-Up Guide To Crypto Mining

Jump to page contents

A Start-Up Guide To Crypto Mining

Interest in cryptocurrency mining is increasing as more coins are available to mine, many offering good investment opportunities. If you would like to learn the important basics of crypto mining, you’re in the right place. This guide will help you through the most important things to know and do.

1. Get your hardware

Whilst in the past it was possible to mine crypto with a simple computer graphics card, mining most currencies today requires specialised equipment. ASIC hardware is used to mine Bitcoin and other currencies which use the same algorithm. This equipment does not come cheap, but its speed is astonishing whilst using up less energy than other hardware.

When choosing your rig you need to focus on the following specifications:

  • Hash Rate / Performance
  • Electricity Consumption
  • Price

Check out reviews of individual pieces of hardware to establish the reliability and any other feedback. Be careful not to fall into the trap of choosing solely on price. The hardware’s performance can make a massive difference in the coins you create. Your preferred rig might not be instantly available, as this hardware has a long manufacturing process, so always have a backup if you’re not willing to wait.

2. Get your crypto wallet

Once you start mining coins you need a safe place to store them in, and crypto wallets are your best option. There are different kinds of wallets which have particular features and properties. Whichever wallet you choose, make sure that it accepts the currency you are mining. Practically all wallets accept Bitcoin, but you may face more limitations if you mine other coins.

3. Get a mining software

The next step is to get yourself a mining client to run on your computer. This software will connect your hardware to the Blockchain network of your chosen currency. You can then start receiving work, send completed algorithms, and upload results to the Blockchain.

4. Get into a mining pool

Due to the nature of competitive mining, even the top-end ASIC hardware cannot guarantee that you will be the first to solve an algorithm and receive the coins. This is because you are often competing against groups of ASIC rigs called pools. As the saying goes, if you can’t beat them, join them.

You can join one of these pools and collaborate in order to solve algorithms faster. The coins are then distributed amongst the members, based on the performance of their individual rigs. Although you might receive lower income from pools, it is more regular. Pool owners also normally charge a fee, which is a small percentage of the reward.

Slushpool is one of the best pools for beginners. Apart from being the first mining pool, it has also built a reputation for being reliable, fair, and easy to join.

5. Get an exchange account

Once you start mining Bitcoin and other currencies you should open an account with a major exchange suitable for beginners, such as CEX, Indacoin, or Coinbase in order to trade your currency or simply sell it. This will ensure that your investment in mining hardware and resources is duly rewarded.

Recently Similar Guides

cex-promotion etoro-promotion

Latest Guides

Beginner,eToro,Margin Trading

eToro Fees Explained In Detail

eToro is an online trading platform which has gained popularity across the globe. Known for keeping up with the latest investment developments, eToro offers investors access to a wide range of instruments and markets. This guide will focus primarily on eToro’s fees, often considered to be some of the most advantageous in the industry. A […]

11 December, 2019
Beginner,Bitcoin,Hacker,Scam

A How-To Guide To Spotting A Bitcoin Scam

Bitcoin was created as an alternative to traditional payments, using a technology which eliminates the need for intermediaries. 10 years later, Satoshi Nakamoto’s vision looks significantly different from the original goal. Whilst you can buy goods and services with Bitcoin, the world’s first cryptocurrency is less a payment currency and more a speculative asset. As […]

10 December, 2019
Bitcoin,Intermediate,Trading

Bitcoin Revolution: The Good The Bad And The Ugly

For a few years now, stories of average individuals making a fortune from cryptocurrencies have been circling across the Internet and social media pages. Due to their high volatility, digital coins such as Bitcoin, Ethereum, and Litecoin are traded on thousands of exchanges and platforms, with billions of dollars worth bought and sold each day. […]

9 December, 2019
Bitcoin,Intermediate,Scam,Trading

What Is Bitcoin Code?

Within a short period of time Bitcoin has come to represent a significant investment with the potential for lucrative returns. Like forex and stock trading, cryptocurrencies are commonly traded on exchanges across the world, and there are communities of day traders and serial investors who turn a profit by speculating on this new currency. As […]

4 December, 2019
Blockchain,Cryptocurrency,Gaming,Payment Solution

Online Gambling and How it’s Changed Over The Years

For centuries, gambling was confined to brick and mortar casinos. However, today you can gamble online, thanks to great technological advancements. Online gambling, enables customers to play traditional casino games at leisure – whether it’s in the comfort of their own home or even when commuting to work on a bus or train – thanks […]

2 December, 2019
Beginner,Bitcoin,Cryptocurrency,Trading

3 Things to Know When Trading Bitcoin

Understandably, a lot of people find bitcoin trading complicated and confusing. Even though it’s been around for a decade, it can still be difficult to grasp the concept of cryptocurrencies. In its most basic form, Bitcoin is a form of digital currency that people can buy. Trading bitcoins means buying them and selling to other […]

27 November, 2019
Bitcoin,Scam,Trading

What’s A Bitcoin Loophole?

Ever since the creation of Bitcoin and its subsequent growth, individuals have been looking for ways to profit with cryptocurrencies. Dubbed the modern gold rush, there are certainly many different ways to turn a profit by investing in Bitcoin. Bitcoin Loophole presents itself as a successful way to get rich off the world’s first cryptocurrency. […]

26 November, 2019
Beginner,Bitcoin,Blockchain,Crypto Mining,transactions

How Long Does A Bitcoin Transaction Take?

Bitcoin was launched as a payment mechanism which competes directly with bank transfers. Its main advantage was that no financial intermediaries would be needed, so payments can be settled faster and at much lower costs. In theory, Satoshi Nakamoto‘s looked like a revolutionary idea, but in practice, it was not as successful as many had […]

24 November, 2019