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 exmo-promotion

Latest Guides

Intermediate,Investment,Market Decrease,Market Increase,Trading

What Is Trend Trading And How Does It Work?

Trend trading is an investment strategy which focuses on creating a return based on the larger moves within a market. Traders find low-risk moments when to open positions and await the right time to close their positions and make a profit. Trend trading is not market-specific and can be used across asset classes, including cryptocurrencies […]

15 October, 2019
Assets,CFD,Margin Trading,Trading

The Difference Between Crypto CFDs And Crypto Assets

The vast majority of the global population has probably heard about cryptocurrencies. Bitcoin’s surge in December 2017 created a frenzy of new crypto buyers seeking to make money on an often misunderstood market. Years later, the industry continues to develop, yet it remains attractive to traders looking to trade digital currency for profit. Alongside the […]

14 October, 2019
Bitcoin,CEX,Coinbase,Exchange Platforms,localbitcoins

What’s The Cheapest Way To Buy Bitcoin?

With a market cap exceeding $149 billion, Bitcoin is, by far, the most significant and valuable cryptocurrency in existence. This digital currency offers a variety of uses. For some, Bitcoin is a convenient payment method, whereas to others, it is an investable asset which can provide a genuine return. Whatever your reason for wanting to […]

11 October, 2019
Bitcoin,Blockchain,Casino

How To Get Started With Bitcoin Gambling

Although Bitcoin is a very popular cryptocurrency for trade and speculation, it is increasingly being used as a payment method for online casinos. As a result, Bitcoin Gambling has become possible, and you can use your cryptocurrency to play at numerous online casinos today. What is Bitcoin Gambling? A growing number of online casinos support […]

10 October, 2019
CFD,ForEx,Intermediate,Investment

Which Are The Best Forex Brokers?

Forex brokers are an essential intermediary to help you trade foreign exchange quickly and, potentially, successfully. Apart from simply executing trades on behalf of their clients, modern brokers offer a suite of services and tools which were once exclusive to institutional investors. There is a lot to learn about trading forex, but once you know […]

24 September, 2019
ForEx,Intermediate,Investment,Trading

5 Things To Keep In Mind When Choosing A Forex Broker

Once you get a good understanding of what forex trading is all about, you’ll probably want to start trading. The forex market is one of the more volatile trading markets, and you, therefore, want to work with the best brokers in the industry. Choosing this broker is more complex than simply seeing which charges the […]

19 September, 2019
ForEx,Intermediate,Investment,Trading

Everything You Need To Know About Forex Trading

Foreign Exchange trading, better known as Forex or FX trading, is a global market of currencies which are bought and sold as a result of their change in value. By far, this market is the biggest one in the world, both in terms of liquidity and trading volume. In fact, an average trading day will […]

19 September, 2019
Bitcoin,Crypto Mining,Halving,Intermediate

What Is Bitcoin Halving And How Does It Work?

Bitcoin Halving is a recurring event in the process of mining the cryptocurrency which takes place, on average, every four years. This event is highly significant and anticipated, not only by Bitcoin miners but by the crypto community in general, as it marks the Halving of the reward granted when a new block is added […]

18 September, 2019