What Is Crypto Currency Mining?
So the short answer to that goes like this. In a centralized world, when you send me money, you must go through a bank from which large fees are always deducted before reaching me in a couple days. But in a decentralized world, peer-to-peer transactions don’t really have a middle man, they have a verification system instead. After a transaction is created, it gets placed in the blockchain where it can be found by a mining rig, or a mining pool. Once your mining rig finds that block and verifies the transaction is valid, it receives a reward which is sent to your wallet address. That’s it! Now depending on which coin your mining, coins difficulty, and how long each day your rig is running, this will determine how much you earn per day. Lets not forget to subtract your electricity cost per day, this will play a big role in how much your actually earning. Now of course there are a few other technical guidelines to follow when mining a particular coin, I’m not gonna go that deep, typically every coin has a community of miners all willing help their fellow miners.
What Do I Need To Build A Mining Rig?
You can mine coins using your CPU or GPU located in your computer. You can also mine with FPGA and ASIC, but we’ll leave those two for another post later on, I’ll be giving you an overview on gpu mining.
GPUs – There are several kinds of GPUs out on the market today, so its probably a good idea to choose from the most popular ones out today, they are AMD and Nvidia. I myself bought Nvidia – GTX 1080Ti (5) when I built my first rig. At the time I was so stoked about building a mining rig that later I came to the realization that these gpus are very power hunger cards. However, by using software that controls the gpus called Afterburner, I was able to decrease the power usage on each card so they don’t run hot. Keeping your gpus under 70 degrees is ideal.
GPU Risers – These will be attached to each of your GPUs individually and then connected to your motherboards GPU slots. Each riser needs power so they should be powered individually using the MOLEX connector directly to your PSU (Power Supply).
Motherboard – You’re building a computer, and every computer has a motherboard. Be sure to choose one with several GPU slots, I have 6 slots but I only use 5.
Power Switch – Nothing fancy, just a button to turn on your motherboard.
CPU – Unless you plan on doing some CPU mining as well, you can get the most basic chip to run your rig. ex. Intel i3.
Ram – You will need at least 4 GB of ram to run your rig. You can add more if you like, but not really necessary.
Solid State Drive – An SSD can be found at very reasonably prices these days. These hard drives are a step up from the old HDD. With the amount of virtual memory that some coins are requiring these days, like BEAM and GRIN, you’re surely better off getting an SSD now, rather than later.
Power Supply – This is something you want to spend a little more then expected. You want a GOLD series model at least. Depending on how many GPUs your going to use, try to have more power than you really need. For example, I run 5 GPUs and my power usage will flux between 850w to 950w, so I run a 1500 power supply. Plenty or room to flux now.
Kilowatt Meter – This is the best way to monitor your power consumption. Some devices have bluetooth which enable you to power your miner off/on when you’re away from it.
Mining Rig Rack – This is probably not the correct name for it but it is essentially what you will need to place your GPUs, motherboard, and PSU on. You don’t need to get fancy with this either, but you can if you want. Its your rig, not mine. ex. Link
Assembly – You can follow this video by “Quality Seller” on YouTube. Very helpful.
Operating System – You can use Windows 10 or Linux. Macs are not an option. You can follow this video by “Son Of A Tech” on setting up your OS for mining.
My Final Sip
If you managed to assembly your rig correctly, and your mining now, congratulations!!!! Your officially a miner now. And now that your getting your feet wet, its time to roll up your sleeves and start researching more about the different coins available out there. Mining software is something you’ll find yourself searching for more often then anything in the beginning, simply because you want a good program that won’t have outrages fees attached to it. 1% is pretty common with most programs. Check out AwesomeMiner.
And don’t forget, research as much as you can. There are a lot of bad projects out there, but there a lot of good ones too. You never know, you just might find a unicorn one day. Cha-ching $$$$$$$$$$$$$$$$