As of now, mining Bitcoin is best left to large-scale operations. Beginner miners can try their hand at three Scrypt-based cryptocurrencies such as Feathercoins, Dogecoins, and Litecoins according to a local cryptocurrency exchange.
Feathercoins and Dogecoins would not yield as much profit using the same mining hardware. However, these are becoming more popular as time goes by. Even Peercoins are said to deliver a decent ROI.
Once, more and more people become part of the crypto-coin rush, your chances to be profitable with mining will become more challenging as costlier hardware will be needed to source coins. You’d have to invest heavily should you wish to carry on mining a particular currency. The best way to make head or tail from all of this is to learn more about the three Bitcoin mining methods. Check to ensure you are in a country where crypto mining is legit.
Is it Worth the Effort to Mine Cryptocoins?
If you take it on a hobby, then crypto coin mining would produce a minimal income. The digital currencies we’ve mentioned are great for ordinary people to mine. You can quickly recoup your $1,000 costs to obtain the hardware in just under two years.
If you think of using it as a second income, then crypto coin mining will not produce substantial results. Only, if you’re willing to part with at least $3,000 to $5,000 upfront to cover hardware costs, you may earn at least $50 a day and more.
Set Some Reasonable and Achievable Expectations for Yourself
If you aim to make yourself a substantial amount of money as a second income, you would be better off buying crypto coins using cash than mining it. Put your digital coins one side and hope these will increase their value. If you are merely interested in making a couple of digital bucks that you can spend somehow, then mining is what you need to do.
Smart miners would do their best to keep electricity cost to a minimum by mining with 4 GPU video cards that will net close to $300 per month.
There are two things you need to think about:
- The upfront cost in buying 4 AMD Radeon graphics processing units and 4 ASIC processors.
- The crypto coins market value at the time.
On the off chance, your selected digital currency may jump in value as Bitcoin would. Then you may consider yourself lucky as you sit with thousands of dollars in crypto-coins. In other words, your chances of winning are better than winning the lottery.
If you wish to give it a go, then make it your hobby with the expectation of making a small income return. Consider it to be like gold dust rather than actual gold nuggets. Always do your research to avoid scam currency.
How it Works to Mine Cryptocoins
We spoke about mining scrypt coins like Feathercoins, Dogecoins, and Litecoins earlier on. What would be the primary focus of crypto coin mining? You need to accomplish the following three things:
- Offer bookkeeping to your chosen coin network in that you would offer your computer for mining purposes where it would verify transactions day and night.
- Be rewarded with little bits of coins for providing accounting services.
- Make it a habit of keeping your costs to a minimum.
You will require a couple of things to enable you to mine your crypto coins.
- Database to keep account of your income and keep a record of the ledger transactions.
- The mining software package that is free and made up of stratum and cgminer.
- Membership within an online mining pool, which is a community of miners to help boost income stability.
- Be part of an online crypto currency exchange so you may exchange your coins for cash.
- The stable internet connection that produces at least 2 megabits per second if not faster.
- The cool and air-conditioned area to host your hardware.
- Custom built PC that is dedicated to mining crypto coins only.
- A specialized processing device is known as an ASIC mining chip or a GPU chip.
- A regular house fan to blow air on your mining PC to cool the hardware as mining generates excessive amounts of heat.
- A burning passion for learning daily about new updates and methods used to ensure you optimize your mining efforts. You need to spend hours studying improved ways to adjust your crypto coin mining performance.