Requirements for Bitcoin mining

                          Mining OF               Cryptocurrencies

Today, we will have a deep look on mining of cryptocurrencies, in very simple language. If you have any kind of doubt related to mining of cryptocurrencies, just read this blog till the end. I’m sure you will have a clear idea on

  Ø What is Mining

  Ø How to do Mining

  Ø Investment for Mining

  Ø Is Mining profitable

What is Mining

So , let’s start with what is mining. To understand this , recall a real world example of any transaction at any retail store. When a customer pays his bill , the owner will add that transaction to the ledger maintain by him to record all the transactions and all cash inflows and cash outflows. In the same manner , when a person sends any amount of cryptocurrency (say bitcoin) to another person, there is record kept by no of users (Miners). In simple words, Mining is the verifying the bitcoin transaction before adding it to the Blockchain (Ledger for cryptocurrencies).

And the Miner , who verifies the transaction, got some newly created amount of bitcoin as a reward.

Unlike the real world situation , here Blockchain (ledger) is open to all. Hundreds of miners try to mine every single transaction. But the miner with the highest computing power, will mine first and got the reward. Blockchain is so secured that no one can hack it. As every transaction is stored in a block and every block is related to its previous and next block. So any try to change in any transaction will change entire blockchain.

How to do Mining

Now, when we have an idea about mining , lets know how to do it. We have two ways to mine any cryptocurrency.  

      
    1.   Hardware Mining

        2.   Cloud Mining

Hardware Mining refers to the mining done by your own CPU/GPU at your own home or office or any other place. Every transaction has its own cryptographic equation, which needs to be solved as a part of mining (verification). As there are huge no. of miners , difficulty to solve the equation is keep on increasing. There was a time when u can even mine bitcoin with your daily laptop and personal computers. But now u need really fast and high end equipments (Graphic cards, hard disk, ram, power supply)  to mine the bitcoin. 

Speed with which you mine the crytocurrency is measured in HASH power per second (H/s). The more hash power , faster you can mine the cryptocurrency. This needs high amount of power supply. So its recommended to do mining at a place where electricity is cheaper.

Cloud Mining refers to buying the hash powers on contract from any cloud mining company. Those companies have their own acres of mining farm , where they are mining with much more efficiency than any individual can do at home. These companies have their own price for per hash power, you can buy hash powers according to your budget. And they will payout you according to the hash powers you have after deducting their profit. Cloud mining has its own advantages and disadvantages.

 Advantages :-

     
     1.   No equipment cost

        2.   No electricity cost

        3.   No space required

        4.   No worries for the damage of equipment

     Disadvantages :-

         1.   FRAUD.. ( Online frauds are no new)

         2.   Less income ( Co. took its profit)

         3.   No personal equipments

INVESTMENT FOR MINING

If you are interested in mining, I guess now you should have an idea for which type of mining you wanna go for. If still not, your all doubts will be cleared in this section. As its all about profit. Now we discuss the detailed expenses of hardware mining.

Equipments needed for hardware mining

  Ø Power supply (1000 watts minimum)

  Ø Mother Board with dual core processor (6 ports & 4 gb ram)

  Ø Graphic Card

  Ø Mining Rig

  Ø Mining Software (512 Mbps net speed)

So the main cost of hardware mining setup is of Graphic cards. Graphic cards should be advanced enough to do mining for at least 2.5 – 3 years. Here are some of the best Graphic cards are mentioned, which you can use for mining.

Ø Radeon RX Vega 64 ( The Best Graphic Card)

Ø Radeon RX Vega 56

Ø Radeon RX 580

Ø GeForce GTX 1080 TI

PS:- You can buy them from Amazon , directly by clicking on their names !

Power Supply, is must for mining setup. Your setup is nothing without power supply. You have to give 24/7 power supply in order to make the setup working efficiently. You can buy the power supply from Amazon. Here are some of the suggestions are mentioned, you can go with
      

                            Acutas 1600 watt power supply

Mining Softwares, are the softwares which help you to mine the coin. For full reviews on mining software  , you can visit the given link or just click on the heading above  
       
                      Techradar.pro

Now , come to the Mining rig. Mining rig is nothing more than a body to cover all your equipments. But it is as important as others. Here are some pictures, you can have an idea on what mining rig is. You can order them even from Amazon or your local Carpenter.

                                                             

Is Mining Profitable

If we take hardware mining in consideration, we can get our initial investment back in 8-10 months. Depending on which coin you are mining, Electricity cost, Variable Expenses ( Equipment repair), Difficulty of mining.

But at last, you will be able to make good profit out of it. You can use the mining profitability calculator, to find out your profit as per latest conditions. 

       Mining Profitability Calculator

Now, if we take cloud mining in consideration, profit is all depends on our initial investment and compound investment. More the initial investment, more we get hash powers and more we get profit. Here are some of the best companies are mentioned, which provide cloud mining services. You can also calculate the profit from them by cloud mining profit calculator.

             1. Hashflare
             2. Genesis

PS:- if you are new in the technical field, and don’t have much idea about softwares. You should go for cloud mining first and then after some time, when you got some idea, move to hardware mining.