For a modern investor, a person who has financial capital and wants to earn money, there are many options for passive income. And since 2015, another interesting option has been added to this unique assortment. So, cryptocurrency mining 2022, where to start solving this difficult task? What is mining, how does it bring stable income, what methods exist, what is the relevance of the technology?
In fact, the best way to start is by gaining fundamental knowledge of the topic, a short excursion into this area. Often new miners appear in it, who, in principle, previously had no idea about mining, about cryptocurrency, its meaning and methods of obtaining it. And the second stage will be to determine the most common ways of working for beginners, analyze the advantages and disadvantages, and relevance in 2022.
What is cryptocurrency?
Unlike traditional money, cryptocurrency is not backed by capital or precious metals. This is a digital code with cryptographic protection. However, it can be bought, sold or exchanged for real money. The advantage of such a currency is that it is not under the control of any financial state system, the absence of inflation and multi-level protection - counterfeiting of the so-called coins is excluded.
The popularity of cryptocurrencies is due to the interest of investors who have invested significant funds in its development. Therefore, it can be assumed that collateralizing cryptocurrency is an investment. With the advent of cryptocurrency, all kinds of services appeared for its circulation - trading, exchange, accumulation. These are exchanges and mining farms that give the ordinary Internet user a chance to earn additional income.
Joint mining
After confirmation via SMS or E-mail, your personal account is loaded and you can begin calculating future profits and the cost of the BTC mining contract. By default, the historical maximum price and a fairly powerful hashrate are set. As you can see, the cost of the contract is quite high, so let's try to reduce the demands. For example, like this:
Moderate cloud contract settings option
The price is within the current exchange limits, the hashrate is also lower, and the contract term is not changed. Thus, the contract price is significantly lower and is affordable to most small investors. How much time is left when the miner starts after payment is indicated on the timer.
What is mining?
The term was born from the translation of the word “mining” - from English “production”. That is, the user will have to mine limited quantities of cryptocurrency coins, form new blocks and receive a reward for the operations performed. Complex mathematical algorithms can only be done by computer technology with special programs installed. Therefore, for effective mining, a special program is needed that allows you to quickly process blocks of information (blockchains) containing a huge number of codes for the formation of currency. The process is called mining.
Summarize
Recent events in China regarding the actual legislative ban on mining digital coins and Bitcoin itself as a means of payment have already caused fluctuations on crypto exchanges and plans of leading players holding almost 60% of the world BTC production to transfer capacity outside the Middle Kingdom. Therefore, let's look at alternative options, such as the ECOS cloud pool registered in Armenia, which is more loyal to the production and circulation of digital coins.
ECOS
The information is not an advertisement for ECOS and is for informational purposes only. Moreover, on other cloud pools the process of starting mining is the same, the difference may only be in minor details.
So, let's switch to the Russian version and register. No personal data other than E-mail and wallet number in the selected currency is required:
Basic parameters of the Bitcoin mining contract from ECOS
Mining methods
Today, cryptocurrency mining occurs in several ways. Some have already outlived their usefulness and are only suitable for understanding the essence of the process. Others develop, become more complex, and require additional investments. Detailed information about each will help you evaluate one or another for a personal user.
Mining on your home PC
Due to the widespread popularity of the process, it has become difficult to mine cryptocurrency. The first difficulty factor is the low power of home devices. Searching and processing information becomes lengthy, and the meaning of earning money is lost due to expenses exceeding income.
Mining on a home computer is no longer used for mining, but it is useful for understanding the nuances of the process.
RAM usage . Unfortunately, there is also no benefit for the miner due to the small volume and power.
Using a video card . Buying powerful video cards and a reliable motherboard can give a miner profit. However, first a novice miner needs to compare income from currency mining with electricity costs - as a rule, they eat up all the profit.
ASIC mining
Purchasing special equipment with installed integrated circuits that facilitate the quick search of cryptocurrency codes is a common way to mine a digital asset. With the help of such tools, it is possible to mine virtual money alone. The problem is that energy-efficient equipment coupled with high speed is incredibly expensive.
If they fail, components must be completely replaced, since repair is practically impossible.
FPGA mining
The equipment is much more productive than the one described above. Gate arrays are very efficient and consume little power. The difficulty lies in the practical impossibility of purchasing equipment in our country.
The payback of such a kit is too low for a single player, so FPGA mining is only available to groups of miners.
Creation of mining farms
The conditions for mining cryptocurrency are becoming more complicated every year, and now a single miner, in order to extract a certain amount of cryptocurrency, needs to invest more in equipment and pay for electricity. Sometimes the benefits become mythical, even if the miner has access to first-class hardware.
Therefore, the creation of groups of miners - pools working on “farms”, where each participant uses their own capacity to mine currency, has become widespread. The reward is accordingly divided among everyone. Experts consider such mining to be the most profitable and safe according to certain criteria.
How much can you earn
Now to the question of possible earnings with a regular computer. Modern cryptocurrencies require power that can be provided by only one computer part - a video card. You can forget about mining cryptocurrency on your processor and hard drive. And therefore, how much you get per day directly depends on the power of your video card.
NVIDIA GTX is currently the best choice for mining. For example, the NVIDIA GTX 1070 video card. An unoverclocked card brings about $1.5 per day. If you overclock and connect normal equipment, the figure will be approximately 2-2.5 dollars per day with proper luck. And this is if the computer runs 247. Agree, not the most impressive figure.
Having determined the hashrate, you can calculate the full payback period of your card on the Whattomine service - https://whattomine.com/calculators. Additionally, you must indicate the price for electricity and the power of the device. The service periodically updates information (including increasing the difficulty level, reducing the fee for decrypting blocks), so you don’t have to worry about the relevance of the data.
Cloud mining of cryptocurrency - where to start
Earning money without buying expensive equipment while searching for cryptocurrency is quite possible through cloud mining. What it is? The user rents or purchases the power of a software system located in data centers. These locations may be in the same city as the miner or even outside the country. After investing your own funds, the profit goes to the miner’s account automatically. All settings are carried out by the service. Despite this, fabulous conditions do not always meet the expectations of virtual profit seekers.
conclusions
Having examined mining 2022 from the point of view of profitability and further development, we cannot but agree that the picture emerges very ambiguous.
Advantageous offer: USB mining of GectaCoin coin with a profitability of 100% for 12 months of work
On the one hand, one cannot ignore the obvious prerequisites for the further active development of the cryptographic industry. And most experts agree that everything is moving towards widespread recognition of cryptocurrencies and, possibly, their parallel use with fiat money.
On the other hand, the same experts almost unanimously declare the disappearance of classical mining as such. This activity will no longer justify itself from a financial point of view in the coming years due to the growing complexity of the process.
But we would not advise mining fans to become depressed about this. There is still mining in pools, mining of newly emerging virtual coins, “cloud mining”, in the end. So those who are persistent and enterprising will not be left out of work. Good luck!
How to start mining for beginners
So, mining – where to start in 2022? The first stage in preparing mining is choosing a cryptocurrency . Understanding the significance of digital money will ultimately lead to greater profits for the miner.
How to choose a cryptocurrency
The modern digital world has several hundred virtual coins suitable for trading, exchange, search and other manipulations. The future miner should focus on more well-known currencies, although here there is a risk of wasting time and money waiting too long for profit - this is what many users with powerful equipment and a developed partnership structure do.
Recommended options:
- Bitcoin is the most famous currency, developed more than 9 years ago. Due to high demand, it is suitable for mining only for large pools - groups of participating miners - with powerful equipment.
- Ethereum is a relatively young currency and novice miners have a very high chance of successfully mining it.
- Litecoin is a cryptocurrency comparable in popularity to Bitcoin, therefore, it is difficult to mine due to the great competition of participants in any mining.
- IOTA and Dash are the youngest of the cryptocurrencies. Although they were created quite a long time ago, they were put into circulation relatively recently and the chance of making virtual profits by searching for such money is still high.
- Monero is a currency that has been attacked by hackers many times due to its open source availability. Nevertheless, it is appreciated by advanced miners.
In order to correctly decide on the choice of cryptocurrency, it is important for the future miner to know several points - cryptocurrency quotes and the possibilities of its growth, the difficulty of mining and the time to search.
Without unnecessary words and complex terms
Contrary to popular belief, in order to start mining Bitcoin, it is not at all necessary to thoroughly understand blockchain technology. It is enough to understand that mining, in essence, is mathematical calculations that are aimed at solving a problem consisting of solutions to all previous problems in a huge chain. For the correct result, a reward is awarded in the form of “coins”, each of which today costs as much as a new A-Class Mercedes.
In accordance with this principle, each subsequent task turns out to be more difficult than the previous one, and therefore every year more and more powerful hardware is required to mine the coveted coins. Over the 12 years since the creation of Bitcoin, humanity has mined 18.5 million coins out of a possible 21 million, but analysts believe that finding the remaining 2.5 million will take at least a century - the process of mining them will become so complicated.
However, in this regard, you shouldn’t take out a loan for a dozen top-end video cards today. Before resolving the issue with iron, you need to decide on a much more important point: what exactly to mine.
Mining Strategies in 2018
The number of coins earned depends, first of all, on the miner’s desire to analyze the situation. Therefore, simply waiting for funds to be deposited into your account means not getting the expected results at all. The user, having available tools, must independently predict the situation conducive to receiving coins. This:
- Changing exchange rate of cryptocurrencies.
- Own available funds.
- Changing activities from production to purchase and back if the situation is profitable.
It is also important to be prepared for force majeure events when the market tends to collapse, sharply increase activity or decline.
The miner must be prepared for a complete loss of accumulated funds. Therefore, you should not “put all your eggs in one basket,” but rather distribute them wisely.
How can you mine Ethereum?
You can mine Ethereum on anything: on Radeon 570/580 series, on “green” 1080 series and on other video cards. Only an ASIC will not work (although the first model from Bitmain will hit the market soon).
The choice of equipment depends on how much money you have available and what you plan to get in the end: a workhorse that will generate income, or a whole herd of high-quality horses, the power of which can give a more significant result.
Remember the times when computer game lovers competed in hardware? Some people bought super-powerful equipment and fought for realism, while others simply chose a good product and played at high, but not maximum, settings. This is a matter of taste - nothing more.
We combine GPU video cards into farms
Our recommended kit for building a mining rig consists of the following elements: a Linux platform and good six-slot boards. I would also advise using a server power supply (for uninterrupted operation) and “red” video cards (as they are more universal).
You will also need good risers (their quality may vary from series to series) and, very importantly, a good stabilizer to regulate surges in network electricity.
Everything else is standard for PC:
- motherboard,
- RAM,
- CPU,
- HDD.
These elements do not affect mining performance.
However, it would be nice to add a well-thought-out external ventilation system with outlets and air flow (preferably without surge, with a natural mode). Without installing ventilation, you will not ensure normal operation of the equipment, especially at maximum values. Another factor in a smooth operation is cleanliness.
