How to start Mining Cryptocurrency | Is it Worth The Effort?
By: Fritz Wagner
Tags: Mining, ICO, Blockchain, Cryptocurrency, Bitcoin

Cryptocurrency mining is a relatively easy way to start earning cryptocurrencies.

Mining profits will always depend on what hardware miners have available

In this guide, we look at how to start mining data for complete beginners

How to Start Mining Cryptocurrency

For the past two years, Bitcoin has been trading at several thousand dollars per coin. Did you know, though, that anyone anywhere can earn digital currency, simply by starting their own cryptocurrency mining operation?

How Does Cryptocurrency Mining Work?

Despite what you might have heard, you don’t need to be a blockchain genius to start mining.

Cryptocurrencies like Bitcoin and Ethereum, use what is called a ‘Proof of Work’ consensus algorithm to validate transactions.

When anyone sends coins from one address to another, transactions are bundled into encrypted code blocks

These blocks are passed on to blockchain miners

Miners break the encryption of each block, validate transactions inside, and receive rewards for doing so.

Is Cryptocurrency Mining Worth It?

In theory, cryptocurrency mining is easy. People looking at how to start mining, simply need a PC and a reliable Internet hookup. However, in practice, mining is much more difficult. — At least initially.

Hardware & Energy Prices

Prior to 2013, proof of work coins like Bitcoin could be mined on most modern computers. Then in early 2013, dedicated ASIC mining hardware started to come to market. As a result, it is now only possible to mine most proof of work coins profitably using high-power ASIC miners or graphics cards.

How Much Does a Bitcoin Mining Rig Cost?

As of 2018, the most affordable ASIC mining rig on the market is the Halong DragonMint 16T. However, new devices will still set miners back $2,700 (approx).

How Much Power Does it Take to Mine Cryptocurrency?

In the case of the Halong DragonMint 16T, devices use an average of 1,480W per day. In the U.S. electricity rates start at 12 cents per kilowatt. This might sound reasonable. However, at present, mining with a single DragonMint 16T would only be profitable if Bitcoin was priced at $18,000 per coin. Worse, even then, profits would equate to just $0.17 per day.

Why You Shouldn’t Mine Bitcoin

Bitcoin is the world’s favorite cryptocurrency, but it is also the most difficult to mine profitably. This is why when looking at how to mine cryptocurrency, people should focus on mining altcoins rather than Bitcoin itself.

All the Cryptos that are being mined with ASICs are on a highly competitive environment, where ASICs manufactures have all the weight on their side of the scale. That means that when you buy an ASIC miner for Dash Cryptocurrency for example, and you calculate a X profit, when the Dash Miner arrives to you, that calculation will be all wrong, and you probably be on loss against the electricity bill, because there will be a lot more Dash Miners that will impact on the difficulty of the network, making it more difficult to land a block and get a profit from it.

Which Altcoins are the Most Profitable to Mine in 2018?

As of 2018, altcoins like Ethereum, Litecoin, and Monero, are still profitable to mine at home with relative ease. Miners will still be liable for hardware and power cost. However, mining profits can range from a few cents, all the way up to a few hundred dollars per day.

How to Start Mining Cryptocurrency After Calculating All Costs Involved?

After calculating which coins will be most profitable to mine, new miners need to invest in appropriate hardware and set this up accordingly. It is also strongly recommended that miners join online mining pools. This way, miners can contribute processing power to large networks, while mainly automating the mining process itself.

Is Cryptocurrency Mining Right for You?

Mining cryptocurrency can cost thousands of dollars in initial setup fees. Because of this, it is important not to jump straight into mining. Thankfully, BitDharma provides a variety of mining consultation services. These cover everything from physical system setup procedures to trading how-tos for both individuals and businesses. To find out how you could benefit, visit www.bitdharma.info now for more details.