How to Start Mining

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Most of those who first decided to figure out how to start mining don’t understand exactly where to start. There is a lot of literature, scattered knowledge and suggestions about mining on the Internet. Sometimes it is hard for an inexperienced user to figure it out on his own and it takes him months to try to find something sensible and useful on the subject. We decided to give the basic nuances and questions for new miners.

Where do I start to mine?

Mining is the mining of cryptocurrencies. But how exactly do you mine it? To begin with, you need to clearly understand what kind of cryptocurrency you plan to mine. Most of them are aiming at bitcoin, but the complexity of mining this cryptocurrency is growing and to mine 1 BTC you need a lot of power per unit of time. I.e., the investment in bitcoin mining equipment is substantial and not every beginner can afford to invest such sums. On the other hand, you can mine bitcoins at the ready-made mining-farms, which payback period is 6-8 months on the average, and then work in profit. The payback of mining-farms depends on the bitcoin exchange rate, and therefore you need to coincide with the moment, when bitcoin exchange rate starts to grow, and then the payback period will be less. The pitfall here is the increasing difficulty of mining. Some coins require specialized video cards for mining. For bitcoin and a number of other cryptocurrencies, processors called asics. Once you have figured out the currency you plan to mine, you can move on to choosing the equipment.

Mining on asics

An ASIC miner is a specialized computer for mining bitcoins and other cryptocurrencies, exceeding the power of conventional computers by thousands of times. Like early mining on regular computers, asics are involved in decrypting the blockchain, mining blocks, and so on. The difference is that the calculations are not done with video cards or other devices, but with special chips. Before the advent of asics, most of the mining was done on video cards. It was also possible to mine on processors, but this kind of mining very quickly becomes unprofitable. The constant increase in the complexity of cryptocurrency mining and energy costs led the developers of mining equipment to a revolutionary solution – the creation of specialized chips, ASIC, which would solve a large number of tasks, but with relatively low power consumption. The first in this area was the Chinese company Butterfly Labs, which back in the summer of 2012 developed a chip-based device for Bitcoin mining. This was the first ASIC-miner.

 

 

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