There are 3 ways you can mine and power crypto from home. Full-DIY, Semi-DIY and Plug-n-Play. Let’s look at the cost in terms of time and money and also where to get started.
Crypto networks like Bitcoin, Ethereum and many others run on decentralized computing. That means these networks are powered by millions of computers all over the world. In exchange for computation, those computers earn crypto.
The different crypto protocols sometimes use different types of computation. Proof-of-work computation for Bitcoin and Ethereum is called mining. Proof-of-Stake computation for Tezos is called staking. There is routing for Bitcoin Lightning and validating for Bitcoin Nodes. No matter what, it’s always a type of computation and there are three approaches you can use to help power crypto networks and earn crypto for your computation.
1. Full-DIY Spend the most time to save money Time: Research how-to build one, and then build a miner and lightning node. Install the operating system and software and keeping it updated for years to come. Money: Parts to build the miner and lightning node plus a monitor, keyboard and mouse needed for setup and updates.
Here’s what an example DIY hardware and software setup looks like.
2. Semi-DIY Save some time by spending more money Time: Research which one to use and install the operating system and software and keep it updated for years to come. Money: Buy a pre-built crypto miner or lightning node (a monitor, keyboard and mouse is needed for setup, updates and metrics)
Here’s an example Semi-DIY hardware and software setup.
3.Plug-n-Play Spend no time, just money. Time: None Money: Buy an all-in-one crypto miner and Bitcoin Lightning node. Hardware, software and updates included. Controlled with an app.
Here’s an example of a Plug-n-Play solution.
No matter how you do it, you have to spend time and/or money.
And time is money.
We even speak about them the same way. You spend both.
We know this because we learned it first hand. We’ve been building computers since we were kids. Before starting Coinmine, we built our own miners from scratch running on Ubuntu and then Ethos. Today, there is staking, and Bitcoin Lightning and new protocols to keep up with too.
There are lots of resources for Full-DIY and Semi-DIY hardware and software solutions including help guides and online groups and pre-built devices. Here are few examples.
Here’s just one example of how time and money can add up when you’re deciding to go Plug-n-Play, Full-DIY, or Semi-DIY for your own mining, Bitcoin Lightning and other crypto solutions.
You can use this table as a template for your own situation. Maybe your time is worth more, maybe you can buy the hardware for less, or maybe the amount of time you’ll need is different. If you have a larger mining setup, you should keep your electricity costs in mind too. No matter how you do it, the more people powering crypto — the better. Just make sure to understand the time and money you’ll have to spend so you can make an informed choice. Today, you have more options than ever to get rewarded for powering crypto and building a new world
Over the years, cryptocurrency mining has evolved as a hot topic in the world of digital currencies.
It allows people to get hold of cryptocurrencies like Bitcoinwithout actually buying them.
However, even today, mining is one of the most volatile aspects of the crypto-world; it comes with its own caveats and might not prove profitable every time.
Here’s how you can mine Bitcoins.Details
First up, what happens in cryptocurrency mining?
Cryptocurrency mining is the process of verifying crypto transactions and adding them into blockchain ledger.
In order to successfully mine/authorize a cryptocurrency transaction, you’d have to compete with others and perform complex calculations on blocks containing transaction data – which requires huge processing power.
However, once the work is done, you’ll be rewarded with a certain amount of Bitcoin or the currency in question.Facts
Mining Bitcoins at home: Things to remember
If you want to earn rewards by mining Bitcoins, you should know that the process would take a toll on your machine.
Basically, the processing power of a computer defines hash rate or mining speed and directly impacts profits.
So, if your computer is not well-equipped with a powerful processor and GPU, the mining would be slow and you will not make enough Bitcoins.
Some people attach dedicated crypto-miners to their machines
To tackle hardware problems, you may also attach an application-specific integrated circuit (ASIC) to your computer and upgrade its processing power for the job of mining. However, it will add to the cost of running your own personal Bitcoin miner.Added factors
Also, the running costs will impact revenue
Along with hardware requirements, you’d also have to bear the operational cost of running a home-based Bitcoin miner.
This would include electricity charges, which are likely to increase when you’ll mine Bitcoins, and the cost of keeping an always-active internet connection.
Also, you’d need a fan or dedicated cooling device for the PC as it might overheat during the mining process.Step #1
Pick a digital wallet
Once you’ve arranged appropriate hardware (either through GPU or ASIC), you’d have to setup a digital wallet to store Bitcoin rewards.
If you want to keep the Bitcoins as an investment, create a ‘paper’ wallet using a website like Bitcoin Paper Wallet Generator otherwise go to Electrum wallet for regular payouts
Electrum has to be installed and it works on all platforms, including Android.Step #2
Pick a mining pool
Next, head over Bitcoin wiki and find a mining pool to join.
As the name suggests, a mining pool is a group of machines connected together for mining bitcoins.
It will bolster your profit-making chances, but do note that the rewards earned through pooling would be shared with every member who contributed in the joint effort.Step #3
Create account, provide payout details
Once you’ve found a mining pool (Slush Pool is a popular choice), create an account on its website using your email and password.
Then, verify the account and enter payout details or the public wallet address on which you’ll be receiving the money made through Bitcoin mining.
Make sure to check if the pool has any minimum Bitcoin restrictions for cashing out rewards.Step #4
Now, download a mining software
After prepping the wallet and joining the mining pool, install a legit Bitcoin mining software on your PC, like GUIMiner.
Launch the program, select the pool that you’ve joined from the server option, and enter the username and password for it.
Now, select your GPU from the device menu and click the ‘start mining’ button to begin the crypto-mining process.Step #5
After this, the software will start mining Bitcoins
Once you start the process, the mining software will communicate with servers of the pool to collaborate your machine’s mining effort with that of others on the pool.
You’ll be able to see the hash rate at the bottom of the page and use it calculate how many Bitcoins your machine may mine on a single day.
Ethereum is an open source public blockchain project set up on a distributed computing platform with smart contract functionality. Ethereum is the pioneer for smart contracts under the blockchain technology. The second-ranked crypto is currently on a bullish run that is being spearheaded by Bitcoin. By the time of writing Ehereum was trading at $303 with a market capitalization of $32,368,211,824.
There are various ways of owning Ethereum. You can own Ethereum through mining. Previously, mining was a lucrative venture. However, mining is no longer a fruitful venture due to dwindling revenues. You can also own Ethereum by buying it on various platforms. The most convenient way to buy Ethereum is to use an online cryptocurrency exchange. With so many choices to choose from, this guide highlights the best places you can buy Ethereum in 2019.
Coinbase is a popular cryptocurrency trading platform based in the United States with an excellent reputation due to its adherence to laid down laws. The platform has exceptional security measures in place, with a good customer base. The exchange supports several cryptocurrencies, including Bitcoin, Ethereum, and Bitcoin Cash. Note that the exchange is not available in all countries. However, if the platform is open in your country, then Coinbase is the most convenient way to purchase Ethereum.
Before you buy Ethereum on Coinbase, you need to create an account and undergo the necessary verification requirements. In the next phase, you will add your payment method. Coinbase allows Credit/debit card or bank wire transfers. Click the “Buy/Sell” and click Ethereum. In the last phase, enter the amount of Ethereum you would like to buy. Coinbase will sell you Ethereum for a fee of 1.49%-3.99% depending on your payment method. Usually, credit cards have a higher cost than wire transfers. If you wish to store your Ethereum coins, you can transfer into a compatible wallet due to security reasons. If you want to trade the asset, then it can stay on the exchange for a while.
Binance is a leading cryptocurrency exchange that is widely used. The exchange’s popularity has grown based on the fact that it has numerous listed cryptocurrencies. The platform supports Ethereum, Bitcoin, Bitcoin Cash, among others. To buy Ethereum on the platform, you need to create an account first. There is no verification required on Binance for withdrawals below 2 BTC per day, and the exchange also offers a mobile app for both iOS and Android devices.
You can buy Ethereum by first adding your preferred payment method. Binance accepts the use of credit cards to buy Ethereum. The exchange has partnered with Simplex to power the purchase of cryptos through credit/debit card. Binance will charge you 3.5% per transaction (10 USD minimum). Depending on your location, Binance can offer you other options of buying Ethereum using other cryptocurrencies. Over the past few months, Binance-branded fiat-to-crypto options have emerged, catering to various countries across the globe.
KuCoin is a popular cryptocurrency exchange with support for various cryptocurrencies. The exchange supports Bitcoin, Ethereum, and other digital assets. KuCoin is also known to support popular stable coins like USDT, USDC, TUSD, PAX, and DAI. The exchange has also issued its token called KuCoin Shares (KCS). To buy Ethereum on the exchange, you need to create an account first. Creating an account is easy because you only need your email, username, and secure password. You will then enable the two-factor authentication feature for securing your account.
To buy Ethereum, you can use a credit/debit card. Recently, KuCoin partnered with payment solution provider Simplex to power credit/debit card purchase of Ethereum. You can access through the “Assets” button. With a debit/credit card, you can buy BTC, ETH, XRP, BCHABC, and LTC with both USD and EUR.
Apart from buying Ethereum using debit/credit, you can trade other supported cryptocurrencies with Ethereum. For example, a popular pair is ETH/BTC. You will need to deposit Bitcoin first. Remember that before you make your first deposit, ensure you have first completed the Google 2FA verification and that you’ve set the trading password for your account. Otherwise, you won’t be able to get your KuCoin deposit address. To deposit, go to the navigation bar at the top of the website and click Assets then Deposit. You will then be given a deposit address that you will copy and navigate to your favorite wallet. After the deposit has reflected, you can trade it with Ethereum.
Bitmax is one of the best cryptocurrency exchanges with a modern and secure touch. It is an innovative next-generation digital asset trading platform with a mission to support financial market innovation and advancement of the crypto economy. Bitmax is among exchanges that support margin trading for various cryptocurrencies. The platform supports, Bitcoin, Ethereum, and several stable coins like USDT.
To get started, you need to create an account with Bitmax by providing your email address. You will have to undergo verification processes like Know Your Customer. The platform emphasizes the protection of user accounts.
You will then deposit your favorite cryptocurrency and trade it for Ethereum. At the moment, Bitmax does not support fiat deposits. For example, you can deposit Bitcoin and exchange it for Ethereum. Login into your account and click on My Asset, choose the deposit button, select the token you would like to deposit for example Bitcoin. Click deposit, where you can copy deposit address or scan the deposit QR code to deposit BTC. When the deposit has been confirmed, it should reflect instantly. You can then place a trade and exchange it for Ethereum. Bitmax also comes with support for mobile application compatible with both Android and iOS devices.
Ethereum is a cryptocurrency on the rise. There are several ways to own this asset. Buying from cryptocurrency exchanges is the best way considering that mining Ethereum is no longer profitable. However, before you settle on any exchange, look at their security features since that’s vital when it comes to cryptocurrency investments. Additionally, if you are not planning to trade Ethereum, you should transfer it to an offline wallet. Generally, exchange wallets can be susceptible to hacking. Lastly, find out if the exchange is operational in your country.