Is it possible to mine cryptocurrencies from home? Yes, but is this process profitable? We’ll deal with answering that question in this article
Mining cryptocurrencies from home is an attractive idea for people all over the world. However, can anyone do it? Theoretically, yes; however, we’ll explain in this article that it’s not that simple a process, nor is it all that profitable.
What does cryptocurrency mining consist of?
Cryptocurrency mining is a process where a team solves mathematical calculations. Meanwhile the more powerful their equipment is, the greater probability they will have to solve these calculations. Through these operations, they seal these blocks onto the blockchain and a cryptocurrency transaction, from one user to another, is confirmed. The compensation for solving the problem and sealing the block is the commission, in cryptocurrencies, that the miner receives.
What are the methods for mining cryptocurrencies?
There are two ways to mine for cryptocurrencies. The first is the proof of work. Here, the miners compete to solve the mathematical problem. The one who has the greatest computational capacity (hashrate) will be the one who is able to register the block on the chain and to receive the compensation, as we have already discussed previously.
The other method is the proof of participation. This model is based on the miner’s purchasing power and not on his equipment’s potential for mathematical calculations. This means that the more cryptocurrencies he has, the more he can mine. And it doesn’t matter the amount of work done in the mine, but the amount of cryptocurrencies deposited by the miner.
What do you need for mining cryptocurrencies from home?
These days, you can mine cryptocurrencies from a computer and even from an electric car, with a connection to Internet. The connection speed doesn’t matter as much as whether it’s stable.
The first thing you have to consider is your computer’s hardware. It’s not possible to mine cryptocurrencies with an old computer or a laptop without a lot of features. For example, you can arm a mine Rig. This has the same components as a computer; however, it adds another source of power and various graphic video cards.
You have to keep in mind the cost of electricity where you live. The mining processes make the equipment heat up a lot. Therefore, it consumes more power. You will have to do the math of whether what you earn mining covers the electric bill.
How to arm the Rig for mining cryptocurrencies from home
To arm your own mining Rig, you will have to place various elements. The first is the motherboard. Then come the graphic cards. The most used, with the best features and also the most expensive on the market, are AMD and Nvidia. After that, you will have to add one or two power sources. Incorporating refrigeration is key, because your equipment will heat up a lot while mining. You also have to pay attention to the CPU.
How much does it cost to mine cryptocurrencies from home?
To answer this question, you will have to these other questions:
How much did you pay for your computer’s hardware?
What is the price of an Internet connection where you will mine cryptocurrencies?
How much is your monthly electric bill?
After you have the answers, calculate how much you obtain and decide whether it seems viable to you or not.
Which are the best cryptocurrencies to mine from home?
Before beginning your work as a miner, it should be clear to you which are the best cryptocurrencies to mine from home. Bitcoin is the most known, but it’s almost impossible to mine it from home, with a GPU. You need extremely powerful hardware, with a cost of over 10,000 dollars. These are the integrated circuits for specific apps (ASIC, for their initials in English). This hardware is created specifically for mining cryptocurrencies.
So, eliminating Bitcoin, the best option for mining cryptocurrencies from home is Ethereum. With a Rig, where you put six video cards, you would be able to obtain up to 250 dollars of Ethereum monthly.
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