VPS Mining

Mining cryptocurrency at home is not a cheap business, requiring large investments in asics and graphics cards. If you don’t want to spend so much, you can use a VPS for mining. However, this option has two disadvantages – maximum capacity limitation and a small selection of providers that allow cryptocurrency mining on their servers.

Choosing a VPS server for mining

To begin with, it’s worth noting that you can rent not only a VPS, but also a VDS. There is no significant difference between VDS (Virtual Dedicated Server) and VPS (Virtual Private Server). In both cases, the user buys virtual capacity, that is, part of the capacity of the physical equipment, which can be used for any task.

Popular networks should not be chosen, as mining will turn out to be too small. It is recommended to mine new coins with a low hash rate, which may become more expensive in the future.

In the case of most cryptocurrencies, including Bitcoin, Zcoin, Grin, a powerful video card is required. ASICs are not installed on VDSs because dedicated servers are rarely used for mining.

If the user plans to mine digital currencies using GPU, it is worth finding configurations with RTX 4090, RX 7900 XTX, RTX 3090 TI. They have enough power for mining with a high hash rate.

Chia with Proof-of-Spacetime (PoST) consensus algorithm requires a lot of hard disk space. To mine the coin, you should find a VDS with a 256GB SSD, 8TB HDD or more, 16GB of RAM and at least a 4-core processor with a clock speed of 1.5GHz or more.

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The table contains providers that do not ban cryptocurrency mining.

Choosing a provider, it is necessary to familiarize yourself with the usage policy in advance. If the provider is against cryptocurrency mining, then if mining is detected, it will block access to the equipment and cancel the subscription. Such companies should be bypassed. Akamai’s response to coin mining:

There are no words in the Acceptable Use Policy (AUP) about prohibiting mining. However, it may overload your CPU, which is against our AUP. It is recommended to either set the maximum frequency limit to around 75% or use a dedicated CPU. In the second case, you can borrow the full CPU power without worrying about blocking.

If the site does not have information about mining, it is worth clarifying the details, so that in the future you do not have to look for a new provider. It is also advisable to use 2 VDS in different companies, as one server is not enough due to the growing hashrate of popular blockchains.

VPS server rental

To rent and set up a VPS for mining, you will only need to pay for a subscription and connect remote access.

Account creation

To create a personal account, you need to:

1. Open the provider’s website and click on Sign Up.
2. Choose the method of registration and fill out the questionnaire.
3. Connect a bank card or e-wallet to purchase capacity.

Connecting to VPS

When a personal account is created, the user will be able to rent equipment. Ready-made builds will become available within 10-20 minutes, and custom builds – in 1-3 days. After that, it will remain to configure remote access and install the software.

Instructions for connecting to Windows

To do this, you will need RDP (Remote Desktop Connection), which is pre-installed on all computers with the Windows operating system. The provider after confirming the payment should send:

• IP address
• Login
• Password.

In RDP you must first enter the IP, after which the program will ask for a code. Then the program will open, through which you can control the PC.

Connecting to macOS or Linux

If one of these operating systems is installed, a PuTTY terminal will be required. To set up the connection, you will need to enter:

1. Hostname is the IP address.
2. The port is 22 (leave it as the default).
3. Connection type – SSH.

It remains to specify the user login and password. Within a minute, the connection will appear, so the user will be able to start mining cryptocurrency.

Starting the mining process

To start mining on a VPS, it is required:

1. Create an account on the pool’s website.
2. Download the software to the device.
3. Set up the configuration of the miner, specify the wallet address.
4. Start mining through the console.

It is also worth limiting the use of video cards, processor, so as not to overload the components. It is desirable to put no more than 85-90%.

Calculating profits from mining on the server

Calculating the profit on Ethereum Classic. The value of the coin at the time of writing (21.02.2023) is 23.32 dollars. If a user buys a dedicated server with an RTX 3060 graphics card with a hash rate of 48 MH/S for 100.79 dollars per month, he will be able to mine approximately 0.18720 ETC, that is, only 4.37 dollars.

At the same time, the profitability of this method may change due to the hashrate correction, but in any case, mining will be unprofitable. A more profitable way is still the creation of your own farm.

Conclusions

Mining cryptocurrency on dedicated servers does not make practical sense. This method does not require large financial investments at the start and space for setting up a farm. However, VDS with video cards and sufficiently voluminous storage do not pay off.

A remote server is suitable only for those who are just learning how to customize mining, how to sell digital coins. Thanks to inexpensive capacity, you can earn a little money to understand the industry. However, as a competitor to classic mining VPS did not take place.

Frequently Asked Questions

Author: Saifedean Ammous, an expert in cryptocurrency economics.