Mining cryptocurrencies even in a market downturn can be profitable. The most costly part is the purchase of equipment. Miners try to apply different methods to save money – for example, renting the capacity of large farms. In traditional data centers, you can also use dedicated server racks. In the article, the reader will learn how real is mining on dedicas (dedicated server). We will tell you what to pay attention to and what the complexity of crypto-mining is.
What is a dedic
Dedicated servers are needed to host large websites and store large data sets. Remote equipment replaces a computer, but is customized for the specific task of uninterrupted operation of a web-resource. Private users also apply the power of data centers for their projects – for example, large-scale testing of pages before launch or parsing data. Depending on their goals, clients rent racks in 2 ways:
- Part of a single device (virtual server, VPS). Payment is based on disk space consumption or other system resources.
- Dedicated (actual) server. The client rents the entire hardware. The price is significantly higher than that of a VPS. It is possible to pay hourly or once a month.
The first type is effective only in technically simple tasks. For crypto mining, it is important not to distribute CPU power between users and choose an independent rack.
Is it possible to mine on dedicas
It is necessary to understand what the server consists of and what technical characteristics are at the disposal of the user. For the work of a potential web-resource, a central processing unit (CPU) and RAM (RAM) are enough. They are responsible for the speed and the number of operations performed. You also need storage for data – a hard disk like HDD or solid-state SSD-drive.
Graphical video processors (GPU) for servers are optional. This is their main difference from an ordinary desktop computer or a crypto farm.
Mining is computational operations based on hashing algorithms. The most complex ones bring the most profit: for example, SHA-256 allows you to mine Bitcoin (BTC). However, high-performance CPUs as well as video cards are not enough for it. Only ASIC hardware with special hash boards is effective for BTC mining.
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On asic-resistant algorithms, calculations are performed by graphics cards or CPU. Only a few of them are compatible with CPU – CryptoNight and RandomX mechanisms. Therefore, the answer to the question whether it is possible to mine on a dedic, in theory, is positive. The CPU of a dedicated server is capable of mining digital coins.
How to choose a dedic for mining
Hosting providers do not provide data on the models embedded in the processors. It is impossible to accurately assess performance without them. Only information about the frequency of the CPU or the number of cores is disclosed. Also, services offer optimized servers for different needs:
- Universal c low CPU, RAM and disk space.
- With increased RAM.
- With additional storage (embedded one or more SSDs with capacity from 1 TB).
- Optimized for computing tasks (devices with multi-core CPUs).
The last type of racks is recommended for mining. However, the rental cost for them is high. For example, Amazon rents a dedicated rack with a 64-core CPU for $3.13 per 1 hour (or $75 per day).
Getting started with a dedic
Large hosts provide dedicated servers for free for up to 1 year. However, you should take into account that this is the most inefficient equipment with low technical indicators. Among the popular services:
- Amazon Web Services.
- Microsoft Azure.
- Google Cloud Platform.
How to connect
The procedure is the same for any tariff. The user will need:
- Create an account on the provider’s website.
- Provide documents for identity verification (KYC).
- Specify the payment instrument.
- Select the type of server.
- Make payment if necessary.
Setup
Windows, Linux and Ubuntu operating systems are pre-installed on the hardware. However, environments with a console type of management consume fewer resources. For crypto mining, you will only need to install the miner-client and specify wallet and pool credentials for connection in it.
How much you can earn
At this stage it is worth calculating the profitability of CPU-mining, but without the characteristics of the server processor it can not be done. In this case, it will be necessary to analyze the potential efficiency of the market leaders.
The top 5 best processors for the RandomX algorithm were made up by AMD components. The table summarizes the main indicators using XMRig and Minerstat services.
| Manufacturer | Model | Number of cores | Price | CPU frequency (GHz) | Hash rate on RandomX algorithm | Yield in 24 hours |
|---|---|---|---|---|---|---|
The calculation of profitability did not take into account the cost of electricity. However, even without it, the payback period for the most productive processors will be from 4 to 19 years. In this case, the cost of rent ($75) exceeds the income 52 times.
Pros and cons of mining cryptocurrency on dedikas
Mining on dediks has additional complexities. Productive equipment can be rented. However, the mining of digital assets makes the technique work at the limit of power, which leads to early wear and tear. Therefore, hosts prevent the use of racks for such a task.
If the indicator of CPU time exceeds 90% of the possible performance, the owner of the equipment will stop the rack and block the account.
Technically, mining on a dedicated server is possible. The user does not need to purchase and maintain equipment. However, the conclusion is disappointing – the occupation will not bring income.
Frequently Asked Questions
📢 What is remote mining?
It is the rental of mining capacity. The pros are that you do not need to buy and carry out maintenance of the farm or asic.
✨ Where is it better to rent capacity for crytomining?
In this field, there are often fraudsters, so you need to study the reviews of services. NiceHash is considered reliable.
⚡ How to choose a client-miner?
Software for crypto mining should be searched for taking into account the model of the video card, hashing algorithm and compatibility with the pool.
🔔 How quickly do hosts determine that a dedicated server is being mined?
The check is performed automatically every 24 hours, so the rack is suspended as early as the first day. The account is blocked without the right to unfreeze and payment is not refunded.
📌 What are mining hotels?
These are sites for the placement of crypto equipment of clients. The main advantages are favorable energy tariffs and basic maintenance. However, the client is obliged to perform regular maintenance on his own.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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