How to start mining cryptocurrency from scratch in 2024

However, experienced miners of digital assets speak negatively about cloud services. First, most of them are scammers on the Internet. Secondly, even honest platforms do not guarantee profit. Often, renting servers does not pay off. Therefore, there is no point in paying for such services.

Step-by-step instructions on how to start mining cryptocurrency from scratch

Mining digital coins allows you to organize passive earnings. It is enough to find equipment, connect it to the power grid, perform customization, start and periodically maintain. But for mining cryptocurrencies, you need to have knowledge. They will help not to lose investments due to mistakes that are often made by beginners. Before buying miners should:

1. Thoughtfully choose a coin.
2. Find equipment.
3. Choose a cryptocurrency wallet.
4. Find a mining pool.

Choosing a cryptocurrency

Miners of digital assets are constantly competing. The more participants in the network, the lower the profitability of each individual miner. Therefore, the choice of coin matters. For example, it is more difficult to mine cryptocurrency in the Bitcoin blockchain than in other systems. There is high competition in this network. To earn BTC, you will have to use the most productive and energy-efficient ASIC hardware.

It is recommended that beginners start mining crypto with other blockchain networks. For example, RVN coins can be mined even on video cards. Competition in the Ravencoin network is much lower, and the yield is higher, which will allow you to pay off the equipment faster.

According to calculators, NVIDIA RTX 4080 video card brings $0.54 per day when mining RVN. For comparison, the profitability of ETC mining is $0.13.

Beginning miners need to understand all the basics of the process. Mining RVN, XMR, ERG, FIRO and other smaller cryptocurrencies will allow you to learn and not lose your investment. After mastering the basics of mining, you can move on to more complex coins like BTC, ETC, KAS, etc.

Choice of equipment

In cryptomining, processors, video adapters, ASIC devices, hard and solid state disks are used. What to choose depends on the digital asset. If the blockchain does not limit the performance of ASIC miners, it is recommended to buy them. This will allow you to get an advantage over the owners of other equipment. It is necessary to choose the technique taking into account its reliability, hash rate and power consumption.

But if the use of ASICs for cryptoasset mining is not effective, then it is recommended to use video cards. At the same time, many desktop PCs are already equipped with GPUs for working with graphics. Their owners can start mining in 2024 for free. The rest of us will have to buy video adapters and build a farm out of them. The reliability of components and energy efficiency should be taken into account.

When using GPUs in mining, a rig of 4-12 graphics cards is assembled. Such a system resembles a computer in which many video adapters are connected to the motherboard at once.

To mine coins that work on Proof-of-Space-and-Time or Proof-of-Capacity consensus algorithms, a miner will need an HDD or SSD. It is worth considering that their volume affects the profitability. It is recommended to buy drives from 6TB.

Hard disks are slow. Therefore, they are more often used for mining Chia and Filecoin. These cryptocurrencies do not require the speed of the drive. But for mining Signum, Storj it is better to choose solid-state hard disks. They read, write and delete data quickly.

Choosing a wallet

Crypto miners often use pools to run equipment. This allows you to earn steadily. Usually in pools, clients are provided with an internal wallet, which receives the mined coins. But experienced miners for the sake of safety withdraw cryptocurrencies to their vaults. If the platform suddenly closes, it can lead to the loss of users’ assets.

For mining alone, a wallet is essential. When choosing a vault, consider its security, functionality and convenience, as well as the reputation of the developers. Usually, miners recommend using non-custodial wallets. They store private access keys locally, which excludes the theft of cryptocurrency by the creators of the software. Therefore, such applications are considered safer.

Choosing a mining pool

Mining large digital assets alone will not bring the desired profit due to high competition. For example, when solo mining bitcoins, there is a chance of never mining a single coin. To obtain this crypto asset, you need a large farm of ASIC hardware.

When mining alone, the block reward is taken by the miner who was the first to find a valid hash. The others get nothing.

Usually, mining for beginners involves working with pools. Such platforms allow you to team up with other cryptocurrency miners. This increases the likelihood of finding a block through joint efforts to get a reward. Mining pools distribute profits among all participants.

While searching for a platform, you need to consider:

• Support for the necessary hashing algorithms. For example, for BTC mining, they use the SHA-256 protocol.
• The size of the commission. Almost any mining pool charges a fee for services.
• Remoteness of servers. The farther away they are, the higher the ping. The delay affects the final yield.
• Withdrawal conditions. Some sites charge money to a bank card, while others only transfer coins.

Setting up mining

For crypto mining, you need to prepare in advance. To start mining correctly on video cards, you will need a special program. Such software is designed to start the equipment and track the process. Often the interfaces of programs are as simple as possible and resemble a command line. Comparison of popular software of 2024 is in the table.

You can farm digital coins on ASIC-devices without mining programs. It is enough to power up the equipment, then turn it on and configure it step by step using a browser. It takes no more than 10 minutes to start the miners.

Starting cryptocurrency mining

Starting a rig with video cards is possible only with the help of mining programs. Each application is customized in its own way. Guides to them are available on the developers’ websites.

You can run ASIC yourself without intermediaries and services. You will only need a pool for mining coins. Guide to start mining cryptocurrencies from scratch on an ASIC:

1. Install and plug the device into an outlet.
2. Connect a LAN cable and start the ASIC.
3. Use a computer to determine the IP address of the miner on the local network. Programs like Advanced IP Scanner can help.
4. Enter the IP address into the browser search box and press Enter.
5. Enter the login and password for authorization in the settings. Often the login data is contained on the miner’s case or in the documentation.
6. Specify the name of the miner and the stratum address of the pool.
7. Save the mining settings and exit.

The ASIC will start automatically. Digital currency will flow into the pool’s internal wallet. To achieve the maximum hashrate after startup, you need to wait about 30 minutes. You can track statistics in the personal cabinet of the pool.

How to build a mining farm

This is the name of a system for crypto mining, consisting of several devices. Farms of video cards are usually installed at home. They work relatively quietly and do not consume a lot of electricity.

Rigs with graphics adapters are usually placed on balconies. This helps the equipment not to overheat.

To place ASIC-miners at home will not work. The wiring in residential premises is not designed for high power.

What factors affect the efficiency of mining

Mining crypto coins is a full-fledged business. Miners invest in equipment, maintain it, pay taxes and earn money. However, many novice crypto miners lose money. Training for beginners in the mining industry is a must. This will help to avoid various mistakes.

Selection of optimal computing equipment is the basis of cryptocurrency mining. It is necessary to know the criteria for evaluating the technique. The main thing is to take into account:

• The performance of the miners.
• Energy efficiency.
• Payback.

Hashrate

From this indicator directly depends on the profitability of coin mining. Hashrate reflects the performance of the equipment. The higher it is, the greater the profitability. The speed of hash generation is much higher on ASIC devices.

Efficiency

When choosing equipment, you should rely primarily on this indicator. It reflects the ratio of hash rate to the energy consumed. The higher the performance, the more efficient cryptomining is. For example, Antminer S21 consumes 17.5 J/TH, while the S19 model consumes 23 J/TH. The difference between the release of these ASIC devices is 1 year. Manufacturers are constantly improving the energy efficiency of their miners.

Payback

Before buying equipment, you need to pre-calculate its profitability. This helps to do this with mining calculators. Crypto miners recommend purchasing devices with a payback period of no more than 1 year. Given the changing market conditions, this is enough not to “go bust”.

In practice, the payback period can be longer. Over time, competition and complexity of networks grow. This leads to a decrease in earnings.

Possible income from mining

Mining cryptocurrencies is a profitable business. Profitability depends on market conditions and the performance of the farm. There are no restrictions on earnings. Some companies invest tens of millions of dollars in mining installations. For example, in Russia, the BitRiver organization has built a data center with more than 25 thousand ASIC devices. They bring the company about 600 BTC per month.

Tips for beginners on how to get into mining

The main task of a miner of digital currencies is to earn as much as possible with minimal investment. Everyone can become a miner. It is enough to understand the basics of the activity. Also to approach success will allow you to these tips:

• Build a farm in regions with cheap electricity.
• Use equipment with a payback period of no more than 12 months.
• Prepare a ventilated place for miners.
• Monitor the work of the equipment, maintain it in time.
• Do not buy devices from hand on your own, without technical knowledge and experience.
• Store coins in a reliable cryptocurrency wallet.
• Do not use borrowed money to buy equipment.

It is better to start engaging in cryptocurrency mining in a “bear” market. At this time, the prices of ASIC devices and graphics cards are falling. Also, competition in blockchains may fall, which additionally increases earnings.

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