Solo mastering setup

In 2023, popular cryptocurrencies are mined in pools. Users connect equipment to a powerful server to receive stable payments. After finding the block, the reward is divided in proportion to the hash rate invested. However, more often the hash is found by the owners of large farms. Therefore, they choose bitcoin solo mining. Working alone with large resources allows you to increase profits by at least 20%. Users do not depend on technical problems in the pool and do not pay a commission.

What is solo mining

In the early years of bitcoin, it was possible to mine coins on any PC. A node was deployed on it and started mining. Gradually, the complexity of popular blockchains has grown so much that small farmers with 2-3 graphics cards cannot compete. Theoretically, every node has a chance to find a block. However, if the hash rate is low, it can take years to find the right solution.

In 2023, such participants are more likely to mine unpopular coins in solo mode. Single mining of top cryptocurrencies is chosen by owners of farms with high performance. So they have a chance to earn 20-45% more than in a pool.

Users with a small hash rate can mine new coins in solo mode.

Principle of operation and differences from pool mining

Cryptoshachters customize the equipment to search for the right hash. To solve the problem (find the block), you will have to go through all possible variants. Miners who have raised a node compete with each other. The one who is the first to report the solution will get the reward.

In 2023, solo pools use more than 20 methods to pay out profits. Some are more profitable for small miners, while others are more profitable for large participants. In PPS, the user gets money every day regardless of whether the service has found a valid hash. In PPLNS, newly connected participants receive N (zero to one) times smaller payout.

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Reward per block found

Blockchain is a decentralized registry of data, the security of which is provided by miners. They confirm transactions and create new blocks. Such work requires complex mathematical calculations that consume a lot of energy. If an attacker wants to control the blockchain, he will need to purchase equipment 51% more powerful than the rest of the network.

Miners are rewarded for the work they do. It consists of two parts:

• Coins created.
• Transaction fees (fees for confirming transfers included in the blockchain).

For example, in the Bitcoin blockchain, solo miners receive 6.25 BTC and transaction fees for a block found. In the Ethereum Classic network, the reward is 2.56 ETC.

Probability of success and profitability

A solo miner receives 100% of the reward for each block found. In cryptocurrency mining, luck is of primary importance. The time to discover a solution is a constant value at a given complexity and power of the technique only over a long period of time (from a year). If a miner can mine 5 blocks per day, in some periods he will find 4-6 solutions, sometimes 7-8.

Choosing the right coins for mining

In 2023, users with a hardware hash rate of 114 EH/s and more can receive stable payments when solo-mining bitcoin. Owners of less productive farms will have to increase capacity or choose another coin.

The lifetime of the equipment does not exceed 3-5 years. During this time it is necessary to recoup investments and earn at least 30-50%. Monthly income should at least cover the costs (hosting, electricity bills and current repairs).

To find a promising for solo-mining coins can be used in these ways:

• Calculator. You can use the 2Cryptocalc service. You need to enter the names of video cards, their number. The service will tell you if there is enough power for mining.
• Forums and blogs. You can search for farms with a similar hash rate and see what assets they mine.

Network complexity and hash rate

The only way to find a new block in the chain is to search through the possible values. Hashrate shows how many such operations a tech can perform per second. The time it takes to create a new block on the blockchain is constant. For example, for Bitcoin it is 10 minutes, LTC – 2.5. If the computing power of the network (hashrate) grows, participants spend less time to solve the problem. Since the value should not change, the algorithm increases the complexity of the task.

Average time to find a block

To calculate the speed of finding a solution, we need to divide the hash rate of the network by the capacity of the farm. The value is measured in seconds. For convenience, it should be divided by 1440 (conversion to days). If the farm can mine 2 blocks or more, it guarantees stable payments to the owner of the equipment. However, there can still be unfortunate periods – days or weeks – when no solution can be found.

Calculator

To calculate future income in the WhatToMine service, you need to enter parameters – hash rate and electricity tariff. The calculator will show you which cryptocurrencies were more profitable to mine over the last month or year. Next, you need to choose 5-10 most profitable assets and calculate how many blocks per day you can find on your own.

The disadvantage of the method is that the calculator shows the past. Periodically, the leaders change. Assets that were profitable to find earlier are again in the top of mining.

However, it is impossible to predict which cryptocurrencies should be mined in the current year. When a coin goes to the top, the number of participants increases, and with it the difficulty of creating a new block. After a short time, it becomes unprofitable to mine it.

Required equipment

Extraction of cryptocurrencies is constantly becoming more complex, so users have to increase capacity. A modern farm consists of at least 30-50 video cards or 3-5 asics. Their work needs to be synchronized with the help of a PC. It does not perform calculations, so you can take an inexpensive one. You will also need:

• Power supply. You can buy a powerful server model or connect several ordinary ones in parallel. This will allow you to get the same power for less money.
• Technique for carrying out calculations. In 2023, mining on video cards or asics.

The cost of the farm is affected by the quality and quantity of elements. In 2023, to get a monthly income of $300-400, you need to buy equipment for at least 500 thousand rubles.

Creating a wallet for cryptocurrency

Withdraw profits can be withdrawn to any vault. Users who prefer to spend earnings immediately, order payment to the exchange. Miners who adhere to the investment strategy, transfer money to a software or online cryptocurrency wallet.

It is not recommended to specify a hardware vault for the payout. A lot of small payments can “clog” the memory of the device. You should first order a payout to an online, desktop or mobile wallet, and then send it to the hardware interface.

The address of the exchange storage is created when registering an account. To copy it, you need to:

1. Go to the “Assets” tab.
2. Click on “Enter”.
3. Select a coin and network.

After logging into a browser, program or mobile wallet, you need to create an account. To do this, you need to:

1. Click on the Create New Wallet button.
2. Create a password.
3. Save the mnemonic code.
4. Repeat a few random words.
5. Confirm the selection.
6. Go to the Wallet menu and click on the coin to be mined.
7. Select Receive.
8. Copy the address.

How to start mining solo

To mine in solo mode, you need to have a stable broadband internet connection. It is better to connect 2-3 providers. In solo mining, the interaction takes place directly with the blockchain without intermediaries. Therefore, you need to have enough hard disk space to download a copy of the distributed ledger. It is desirable to use SSD drives – they have higher write and read speeds.

Instructions on how to mine solo:

1. Create a wallet to withdraw profits.
2. Raise a full node or connect to a pool. Some services provide the possibility of solo mining. There is an option to pay a small commission of 0.5-1% and get a ready-made technical solution.
3. Install a mining app. In some networks, the launch of solo-mining by wallet is available, so this point can be skipped.
4. Customize the operating system. It is necessary to remove from the autorun all programs except the miner. You also need to configure the PC autorun after power off.
5. Add the mining program to the antivirus exceptions, otherwise failures may occur.
6. Optimize the parameters of the video card or asic.
7. Start the process.

Performance check

After starting the farm, you need to monitor the process. To bring a stable profit, the equipment must work in a 24/7 mode. It is important to monitor such parameters:

• Hashrate. The indicator can vary slightly during the day. If it decreases by more than 20%, it is necessary to restart the farm. If this does not help, you should check the connection and connectors. This may be the result of poor contact of connectors.
• Temperature. The value should not exceed 75°C. A short-term increase to 90-100°C is acceptable. However, working in this mode for a long time will reduce the life of the equipment.
• Power supply voltage. If the farm began to consume less power, this can be a consequence of the failure of a large number of elements.

The equipment is very noisy, heats up and consumes a lot of electricity. Therefore, the farm should be put in special rooms. It is not always possible to get to them quickly to solve the problem promptly. You can check the parameters on the pool’s website (if the user works alone through the server), in the mining program or with the help of third-party applications.

For remote control, miners also download special utilities. If a failure happens, the program will send a notification to email or Telegram. To solve the problem, you should first try to reboot the farm remotely. This is done manually or by setting up the appropriate software.

In some cases, software methods do not work. Then you need to press the Reset button. To do this remotely, miners use WatchDog. The device reboots the PC if the parameters of the farm do not correspond to the set parameters.

Pros and cons of solo mining in relation to the pool

The income of a crypto miner depends on the type of coin and the power of the equipment. In solo mining, the profit is higher, you can pay off the equipment faster. Other advantages and disadvantages of the method are collected in the table.

Frequently asked questions

Author: Saifedean Ammous, an expert in cryptocurrency economics.