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The fundamental part of running a successful crypto mining business is rooted in having deep insight into mining and how to make profits from it.
Crypto mining is simply a process in which transactions for different types of cryptocurrency are confirmed and added into the blockchain digital ledger.
Considering the recent quantum leap in the value of cryptocurrencies, coupled with the increasing rates of crypto transactions carried out daily, cutting your own piece of cake as a miner is not a bad idea.
The benefits of crypto mining include making money, becoming your own boss, and so on; but you can only make genuine profit from it when you use specialized hardware popularly known as ASIC (application-specific integrated circuit).
Thankfully, the crypto mining market is filled with many ASIC hardware manufacturers that are built by reputable companies all over the world. But, you still need to be smart with your choice.
Just like any other business opportunity in the crypto industry, you need to do your homework properly before you put in your hard-earned money.
Even if you’re a brilliant cryptopreneur in many other ways, you just have to be squarely focused on these must-do’s to avoid purchasing the wrong mining hardware that might end up yielding little or nothing.
Here are 5 must-do’s you need to consider before buying mining hardware in 2019.
1. Verify the hardware hashrate and its execution prowess
Verifying the hardware’s hashrate and execution prowess is one of the major things you must do before buying a mining machine. But before going any further let’s understand what “hashrate” is all about.
Hashrate simply tells us the speed at which a mining device can complete a mining operation i.e the rate at which hardware can solve complex mathematical puzzles and still find the right answer to solve a block.
The hashrate is computed in hashes per second (h/s). For instance, if you see a machine with 100h/s, it means that the machine makes 100 guesses in one second. Same with 3Kh/s, it means 3,000 guesses in one second and so on.
As a smart and results-driven cryptopreneur, it is advisable to buy hardware that can withstand the crypto network difficulties. For example, if your primary aim is to mine Bitcoin, bear in mind that you’re not alone in the network. The increasing number of Bitcoin miners will simultaneously increase difficulty. Therefore, to have an edge in mining, you need to buy hardware whose execution prowess is superb in computing more guesses/seconds.
2. Know how to set up the particular hardware of choice
Since mining crypto has moved from CPU to ASIC, it is very important that you understand how to set up your own mining rig.
Don’t make the mistake of buying a machine without asking its manufacturer to guide you on how to properly set up the hardware.
Note: As their customer, it is your right to ask them questions regarding their product, and it’s their duty to teach you how to work with their product.
3. Find out the electrical cost associated with the mining hardware
Electrical cost is a very crucial aspect you shouldn’t overlook when buying mining equipment.
You can’t mine cryptocurrency without consuming energy. Crypto mining hardware – whether for Bitcoin or altcoin, consumes a lot of electricity which costs more money.
According to the study on Quantification of energy and carbon costs for mining cryptocurrencies, by the scientific journal Nature Sustainability, it was discovered that crypto mining consumes more energy than mineral mining to produce the same market value.
Scientists further discovered that the mining of BTC, ETH, LTC and Monero consumes an average of about 17,7,7,14 megajoules(MJ) to produce $1, respectively. Statistically, you will agree with me that the cost of electricity is a major expense in the crypto mining sector.
Advisably, before you punch the “buy button,” relax a bit; carefully look at the hardware’s power consumption in watts. Purchase something that is not only within your budget range but also profitable.
Note: If you want to really make a profit as a crypto miner, you need to make sure that you know the hardware’s energy consumption rate. It can be calculated as hashrate figure divided by the wattage of the hardware.
4. Do some findings on the hardware’s maintenance difficulties
Here is another aspect you need to do some digging into before purchasing the hardware – it’s the hardware maintenance difficulties.
Just like any other computer system, a mining machine needs to be maintained. Of course, a crypto mining rig needs a special power supply to function effectively, but it also needs parts replaced, like the cooling fan, etc.
Generally, this machine gets easily overheated and it needs a sufficient cooling fan to work properly. While it is normal for some factory parts such as a fan to wear out, it is also crucial to research the availability of accessories before buying the hardware.
As a results-driven cryptopreneur, it is wise to look around your catchment to see if you can easily get accessories like the cooling fan and so on. And if you can’t find them, ask the manufacturer if they also sell accessories and spare parts.
Note: Buy mining hardware that allows you to find their accessories and parts with ease so as to be able to maintain them if any malfunctions arise.
5. You must create a space to accommodate the noise and the generated heat
Yeah! Creating a special space to set up a mining rig, be it your home or any space, is very important.
This space shouldn’t be enclosed. It should be a well-aerated room or space. Why? Mining machines constantly emit heat and need a room with sufficient ventilation to cool down.
Note: Don’t set up your mining rig in a closed room, it’s not safe for both your health and the machine.
To succeed as a crypto miner, especially now that the heat of the competition is high, it is advisable to consider the points discussed above before you finalize your choice. Be smart!
Ejiofor Francis is an IT/Blockchain PR strategist and writer with over six years of guest blogging experience. He is the founder of EffectiveMarketingIdeas(EMI), a professional content marketing agency for startups and mid-sized businesses. When he’s not learning something new about his industry you’ll find him working on his client’s project(s). Want to say hi? You can shoot him an email at firstname.lastname@example.org.