The Quick Guide to Bitcoin Mining

Would you like to get into the world of bitcoin or altcoin mining?

This article provides a quick guide on how you can start the process. It takes a look at mining profitability and provides resources to help you purchase the best equipment for your mining business.

This article also explains the challenges with mining, as well as providing some resources to help build an Ethereum mining rig.

The Basics Of Mining

There is a certain simplicity to operating a mining business. Once you get your miners efficiently working, the machine maintenance is low. The majority of mining is completed by mining pools such as Slushpool and Antpool. These pools provide daily payout options. These type of miners operate the digital currency blockchains. They do this by securing a currency's ledger through high-speed mathematical equations.

How To Set Up Your Own Mining Business

Once you have a basic understanding of how miners work, it is time to figure out what it will take for you to become a profitable miner. This means that your next step will be to create two important spreadsheets.

Spreadsheet #1

Your first spreadsheet should contain all the expenses for starting up your mining business. This should include the following:

• equipment needed for mining
• cords
• power supplies
• air conditioning systems
• fans (highly important)
• costs for retrofitting an area for your miners (if applicable)

Spreadsheet #2

You will then need a second spreadsheet for profit projections. YouTube has a monthly bitcoin mining profitability forecast, provided by TechCashHouse.

The January 2018 edition has useful information on mining profitability. In this video, TechCashHouse provides an insight into the risks of purchasing the Antminer S7 mining machine.

TechCashHouse also provides reviews on other mining machines such as the Antminer S9 and  Avalon 741. You can access these and other videos on their Youtube page channel.

GPU Mining

If you are in the market to mine Ethereum, the following video provides step-by-step instructions on how to build an ethereum mining rig.

For some inspiration, here's a video of a miner telling BitcoinHog how he built an $80,000 mining rig that can now generate up to $8,000 a month mining ZCash.  Not bad, right?

The Heat

It is important not to underestimate the heat that a miner can release. To combat this, you will need to evacuate the hot air as opposed to providing alternative cold air on your machine.

In simple terms, the hot air generated by your machine will need to be funneled outside of your mining room. This could make finding a mining location tricky and possibly expensive. So, remember to add this to the expenses on spreadsheet #1, if needed.

Your Location

Ideally, your mining location will be a big open room with lots of ventilation, and an exhaust fan to blow hot air outside the room and building.

Your fans will also generate a lot of noise. Therefore, a common space like a living room will most likely not work. A mining room must be kept dust-free and clean at all times.

Reaping The Rewards

If you get your mining operation right, you could enjoy profit margins of up to 90 percent. This means that after expenses, you will keep that 90 percent profit. Keep in mind that you will have to pay tax on profits, however. 

While mining can provide a great return on investment, you should remember that it a lot easier to invest in Ethereum or bitcoin than to mine it. Therefore, it is a smart move to not only mine digital currencies but to also invest in them. That way, you are getting the best of both worlds.

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