Queries Solved: 10 important things to know before Mining

Cryptocurrency mining involves specialized computers for validating blockchain transactions for a particular crypto coin and in return for the computational effort, you receive a mining reward.

Cryptomining utilizes extensive computing power for verifying transactions on a digital ledger. This is something that can be done by any organization or an individual. Only adequate software and hardware are required. However, the increasing costs due to its expansion make it a difficult task for newcomers.

Is crypto mining profitable? 

Crypto mining creates new cryptocurrencies. For instance: When mining Bitcoin, miners validate transactions and get Bitcoin as a reward for their computational efforts. Other cryptocurrencies can also be mined such as Litecoin and Ethereum.

With its popularity, it is not simple to earn money from crypto mining only by turning on your computer. It has become a competitive business as compared to the early days of crypto. Still, it makes sense and is profitable to individuals.

How much bandwidth is required for mining?

Minimal internet bandwidth of around 5mbps is sufficient. Bandwidth and latency are two different things. Latency means how quickly you send and receive bytes and bandwidth means how many bytes. Latency is high on Wi-Fi than direct Ethernet. There is a 10% difference in mining speed when considering Wi-Fi and Ethernet. When you mine on a regular computer at home approximately 100Mb data is utilized daily.

Can you mine crypto on a regular computer?

Yes, you can use a simple computer but with 5-6 Graphic cards and added power supply. However, with the increasing difficulty and advancement of ASICs hardware, it is practically impossible to mine crypto profitably at home.

Do you need to install an air conditioner for mining crypto?

Well ventilated room with a fan is sufficient in colder regions however, miners who reside in hot and humid regions need to install an air conditioning unit for the proper working of machines.

Computing equipment consumes high energy during operation. When performing cryptographic calculations lots of energy is used and this energy is released in the form of heat. For example, ASIC or a rig that consumes 1000 watts emits the same amount of heat. Every powerful machine heats the surrounding space and for mining cryptocurrency, it is necessary to keep the space cool. Mining on the balcony can be a good option with forced ventilation. An in-room, air conditioning unit is required.

How much electricity bill do you need to pay every month?

The hardware used in mining consumes high power and this adds cost and challenge in crypto-mining. On average you need to pay Rs.30, 000 to Rs.50, 000 per month.

What is the cost of a graphic card?

When you decide to buy a GPU then consider the ROI metric. This is not always the best to decide because of the constantly changing profitability.

ROI = GPU price/(daily profit – electricity used).

You can also get the used GPU and to keep it perfect for a long time you need to maintain its cleanliness and low temperature. Fans spinning with 60% speed keep GPU healthy.

Are crypto mining rigs noisy?

Loudness or noise depends on many things, especially the room temperature. If you keep the temperature low then there will be hardly any noise while if the room temperature is high and a fan is at full speed then there will be a lot of noise.

What else we can do on pc while mining?

Apart from gaming, you can use your computer for watching movies and other stuff.

How much investment is required for mining?

Earning money mining crypto involves high costs. Technically there is no barrier to entering the world of mining but you need more computing power to solve the crypto puzzle and earn crypto. Thus, it is necessary to use numerous specialized computers with high-end computer chips. Specifically, you will need GPU or ASIC to set up a mining rig. Thus, you need to invest a handsome amount to get the right computer systems.

What is the hash rate?

Hashrate is used to measure the computational power utilized to process transactions and mine new coins. Each transaction in a network is added to the blockchain or digital ledger. For successful crypto mining, you require a high hash rate. It is measured in megahashes per second, gigahashes per second and terahashes per second.

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