Crypto mining should never be a replacement for stability on your finances. It is a great way to make more profits on your investments and maybe earn cash on the sideline. Below are factors to take into consideration.
Unstable and unpredictable.
We can all read the reviews, follow the trends, but when it comes to stock markets and cryptocurrency, you must never take your life savings or make any loans for this, it becomes a gamble, and lady luck will be involved.
You might ask how to make money through bitcoin mining?
Let's break it down for you.
1.1) What hardware do you have?
Before you can start mining cryptocurrency, you need to have a computer and graphics card with at least 4GB of memory. The more you have, the better your profits will be. Mining profits are calculated based on the hash rate of the coin you are mining. There are various digital currencies you can mine, and the most popular ones are Bitcoin, Ethereum, XRP, and more.
To see how profitable each coin is, you will need to add your hardware (Graphics cards / ASIC miners) to get the values. There are a few online websites and calculators to help you.
Nicehash has a great website, where you can add your hardware to get your expected profitability per day or month.
Visit this link to get started: https://www.nicehash.com/profitability-calculator.
1.2) What hardware do I need to buy?
Using the Nicehash calculator, you will see the daily profits you could make. Older graphics cards need to be modded/overclocked to get the best hash rate. Newer graphics cards are expensive, and there is a formula you use to calculate your investment.
ROI (Return on investment) is used to work out how long it takes to pay back the money you are spending to buy hardware.
Here are some things to keep in mind when buying graphics cards for mining.
A) What is the hash rate
Each graphics card offers a hash rate(how fast it can do calculations), and the more it has, the greater the profits. You can search online to see what cards are the best for mining.
You can use the Nicehash tool to see the hash rate of your graphics card, as well as the profitability.
Nicehash Link Click here
Best GPUs for mining currently.
- Best overall: NVIDIA GeForce RTX 3060 Ti.
- Runner-up: NVIDIA GeForce RTX 2070.
- Best value: AMD Radeon RX 5700 XT.
- Best performance: NVIDIA GeForce RTX 3090.
- Best budget AMD: AMD Radeon RX 580.
- Best budget NVIDIA: NVIDIA GeForce GTX 1660 SUPER.
Before you buy the graphics card, keep in mind that there are various brands and models. A quick google search or mining forum will show you what other users are saying.
Always opt-in for better graphics card brands. The MSI Twin Frozr cards, for example, offer supper quiet fan noise and excellent cooling under full load.
Graphics cards have various memory (RAM) chips, and some get poor mining performance. There is a tool you can use to verify the memory type.
GPU-Z
Click here to download a simple tool called Gpuz.
This tool detects the memory clock and other info you need to do your research.
IMPORTANT NOTE:
Buying newer graphics card have some limitations. Because mining became so popular, everyone started buying large amounts of graphics cards, and there were stock shortages. Graphics card manufacturers began adding restrictions to their mining cards. You will notice on the new graphics card the wording or symbol LHR (Light Hash Rate).
Nvidia LHR graphics cards detect when used for Ethereum (ETH) cryptocurrency mining and automatically halve the hash rate. LHR GPUs are less profitable for potential mining purchases due to their higher power draw and lower hash rate.
So if you decide to buy new graphics cards, make sure they don't have any LHR limits.
B) What is the power consumption
On the newer graphics cards, we see the power consumption is getting lower than the older graphics cards. You can do the math and work out your electricity costs before setting up your rig. If you live in a place where electricity is cheap or free, you will make a profit. Actual power consumption is not the minimum required specifications stated on the spec sheet.
Example:
The specs might say 500w minimum power supply needed, but it will not be the same. Using the GPU-Z application, you can see the power usage in real-time. On average, the power draw is around 50 - 200 watts per graphics card. Reading online blogs or mining forums will give you the expected power consumption for your card.
If you have the power usage on the graphics cards, you can see how much electricity will cost you.
Quick Compare:
RX580 8GB Cards get between 28 - 31 MH/s using 80 - 110 watts.
The RTX2060 6GB Cards get between 28-31MH/s using 55 - 80 watts.
Assume you have eight RTX2060 cards.
8 x RTX2060 (248 MH/s)
8 x 80 watts = 640watts per hour.
640watts x 24h = 15360 watts per day.
15360watts x 30 days = 460800 watts per month.
460800 watts / 1000(kw formula) = 460.8 Kw per month power usage.
460.8 Kw x R 2.54(rand per kw) = R1170,43 per month.
So how much am I getting for mining?
You read about how the hash rate works and how you find your profits using the Nicehash calculator.
248 Mh/s = R 254.65 per day
R254.65 x 30 days
R7639,50 - R1170,43
R6469,07 Profit Per month.
Price per card around R9300.00 x 8 = R74400.
To work out the ROI (Return on investment), we take our profits and divide them by the total price.
R6469,07 / R 74400.00 * 100
8.69 months to pay back the hardware.
You will make profits after nine(9) months.
The lifespan on the cards should be around 2-4 years if the cooling, overclocking, and maintenance are correct.
You can re-sell the cards to gamers after 1-2 years and get up to 50% back on the cards.
Always do market research and see what options are the best. By using the ROI model, you can see which option works better. When you are running less powerful graphics cards, expect to see increased power costs.
Best GPUs for mining currently.
- Best overall: NVIDIA GeForce RTX 3060 Ti.
- Runner-up: NVIDIA GeForce RTX 2070.
- Best value: AMD Radeon RX 5700 XT.
- Best performance: NVIDIA GeForce RTX 3090.
- Best budget AMD: AMD Radeon RX 580.
- Best budget NVIDIA: NVIDIA GeForce GTX 1660 SUPER.
2) Set up Payment
2.1) Set Up Luno Account.
- Select Wallets in the menu
- Select add a new wallet.
- Choose the crypto you would like to add.
- And lastly, select CREATE WALLET.
The cryptocurrency is on your list of available wallets, and you'll be able to send, receive, buy, and sell from your newly created wallet. Adding an extra cryptocurrency wallet will also add its price chart to your home screen.
2.2) Register Nicehash Account here.
Your mining rig will get rewarded in bitcoins from Nicehash. You need to set up the wallet address created in the Luno account.
- Install the Nicehash miner.
- Set up withdrawal address (Luno Address).
- Send bitcoin to Luno address.
2.3) Send money to your bank account.
- Send Bitcoin from Nicehash to Luno Address
- Sell Bitcoin on Luno for local currency.
- Withdraw local currency to your bank account (Click express withdraw to get the money almost instantly.)
