We often get the question - "I've heard that crypto mining is a great idea, but I have no idea where to start?". This quick guide should help you with a few of the most useful resources, as we seek to explain how it all works.

How does Mining work? 

Mining serves two purposes: To create new coins and to maintain a log of all transactions of existing digital tokens.

If we use Ethereum as an example, cryptocurrencies, “miners” around the globe contribute their computing power to verifying and adding all exchanges of ether to a public ledger.

This public ledger is known as a blockchain. Ether’s blockchain is called ethereum. Once a transaction is added to the ethereum blockchain, it can’t be altered or erased, giving observers a permanent and verifiable record.

In order to log exchanges of ether, miners run a computer program, which computes millions of math equations. But miners aren’t doing all these math problems in a vacuum. They are competing against miners all over the planet to be the first person to verify a block of transactions.

Someone wins this race roughly once every 13 seconds. And whoever wins is awarded two newly minted ether. They also get a transaction fee.

Building a Mining Rig

To mine ether, you’ll need to build a custom mining rig. You can do this yourself, or you can purchase a pre-assembled rig ready to go from rigs.co.nz

The main components of any mining rig include a power supply, a motherboard, an operating system to run on your motherboard, computer memory, and a GPU, or graphics processing unit.

An ethereum mining rig is just like any other computer you would build on your own; only instead of having an actual case that all the components live in, it’s in an open frame. You need to do this because when the GPUs are running, they get really hot, and it’s important to have a lot of air circulation.


Image credit - CNBC.com

This rig, with only one graphics card, can run roughly 27 million math equations every second.

That sounds like a lot, right?

But on ethereum’s network right now, there are 600 million math operations happening every second.

That is why people join something called a mining pool. A pool lets a single miner combine their hashing power with thousands of other miners all over the world.

“They could be in Auckland. They could be in Dubai. They could be in Europe or South America,” said Leigh. “You’re all sharing your resources together, and it doesn’t matter where you’re physically located.”

The only other thing left to do is to create a wallet. You can think of it like a digital address for crypto cash. There are dozens of options ranging from physical hardware wallets that let you store your crypto offline, to web wallets that allow you to interact with your account via a web browser.

Once you connect the rig to a power source and link it to the network, ether starts to go into your crypto wallet within minutes.

Profitability

A basic rig starter rig from our site would run you about $1350. You would then need to buy at least 1 GPU (at time of writing, a fairly powerful Nvidia RTX 3070 would cost a further $1750).

If the rig runs at full capacity with all six GPUs it could earn around $30-$40 NZD a day, but that varies greatly depending on the current levels of mining profitability.

Mining rigs require quite a bit of power, so electricity cost is a big factor when computing whether mining can be a profitable venture. You should factor in that each GPU can use between 100-300W per hour of power depending on what type of video card it is. The above example 3070 would use 117W per hour per card.

Calculating Profits

It is important before purchasing a rig (and the video cards / GPUs to go with it) to determine what your likely profits are.  Each type of video card will give a different return, but this information is easily researchable:

Click here to view a list of most top cards
https://2cryptocalc.com/most-profitable-gpu

Here is a handy calculator to work out profitability based on the cards you decide on.
https://whattomine.com

Common Questions

Here are some of the common questions that we have while people are learning about Crypto.

Q - What video card do you recommend?
- In New Zealand there is currently very little supply of Video Cards / GPUs. Therefore it mostly comes down to availability. The most popular mining cards we see our customers using are from Nvidia 3060 / 3070 / 3080 / 3090 series, and the Radeon 6600 / 6700 / 6800 XTs.

Q.- Can you supply the Video Cards / GPUs?
- Unfortunately we do not provide these. We recommend MightyApe / PB Tech 

Q.- Can you start with 1 Video Card, add more, mix match
- Yes, many people start with just 1 and then add others. As long as the video card is PCIE (which almost all are) then you can add it to the mining rig

Q.- What software do you use to do the mining? Does it take time, can I just let it run
- You can use Windows, but HiveOS is recommended. Its a much simpler system, more stable, and easy to learn. When building a rig we recommend and setup HiveOS as once its setup, there is almost no maintenance, and no issues. 

Q.- How big does the power supply need to be? Can I plug this in at home?
- You can happily run most rigs from a normal home power supply without issue. Your power supply decision is based on the number / size video cards you buy. When you research your card options be sure to check the TDP max wattage the cards use. You should ensure your power supply exceeds the total of all of these cards. We also recommend the use of 2 or more power supplies to solve this issue, and most rig frames can support more than one.

More questions?

Feel free to reach out to us at Rigs.co.nz and we are happy to talk you through any questions you might have. Give us a message on live chat or email team@rigs.co.nz

  

By Jamie Punnett 0 comment

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