Cryptocurrency mining is a fun activity for anyone who likes science and gadgets. Yes, it does take some skills or hours of research (if you want to build a mining rig by yourself), but it’s something anyone can do.
If you are a newbie on the path to build a cryptocurrency mining rig, it is quite natural for you to make mistakes. If you are also looking forward to building a cryptocurrency mining rig, visit this site. In this article, we have listed the common mistakes every newbie makes.
These are the top five mining mistakes. We have also listed ways in which you can avoid them.
Before You Buy Or Build A Rig, Consider The Following Factors.
Make sure you have a suitable location for your rig, as the place needs to be well ventilated, soundproof, and resistant to heat.
Choose your cryptocurrency and GPU carefully. For example, owing to ASICS, Zcash mining on Nvidia cards is no longer viable or worthwhile; but, mining ETH on GTX 1080s, 1080 Ti’s using ETH pill, is much more profitable and valuable. So do your research and only get the best GPUs on the market. Mining is not cheap, but the returns may be worth the investment made.
If you’re buying an old rig, try to spend a little extra money on components and buy them from local stores, as they will provide you with a warranty. It’s important since rig parts can break, and you want it fixed as soon as possible without incurring extra costs. As you may know, parts work 24 hours a day, seven days a week; therefore you should consider this before buying old rigs.
Lacking A Good Internet Connection
Once you have found a good spot for your GPU rig, do some research and pick the best internet access available. If at all possible, avoid using the wifi connection to the rig. With a cable, connect the Router to the Rigs motherboard. It will provide the most reliable connection.
Imagine this situation: your rig is 10 kilometers away from you and gets stuck due to a faulty wifi adapter or poor weather. Thus, if you are renting a location for a rig, make sure you have electricity from a local supplier/producer, as some real estate rental agents have begun to resell electricity coming from local suppliers under their firms.
Not Cleaning The Rig
Once you have a rig, you need to clean it every two weeks at the very least. Alternatively, if you are finding it hard to take some time out of your busy schedule, you can choose to clean it once a month. However, you must remember that parts last longer if they are kept clean.
Spending The Coins That You Mined
When you start getting revenue and calculating your ROI (Return on Investment), make sure you don’t spend the coins you’ve mined. This is because, from the first month of mining, you must understand that mine is not about making money for a living. It’s for mining as many coins as possible until the price reaches a decent level, which should take at least one year. Otherwise, you’ll most likely invest your mined coins in unstable “moon shitcoins,” which will reduce your initial investment to $50.
Simply put, don’t do that. It is not a good idea to reinvest mined money into other cryptocurrencies. Of course, you have the final say. If you still want to do it, we wish you luck.
If you’re mining at a loss since the coin price has dropped, don’t quit because it’s likely that some mining pool contributors will stop mining as well, reducing the difficulty level and resulting in more easily mined coins.
So, while you may not be able to mine enough cents now, you will be able to mine more coins in the future, and it will be worth the same as or even more than the previous price (especially if you are mining Zcash or Ethereum).
Failing to Obtain a Competitive Electricity Price
One of the most common points of failure for newly emerging mining companies is the inability to reach competitive power rates. The hard reality is that huge companies are already breaking into the $0.01-0.02kWh (kilowatt/hour) price range, where even older mining equipment can be profitable for the foreseeable future.
In other cases, negative kWh price has been noted, such as in West Texas due to the quantity of waste gas from oil drilling operations. To cut operating costs, many huge companies with deep pockets opt for vast off-grid facilities, long-term fixed-rate Power Purchase Agreements, or outright sales of power plants, hydro dams, and other assets.
Simply put, while a few MW projects with thousands of miners used to be large enough to arrange lower power costs with power sources, the rise of mega-farms with well over 50MW in both the far east and North America has tipped the scales on “small” mining farms. As a result, many new miners with only a few hundred units or less are drawn to web servers, who charge between $0.06 and $0.08 per kWh to run mines.
While this is a great choice for those who want to avoid the hassle of managing their machines, these companies make money mainly by driving sales electricity, which leads to higher expenses for the client in the long run, especially regarding expansions, which in self-managed facilities generally drive the overall operational cost down.
Cryptocurrency mining is, indeed, amazing. However, if you want to enjoy the process and avoid headaches, invest in higher-quality parts and only buy parts that come with a warranty. Make sure you have good internet access and can find legit places to prepare your rigs.
We hope that this article cleared all your doubts regarding building a cryptocurrency mining rig. Make sure to go through this article before building your rig so that you do not make the above mentioned mistakes.