Mining enthusiasts used to mine cryptocurrency from their homes not too long ago, but this eventually decreased when the mining industry skyrocketed. Big corporations started to mine with their heavy mining facilities making it difficult for individual miners to earn through crypto mining.
Keep on reading to learn more about if you can still do crypto mining at home.
What is Crypto Mining?
Cryptocurrency mining is how new, intangible digital coins are created. It is the process of validating different cryptocurrency transactions on a blockchain network and updating them on distributed ledgers. It requires computers with special software that have enough power to decode cryptographic mathematic equations.
Mining cryptocurrency can be done high-powered specialized Graphics Processing Units (GPU) or Application-Specific Integrated Circuits (ASIC). GPU and ASIC mining are two of the most known and popular methods of mining cryptocurrencies and the most expensive. Cloud mining is another popular method that allows individual miners to maximize mining advantages.
Can You Mine Cryptocurrencies from Home?
Cryptocurrency has shown immense growth in the last few years, which also has changed the incentives and processes of mining. In the early days, when the craze of cryptocurrency erupted, one could have mined cryptocurrencies like Bitcoin at home quickly. All it took was a simple CPU and some power to run it. However, CPU chips have become quite unfeasible for mining, with the entire crypto network becoming more complex. Now, you at least need a GPU to run an efficient process.
So, many individual miners wonder if they can still mine cryptocurrencies from the comfort of their homes. To answer that question, yes, it is still an option. They can mine with some assistance from graphics cards like Nvidia and AMD. But is it a wise decision?
Mining Bitcoin at home has become extremely hard as only a standard GPU and PC don’t suffice anymore. It requires a lot of money for heavy equipment, electricity costs, and maintenance fees, making the mining process difficult. In short, the cost to profit ratio of Bitcoin mining is low.
However, few other cryptocurrencies can be mined at home, which does not require an enormous mining rig while generating profit:
Even though Ethereum is the second-largest cryptocurrency with a market capitalization of 398 billion, it is still viable to mine Ethereum at home. Individual miners can maximize profit by investing in powerful GPUs. You will have to download a blockchain from Ethereum’s official website, set up your wallet, and change it to mine.
The few exchanges that offer Ethereum trade are Bitmex, Binance, and Bitfinex.
Originating from a meme and later popularized by Elon Musk, Dogecoin has made its name in the past few years. It has a market capitalization of 23 billion and can be utilized for individual mining. To earn from Dogecoin mining, you would have to make sure that you have a suitable wallet to store your profits. You can either download the Dogecoin wallet or any other appropriate online wallet.
Exchanges that trade Dogecoin are Binance, BTSE, and OKEx.
Monero is an anonymous cryptocurrency with a market capital of 4.1 billion. It is an altcoin network highly suitable for at-home mining. You can begin by downloading a wallet to store your earnings, such as the Monero GUI Wallet. Then, download a mining software that can carry Monero blocks.
Monero earnings can be exchanged through Bitfinex and Binance.
Bytecoin is another anonymous digital currency that you can easily mine on your personal computer. It also supports CPU mining, although relatively slow with low earnings. To enhance the mining process, you should use GPUs. To mine Bytecoin, you would have to download and create a Bytecoin wallet which will sync with the Bytecoin blockchain and generate earnings for you.
The few exchanges that offer Bytecoin trade are Poloniex and HitBTC.
Beam is a cryptocurrency with a market capital of 49 million. It works well with GPU mining, making it suitable for individual miners. All you have to do is download the desktop wallet, download, and sync blockchain, and you’re ready to mine. A permanent address is required to recover mining profits, which can be traded through Bitforex.
Some of the other digital currencies suitable for at-home GPU mining includes:
- Ethereum Classic
Is Crypto Mining at Home Profitable?
Mining at home is a slow process with lesser revenues. The profitability also depends on different factors such as the market value of the coin you are mining, the GPU hashrate, and the cost of electricity. If you want to make money through mining, invest in GPUs such as Nvidia RTX 3090 and RTX 3080. Choosing the right coins and efficient hardware can generate at-home mining profits.
However, cryptocurrency is highly volatile and is associated with several risks. It has also been deemed toxic for the environment as mining uses high electricity.
Alternatives to Individual Crypto Mining
We have established that mining cryptocurrency at home is possible and doable. But, if you want to mine without the risks of individual mining, you can sign up for a mining pool. Mining pools are a reliable option where several individual miners come together and merge their resources, increasing the odds of finding more blockchain and eventually the profit earned.
There was once a time when crypto mining at home was widespread, mainly Bitcoins. But now, with the hike in computing hardware and electricity prices, it indeed has gotten complicated. Many expert miners do not recommend mining Bitcoin at home because it is not as profitable as it used to be. However, there are few other cryptocurrencies that can generate better earnings for you.
If you really are passionate about cryptocurrency mining, do thorough research on the coin market and equipment, and then go for it. We wish you luck!