How to earn on cryptocurrency

Mining business is earning on cryptocurrency. A very promising field of activity, where a lot of money is concentrated. But even more in this segment of rumors. Due to the fact that few people understand how cryptocurrencies work and how to make money on them, it has become popular to spread rumors: “a mining farm is a scam, a financial pyramid, the bitcoin rate is growing due to the deception of ordinary people and simple hype, and in general – you don’t have to break your computer for this.

But the truth is that those who do not know what they are talking about work for the minimum wage, and for some reason the miners do not leave the chosen business area.

If you are one of those who understands how cryptocurrencies work and wants to open their own mining company, then we recommend that you draw up a business plan and study our advice in detail.

What is a mining farm and how does it work

In short, the essence of mining is the extraction of cryptocurrency. Miners call a farm a network that consists of several computers. With them, provided that the computers are powerful and work as a whole, you can get money.

The main element involved in mining is the video card. Therefore, to assemble your own good farm, you will need at least 8 video cards. A powerful farm includes 16 or more.

What is the working principle

Here’s how the farm works:

• special software is installed on the network;
• after that, the farm is registered in a mining pool (or in other words, just a special system for earning on cryptocurrency).
• after setting up the equipment, you can start mining.

Where does the money come from

Cryptocurrency, which can be exchanged for real money, is given to miners as a reward for performing operations. That is:

• you have set up the system, your farm is ready to go;
• the service you signed up for directs the thinking abilities of your farm to the server;
• There are complex mathematical problems to be solved. Several miners are involved in this process at the same time, and the higher the total speed of your video cards, the more cryptocurrency you will receive.
• When the task is solved, the cryptocurrency is credited to the miner’s internal account.

What does earnings depend on?

• the power of your computer;
• the number of miners in the network.

It should be noted right away that the complexity of the tasks is increasing, so the technologies that were suitable for mining in 2017 are no longer relevant now. Therefore, in order to engage in mining in 2020, you need to get modern and technologically advanced video cards. With their help, you can earn cryptocurrencies such as Ethereum, Zcash, etc. The only limitation is Bitcoin. It can only be obtained from equipment called ASIC. You can buy it in China or online (there are some legal restrictions).

The advantage of the work is that the setup takes place once. Further, the computer, by and large, should work independently, without human intervention, 24 hours a day. Only periodic monitoring is required. Sometimes a system reboot may be required.

As a result of such work, a cryptocurrency appears on the miner’s account. After reaching the minimum threshold, you can start withdrawing funds to the wallet, and from there to the card.

The relevance of investments in cryptocurrency mining

Despite the fact that everyone was talking about cryptocurrencies back in 2017, now it is no less relevant business. For example, Bitcoin was worth $1,000 in 2016 and $7,000 in 2019. At the same time, the cryptocurrency keeps the course steadily, which only makes the situation more attractive.

It is quite safe to invest in a crypto business, since the payback is, on average, the same as everywhere else – up to six months due to the high cost of equipment. However, after that, the net income will be much higher than that of the average businessman.

How to make money on mining

In order to earn with cryptocurrency, you will need to make your own farm. To do this, you need to purchase equipment and configure it. In the future, you will need to regularly check the software so as not to lose either money or time.

With the help of a simple plan, both a beginner and a pro will be able to earn on cryptocurrency.

Room search

Before buying equipment, you need to find a room where it will be located.

Renting a room is not the best option in this case. Earnings in foreign currency usually do not imply taxable activities. The business owner will not register an IP, which means that mining will be an illegal business.

You can register, but usually no one does it. Why is rent not an option in this case? The property owner or other people who are not interested in your case can file complaints with the authorities.

However, space is still required. A large number of computers will be very noisy. Plus, from constant active work, they heat up, so it’s hard to be in the room – you can’t put such a farm at home.

Therefore, we highlight the requirements for the premises:

• Electricity. The farm will require a connection to the mains, so this communication must be 100% established. This is a constant voltage in the sockets, the absence of a rolling blackout and the condition of the wiring. First, it must be safe (no exposed areas). Secondly, to withstand the stress during the operation of the farm.
• Internet. Fortunately, mining does not require high internet speed, however, the connection to the server must be stable.
• Ventilation. The room must be ventilated, as a large amount of heat is generated. In the summer air conditioners do not interfere.

The easiest way is to equip a garage for a farm. Alternatively, you can rent a room in an industrial area (at your own peril and risk).

If you have no more than 8 video cards, then you can think about installing a farm at home. For this you can use the following rooms:

• glazed balcony;
• non-residential room;
• shed or utility room;
• cottage or country house.

Purchase of equipment

What you need to purchase for an average mining farm:

• Video cards – expensive and powerful models are needed. Alternatively, take a look at the GeForce GTX 1080 Ti. The cost is up to 60 thousand rubles apiece. The average cost of models of suitable quality starts from 20 thousand rubles. You can buy a good video card in the public domain in any specialized store.
• Motherboard with PCI slots. The port is needed to connect several video cards at the same time. Pay attention to the “BTC” mark on motherboards. It means that this model is designed specifically for the production of cryptocurrencies.
• The processor is the detail on which you can save. It is required only to start the system, the rest of the work in mining is performed by the motherboard and video card. For a good farm, a standard Intel Celeron is quite suitable.
• Hard drive 80-160 GB, you will need the simplest model.
• 4 GB RAM.
• Power supply at least 800 watts.
• Coolers – the cooling system must be very good.
• The monitor is the most common, you can use it.

Naturally, such a design will not become a regular system unit. Usually all components are placed on racks for mounting, they are bought separately. You can do it yourself.

The last one is software and OS. You can completely install pirated Windows, and all the necessary programs are on the network.

Building a farm for mining

In the public domain there are instructions for assembling the farm. In practice, this process is no different from assembling a conventional PC. Therefore, if you do not understand this, then invite an assistant.

It is quite possible to assemble a farm on your own, the main thing is to figure out how to connect several video cards to one motherboard. If your motherboard does not have special connectors, then use adapters.

To bring the assembled machine into action, you will need to download several programs and install them. The only difficulty is to find a resource without viruses. To do this, it is recommended to download only on a specialized portal that deals with the extraction of cryptocurrencies. After you find the platform, select a pool there and proceed to download programs.

At the end, you will need to provide a series of data: cryptocurrency wallet, farm name and email address.

After registration is complete, the program closes and the user starts the farm. Mining has begun, nothing more needs to be done.

Farm Maintenance

The following procedures will need to be carried out regularly:

• Ventilate the room. Optional item if there is a hood.
• Cooling – Run the air conditioner regularly.
• Electrical wiring check.
• Ensuring fire safety measures.
• Inspection of components – daily.
• Once a week, you need to check the performance of the programs.
• Keep track of whether funds have arrived on your card.

If during maintenance you identify problems, it is recommended to turn off the computer and then eliminate the external source of the threat. Let the farm rest and cool down, then restart.

Financial part of the business plan

It depends only on you and your capabilities how much you spend on the farm. The initial capital depends on the size, cost of models, number of video cards, type of premises.

Investment in a business project

An example of how much you have to spend at the initial stage:

• room – free of charge if it is your own apartment;
• video cards – 50 thousand rubles each, at least 6 pieces – this is at least 300 thousand rubles;
• motherboard – up to 5 thousand rubles;
• processor – up to 2 thousand rubles;
• RAM, hard drive – up to 2 thousand rubles;
• power supply – 2 pieces, up to 10 thousand rubles;
• monitor – 1 thousand rubles;
• adapters – up to 2 thousand rubles;
• cooling system – up to 2 thousand rubles.
• racks for mounting a farm – 500 rubles.

Current expenses

Current expenses will be only payment for light. Approximately 40 kW is consumed per day.

Income

Your income will depend on:

• type of video cards;
• farm capacity;
• currencies.

If you mine cheap currency, then it will come often and in large quantities. If expensive, then tenths or even hundredths of one unit usually go to the account. Depending on exchange rate fluctuations, you can receive from 80 to 800 rubles a day. Thus, earnings can be 24 thousand rubles a month. You can calculate future income on special services on mining forums.