Why you should start mining
These are my thoughts why you should start mining. I don’t think you will get super rich unless you invest a lot of money and you start building professional rigs. But whilst starting small you will learn a lot about the market and how crypto works. This knowledge will let you make better decisions in your investments in your future.
Starting small
For most the start in mining is fairly simple as long as you have a decent computer at equipment at home. All you need to start is a GPU. Check out whattomine.com website to see what is most profitable to mine for you. This page will list most profitable crypto currencies with your computer setup to mine and which algorithm to use. I don’t want to go into the details within this article where you get the miner, which pool to use etc. There are a lot of good articles online on how to set up mining. If you are interested I can provide more information around that topic in future articles. For the moment, let us focus on the WHY.
Benefits of entering the miners universe
As said before a huge benefit is the learnings you gain during the process. As you start with setting up your miner you may or may not make money in the first days or weeks. And that does not matter at this point in time. It is still all about the process of learning more about crypto and the market.
Some key learning points I made so far with diving into the mining world.
- Wallets and wallet handling. It makes sense to not have all your assets in one wallet. Also you might need different wallets to farm what you want to mine. Moving your coins from your wallet you earn to kind of your “save wallet”. Also you might want to send the coins to an exchange in order to sell or exchange your coins.
- Hardware and GPU: building an own “rig” or at least several computers can enhance your technical skills in building up computers.
- You will spend more time with the crypto community and get more different opinions on the crypto market compared to just following traders on youtube or most famous crypto web pages.
Another big advantage in my opinion is that you create a constant investment flow. Even if you “just” earn 2 USD a day. That gives you a constant cash-flow of 60 USD. And what you mine does not necessarily need to be what you want to be invested in. Feel free to swap your earned coins once a month into crypto you like more or you see more potential. That also might prevent you from swapping your asset constantly cause you think another currency could perform better now or in the near future. Once you know that next month you will have some additional budget to invest you can just wait and accumulate a bit of coins and then swap them once you have decided on your next investment target.
And yes, I am fully aware that in a bull market you earn much more by simply being invested into crypto rather than investing in hardware. But the market is not always going up. By mining you also leverage the “costs” for the coins you get in return. Your electricity costs are stable and so is also the price you “pay” for your mined coins. In a sidewards or downward going market however it can make sense.
Earned your first self mined coins and want to expand?
My general advice is: start small and adjust as you go. You can very well start with used hardware. I started with my gaming computer whilst it was not gaming. And then I bought a used computer on ebay with a decent graphics card which ran 24/7. Be creative! Ask your friends if they have not used computer parts lying around. Look out for bargains on ebay and small advertisements. And once you have a setup with a couple of GPUs built you will easily have created a constant monthly cash flow of 100 USD a month.
In case you want to invest a bit in your mining setup you can see this as a kind of dividend regarding the money you put in. Let’s assume you invest 1000 USD in new hardware. In return you make 83 USD per month. That gives you a dividend of approx 12,5%. Can be less than you have made on the crypto market, can be more. And right now this is not an unrealistic scenario. Depending on what you farm you can have a return of investment in 6-12 months.
If you are interested in more details on technical setup or mining topics let me know.
