Today, cryptocurrency mining is still a very profitable business and many people are trying to get involved in it. However, to start making money from maintaining one of the distributed networks, it is necessary not only to buy expensive components, but also to assemble them into a single workstation, or in other words, a cryptocurrency mining rig.
In this article, we will talk about how to build a cryptocurrency mining rig and what you need to do it. This info will be very helpful to both novice and experienced miners. It is also important for all investors to understand the basics of mining crypto coins. All because of the miners’ critical role in the security and decentralization of the network. So, be sure to read this material to the end if you need to build a rig.
What is a cryptocurrency mining rig, and how does it work?
To get newbies up to speed, let’s start with the basics. The world’s first miner was the person or group of people who created Bitcoin. Back then, a computer CPU was used to mine cryptocurrency. It wasn’t until 2010 that people started using GPU power, and that’s when the first GPU farm was launched.
The use of graphics processing units for cryptocurrency mining revolutionized the process. Miners rushed to buy GPUs, and cryptocurrency mining began on an industrial scale. In 2012 the first ASIC projects appeared. ASIC is not very flexible, but it performs its function much faster.
Initially, most people get Ethereum instead of Bitcoin because it was easier and gave more results. Now among the most profitable cryptocurrencies are BTC, XMR, DOGE, and RVN. Ethereum (ETH) used to be on this list, but recently Ethereum switched to the PoS algorithm. This means that Ethereum can no longer be mined as before.
Now we come to the main point. A mining rig is a computer with a motherboard and multiple graphics cards that calculate blocks. This device doesn’t have a standard PC case because there is not enough space for many GPUs. Moreover, standard PC cases can cause overheating. Using multiple graphics cards with the same motherboard, CPU, hard drive, and memory allows us to save money that we can invest in additional graphics cards.
How does it work?
Cryptocurrency mining rigs work by using graphics cards to verify all operations in the chain. Let’s go into some detail:
- Since a hash is a unique code for a particular record, it can be used to determine if the info matches the expected data. The cryptographic hash function works according to a specific algorithm.
- When users verify hashes of unconfirmed blocks, they are rewarded for each unit verified. This process can be energy computationally demanding, requiring specialized hardware and special mining software.
- Graphics cards also have a much higher hash rate (a measure of how fast a computer can solve cryptographic equations) and are easier to maintain, making them very popular.
Another key difference is that rigs are often equipped with multiple graphics cards. This is necessary because the more GPUs, the higher the performance.
I want to build a mining rig, but how much does it make?
Before you build a mining rig, you need to calculate the possible profits. The main purpose of building a rig is to make money, so this point is very important. To understand how much mining will bring you, you need to take into account the hash rate and performance of the equipment, the rate of crypto, and your electricity costs. In general, if you’re mining coins at home on a computer, you can make anywhere from $30 to $450 per month on a single setup.
To give you an example, the best GPUs can make up to $7.75 profit from mining at $0.1/kWh electricity price. Combining multiple graphics cards into a single unit will greatly increase your profits. But one way or another, you can always check your options with a yield calculator. The web is full of such platforms.
What is the best mining rig for crypto?
Of course, if you are going to build a mining rig, you want to find the best option. Today, there are excellent mining solutions like AntMiner S19 Pro, DragonMint T1, AvalonMiner 1246, Ebang EBIT E11++, and others.
When creating a rig, it is important to understand that like any other business, this process requires start-up capital. Saving money can mean that the finished device will not pay for itself for a long time. Therefore, it is necessary to choose the motherboard, graphics cards, and other components carefully. So to create a rig for mining, you need:
- A motherboard with 4-6 PCI-E slots.
- 4 or more GPUs (AMD RX 5500XT or higher/Nvidia GTX 1660 or higher).
- A power supply of at least 1000W or two power supplies of 600W or more.
- A CPU that matches the available motherboard.
- RAM of 4-8GB is recommended.
- A hard disk drive (HDD) of at least 32 GB, or better yet, an SSD.
A very large hard drive is not necessary and can save you money. However, you should have at least 16 GB of free space (or more) after installing the operating system. Assuming that the rig will be assembled on its owner according to the video instructions without a master, the total cost will be at least $2,000 (of which $1,800 will be spent on the purchase of video adapters).
Cooling is desirable but not necessary. If you live in a cold area, have air conditioning, or have the unit on a ventilated balcony, you can do without cooling. Also, many people simply put a fan next to the unit and it will cool the device. This is sufficient for a small home farm. In large rooms with a lot of rigs, it is necessary to install a separate cooling system and ventilation.
You also need special software to mine, like Ecos, EasyMiner, or CGMiner. Technically, the mining process is simple: you install the software, make the basic settings, and then everything happens automatically. But there are some specifics. For example, some software is designed for a specific coin or group of coins (determined by the algorithm). Such programs work only on certain operating systems, they have requirements and performance of your computer. Finally, not all mining software is effective.
Is it worth building a mining rig in 2023?
Today, mining still generates good income, but it is not as profitable as it used to be. Сrypto coins prices have fallen from their peak and mining has become more expensive to operate and maintain. In addition, rising electricity prices around the world are severely reducing the profitability of mining. In some cases, it will even turn negative. This means that instead of making a profit, you will have to spend money.
So, if you are going to build a mining rig, be sure to consider all the potential risks and calculate the possible profits beforehand.