Every Bitcoin Cash mining needs only three things: a dedicated mining setup, a wallet and a robust infrastructure that takes care of all the required mining operations. Since mining is the fundamental aspect of the cryptocurrency economy and the credibility of the financial system, there are plenty of ways to earn from the Crypto market. Let’s discuss some factors one must consider when mining Bitcoin Cash.
When you send BCH to another wallet address, a specific technology takes care of the transactions, which can even solve complex mathematical problems and confirm the authenticity of the transaction request. This means you also need to collect the miner’s fees in BCH.
This also means that the Bitcoin Cash ecosystem offers about 6.25 BCH for a very successful mining block of transactions. You can also keep the fees paid by the sender. However, you only get the reward if you are the first one that solves the problem here. This is precisely why most miners have massive warehouses that run all the operations and robust infrastructure that increases the chances of winning the race across all the miners.
Since this is a full-fledged business, major expenses may be less than the rewards you earn. Hence, it is important to keep making calculations accordingly around your mining operations, such as space, electricity, manpower and others. This will give you a clear understanding of what might be realistic to accomplish. The key is to strike the right balance between the mining rig and mining operations to bring the maximum profits to your bag.
There are various BCH profitability calculators that can help you during the process and eventually calculate the ROI of the entire investment.
Building the Mining Setup
There are plenty of governments that have already banned mining activities, such as China. Hence, it is always safer to keep a check on the regulations beforehand around the mining operations. Even though there is no fancy hardware requirement for the process, let’s quickly walk you down the list here.
For starters, you can repurpose your old laptop to join the mining pool or even get a full node setup to compete against professional miners to grab bigger rewards. You can also get affordable software that can do the job pretty well.
Most hardware for mining cryptocurrency currently either has an application-specific integrated circuit(ASIC) or personal computer video cards or graphics processing units, along with a robust ethernet connection and a fan with a stable IP address to get the process started. The setup typically also contains a CPU and RAM for a streamlined mining frame.
Motherboards are usually required with a higher number of GPU and six slots going all the way to 18. Extension cables, known as PCI Express risers, can also be used for cooling the setup.
The next process is to finalize the placement of the setup within the mining frame. Once the setup is installed and completed, the final step is to connect the system to the BCH ledger via the internet.
Next, the GPU mining rig needs to be reconfigured with the BIOS and the other hardware drivers. This makes the setup more powerful and reduces electricity consumption. However, this will still involve a lot of heat and noise. Hence, you need a robust cooling mechanism as this may have a negative impact on your operational costs and the overall lifespan of your mining equipment,
BCH Mining Get the process started
Once you have set up your new venture, it’s time to finally get your hands dirty and get a BCH wallet address. You can use any existing wallet or create a new one from any reputed source. You can also choose to set up cold wallets or hardware wallets that usually run on USB sticks.
There are certain legal and operational challenges you need to cover. Joining a mining pool allows for any first-hand exposure to participate in the ecosystem. A pool will distribute the computational tasks across multiple miners, wrestling in a streamlined flow in the competitive environment. This may require some technical knowledge as the mining pool prioritizes the tasks based on the participant’s computational abilities.
Most mining pools are set up by decentralized software that runs on every PC connected to the pool, which is also the gateway to the node running the complete operation. All you need to do is download and install the software and log in to the account, and the pool will allocate the tasks based on your internet bandwidth.
The next step
Once you have successfully mined your first BCH block and earnt the reward, it’s time to calculate your earnings compared to the investment. You can also use the reward to trade it for fiat currency through any crypto exchange or any peer-to-peer service.
The key is to keep upgrading the hardware or even replace the system with more capable machines consistently to win the mining race.