Cryptocurrency mining is a lucrative activity that is open to everyone. The best thing about it, however, is the fact that you don’t have to get into the technical details to start earning through it. Still, you will need some knowledge to help you navigate through the maze of the mining space so you can make a significant income. In this guide, we’ll go through some basic steps on how to make a passive income with crypto mining.
What is crypto mining?
The mining process is usually carried out by a group of people – known as miners. Joining them is a matter of having the right hardware and software. Several cryptocurrencies have different protocols for mining new units. The most popular crypto to mine is bitcoin due to its market size and value per unit. To mine new bitcoins, miners must verify transactions and add them to the blockchain by solving complex mathematical equations with powerful computers.
Hence, the a need for proper, strong hardware and mining equipment, which might be hard to acquire for small-time miners.
Specialized tools for mining cryptocurrency
You might be wondering what kind of hardware is used to mine some of your favorite cryptocurrencies. In this section, we take a look at some of the mining gear that you could use to create new digital assets.
CPU
The least powerful form of mining gear is your computer itself. CPU mining utilizes the Central Processing Unit (CPU) in your computer. Back in the day, you could make a lot of money mining Bitcoin with a strong enough processor.
However, as more miners took a shine to bitcoin, CPU mining lost ground. Today, it’s not possible to turn a profit using this hardware to mine bitcoin. CPUs can still be used to mine some of the top cryptocurrencies like Monero, Litecoin, ZCash, and others.
GPU
The Graphical Processing Unit (GPU) is the high-end graphics card present in powerful computers. These cards were initially designed to run with high-end video games and more, with significant power and processing ability.
- GPUs are significantly stronger than CPUs, and these tools ushered in the dawn of mining’s boom.
- Some cryptocurrencies you can mine with GPUs include Ether, Litecoin, Ethereum Classic, Bitcoin Gold, Monero, ZCash, and others.
FPGA
The introduction of Field Programmable Gate Array (FPGA) mining was another significant stepping stone for the mining space. These tools are mining rigs that are flexible and can be programmed on the fly. For networks that change algorithms regularly, FPGA miners can change with it, unlike ASICs.
- FPGAs provide miners with ever greater power and electricity-efficiency, thus providing an opportunity to earn even. But, they are not user-friendly. It requires a learning curve that could take weeks or months to grasp.
- FPGAs work for mining bitcoin, Ether, Monero, and a host of others.
ASICs
Regarding mining, Application-Specific Integrated Circuits are the crème de la crème. These tools are microchips that are built to mine cryptocurrencies – nothing else. They provide optimal speed and hash power while also reducing the electricity consumed and saving you money on several other expenses. Their efficiency led to the death of GPU mining gear. The average ASIC rigs are designed to mine specific cryptocurrencies, while others are more encompassing. An ASIC miner can only mine coins for the particular algorithm that it was written for.
If you have a personal computer, it’s possible for you to get in on the mining trade and make some money while at it. Here, we’ll go through simple ways to get started based on your PC.
It’s important to note that you won’t get rich overnight mining cryptos on a personal computer. While your rewards could accumulate and become significant over time, this might take months—if not years. Let’s dive right in.
How to mine bitcoin on your Mac
Mining bitcoin is an expensive endeavor. Miners invest millions of dollars in mining equipment that spends hours solving complex mathematical equations before earning bitcoins. But can you mine bitcoin profitably from your Mac? Yes, you can engage in the activity, but it’s impossible to get anything significant out of it.
“I am very intrigued by Bitcoin. It has all the signs. Paradigm shift, hackers love it, yet it’s derided as a toy. Just like microcomputers.”
—Paul Graham, Creator of Yahoo Store
Imagine earning $0.02 after three to four years of hard work. No, it’s not worth it. As bitcoin got popular and its price increased, it became very competitive to mine one bitcoin. You have to invest thousands of dollars to get a good setup that you can monitor. In the beginning, when bitcoin was introduced, CPUs were the favored option.
You could even mine 100 coins a day, but CPU is slower than GPUs for the kind of mathematical calculation that bitcoin requires. As the difficulty kept increasing, miners needed economies of scale, which led to the ASIC era—cutting off little guys using personal computers with powerful setups.
Since you can’t mine bitcoin on a Mac at this present time, what can you mine?
How to mine ETH on a mac
Ether, the top altcoin and second-most valuable cryptocurrency after Bitcoin, is a popular choice for miners, including those interested in stablecoins. If you own a Mac, here’s the best way to get started with Ether mining:
Sign up on MinerGate
MinerGate is perhaps the most popular mining hardware client for Macs. It will guide you through the process of mining Ether, and it will even generate a wallet for you if you don’t have one.
To get started:
- Download the MinerGate app from the company’s website
- Register an account with your email
- Log in to the app with your Mac to view your account
- Go to the “Miner” tab and select to mine Ether
As stated earlier, you can add your Ether wallet or create one if you don’t have any with MinerGate. Like it is with bitcoin mining, your Ether will be sent here when mining is done.
Select the computer’s work rate
Another benefit of MinerGate is that you’ll be able to select how many cores you want the computer to mine with. This is, essentially, how fast you want the device to perform. The more cores you use, the more Ether you can mine. However, more cores will also slow the computer down significantly.
Recommended: Get a CPU temperature app
Mining is an arduous process, and when done continuously, it can cause severe damage to your computer’s processor and battery. A CPU temperature app will track how much the computer is working and notify you if there’s a risk so that you can take a break.
How to mine ether on windows
Mining Ether on Windows can be carried out using several clients, including the Windows Ethereum Miner. Keep in mind that you will need a computer with a graphics card and at least 3GB of dedicated memory.
To begin:
- Download the miner. Visit the manufacturer’s website to download the miner
- Create a wallet. The platform won’t create one for you, so you will need to create a wallet on your own. Again, remember to do your research thoroughly before you select a wallet to use. Security and recovery are usually the most critical factors here.
- Install WinEth. WinEth is the service’s Windows miner that will allow you to process Ether transactions and earn your rewards. The application finds your video cards, and you can enter your wallet to earn Ether. It is available for 64-bit Windows machines (Windows 7, 8.1, 10).
- Launch the service. Then, enter your wallet address
- Choose your options. You can choose to run the service when your computer is idle or run it in the background so that you can focus on other things. Both options have their pros and cons, weigh them up before deciding.
- You’re ready. Press “Start,” and you’re ready to begin. You can check your earnings by clicking the “Click Here To View Payout Status” link.
Note that the service will transfer your ETH to your wallet once the payouts exceed 0.1 ETH (or an amount you configure)
Apps and tools for mining cryptocurrencies at home
Mining has evolved significantly over the years, with new innovations that allow more people to contribute their computing power to maintaining blocks and verifying transactions. Crypto mining apps are the latest trend in that evolution. These services provide users with a simple and easy way to earn passive income while they lend their computers to the good work of mining.
Mining apps are especially innovative because they make it much easier for users to get into the mining space. Ideally, the mining process will need high-powered computers and mining rigs. With crypto mining apps, casual miners can mine with their computers without having to pay so much for these specialized tools.
You won’t make much, but it’s passive income nonetheless.
HoneyMiner: The industry standard for crypto mining apps
With HoneyMiner, you get a simple-to-use, highly effective mining platform that allows you to earn money mining crypto from your computer.
The service pools processing power from the many computers that have installed it. So, when you install it, you’re essentially giving the service permission to leverage the power of your CPU. The greater your computing power, the higher your potential earnings could be.
When you sign up for HoneyMiner, the service finds the best and most profitable coins for you to mine at any given time based on the CPU/GPU you provide. It uses your computing power to mine digital assets on your computer and rewards you with bitcoin, which is sent to your wallet. Please note that this service only pays rewards to customers in bitcoin.
The service is capable of running on autopilot mode, so you don’t need to do any monitoring or keep eyes on your rig.
The benefits of this service are quite extensive. It runs the mining process on your behalf and allows you to earn money without having to run any GPU or CPU maintenance of any kind. This is a “set it and forget” kind of service. One drawback of this service is control. If you prefer having control or detailed monitoring capabilities on your mining activities, this app is not for you.
How much can you make with HoneyMiner?
If you’ve got a high-end computer, then you could make as much as $100 per month with HoneyMiner, depending on the value of bitcoin. The app is free to use, but the company takes a cut for every income you generate. Users who commit 1 GPU pay an 8 percent fee off their profits, while those who commit 2 GPUs will pay 2.5 percent of their monthly revenue to the service.
How to get started with HoneyMiner
Starting with HoneyMiner is quite simple:
- Go to HoneyMiner
- Download the HoneyMiner software and install it on your computer
- Register with your Email address. The service will send your password via email.
- The service will immediately start running, using your computing power to mine bitcoin and sending your profits to your wallet
The service rewards you with 1,000 satoshis immediately after you sign up. That’s 0.00001 BTC – equivalent to $0.093.
Coinmine: The crypto mining box
Coinmine is a plug-and-play crypto mining rig that’s designed for use at home. It allows you to mine five different cryptocurrencies – bitcoin, Ether, Monero, ZCash, and GRIN.
Coinmine’s bitcoin mode
However, unlike the other digital assets, Coinmine doesn’t actually allow you to mine bitcoin, but it can convert mined cryptocurrency into BTC via the Bitcoin Mode. So, if you’re mining GRIN, you don’t necessarily have to sell the mined GRINs on exchange for bitcoin. Coinmine does that for you.
Setting up the Coinmine Box
With Coinmine, mining cryptocurrencies is as easy as clicking a button. As long as you have a smartphone app and WiFi connection, all you need to do is:
- Go to the manufacturer’s website to order a Coinmine box
- When the device arrives, take it out of its box and plug it into the wall
- Download the Coinmine app on your phone. It’s available on both iOS and Android
- Install the app on your phone and sync your phone to the device using the code that came with it
- Once synced, select the cryptocurrency you would like to mine
- Press “Mine,” and you’re ready to go.
The withdrawal process
Every Coinmine device comes with an in-built wallet. The wallet receives the coins you mine, and you will be able to transfer the coins to your wallet when you reach a threshold amount – which varies between coins. The thresholds are:
- 0.0075 BTC
- 0.2 Ether
- 0.4 Monero
- 0.2 ZCash
- 5 GRIN
Coinmine Interests
Coinmine also provides interest in bitcoin and Ether mined. However, the condition for this is that the tokens will have to remain in its wallet. You also won’t earn interest on tokens sent from other wallets into Coinmine.
Interest rates stand at 6.5 percent APR, and it compounds monthly.
Factors to consider when selecting a crypto to mine
A lot of the mining services and apps that you find will provide a list of cryptocurrencies for you to mine. While bitcoin is the most popular and most valuable asset, it’s not particularly the most profitable to mine. Since you can exchange all assets for bitcoin, you could technically make gains in several ways if you play your cards right.
If you want to maximize your earnings, here are some factors you should keep in mind:
The asset’s price
Cryptocurrencies are very volatile, and their prices swing daily. It’s important to ensure that the cost of mining your desired cryptocurrency isn’t higher than the asset’s price – whether you plan to convert it to bitcoin or not. No one wants to mine cryptos they can’t sell for a profit in the market.
Future potential
Another way to decide what cryptocurrency to mine is to look at the asset’s long-term potential. Some assets are rising in value, while others are expected to experience a bullish run at a specific date. One coin that has huge potential in the future and is considered to be trading below its true worth is Ethereum. This factor involves long-term thinking and analysis. So, if you’re unsure of the digital asset to mine, take a look at the analysis and forecasts by experts. Is it a coin you want to keep for five to seven years? If yes, go for it.
The most profitable cryptocurrencies to mine right now
Here are some of the most profitable cryptocurrencies to mine, highly regarded within the crypto community:
Bitcoin
Bitcoin is the most popular – and by far, most valuable cryptocurrency. So, while you might need to spend some money to get the right gear to mine BTC, you know the asset is worth it. Bitcoin has provided investors with a staggering 9,000,000 percent gain over the past decade. Despite starting last year trading down and recovering from a harsh bull market, it was still able to finish the year – and the decade – as the best-performing investment asset overall. However, mining Bitcoin is expensive, except if you go the route of managed mining hardware operations or use a specialized cloud mining service.
Ether
Ether is the native cryptocurrency of the Ethereum network. It’s also the second-most valuable cryptocurrency. However, Ether’s value is also intrinsically tied to that of the network. Unlike Bitcoin’s network, Ethereum is a purely developmental project. The network allows developers to come on and build apps and services, launching them on the Ethereum blockchain and even using Ether as a medium of exchange. So, the more the developer counts on Ethereum, the higher Ether’s value climbs. If you’re looking for a long-term play, then Ether is an ideal choice.
Monero
Monero is another coin that can provide some long-term potential. Monero is a popular privacy coin—a digital asset that allows users to make transactions freely and with full anonymity. Monero’s ability to make payments undetectable and safeguard user’s identity is a feature that keeps attracting users. Monero’s legitimate cryptography and support from industry experts are two upsides to its ascension to the list of cryptos elites. This has led to numerous spikes in prices in the past.
ZCash
ZCash is another top privacy coin. However, the asset is ASIC-resistant, meaning that you can still effectively mine it with cheaper GPUs.
The total network and mining difficulty for ZCash is still low, making the coin profitable to mine—better than bitcoin. If you’re struggling to turn a profit in your mining journey, you might want to purchase one of the ASIC machines running the Equihash algorithm to mine ZCash for a positive ROI in a few months.
Turning crypto mining into a steady revenue stream
Cryptocurrency mining is a lucrative business that tens of thousands engage in across the world. The market is strong right now, and with landmark events like the bitcoin halving upon us, anticipation is building around a price increase across several top assets.
This presents an opportunity for small-time miners to dip their toes into mining and make a few bucks mining. While bitcoin is the largest and most expensive to mine, other digital assets, like Monero, ZCash, and Dogecoin, are more suitable options to mine from a home computer. If done correctly, you should get a positive ROI on your mining efforts.
Frequently asked questions
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