PopcornTech – Crypto Mining Simplified
Let’s get this out of the way very first thing. Right now, gamers are angry at the current profitability of mining. I created a Reddit postbode here detailing why GPU Apocolypse Two.0 is happening and how to predict it ter the future. Something enormously surprising happened. Rather than the discussion turning towards GPU prices, it turned into an AMA-type postbode where many gamers were interested te getting commenced with mining. It made mij realize that there is a request for explanation ter PCMR terms and that is exactly what I aim to do. I think the comments te that postbode are indeed interesting, so take a quick look if you want before you read this guide. Our guide is going to be long, but I want it to serve spil an introduction to crypto and a comprehensive guide to mining. Consider this cryptocurrency 101 for the PC gamer. Our 201 course on expanding your mining operation for the very first time is coming soon. Let’s get began.
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Edit: Some of you have bot asking mij which GPU risers to buy ter case you want to add more cards. While I am going to outline this stuff ter my 201 course, here is a listig ter case you want to hop ahead and get risers ahead of time. For heer’s sake, do not use the sata adapters those things come with (sata is not rated for 75w which is what powered risers will draw). Use 6 pins. You can even buy 6 speld splitters and securely hook Two risers into one 6 speld from the PSU. If you don’t know what I am talking about by that, no worries I will outline it ter 201.
I know this question is more common with non-tech people than PCMR guys (because you guys are much savvier than the promedio person). My DM friends overheen at /r/ethermining would kill mij for omitting significant informatie here, but that’s exactly what I am going to do. The value mostly comes from processing transactions. If I send some ethereum to my friend ter Malasia (shout out to you, Chris.Chow!) it would only cost mij around Ten cents te “gas” at the current market rate. That transaction vereiste be confirmed by the network of computers mining on the blockchain. Otherwise, fake currency could be made and the coin itself would become worthless. If I could just generate Five fake bitcoins and send them to you right now to contant out, it wouldn’t truly be a worthwhile coin. Think of the network of miners spil voters. They all confirm a transaction and vote on if it is legitimate. That way the only way to create a FAKE Bitcoin is to hack the majority of miners, all at the same time. Which, spoiler attent, is an unlikely task.
Some currencies have a specific aim te mind. Ethereum can have decentralized applications built on the blockchain which aids tremendously te transparency. Zcash can’t be tracked publicly like Bitcoin and Ethereum can, so it solved a separate kwestie. Again, things are much more ingewikkeld than I am making them out to be here, but this guide is meant to help you wrap your head around what is going on. I have seen comments on Reddit that say “to mij, Bitcoin has exactly 0 value” but to say that is to admit that you know very little about economics. Right now if I can sell someone te the world a single bitcoin for 10k, it is worth 10k. If I found a Superman kwestie #1, I would instantaneously sell it because it would be worth more to a collector than to mij. I could say “to mij, this comic book is worth exactly $0” but that wouldn’t switch what it is worth, just my own perception of it.
After eyeing Jay’s movie, and also reading the vocal minority te the comments, I truly thought I wasgoed going to get attacked ter my llamativo postbode. Not being attacked made mij realize that many people just want to actually monetize the laptop building abilities that they have built up overheen the years. They want the free games and enhanced income. Hell, a few 1070s can make more money right now than a tiener at a part-time job te my area. What a time to be alive!
Looking at this from the surface is infuriating if you don’t want to mine. You just want that shiny fresh card that you saved for and you don’t want to know all of the intricate details. If that is the case, just skip to my mining part of this article. I will get you up and running te less than Ten minutes making an efficient profit and it can subsidize or even fully pay for your next GPU purchase. Maybe you just want to play a spel like WoW with a monthly subscription. Here, I will instruct you how to do that for free (from mining to cashing out). With a single card mining while you are not using it, chances are it will more than voorkant your gaming habit.
Many elitist miners that have bot ter the spel for a few years now truly frown on what Nicehash has done to the altcoin market. For Ethereum, you used to have to use the CMD prompt and embark your miner “Geth” by hand with some instructions and some tabs. It felt a lotsbestemming like using the Linux terminal to launch applications and it wasgoed made to purposefully prevent noobies from lightly getting into mining. The barrier of entry skill has become almost 0 spil applications have bot made so that anyone regardless of laptop skill can get into it (Claymore, Nicehash, any miner that you pack ter your address and kasstuk begin). That being said, wij will be using the easiest and most profitable-for-noobs miner ter the world right now, Nicehash. You should be up te running ter around Ten minutes after getting to this part.
Here is a list of steps to get commenced:
1. Create an account on Nicehash and navigate to your wallet address. Highlight it and succesnummer CTRL + C
Two. Download the Nicehash Legacy miner and install it.
Three. Visit https://whattomine.com/ and https://www.nicehash.com/profitability-calculator to get an estimate of what you should be making on your GPU. Pay close attention to the pie chart on the Nicehash rekenmachine. This will tell you if you are benchmarking unusually low or high on a certain coin.
Four. Go to settings on the Nicehash Legacy software and enable P0 state if you are using an Nvidia card. Go ahead and read through thesis settings and set them however you want (none of thesis affect voorstelling aside from P0 state)
Five. Download MSI Afterburner and OC your GPU (wij have a list of recommended settings for lots of common GPUs below)
6. Click Benchmark (just leave it on standard for your very first run)(*edit: you only have to do this merienda, not every time you commence up Nicehash. The software will recall your numbers*)
Now after you have all that taken care of, paste the wallet address from your Nicehash account into the mining software. Click “settings” and navigate to the “devices/algorithms” area. Click check current profitability. This is one of my beloved features of Nicehash. It will auto-populate their web rekenmachine with your benchmark values! Compare the pie chart and profitability to what Nicehash “expects” for your card from step Trio. Think of it spil a value to strive for, NOT a standard. If you are a little below what they expect when you embark out, it isn’t a big overeenkomst. Most of the experienced guys hit the calc, but think of the calc profit spil a “hero number” when everything is volmaakt. If you are not at the profit that Nicehash expects from your card, rebenchmark the poco that wasgoed lower than expected. You can also ask mij directly if you are having trouble making your cards spil profitable spil they should be even after using the OC settings below.
Thesis OC settings will not work with every version of every GPU, but no worries. If you crash after clicking apply, just dial the settings back until you are stable. For mij, core OCing seems to be touchier than memory.
OC SETTINGS (MSI AFTERBURNER)
(The 1060 clock is optimized for maximum earnings, not max hash/watt because wij want those users to get enough bitcoin from mining to consider it worth the endeavor to go after this guide)
120% Power, +150 Core, +670 Memory
80% Power, +300 Mem, +95 Core
120% Power, +240 Core, +125 Memory
RX 580, 570, 480, and 470 cards are utterly good at mining ethereum, requiring a concentrate on overclocking memory. There are also GPU bios flashing options that increase hashrates. Popcorntech does not have any RX cards on palm to recommend specific clock settings, but recall that memory OC is key here. Wij do not recommend flashing your card bios without doing prior research. Since this guide is mainly aimed at fresh miners, wij recommend you OC your memory without flashing your card until you get into mining a bit more. Just don’t expect to match the whattomine or Nicehash rekenmachine with an RX card that is not flashed.
This is the most joy part! You have left your rekentuig on to mine and you are ready to spend that sweet dough. Here are a few ways you can spend your Bitcoin:
1. Cashing Out To Coinbase Then Into FIAT
Unluckily, a common way of spending crypto mining earnings is to convert it to FIAT (dolla bills). To do this, just set up a Coinbase account using this listig (this is an invite listig that gives us a puny kickback if you buy some Bitcoin, but feel free to Google Coinbase and sign up that way if you want). Merienda your account is set up, loom te to your Nicehash and navigate to the withdraw section. Click the Coinbase button, then instantly get your Bitcoin by using the email address associated with your account. Merienda that is done, you can wire the money directly to your handelsbank account. If you truly wanna be a baller and cut out spil many fees spil possible, you can withdraw to Coinbase for free, then send those coins to GDAX for free, then wire transfer them to your canap account from GDAX. GDAX is possessed by Coinbase and meant to be a more advanced exchange for professionals, so that’s why you can transfer within for free.
Before you budge on from this method, reminisce that if you want to keep your crypto anonymous from being affixed to your taxes, you will have to leap through hoops. Wij recommend you just stick with method 1 and pay your taxes regularly, but methods 2-5 can technically be done without fastening the coins to your name. If you truly want this to be the case, do not let your coins touch Coinbase or any other exchange. Go straight from your Nicehash account to a cold wallet then when you are ready to spend it, use one of the methods below.
Two. Buying Products/Bounty Cards From Amazon
Purse.io is a marketplace that permits you to buy Amazon products at a 15% discount from Amazon, meaning your Bitcoin goes even further towards buying what you want. I like using purse to buy fresh mining equipment when it is available. Purse’s discount also makes it lighter to rationalize paying the Bitcoin transaction fees to buy things, since you are getting a vapid discount on the items. If you are buying something physical that needs to be shipped, this is the best option te my opinion.
For a puny toverfee, you can cut out the hassle that Purse presents. You can contant out to a Bitpay wallet on your phone, then buy an Amazon bounty card there. The very first time you go through this process it may take you a half hour or so of fiddling, but it will become an effortless process very quickly. From Amazon, you can buy bounty cards to most platforms instantly. For example, if you love Blizzard games spil much spil I do, you can buy a $100 Amazon bounty card through Bitpay then buy a Battle.netwerken bounty card from Amazon . This will let you subscribe to WoW, buy Overwatch, or anything you wan’t from the Blizzard store. Most bounty cards are instantly credited digitally to your Amazon account, so you can go from having Bitcoin te your Coinbase wallet to buying Blizzard stuff te like Ten minutes.
Three. Buying Products Directly From Newegg
Newegg accepts Bitcoin spil a meteen payment (thank you Newegg!). Little explanation is required here, but you just check out spil “pay with bitcoin” then you send Bitcoin to the wallet address they give you on that screen. Done and done.
Also, don’t be a fartbag and manhandle this system. If you buy a GPU this week for Bitcoin, then Bitcoin doubles next week. Do not request a refund then rebuy the voorwerp for half the Bitcoin. This discourages stores from taking Bitcoin directly because they see many more users refunding when Bitcoin goes up and not when it goes down. This is why Steam had to zekering taking it directly, along with the horrid transaction fees that bitcoin has right now. High transaction fees for Bitcoin is one of the many reasons I choose ethereum, but that is a discussion for another postbode.
Four. Bounty Card Exchanges
You can buy bounty cards to most stores using Bitcoin using eGifter or Gyft. The friends that I have trained how to mine like to use this method. They buy a Best Buy bounty card, go there te person, and buy a Steam bounty card. To mij that seems like leaping through unnecessary hoops, but hey you do you. If you dreamed a Steam bounty card on same-day notice, the best way to do that would be to use this method, but you can cut out a loterijlot of unnecessary fees just by waiting a few days on the wire transfer from method #1.
Five. Bitcoin Debit Cards/ATMS
This method is an accounting nightmare when it comes to decently paying your taxes on the bitcoin earnings. Companies like Coinbase have an presente Visa card that you can explosion with Bitcoin and pay anywhere with, which is utterly convenient. The problem with this method is that technically for every transaction, you would have to go back at the end of the year and figure out the precies price of Bitcoin on the day you spent it vs what you mined from it. This is because mining income is taxed spil ordinary income and the appreciation ter value of Bitcoin from when you mined it to when you spent it is renta gains. This is something I am going to detail te the taxes section below.
Digital Bitcoin debit cards can be added to your smartphone via Samsung Pay, Apple Pay, or Paypal. You will end up paying more fees using a Bitcoin debit card than just wire transferring the money to your account directly, however, if you go straight from your Nicehash or cold wallet to a Bitcoin debit card, it is still possible to keep the coins anonymous if you keep buying a fresh digital wallet. I think this method requires it’s own guide, so I will give you this intro now and if there seems to be request for it, I will test different services/fees and report back.
There are ATMs scattered around that permit you to withdraw your Bitcoin for cold hard metselspecie, but you will have to Google a location finder to see where the closest one to you is. This method seems utterly inconvenient to mij because the closest ATM is hours away. Also expect to pay some high fees for this method.
This is something most guides on crypto skip. Not here. Let’s get this out of the way: If you don’t have your coins ter a cold wallet, you do not own the coins. A cold wallet is most commonly a flash drive that you keep ter a safe place not connected to the internet. There is no way for a hacker from science fiction to get into your wallet and steal your coins if there is no outer connection to the coins. If you insist on using a hot wallet, “hot” ter this setting means wallet connected to the internet, for Heerser’s sake at least turn on Two delegado authentication to your account and store your coins somewhere where they are FDIC insured. Consider the storage of more than $1000 worth of Bitcoin the point where it is mandatory that you budge to cold storage. I had to learn this lesson the hard way boys. A ogenblik of muffle for my .36 Bitcoin.
If you only take away one thing from this guide, recall that there is no one to call that will tell you everything is going to be okay if you lose your Bitcoin. It’s downright up to you to send the coins to the juist address, secure your account, etc. It’s the wild westelijk out there and you have to be ready for it.
I am not a tax professional and this is not financial advice. I just want to let you guys know how things work so that you at least know the juist search engine queries to use when you do this yourself. Your mining earnings are taxed at your regular income rate, just like if you were to make that money working at your job, but the appreciation te value is taxed spil haber gains. Say I mine $50 today and it is worth $55 when I metselspecie it out tomorrow. The $50 would be taxed at my regular income and the $Five would be hacienda gains. That is the común gist of things. You do not have to pay the hacienda gains until you specie out, so if you make $50 today and it’s worth $500 te Five years when you specie it out, you wouldn’t pay that $450 portion of it until the Five years from now when you contant out. Please do pay the petite amount of taxes for your coin, because it brings legitimacy to the industry. Right now most are dodging taxes and I feel like Coinbase and the IRS together are indeed gonna bring it to us if wij don’t self-regulate our behavior.