Money Talk
Cryptocurrency Mining Guide
Submitted by Ideology, 28-02-2018, 06:00 AM, Thread ID: 77562
Thread Closed
28-02-2018, 06:00 AM
#1 ![[Image: What-is-MINING_.png?fit=600%2C400&ssl=1]](https://i0.wp.com/theminerhub.com/wp-content/uploads/2017/12/What-is-MINING_.png?fit=600%2C400&ssl=1)
Cryptocurrency has been rising up for about a decade now and most individuals know how to set up their currency wallet and purchase/trade coins. However, what many people do not know is how to mine currency, and ultimately end up losing money to false blockchains and damage their computers immensely. This guide will serve as a tool to help all future miners purchase the right equipment and make the most profit.
What is Mining?
Mining is the action a computer does when solving math problems. Every cryptocurrency whether it's mainstream or an altcoinhas some form of "blockchain". Blockchains are simply databases that control and manage the transactions between users. The system itself "breaks" every time a transactionis done. When your computer solves "math problems", it's really "repairing" whatever "broke within the system, and therefore uncovers either a small portion or an entire coin of the currency.
All the cryptocurrency transactions that are taking place within a set period of time are added into a list called a "block". Miners confirm blocks of transactions and add it to the blockchain. When certain blocks of transactions arecomplete, the blocksareprocessed by the miners. This is where the complex math equations are come into play as their purpose is the creation a codeof numbers and letterscalled a "hash". Boththe block and the newly produced hash are stored within the blockchain, and in returnnew units of the cryptocurrency are created or issued.
How long does this process take?
This process can take anywhere between weeks to months depending on the computer and tools you have in place. There are sites that offer mining opportunities but they often come with a "pay off limit" where you must reach a certain amount (ex. $200, $250, ect) before you can take the amount and place within your cryptocurrency wallet. Some sites have have made the mining experience into "games" and actually allow you to play slots and poker in return for small amounts of cryptocurrency. However, it must be known that these sites mostly work on ponzi-pyramind structures and are making both cryptocurrency and government-issued currency from your mining (these sites are plastered with ads).
How do I start mining?
There are three main ways to mine cryptocurrency:
Cloud Mining: Cloud mining isutilizing a remote data center with shared processing power.
Pros: Extremely simple and it's possible to mine multiple blocks of the same or different coin.
Cons: Far too many are scams or have immensely high pay offs.
Self-Mining: Self-mining is downloading a mining program from the cryptocurrency's main site, and mining through this application which is connected to the blockchain itself.
Pros: Linked directly to blockchain, safe and secure mining.
Cons: Takes vast amounts of electricity to run and wears and tears normal computers not outfitted for mining.
Mining Pools: Mining pools are a combination of cloud mining applications and self-mining programs where since mining takes long amounts of time, multiple miners complete the same equation to gain the rewards quicker. Mining pools split the coin earned based on the amount of work done by each individual.
Pros: Extremely effective and one of the best ways to earn quickly.
Cons: Difficult to find a trustworthy mining pool with individuals who won't leave half-way.
How to Use Each Service?
Every mining source has different and complex services, so for this guide we will focus on Bitcoin. Why? Because it has been around the longest, and therefore each service has been under at least 7 years of investigation. Any Bitcoin earned can be traded for whatever coin you prefer, and the same methods used can be used for other coins if you find a well rated service.
Cloud Mining Services
Simply begin by finding a good cloud mining service by looking at reviews and mining required, then insert your cryptocurrency address. The actual mining process begins once you start your account, and it's customizable to the extent the provider allows.
Most commonly used BTC Cloud Miners:
Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.
Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.
Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.
Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200.
Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out.
NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.
Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.
MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.
Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.
Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.
Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200.
Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out.
NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.
Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.
MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.
Self-Mining Services
There are dozens of possible services available for miner use but it's up to you to figure out which self-mining program gives you the best run for your computer's activity. Remember, your computer is going to wear and tear a lot from this, so make sure you have both a computer you don't mind running a bit slower than usual, and a trustworthy program that will give you your run for service.
Reliable Programs:
MinePeon: Open source and may need WinDisk32Imager.
EasyMiner: A GUI based miner for Windows, Linux and Android. EasyMiner acts as a convenient wrapper for the built in CG; BFGminer softwares. It auto configures your Bitcoin miners and provides performance graphs to for easy visualization of your Bitcoin mining activity.
BFGMiner: A modular ASIC, FPGA, GPU and CPU miner written in C, cross platform for Linux, Mac, and Windows including support for OpenWrt-capable routers.
CGMiner: This is a multi-threaded multi-pool GPU, FPGA and ASIC miner with ATI GPU monitoring, (over)clocking and fanspeed support for bitcoin and derivative coins.
Remember, you can go to the website of whatever cryptocurrency you have and they will most likely have their own personalized software program for you to install and use.
Also realize you are able to customize any spare PC that you have into a fast and powerful cryptocurrency mining machine. Back from 2008-2013 the CPU alone was capable of mining, but now custom ASIC (Application Specific Integrated Circuit) chips are doing the job. When purchasing one, it's important to look for one that isn't super power-hungry since you will definitely see your electricity bill skyrocket if not careful.
Do note, such machines can cost between $500-$2000 and many miners actually buy multiple since the pay off via cryptocurrency is enough to buy even more. However, when stuff like electricity andcomputer wear and tear come into play, only those fortunate enough to have degrees in computer engineering and sciences have been able to create computers to mine so much, and even then they break down within a good 6 months.
Find your ASIC chip miners here:https://asicminermarket.com/
Pool Mining Services
Bitcoin Mining Hash Rate Distribution
![[Image: bitcoin-mining-pool-hash-rate-distribution.png]](https://www.bitcoinmining.com/images/bitcoin-mining-pool-hash-rate-distribution.png)
When pool mining, there are two things you must figure out before you start; which pool will you enter, and what are the payoff options?
Here are some pool mining services for Bitcoin exclusively and detailed information:
The following pools are believed to be currently fully validating blocks with Bitcoin Core 0.11 or later:
BTCC: BTCC is a Bitcoin exchange, wallet, and mining pool located in China. Its mining pool currently controls around 15% of the network hash rate.
Slush Pool: Slush Pool is run by Satoshi Labs, a Bitcoin company based in the Czech Republic. Slush Pool was the first mining pool and maintains around 7% of the network hash rate.
Antpool: [WARNING] - Bitmain operates Antpool and some consider them to be a malicious actor in the Bitcoin ecosystem because of the AntBleed scandal where they were intentionally including malware within mining equipment they sell. In a corporate communication, Bitmain claimed this was a feature and not a bug. This malware would enable Bitmain to remotely shut down equipment of customers or competitors thus increasing their own profitability. Additionally, such behavior could pose a risk to the entire Bitcoin network.
Eligius: Eligius was one of the first Bitcoin mining pools and was founded by Luke Dashjr, a Bitcoin Core developer. Today, the pool controls just under 1% of the network hash rate.
BitMinter: BitMinter, once one of the largest Bitcoin mining pools, now controls less than 1% of the network hash rate.
Kano CKPool: Kano CKPool was founded in 2014 and currently has around 3% of the network hash rate under its control.
F2Pool: F2Pool is the second largest Bitcoin mining pool, with around 25% of the network hash rate. Its user interface is in Chinese, making it difficult for English speakers to join.
BW Pool: BW Pool controls around 7% of the network hash rate. Like F2Pool, its user interface is in Chinese, making it difficult for English speakers to join.
Bitfury: Although seen publically in block explorers and hash rate charts, BitFury is a private mining pool and cannot be joined.
BTCC: BTCC is a Bitcoin exchange, wallet, and mining pool located in China. Its mining pool currently controls around 15% of the network hash rate.
Slush Pool: Slush Pool is run by Satoshi Labs, a Bitcoin company based in the Czech Republic. Slush Pool was the first mining pool and maintains around 7% of the network hash rate.
Antpool: [WARNING] - Bitmain operates Antpool and some consider them to be a malicious actor in the Bitcoin ecosystem because of the AntBleed scandal where they were intentionally including malware within mining equipment they sell. In a corporate communication, Bitmain claimed this was a feature and not a bug. This malware would enable Bitmain to remotely shut down equipment of customers or competitors thus increasing their own profitability. Additionally, such behavior could pose a risk to the entire Bitcoin network.
Eligius: Eligius was one of the first Bitcoin mining pools and was founded by Luke Dashjr, a Bitcoin Core developer. Today, the pool controls just under 1% of the network hash rate.
BitMinter: BitMinter, once one of the largest Bitcoin mining pools, now controls less than 1% of the network hash rate.
Kano CKPool: Kano CKPool was founded in 2014 and currently has around 3% of the network hash rate under its control.
F2Pool: F2Pool is the second largest Bitcoin mining pool, with around 25% of the network hash rate. Its user interface is in Chinese, making it difficult for English speakers to join.
BW Pool: BW Pool controls around 7% of the network hash rate. Like F2Pool, its user interface is in Chinese, making it difficult for English speakers to join.
Bitfury: Although seen publically in block explorers and hash rate charts, BitFury is a private mining pool and cannot be joined.
Here are the following possible pool mining pay off options:
PPS: The Pay-per-Share (PPS) approach offers an instant, guaranteed payout for each share that is solved by a miner. Miners are paid out from the pools existing balance and can withdraw their payout immediately. This model allows for the least possible variance in payment for miners while also transferring much of the risk to the pool's operator.
PROP: The Proportional approach offers a proportional distribution of the reward when a block is found amongst all workers, based off of the number of shares they have each found.
PPLNS: The Pay Per Last N Shares (PPLN) approach is similar to the proportional method, but instead of counting the number of shares in the round, it instead looks at the last N shares, no matter the boundaries of the round.
DGM: The Double Geometric Method (DGM) is a hybrid approach that enables the operator to absorb some of the risk. The operator receives a portion of payouts during short rounds and returns it during longer rounds to normalize payments.
SMPPS: The Shared Maximum Pay Per Share (SMPPS) uses a similar approach to PPS but never pays more than the Bitcoin mining pool has earned.
ESMPPS: The Equalized Shared Maximum Pay Per Share (ESMPPS) is similar to SMPPS, but distributes payments equally among all miners in the Bitcoin mining pool.
RSMPPS: The Recent Shared Maximum Pay Per Share (RSMPPS) is also similar to SMPPS, but the system prioritizes the most recent Bitcoin miners first.
CPPSRB: The Capped Pay Per Share with Recent Backpay uses a Maximum Pay Per Share (MPPS) reward system that will pay Bitcoin miners as much as possible using the income from finding blocks, but will never go bankrupt.
BPM: Bitcoin Pooled mining (BPM), also known as "Slush's pool", uses a system where older shares from the beginning of a block round are given less weight than more recent shares. This reduces the ability to cheat the mining pool system by switching pools during a round.
POT: The Pay on Target (POT) approach is a high variance PPS that pays out in accordance with the difficulty of work returned to the pool by a miner, rather than the difficulty of work done by the pool itself.
SCORE: The SCORE based approach uses a system whereby a proportional reward is distributed and weighed by the time the work was submitted. This process makes later shares worth more than earlier shares and scored by time, thus rewards are calculated in proportion to the scores and not shares submitted.
ELIGIUS: Eligius was designed by Luke Jr., creator of BFGMiner, to incorporate the strengths of PPS and BPM pools, as miners submit proofs-of-work to earn shares and the pool pays out immediately. When the block rewards are distributed, they are divided equally among all shares since the last valid block and the shares contributed to stale blocks are cycled into the next block's shares. Rewards are only paid out if a miner earns at least. 67108864 and if the amount owed is less than that it will be rolled over to the next block until the limit is achieved. However, if a Bitcoin miner does not submit a share for over a period of a week, then the pool will send any remaining balance, regardless of its size.
Triplemining: Triplemining brings together medium-sized pools with no fees and redistributes 1% of every block found, which allows your share to grow faster than any other Bitcoin mining pool approach. The administrators of these Bitcoin mining pools use some of the Bitcoins generated when a block is found to add to a jackpot that is triggered and paid out to the member of the pool who found the block. In this way, everyone in the pool has a better chance to make additional Bitcoins, regardless of their processing power.
PROP: The Proportional approach offers a proportional distribution of the reward when a block is found amongst all workers, based off of the number of shares they have each found.
PPLNS: The Pay Per Last N Shares (PPLN) approach is similar to the proportional method, but instead of counting the number of shares in the round, it instead looks at the last N shares, no matter the boundaries of the round.
DGM: The Double Geometric Method (DGM) is a hybrid approach that enables the operator to absorb some of the risk. The operator receives a portion of payouts during short rounds and returns it during longer rounds to normalize payments.
SMPPS: The Shared Maximum Pay Per Share (SMPPS) uses a similar approach to PPS but never pays more than the Bitcoin mining pool has earned.
ESMPPS: The Equalized Shared Maximum Pay Per Share (ESMPPS) is similar to SMPPS, but distributes payments equally among all miners in the Bitcoin mining pool.
RSMPPS: The Recent Shared Maximum Pay Per Share (RSMPPS) is also similar to SMPPS, but the system prioritizes the most recent Bitcoin miners first.
CPPSRB: The Capped Pay Per Share with Recent Backpay uses a Maximum Pay Per Share (MPPS) reward system that will pay Bitcoin miners as much as possible using the income from finding blocks, but will never go bankrupt.
BPM: Bitcoin Pooled mining (BPM), also known as "Slush's pool", uses a system where older shares from the beginning of a block round are given less weight than more recent shares. This reduces the ability to cheat the mining pool system by switching pools during a round.
POT: The Pay on Target (POT) approach is a high variance PPS that pays out in accordance with the difficulty of work returned to the pool by a miner, rather than the difficulty of work done by the pool itself.
SCORE: The SCORE based approach uses a system whereby a proportional reward is distributed and weighed by the time the work was submitted. This process makes later shares worth more than earlier shares and scored by time, thus rewards are calculated in proportion to the scores and not shares submitted.
ELIGIUS: Eligius was designed by Luke Jr., creator of BFGMiner, to incorporate the strengths of PPS and BPM pools, as miners submit proofs-of-work to earn shares and the pool pays out immediately. When the block rewards are distributed, they are divided equally among all shares since the last valid block and the shares contributed to stale blocks are cycled into the next block's shares. Rewards are only paid out if a miner earns at least. 67108864 and if the amount owed is less than that it will be rolled over to the next block until the limit is achieved. However, if a Bitcoin miner does not submit a share for over a period of a week, then the pool will send any remaining balance, regardless of its size.
Triplemining: Triplemining brings together medium-sized pools with no fees and redistributes 1% of every block found, which allows your share to grow faster than any other Bitcoin mining pool approach. The administrators of these Bitcoin mining pools use some of the Bitcoins generated when a block is found to add to a jackpot that is triggered and paid out to the member of the pool who found the block. In this way, everyone in the pool has a better chance to make additional Bitcoins, regardless of their processing power.
Conclusion and Advice
Mining is something that every individual has the full capacity of accomplishing one way or another. The biggest mistake the people do is not doing enough research. This guide was constructed of the most basic of information, but that does not mean it's the best. Just as everyday the price of currencies are rising and falling, so too is the relevance of these forms of mining. It's your job to study and I'll do my best to keep this guide up to date.
If there was ever a way to keep ahead in this world, investing in this form of currency is truly something worth doing. If there comes a point where cryptocurrency as a whole is still confusing to you, I'll be more than happy to create a guide for the community.
Happy mining to you miners!
I apologize for everything
All About Me ->https://jpst.it/1aT82
RE: Cryptocurrency Mining Guide
28-02-2018, 11:54 AM
#2 Nice short guide, with lots of usefull info!
Keep on the good work mate!
Keep on the good work mate!
RE: Cryptocurrency Mining Guide
28-02-2018, 03:52 PM
#3 thats a hell lot of read there bookmarked it and will come back with proper feedback
keep up the great work man
keep up the great work man
RE: Cryptocurrency Mining Guide
02-03-2018, 02:03 PM
#4 Awesome written thread man. You really explained it very well.
RE: Cryptocurrency Mining Guide
04-03-2018, 05:26 PM
#5 This post was last modified: 04-03-2018, 05:28 PM by TimeTraveller
Can't believe you wrote "pros" of cloud mining
cloud mining is scam. All of them.
also, i recently solved a very simple example ofsha256 with pen and paper :3
cloud mining is scam. All of them.
also, i recently solved a very simple example ofsha256 with pen and paper :3
![[Image: zQqN94g.gif]](https://i.imgur.com/zQqN94g.gif)
RE: Cryptocurrency Mining Guide
17-03-2018, 05:56 PM
#6 Awesome. Let's make GPus grate again! But why... Pro solution
RE: Cryptocurrency Mining Guide
18-03-2018, 02:28 AM
#7 short and awasome guide thank you so much but manning has electiricy bill problem
RE: Cryptocurrency Mining Guide
18-03-2018, 06:34 AM
#8 You mostly go over bitcoin in this, which is probably for the best but some dual mine CPU and GPU based coins which I think you'd probably want to cover.
Some VPS providers can be used for mining, I'm not saying which as I'm partnered with them and probably biased but I've made back my investment with them. They allow you to do anything with the VPS but mining is great as there is no per-computer limit on CPU/GPU usage though the GPU addon is a pretty penny per month, with a pool I've made it back plus some.
Some VPS providers can be used for mining, I'm not saying which as I'm partnered with them and probably biased but I've made back my investment with them. They allow you to do anything with the VPS but mining is great as there is no per-computer limit on CPU/GPU usage though the GPU addon is a pretty penny per month, with a pool I've made it back plus some.
RE: Cryptocurrency Mining Guide
18-03-2018, 02:56 PM
#9 Great guide, really
but what about setup a machine dedicated to farm coins? I heard of people using powerful sets of GPU's or even with multiple raspberry, but.. does it really worth?? I'll be glad to invest in components if only i know what is worthing
but what about setup a machine dedicated to farm coins? I heard of people using powerful sets of GPU's or even with multiple raspberry, but.. does it really worth?? I'll be glad to invest in components if only i know what is worthing
RE: Cryptocurrency Mining Guide
21-03-2018, 07:20 PM
#10 Thank you for the comprehensive guide.
I've been mining for 1 year, but still not get all the abbreviation. Now I know what method I'm mining and which I should choose.
I've been mining for 1 year, but still not get all the abbreviation. Now I know what method I'm mining and which I should choose.
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