If you want to start GPU-Mining / Ethereum Mining, those here important factors to pay attention to:
First and foremost, most miners are concerned with mining profitability. After all, we all have to pay our very own bills. However, one should not forget that we, the miners, also play an important technical role in the Blockchain network. Miners verify the transactions and ensure that the blockchain can not be attacked. Say: Without us the ethereum network would not exist - at least as long as the consensus of Ethereum with the proof of work concept is generated.
But now to the actual topic:
How do I calculate the profitability of my hardware configuration at Ethereum Mining?
and why do I actually get money for mining?
To put it simply, as miners, we do the following: we provide computational power to verify the transactions in the blockchain, and in return pay Ethereum for them. You could do that with a normal PC and it will work, but the computing power of a traditional PC is not enough to mine efficiently and profitably.
So we use this multiple graphics cards that can calculate these processes or tasks in the blockchain much more effective. Electricity is needed for this computing power, so we can further say that we convert electricity into ethereal. Therefore, there are the following metrics that should be considered for profitable mining:
The hardware acquisition costs for a mining rig are the one-off acquisition costs that must be taken into account when mining. There are different approaches here:
In this Mining Tutorial here we want to go the middle ground.
In addition to the cost of hardware you should always take into account the power consumption, especially the graphics cards in which is invested.
The electricity costs are the most important current items that we have to consider when mining. The goal is to create a perfect ratio between hashrates and power consumption when mining. We succeed with the selection of the right hardware as well as the configuration of the graphics cards we use. In detail, it is about the BIOS of the graphics card to modify so that you achieve a balance between power consumption and computing power (hash power).
The right electricity provider would be in the point of electricity costs next point to take into account. You should definitely buy electricity as cheaply as possible. At this point, I would also like to argue that you may also pay attention to green energy when choosing the electricity provider - even if it is a little more expensive. But the earth is dear to us all, is not it?
Unfortunately, we live in Germany in a country where the price of electricity is very high. This is also the reason why many mining farms are located in Iceland, China, Romania or Bulgaria where you sometimes pay only 5 cents per Kw / h.
In this example here we will bring the RX 580 graphics cards at a power of 30 MH / s from 130w to a power consumption of 100w. Thus, we would then have at 6 GPU's a mining rig with a Hashlpower of about 180 MH / s with a power consumption of GPUs of about 600w + 200-300w for motherboard + Co.
Accordingly, our mining rig consumes around 800-900w. If we now know how much we pay per kilowatt of electricity from our electricity provider, we know the running costs of our mining rig.
A further important cost factor that is often overlooked in mining, and is not taken into account, are the oh-so-beloved taxes. I would like to give you some tips on this topic on the way, but unfortunately I can not advise you under German law tax law. But there is a German tax advisor who has taken the issue to heart and has written a very competent e-book on the subject. If you want to know more about it just click here on the link.
The Hashrate is the performance your Mining Rig provides. Say, the higher the hathrate, the more ethere harvest your miner. As with the electricity costs, attention must be paid to the right hardware and the modding of the graphics cards. At the Ethereum
Mining applies: We mine with the ETHash algorithm. With this algorithm, Amd cards work more effectively than NVIDA graphics cards. For EQUIHash coins, e.g. zCash turn NVIDA cards are more effective. That's why you should always think carefully about what you want to mine. In our case, this is an Ethereum Mining Rig, so of course we use AMD graphics cards.
Which graphics cards and which algorithm is the most profitable you can calculate with various mining calculators.
The Dificulty is a value that determines the Hashrate of your mining rig. The more miners in the Ethereum Network are active to mine Ethereum, the higher the Difiulty of the Ethereum Network and the less Ethereum we earn.
The Ethereum Exchange Rate is an important factor because we need to know how much value our Ethereum has. Therefore, it makes sense if the ethereum value is high, so that we can sell our geminten Coins expensive.
Personally, I tend not always to sell my coins directly as soon as I have the coins in my wallet, but mostly wait for price gains. Of course, this tactic is a bit riskier than directly selling your Ethereum, but you have chances of much higher profits.
For example, from June 2017 to August 2017, I handled 24 Ethereum, at which time the price was around $ 300. Instead of directly selling the Ethereum, I waited until December when the price was over $ 1000. If you count up now you see that the wait was worth it. The whole thing could have started in the back. Because now the price is back at $ 400. So it takes a bit of luck and a healthy assessment of the crypto market if you use this tactic.
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