Today, the Bitcoin mining industry is massive, with individuals all over the world looking to make money from this venture. But Bitcoin mining cannot be done only with your laptop or PC. You now need specialized hardware to mine Bitcoin and earn rewards. But what is actually required for this? What do you need to mine Bitcoin?
A few considerations to make
Before we get into what it takes to mine Bitcoin, there are a few things you should keep in mind first.
What some people don’t realize is that mining Bitcoin can be incredibly expensive. The payoff can be big, there’s no doubt about that, but initial hardware costs, and the cost of running the machine around the clock, won’t be insignificant. In short, you need a few thousand dollars to spare minimum to mine Bitcoin. Bitcoin mining hardware prices range in five figures depending on make and model.
On top of this, Bitcoin mining is very, very competitive today and there is no guarantee that you will mine a block and get the coveted 6.25 BTC reward (which halves every four years or so!). Big changes in Bitcoin’s price, which are by no means rare, will also affect how much you earn.
If you don’t want to spend a lot of money on your mining venture, consider trying ASIC-resistant mining, which can be much more affordable.
Now let’s get into the hardware you need to build a Bitcoin mining machine.
1. An ASIC miner
When Bitcoin mining started, one could simply use a CPU or GPU to mine. But as the years have passed and more people have decided to take on the Bitcoin mining venture, the competition has become fierce. Because of this, far more powerful hardware is needed to mine Bitcoin successfully. This is where ASIC (application specific integrated circuits) miners come in.
There are now many ASIC miners on the market. Some are incredibly expensive, while others are more affordable. Choosing the right ASIC miner can be confusing, so we’ve listed three reputable models below for you to check out.
Antminer S19 Pro
Bitmain is one of the most popular ASIC manufacturers in the game today, with the Antminer series giving thousands of miners the ability to earn Bitcoin. Bitmain’s Antminer S19 Pro is a sought-after ASIC miner with a maximum hash rate of 110Th/s. But this miner doesn’t come cheap. Prices for the S19 Pro currently range between $5,000 and $10,000, with some vendors asking for even more. So it’s an investment, to say the least.
AVALON mines 1246
Canaan is another well-known ASIC manufacturer, with its AVALONminer 1246 which has become an industry favorite. AVALONminer 1246. The AVALONminer 1246 is generally more affordable than Bitmain’s S19 Pro, although it will still cost you between $2000 and $6000 to grab one.
The price difference here is partly related to the difference in maximum hash rates. While the S19 Pro has a maximum speed of 110 Th/s, the AVALONminer 1246 has a lower maximum speed of 90 Th/s. But this does not mean that the AVALONminer 1246 is not a reliable option for you.
WhatsMiner M30S++
WhatsMiner 30MS++ offers the highest maximum hash rate of the three ASIC miners listed here. Although only 2Th/s higher than the S19 Pro, 112Th/s is certainly impressive.
In terms of price, the 30MS++ tends to range between $3,000 and $8,000, although some retailers may ask for a bit more or less than this. So, it’s not the cheapest ASIC miner out there, but it’s a powerful machine that can optimize your Bitcoin mining.
On top of an ASIC miner you need a few other things.
2. A laptop or motherboard
It is possible to easily connect the ASIC miner to the laptop, but many choose to connect the ASICs to a motherboard for crypto mining. We have a dedicated section on mining motherboards if you want to learn more about them, but in short, they are motherboards with extra PCIe slots and better cooling hardware for a high intensity function like crypto mining.
However, you can use a regular motherboard with your ASIC miner. Crypto mining motherboards are simply designed for mining, while regular motherboards are not. Because you already have an ASIC, you may want to choose a regular motherboard to keep costs down. Specialized motherboards are better for GPU mining.
A cryptocurrency mining motherboard can range from $100 to $200 in price, depending on the brand, model, and condition of the product. Standard motherboards, on the other hand, can be purchased for $60 and up.
You also need your laptop or desktop PC to download the relevant mining software and view your mining analytics.
3. A crypto wallet
Another important element in your crypto mining is your wallet. Without a wallet, you have nowhere to put the profits you earn from mining. But not all crypto wallets are created equal, and some are far better suited for Bitcoin holdings than others. You should also consider whether you want a hot or cold crypto wallet. While hot crypto wallets are virtual and rely on an internet connection to function, cold wallets are physical devices that can store crypto offline.
Cold wallets are undoubtedly more secure than hot wallets as they eliminate the possibility of a remote hack via an internet connection. But it’s also important to keep your cold wallet safe so it doesn’t get damaged or stolen.
Some crypto traders choose hot wallets because they are free to download and use, unlike cold wallets, which can be relatively expensive. Regardless of your choice, make sure your wallet is compatible with Bitcoin above all else.
Exodus and Mycelium are two popular hot wallets that many people use to store Bitcoin. Exodus is a great wallet for beginners because it’s so simple. But Mycelium is also a great alternative and is not very difficult to use. If you are more interested in cold wallets, check out Ledger and Trezor, the two biggest cold wallet manufacturers on the market.
4. Mining software
You also need a mining program to mine Bitcoin. These are often free, so you probably don’t need to worry about extra costs here. However, you need to make sure that the software you choose is compatible with Bitcoin and ASICs. CGMiner, EasyMiner, and BTC Miner are all solid options for Bitcoin mining, although you may want to do some research to see which one best suits your preferences.
Bitcoin Mining is no small feat
Nowadays, it’s easy to rack up a big bill when you mine Bitcoin. Not only is the hardware expensive, but the power costs can also be an added disadvantage. There are also no guarantees in this industry, so it’s worth considering your mining options in general before jumping to buy hardware.
