Pundits have often referred to cryptocurrency mining as part of a digital gold rush. Despite this, you don’t want to dive in head-first unless you have a number of prerequisites in place. Take a look at this list before you start mining your first token. Planning ahead will help you avoid many of the pitfalls that cause many upstart Bitcoin operations to fail. Once you have everything in place, you’ll be able to enjoy a turnkey business that requires relatively little maintenance. Read this article to learn 3 things you should have in place before starting the Bitcoin mining process.
1. Specialized Computer Hardware
Since Bitcoin tokens require so much power to generate, you have to use the fastest microchips you can get your hands on if you plan on running a mine. Part of the reason that so many mining organizations switched to using graphics processing units is because they can perform certain types of calculations faster than nearly any other competing technology. Using conventional chipsets would have ended up costing more money than they could ever make in actual tokens.
There comes a point where running certain pieces of hardware costs too much due to obsolescence. Don’t be afraid to retire some circuit boards if they’re no longer pulling their weight. Doing so can actually save quite a bit of cash.
2. Your Own Mining Pool
Working with a professional Bitcoin mining operation is the single best way to pool your resources with other like-minded individuals. Though cryptocurrency was originally designed with decentralized trading in mind, it’s gotten so big that few people can actually profit off of it on their own any longer. Mining pools invest in commercial-grade cooling solutions, which are needed because semiconductors used in mining tend to generate so much heat. These solutions are too large and expensive for individual consumers to invest in, so joining a mining pool is probably the best bet for most people. They can also help to share other types of costs, which is good for those who’ve never mined any sort of tokens before.
3. A Solid Internet Connection
Pay close attention to the signaling rate of whatever Internet service provider you sign a contract with. Cryptocurrency miners need fast connections that are also extremely stable. Some cable companies offer unbelievably fast business plans, but these can disconnect at the drop of a hat. Ask your representative if they know how reliable the service is. Many of the larger carriers can tell you the odds of sudden disconnections at any given location.
Keep in mind that just because you have a stable connection doesn’t necessarily mean that you won’t run into issues. Power grid and network problems can occur when you least expect them. Develop a contingency plan that spells out what you’d do if you suddenly found your mining gear offline. It may make sense to have at least some backup generators or other equipment in place so you can at least shut things down gracefully. Putting some thought into all of these issues today will make things run much more smoothly in the future.