Do you want to build a crypto mining rig but have no idea how to do it? Read on, then we will explain in detail how a crypto mining rig works and how you can build one yourself.
If you read about mining itself before reading this article, you can consult one of these articles:
- What is Mining?
- Which coin is best to mine in 2020?
Before we get into what equipment is best for mining, it is good to remember that your biggest expense will be the electricity bill. It is best to invest in sustainable energy.
We are mainly going to talk about hardware in this blog. The software is provided by the blockchain. This software cannot be tinkered with: if you do, you will be thrown out of the blockchain for ‘cheating’.
View quickly
- What is a mining rig?
- Hardware of a crypto miner
- CPUs, GPUs, FPGAs and ASICs
- Is mining at home still useful?
- Factors to consider
- Best ASICs of 2020
- How do you build a mining rig yourself?
- Full time rigs
- Part time rigs
- Graphics cards
- Long term risk management
- Finally
What is a mining rig?
A mining rig is a computer system specially made to mine Bitcoin or other cryptocurrencies. Large parties fill entire rooms with mining rigs and this is also called a mining farm. This photo shows such a farm.
IMG 
What hardware do you need to mine crypto?
A crypto mining rig consists of the same components as a normal computer: the motherboard, the processor (CPU), the working memory (RAM), the graphics card (GPU) and the hard drive.
A mining rig is like a big calculator that has to guess a random number. Because the number is random, the mining rig has to make a large number of attempts before guessing the correct answer. The better the calculator, the faster your mining rig will find the random numbers. Short and sweet: a mining rig must be good at math.
Typically, the CPU and GPU are the best at solving math problems. Where a CPU is designed to perform all kinds of general tasks, a GPU is specially designed to perform graphical tasks. For example, you can think of running computer games.
Each moving picture you see consists of thousands of ‘polygons’. A polygon is a geometric figure defined by a mathematical formula. Because a GPU can calculate hundreds of thousands of polygons per second, they are better suited to mining crypto than CPUs.
Which component dictates the meter speed of your mining rig? In a home computer that is the CPU and the GPU, in a professional mining rig it is the so-called FPGAs and the ASICs.
What is a CPU, GPU, FPGA and ASIC?
CPUs were the first processors used to mine Bitcoin in 2009. CPUs are a computer’s standard calculators and are used to solve math problems. Every computer has at least one. CPUs are currently less popular because they have a lower, task-specific, hash rate.
In the mining process the emphasis is on ‘task specific’ and therefore a CPU is less interesting. When solving a math problem for the Bitcoin blockchain, a CPU miner will lag extremely behind an ASIC miner specifically designed to mine Bitcoins.
This means that a CPU is only used in mining when a cryptocurrency has developed its protocol specifically for CPUs. These are often the coins that do not want to be mined by large parties with a lot of money. By setting up the mining process for CPUs, they give anyone who wants the opportunity to mine the coin. Examples of crypto coins that do this are Monero and Veruscoin.
CPUs face the most competition from Field Programmable Gate Arrays or FGPAs. These are chips specifically designed to mine the coins that make CPU mining accessible as quickly as possible. FPGA is technology normally used in the aerospace sector and self-driving cars. To use an FGPA you need a lot of specific knowledge that only a few companies have. We will therefore not go into this in depth.
Miners prefer to use ASICs because they are easier to use and perform proportionally better. ASICs, or Application Specific Integrated Circuits, are specifically designed to mine crypto. ASICs have been developed to perform the task of GPUs more efficiently. This hardware is designed for only one task and that is cryptocurrency mining. When we walk into a professional mining farm, all you will see is racks of ASICs. Below you can see such a large mining farm.
Is mining at home still useful?
Mining crypto from home is profitable as long as you keep an eye on all factors. One of the most important factors to take into account is that the difficulty of mining Bitcoins, for example, increases proportionally with the hashrate. This means that a larger amount of powerful computers forces other miners within the network to use increasingly powerful computers. This is called an arms race and will ultimately be won by the people with the deepest pockets. If you want to get involved, read below about the best ASIC systems.
In the arms race, general-purpose CPUs and GPUs quickly lost to FPGAs and ASICs, as the latter two are significantly specialized in solving math problems quickly. An FPGA is a separate chip and an ASIC is a complete computer system. Both are specifically designed to mine crypto.
The hardware trend of using specialized hardware to mine crypto is slowly changing. By using ASICs on a large scale, a relatively small group controls a disproportionately large part of the Bitcoin network. This means that the decentralized protocol, like the current financial system, will be centralized within a small elite.
This trend has not gone unnoticed within the crypto community. Cryptocurrencies that place a high value on decentralization therefore implement a built-in handicap for ASICs. This will once again decentralize crypto mining.
In summary: Crypto mining started with CPUs and is expected to focus on CPUs again in the future.
In the second part of this article, we are going to discuss the most profitable rigs: ASIC rigs and GPU rigs. We also discuss the little brother: the part-time crypto miner. Small home miners will not be able to compete with large Chinese Bitcoin farms for the time being. However, you can currently easily mine altcoins in the hope that they will be worth more later.
This video shows how mining is done in China.
Before you start mining . . .
Before you start mining, it is important to calculate your profitability. There are some handy tools for this. Via this link you can enter your electricity costs and hashrate per crypto and then determine your potential turnover with the current exchange rate.
You can then choose the ASIC model that suits you best via asicminervalue.com. Note that different coins use different protocols: choose the right rig for the right protocol. For example, Bitcoin is mined using the SHA-256 algorithm.
Make sure you have a good internet connection and reliable power supply. Make sure your plugs are grounded and don’t loop power strips through. If you also start mining at night, don’t forget to install a smoke detector. It would be a shame if the whole setup went up in smoke.
What are the best ASICs of 2020?
The best ASICs of 2020 are the Innosilicon G32-1800, Bitfury Tardis, MicroBT Whatsminer M20S, Obelisk SCI immersion and the Baikal Mini.
Highest profit forecast – Innosilicon G32-1800
The Innosilicon G32-1800 is the strongest ASIC miner of the new Cuckatoo generation. It will be released in November 2020 and will have an expected maximum hashrate of 328 Giga Hash per Second (GHS) thanks to the new Cuckatoo 31+ and 32+ algorithms. Please note that the ASIC is specifically built to mine Grin on the MimbleWimble platform.
At the current price, this monster has a projected annual profit of about $60,000. The rig consumes about 1800W. The expected profit is such that the website asicminervalue.com expects a very strong market reaction when this miner comes out. There could be a shortage of ASICs and the price of the cryptocurrency Grin could fluctuate considerably.
The Innosilicon G32-1800 can be ordered via miner.nl for €12,500 exclusive and €15,125 including VAT.
Biggest powerhouse – Bitfury Tardis
ASIC’s largest beast weighs almost 4 kilograms and produces 80,000 GHS. The Bitfury Tardis is three times the size of a normal ASIC and consumes 6300W. The Tardis consumes so much energy that it will only make a profit at a Bitcoin price of $ 10,000.
The Tardis uses the SHA-256 algorithm and can mine Crown, Acoin, Curecoin, Joulecoin, Peercoin, Bitcoin Cash, Bitcoin, Unbreakable, eMark and Terracoin.
The Tardis is one year old and is available for purchase through the company’s official website for $3,770.
Smallest powerhouse – MicroBT Whatsminer M20S
The MicroBT Whatsminer M20S was released last month and is being made for the Chinese Bitcoin farms. At 68,000 GHS, the Whatsminer produces 10,000 GHS less than the Tardis while being six times smaller.
The Whatsminer is made of cheap parts and requires a lot of maintenance. It also consumes a lot of energy with 3360W. The Whatsminer is a relatively cheap Bitcoin miner, but due to the high maintenance and energy costs, it is only interesting if you have access to cheap energy and labor.
Like the Tardis, it uses the SHA-256 algorithm and costs $1,500. The small powerhouse is for sale at miningshop.nl for €4,500.
Quietest ASIC: Obelisk SCI immersion
The Obelisk SCI immersion is a liquid-cooled ASIC that produces only 30 decibels of sound. The Obelisk has been on the market since March 2020 and can mine Siacoin, Space Cash and SiaClassic via the Blake 2B protocol. The ASIC is completely submerged in water and is therefore silent as a mouse.
Siacoin is based on inflation, so there will always be a block reward. Whether the block reward will also be worth something in relative terms depends on the market price. The ASIC produces a whopping 2200 GHS and uses between 1600W and 1800W. So it is very fast and at the same time very powerful.
The miner is for sale at miners.nl for €3,750 excluding VAT and €4,537.50 including VAT.
Most economical ASIC – Baikal Mini
The Baikal Mini comes from the Russian crypto industry and consumes only 50W of energy. It is made for DASH mining and you can also mine MonetaryUnit, DigiByte, CannabisCoin, Quark, DigitalpriceClassic, Onix, Geocoin and Stratis with it.
The creature only produces 0.15 GHS. Still, that’s enough to be profitable in the right market. This little thing was still profitable until the September dip in 2020. This means that you can make a profit with crypto coins for a reasonable price with a small man.
The Baikal Mini is a good example of a profit model. The costs are low and you can easily get started mining crypto. Please note: it will take four years before you pay the costs in the current market. This means that despite only good numbers, the little Russian is only interesting if Dash and the other coins increase in value. Despite the low turnover potential, I see the Baikal Mini as the greatest opportunity for long-term profit.
You can buy this miner for $200 from the official Baikal site.
How do you build a mining rig yourself?
You can distinguish between full-time and part-time rigs. You actually use a part-timer for something else, but in the time that you are not using it, you put it to work to mine. A full-timer does nothing but mine.
Just like with the ASICs, it is important that you first find out what you are going to mine. Which protocol you will use and which part is most important for this. Because rigs that are built at home often use GPUs, we’ve listed the best GPUs for you below.
Small hand rule for when CPUs start to become important again. With Intel you want at least an i7, but preferably an i9 or a Xeon. With AMD you want a thread ripper. These are the most powerful CPUs these manufacturers make and will achieve the highest hashrate.
If you are handy, you can choose to use FPGA chips.
Full time rigs
A full-time rig is basically an airframe that facilitates the placement of a graphics card. Because you will be using the computer full-time to mine, it is useful to take a motherboard that can accommodate two or more graphics cards. We will discuss which graphics cards are interesting in this way.
Two elements are particularly important with full-time rigs: having enough cooling and power. If you are going to place the device in your home, sound insulation is not an unnecessary luxury. You can solve the existing noise by taking a slightly more expensive housing, as these come with built-in sound insulation.
To calculate the power requirement it is best to use the following link: power supply calculator. Select basic, fill in your components, and the tool will produce the minimum wattage you will need for your PC.
Part time rigs
These computers are also used for other tasks. If those tasks involve graphic design, heavy statistics, gaming or music editing, a gaming computer will be a good solution. These computers are strong enough for any task, including crypto mining.
Game computers make extensive use of the graphics card, but often also have slightly better processors. So a good CPU and a good GPU. This way you play it safe. Whether the future of mining turns GPU or CPU heavy, you’re well prepared.
To see which components you can best take for a good gaming computer, it is best to follow the Desktop Best Buy Guide from Tweakers: they post an extensive list every season that are interesting for every budget.
For now, let’s move on to the most important part of a homemade mining rig: the graphics card!
Graphics cards
At the moment there are two market leaders when it comes to graphics cards: AMD and NVIDIA. AMD uses brute force where NVIDIA uses more advanced techniques such as hyperthreading. Because we actually want to have raw power for mining crypto, we would normally recommend AMD, but AMD has not released any major innovations in the past year and a half. This makes NVIDIA, at the time of writing, the better choice for crypto mining. Check hashrates.com for the latest updates on the best CPU and GPU scores.
Most powerful AMD card: AMD Radeon VII 16 GB
This is the right video card if you want to mine Ethereum Classic and Ethereum with the Ethash algorithm. The card achieves 96.4 Mega Hash per Second (MHS). The downside is that the card only works well with Ethash. It also consumes the Radeon VII with 300W relatively much energy and makes a lot of noise.
The card is available at alternate.nl for about 749 euros. This is on the high side if you compare it to NVIDIA which allows you to mine more coins for a lower amount.
Most powerful NVIDIA card: GeForce RTX 2080 Ti 11Gb
This card only achieves 90% of AMD’s performance when mining on Ethash at 87.9 MHS. However, the NVIDIA can be used much more widely: Cuckatoo 31, Cuckatoo 29, X16R, Ethash and Equihash. In plain names: Grim, Ravencoin, Ethereum and Beam: the most profitable altcoins of the moment.
NVIDIA’s agility makes it the go-to card of the moment; for both the full-time and the part-time rig. With a power consumption of 250W, this is considerably less than the AMD. However, this card also has a downside: the price is around 1200 euros on the high side. The video card can be purchased at coolblue.
Long term risk management
It is important to have your long-term objective in mind when mining. A good example of this is the Bitcoin halving. Halving means that the reward for the miner is halved. This has major consequences for potential profits: they are literally halved.
The behavior of the miner also changes because of this: with a smaller reward for mining, it becomes more interesting to hold the Bitcoin until they gain more value. This means that the investment you make as a Bitcoin miner needs much more time before it pays off.
The next Bitcoin halving is expected to happen on May 20, 2020 and will cause major price fluctuations in Bitcoin and altcoins. Anticipate this when you start building a mining rig.
Other developments strive for decentralization: for example, applying a handicap for using an ASIC or computer that is too strong. This all has an effect on the fertility of crypto mining.
Finally
Do you have questions about crypto mining? Then feel free to ask them at the bottom of this article, on the Crypto Forum or with us in the AllesOverCrypto Facebook group.
