We have compiled a guide on how to mine cryptocurrency and earn passive income on your gaming PC. It is an extremely simple process if you just want to get set up and up and running in moments using software like NiceHash.
- Best mining GPU 2022: The best graphics card for Bitcoin and Ethereum
- Best mining GPU 2021:
- What is the best GPU for crypto mining?
- What Is GPU Crypto Mining?
- NVIDIA GeForce GTX 1070: The Most Popular Cryptocurrency Mining GPU
- How Does GPU Mining Work?
- The Sha-256 Hash Function
- GPU Mining Algorithms
- GPU Mining Software
- Claymore Miner
- WildRig Multi Miner
- KawPoW Miner
- What Is Graphics Cards Mining?
- What Are GPU Miners Paid?
- Can Mining Degrade My PC?
- Benchmarking Bitcoin
- Are mining GPU fears overblown?
- What is Crypto Mining?
- The Crypto Mining Processors (CMP)
- The optimistic side: GPU mining dies off
- The pessimistic side: GPU mining gets a new champion after Ethereum
Best mining GPU 2022: The best graphics card for Bitcoin and Ethereum
Cryptocurrency mining is a tough process for the GPU, requiring a lot of component (and computer) activity over a long period of time. While it’s possible to pick the best graphics card and start mining, it may not be the best route, especially considering your power consumption and electricity tariffs. The RTX 3080 is an amazing graphics card, but there are other cards worth considering for cryptocurrency mining as well. Here are our favorites.
- NVIDIA GeForce RTX 3060 Ti – Best Overall: 60 MH / s, 200W TDP, 8GB GDDR6 VRAM, RRP $ 399.
- AMD Radeon RX 5700 XT – Second Place: 54 MH / s, 225W TDP, 8GB GDDR6 VRAM, MSRP of $ 399.
- NVIDIA GeForce RTX 2070 – Best Value: 36 MH / s, 225W TDP, 8GB GDDR6 VRAM, MSRP of $ 499.
- NVIDIA GeForce RTX 3090 – Best performance: 121 MH / s, 350W TDP, 24GB GDDR6X VRAM, MSRP 400 499.
- AMD Radeon RX 580 – AMD’s Best Budget: 28 MH / s, 185W TDP, 8GB GDDR5 VRAM, MSRP of $ 229.
- NVIDIA GeForce GTX 1660 SUPER – NVIDIA Best Budget: 26 MH / s, 125W TDP, 6GB GDDR6 VRAM, MSRP of $ 229.
Best mining GPU 2021:
What is the best GPU for crypto mining?
Choosing the best graphics card for cryptocurrency mining is not as simple as picking the absolute most expensive card you can locate and calling it in one day. There are various factors to consider when purchasing a new GPU to (hopefully) earn some money. The most important factor for any cryptocurrency mining GPU is performance – you need high hash speed with as little electricity as possible.
Let’s take our top recommendation here, for example. It’s the NVIDIA GeForce 3060 Ti, an amazing gaming GPU, but it’s also great for cryptocurrency mining. It won’t win awards for the highest hashing rate, but it will keep you running smoothly for a more affordable price. If you wanted something a bit cheaper without sacrificing too much performance, the NVIDIA GeForce RTX 2070 is your guy.
But there are countless other graphics processors you might want to consider, and not just from NVIDIA. The AMD Radeon RX 5700 XT is our favorite affordable GPU, offering impressive hash speed at the asking price. There’s also the AMD Radeon RX 580, which is perfect for those on a budget looking to save a few bitcoins or Ethereum to weather the financial storm.
You don’t have to spend a lot to earn money mining cryptocurrency. As long as the hash indicator attracts coins that you can sell and earn enough to cover your electricity costs, you’re already green. When you consider a few months to pay off your GPU and make a profit – and that doesn’t take into account the resale value of the card itself.
Some of the other factors include the price of the cryptocurrency you choose to mine, which can also vary greatly from month to month. Also, the price you agreed to buy your mining equipment will have a direct impact on when you see a return on your investment.
What Is GPU Crypto Mining?
GPU exploration is the use of a gaming computer’s GPU to solve complex mathematical problems to verify electronic transactions in the blockchain.
Typically, in order to mine cryptocurrency, digital coins must be built on a blockchain architecture that supports evidence of work (PoW) mining. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Monero (XMR), Litecoin (LTC), and Dogecoin (DOGE) are examples of coins that can be mined.
NVIDIA GeForce GTX 1070: The Most Popular Cryptocurrency Mining GPU
While there are many different graphics cards in the markets, the cards used to mine cryptocurrency are specifically designed for gaming and not for video rendering. Shares in GPU companies such as NVIDIA and AMD have increased sharply as miners want to earn cryptocurrencies using their computing power. The NVIDIA GeForce GTX 1070 is one of the most popular mining platforms in terms of both electricity consumption, although there are other models if you do your own research that might work for you.
While it was once possible to mine Bitcoin and other cryptocurrencies at home using a laptop, this is no longer an option for most cryptocurrencies due to the growing interest in mining as well as halving the Bitcoin reward. Most mining operations, including the use of graphics cards and specialized mining platforms, are currently carried out in shared pools where participants combine their computing power into a large group to generate results faster. Rewards are given to miners after mining a block of currency.
All participants in the pool get a share of the profits based on how much computing power they have contributed. In this way, the individual computers represent the workers in the mine receiving a treasure hunt reward, a block reward.
How Does GPU Mining Work?
GPU mining became a hot topic in 2017 after Bitcoin surpassed its previous highs, peaking at almost $ 20,000 (slightly less than half of what it would have achieved later in January 2021!). Since then, people from all over the world have been looking for the best GPUs to get their share of the crypto block awards.
The complex math functions solved by computers are usually SHA-256 hash functions. In mining, a computer takes SHA-256 – an encrypted math algorithm – and converts it to its output. The output is always a 256-bit number.
The Sha-256 Hash Function
The SHA-256-encrypted problems that computers solve are electronic payment details and algorithms necessary to secure the blockchain network from attackers who want to “double-spend”. For their participation in the security of the blockchain network, miners are rewarded with cryptographic coins.
When the computational problem is solved by the mining card, the product is an apparently random 64-character result called a hash. On the Bitcoin network, miners need to find an abbreviation that starts with about seventeen zeros. The computer must try repeatedly to obtain this number.
Once the hash is found, the block is closed and the miner / miner pool is rewarded with newly created bitcoins and transaction fees. In any blockchain, the hash rate is the speed at which the miner comes in and finds the hash. Hash rate is measured in giga hashes (GH / s).
GPU Mining Algorithms
Just as there are different cryptocurrencies built on different blockchains, different types of cryptocurrency mining algorithms are available. Hash (mining product) differs in different types of blockchain.
GPU Mining Software
GPU hardware is only one part of the mining equation. To get the most out of your GPU, you need a mining software that is just as good and optimized for the best results.
Here are some of the best search software available for GPUs.
The Claymore miner was one of Ethash’s most efficient GPU miners, but when Ethereum hit the DAG 384 era, it stopped working because it did not support the previous 385 era. The DaggerHashimoto algorithm enlarges the DAG file every 30,000 blocks, which is one era – this increase then increases the requirements about GPU memory needed for mining.
The Claymore software is built with a double Ethereum miner for mining cryptocurrencies with a similar algorithm without compromising hash speed.
Claymore was also famous for constantly introducing new updates and good optimization. Claymore’s Dual Ethereum v15.0 is available to AMD and NVIDIA GPU miners. Although specifically designed for Ethash, the Claymore works perfectly with other similar mining algorithms, but it is unclear if it will still work for Ethereum after the 384 era at that time (Feb 2021).
WildRig Multi Miner
WildRig Multi Miner GPU mining software supports over 30 different algorithms. WildRig Multi focuses on modern AMD GPUs and is supported on both Linux and Windows systems. The online development fee is 2 percent.
KawPow is very popular with miners due to the ability to handle any type of mining pool. The main disadvantage of this mining software is its incompatibility with AMD GPU devices. Kawpow Miner 1.2.3 is the latest version of this universal mining software as of February 2021.
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What Is Graphics Cards Mining?
Before we start cracking the GPU mining process, we need to briefly explain what cryptocurrency mining is. Put simply, mining refers to a method of using the processing capabilities of a processor, GPU or ASIC in the hope of hashing blocks and validating transactions on a so-called blockchain, which is nothing but the public ledger of all past transactions.
You see, every time you start mining, your mining equipment gets tiny bits of information from the blockchain network, which it then carries out on. The process is known as mixing or proof of work, and your computer’s power is used to solve complex math problems, which ultimately brings you rewards.
Therefore, GPU Exploration in this example is a way to calculate transactions and record them in any public cryptocurrencies where mining is posted while attaching them to all past transactions, also known as proof of work. This record of rollback transactions is known as a blockchain because it resembles a blockchain in digital form. Blockchain helps confirm that transactions have been completed through the rest of the chain.
What Are GPU Miners Paid?
Mining is also a tool used to distribute new digital currencies online: miners are compensated for any transaction fees charged, as well as a “bonus” in the form of recently created coins for each correctly hashed block. The purpose of this is twofold.
- Distribution of new coins in a decentralized manner
- Motivating miners to ensure network security
As more and more users join the network, the speed of blocking increases. As the block generation rate increases, it becomes more difficult to counterbalance this effect, which may then lower the block production rate. Any blocks that malicious miners try to create that do not reach the specified target difficulty level will be rejected by every miner on the network and thus become virtually useless.
The difficulty of mining any cryptocurrency mining on the GPU is a measure of how difficult it is to solve a new block, and this is compared to the easiest one that can ever be mined.
Moreover, the mining difficulty adjusts every number of blocks, which varies by blockchain, to a value measured based on how fast or slow the previous block set will be generated, given that everyone was digging at the current difficulty level. The purpose of this is to control the speed at which new blocks are created and to ensure fair playing conditions for all miners to win mining prizes. It also ensures that blocks do not build up quickly, which would cause the currency to inflate.
As of this writing, the Ethereum block is currently worth 2 Eth, which is valued at around $ 360 USD. The miner or mining pool that hash the block correctly first wins the block reward for participating in verifying the transaction on the network. This is how miners earn.
You can go for the RX 6800, which costs a little more, but is capable of higher frame rates, but the 5700 XT is just such a good value proposition. If you’re just starting out, this is a good GPU to choose from.
Can Mining Degrade My PC?
Cryptocurrency mining is not the first cottage industry to turn to GPUs for processing. Their ability to do parallel computing makes them equally useful for rendering particle effects in Far Cry, solving cryptographic equations, and hunting ETs
If you are worried about your equipment, breathe a sigh of relief. Mining doesn’t put any more strain on your GPU than an AAA game with great graphics – it does the same computing tasks.
Mining does not pose a threat to your equipment when done properly – and there is hard evidence from objective studies to back it up.
Researchers at UFD Tech produced a long video that thoroughly debunks some rumors. Their experiment compared GPUs from very different environments: one that was mined for two years in a row, and the other was used for gaming here and there.
They found a slight difference between them in terms of performance. The decisive factor is how long you quit mining cards – but even running around the clock for several years shouldn’t affect your card’s performance.
The most famous cryptocurrency for implementing the Ethash algorithm is Ethereum (ETH), the crypto for which this algorithm was originally created. DaggerHashimoto is the name of the first version of the Ethash algorithm, designed by Vitalik Buterin and the Ethereum team to be ASIC-resistant.
Are mining GPU fears overblown?
Are the concerns about purchasing a mining GPU justified? Not really – but overall you’ll be fine if you do your research. With today’s huge shortage of graphics cards, your chances of hitting used mining GPUs are greater than ever, especially in the event of a market crash.
However, that doesn’t mean there’s always sunshine, high frame rates, and ultra graphics. In some cases, purchasing a mining GPU can be reversed. Back then, the GPU was not properly cared for, or the user allowed its VRAM to constantly reach its thermal limit. Ask these questions and check the card!
Remember: GPU mining also takes performance into account, so it’s in the miner’s best interest to optimize its use. A responsible miner is also very aware of the resale value of these GPUs, which encourages them to look after their hardware.
Thiago Trevisan / IDG
Radeon RX 6000 graphics card.
Are AMD graphics cards different in the market being used? While it’s true that Nvidia cards are generally preferred by miners because of their better price-performance ratio, AMD GPUs like the Radeon RX 6600 XT can still be cost effective. In this rapidly growing cryptocurrency market, some people are even digging on gaming laptops. So yeah, carefully consider the condition of all the graphics cards you use – Nvidia or AMD.
Remember, the more power a GPU needs, the more expensive it is to run, which can ruin your chances of making a profit. As for which is better, AMD or Nvidia, there is some debate there.
What is Crypto Mining?
In a cryptocurrency network, mining is a process required to validate transactions. Cryptocurrency miners are individuals or companies that create a decentralized network of computing power, using their GPUs as servers to mine currency. To mine, the GPU groups recent cryptocurrency transactions into “blocks” and then validates the transactions using the Secure Hash Algorithm (SHA). The speed at which this process completes is measured with Hash per second (H / s) or Hash Rate.
Successful validation causes the miner to receive a small portion of the currency as an incentive. This means that the more computing power a miner has, the more he can mine and the greater the reward. Graphics processors are very efficient at carrying out these processes, more so than processors; in this way, high-end GPUs are purchased almost as soon as they arrive in stock. The interest in cryptocurrency mining is so great that internet cafes and server farms all the way to Iran and China have been turned into cryptocurrency mining.
The Crypto Mining Processors (CMP)
Demand for GPUs has certainly proved profitable for companies, even in the face of shortages. Nvidia’s income in the fourth quarter of 2021 revealed that cryptocurrencies, mostly Ethereum, provided between 100 million and 300 million of their five billion US dollar revenues. However, the larger consumer base is still an overwhelmingly overwhelmingly gaming community that has been clearly dissatisfied with the shortage of stocks.
To address this issue, Nvidia is releasing a driver update along with the new RTX 3060 GPUs, allowing cards to automatically detect Ethereum’s mining algorithm and reduce GPU capabilities by 50% while in use. The company hopes it will deter miners from purchasing gaming GPUs, and will instead look to a new line of products – Crypto Mining Processors (CMP).
The CMP range includes four new tailor-made CPU models that use Ether and are significantly different from the Geforce brand with Nvidia GPUs. The new CMPs have no display output and are able to provide better airflow when used for mining, allowing for denser packing. These processors also have a lower peak core voltage and frequency, thus improving mining energy efficiency, and have an Ethereum hash ratio of up to 86 MH / s.
As mentioned at the beginning of this guide, it is no longer profitable to mine Bitcoin due to the rapidly increasing difficulty in mining due to the rapid development of Bitcoin mining hardware. However, they have some workaround for the way you can earn Bitcoins with the GPU or even the CPU with the help of special mining programs.
The optimistic side: GPU mining dies off
Ethereum is currently the largest installed GPU mining base in the world, and the ETH cryptocurrency hashing factor represents the largest use-case for the same. As ETH moves from proof-of-work to proof-of-stake, GPU mining will quickly become unfeasible. At this point, all cryptocurrency miners have two options. If they want to stay in the Ethereum game, they can decommission all their GPUs and convert all funds to run ETH 2.0 nodes (which is called staking and how you can earn more ETH when connected).
At the moment, the rest of the networks are not that profitable, and the hash rate is also quite low. It is unclear if, when combined, any of these chains can assimilate the massive influx of additional hashing factor (and maintain the gain / difficulty). It’s possible that when people jump to mining other coins, the total hash rate will increase exponentially and the difficulty will increase exponentially, but the price will stay more or less the same (in fact, lowering the profitability of these altcoins even further). In this scenario, miners will be looking at 10-20% of ETH profit.
This will result in an influx of cheap, used GPUs into the markets, resulting in a price collapse (and could also end the semiconductor supply crisis as demand in the GPU market has nearly been killed for a year or two).
The pessimistic side: GPU mining gets a new champion after Ethereum
Unfortunately, the cryptocurrency market is unpredictable and it is also possible that as the difficulty of these coins increases (and miners switch to altcoins like RVN), the price also increases accordingly. You can see the current profitability of these altcoins above and if they manage to maintain up to 60% of this profitability after the merger, they have a chance.
If miners can keep close to 60-70% of their operations after the merger, it is very unlikely that they will decide to go into liquidation as most of them operate on very comfortable profit margins since the recent ETH price boom in 2021. If they do, then cryptocurrency GPU mining will remain and will not go anywhere.