How To Mine Cryptocurrency For Beginners: Earn & Grow | Scott Lozano | Skillshare

Transcripts

1. Introduction: Hi, welcome to cryptocurrency mining and investing for beginners. This course is designed for the non-technical user. Kinda like how I started out and brings together all the different facets of cryptocurrency mining and cryptocurrency more generally so that you can get started easily and cheaply. I’d also like to tell you what you can do once you mine that cryptocurrency and some of the basic structures that you need set up before you start mining. We’re gonna take a look at how this course will answer five different questions and how those questions will lead you to be a successful minor. First, what is mining? What does cryptocurrency mining and how does that look practically? How can you be a cryptocurrency miners and non-technical user? I don’t know if you’ve looked out there on the internet, but there’s a couple of things you’ll find. One cryptocurrency is really hard to mine to takes a lot of energy. Three, it costs a lot of money to a start. And I wanted to spell all those myths and tell you how you can get started with basically nothing and actually for free with your own hardware. If you wanna go into exploring more about how you can build a customizable and more powerful cryptocurrency mining computer. We’ll talk about that too. And I’ll walk you through a built on how you can make your own cryptocurrency GPU minor. Don’t know what that is yet. Let’s take a look at that in the course number two, how do you mind cryptocurrency? While we already talked a little bit about how we’ll do that. But we’ll go into the specific details about the hardware and software involved. And then also some of the ways that you can do it with the hardware and software that you already have, including your phone. What if I don’t know anything about technology? Can I still be a cryptocurrency minor? Absolutely. There’s a lot of different tools out there and there’s a whole world of support. It’s actually global community, which is pretty cool. And we’ll take a look at what the global community is really made of. How much do I have to mind to make mining worth my while? Well, in this course we’ll be taking a look at a couple of different ways to mine cryptocurrency. And we’ll take a look at some of the considerations including safety of your financial investment from cryptocurrency mining. So don’t worry, but just know that you have a whole host of support out there to do it. And there’s ways that you can be very profitable at a very low energy cost and initial start-up costs. What kinda used to mine? Well, lots of different things. And we’ll take a look at the answers, all these different questions later in the course. My name is Scott. I’m a cryptocurrency enthusiasts, a father, and I’m by no means a technical user. I started out on this journey to learn and to find out, can I actually mind cryptocurrency? And I found out that absolutely I can’t. And right now, minor cryptocurrency, I think it’s a great way to generate passive income. And personally, I think it’s just an additional financial pillar to help me invest. The goal of this class is to give students a broad understanding of what cryptocurrency is, what cryptocurrency mining is, and then a very specific way in which you can do it, or a number of ways in which you can do it and then you can take it from there. We’ll go over a lot of different information and I’ve linked some supplemental readings on a separate site we’ll be referencing throughout the course. So you can determine for yourself the risks and what opportunities there are for you. By the end of this course, you’ll be able to trade cryptocurrency. You’ll be able to store it. You’ll also understand some of the ways that you can mine cryptocurrency without building and you’ll be able to build your own computer to mind cryptocurrency.

2. Course Project: So there are two projects in this course. Has three parts to our main project. We’ll be setting up an online crypto currency exchange account and that’s free. We can buy, sell, and trade. You will also set up an online software while it also free to store your cryptocurrency. And lastly, you’ll link a cryptocurrency mining devices, start mining. Afterwards, you’re going to have that exchange, that wallet and device that’s mining cryptocurrency as a finalized project. One is optional because it’s not entirely free. That’s our GPU minor built where you’ll be building a customized computer in order to mine a theorem or cryptocurrency. You’ll be able to choose from a range of hardware and software in order to start cryptocurrency mining, part of the project will be setting up a crypto currency exchange and a cryptocurrency wallet in order to start mining, you’ll also be able to establish based on those tools, financial link to the world of cryptocurrency so that you’re able to invest it. You’ll need to make sure you have a basic understanding of how to browse through computer, smartphone, navigate a web browser, that’s about it. You don’t need a huge technical or fundamental skill set in order to take part in this course will give you all the risks to tools from here, a little disclaimer here, this is not a get rich strategy. This is one way to generate passive income. You take as far as you want to. At the end, we’re going to be mining. So let’s get started and dig it.

3. What is Cryptocurrency?: So what is cryptocurrency? Cryptocurrency or Crypto, is a form of digital cash that enables individuals to transmit value in a digital setting. What makes cryptocurrency unique? A good cryptocurrencies decentralized. There’s an, a central bank or subset of users that can change the rules without reaching consensus. The network participants notes run software that connects them to one another so that they can share information between themselves. The decentralization of cryptocurrency networks make them highly resistant to shut down or censorship. In contrast, if you cripple a centralized network, you just need to disrupt the main server. For bank had a database wiped out and there were no backups, it’d be very difficult to determine a user’s balance. That’s not good in cryptocurrency, notes, keep a copy of the database. Everyone effectively acts as our own server. Individual nodes can go offline, but their peers will still be able to get information off of the other nodes and you can reestablish the information once you’re back. Online. Cryptocurrencies are therefore functional 24 hours a day, 365 days a year, and allow for transfer of value anywhere on the globe without the intervention of intermediaries. This is why we often refer to them as permissionless. Anyone with an internet connection can transmit funds. How close that? Now, it’s really important that if you lose your private key, just like if a bank central server goes down, that will also equally erase your access to your funds. Why is it called cryptocurrency? Well, cryptocurrency is a combination of cryptography in currency. It uses cryptographic technique to secure transactions between users. And that security is really cool. We’ll take a look in detail what that is later. But it’s called public key cryptography or asymmetric cryptography. In a public key cryptography scheme, you have a public key and a private key. Private key is essentially a massive number that would be impossible for anyone to guess. Guessing a private keys as likely as correctly guessing the outcome of 256 coin tosses. It’s called Shot 256. And that’s generally what we use to secure a lot of different things, not just Cryptocurrency. With current computers, you wouldn’t be able to crack someone’s key before the end of time for you and me. Anyway, as the name might suggest, you need to keep your private key secret. But from this key, you can generate a public key, which your computer or your application and your wallet does generally automatically. The public key can be safely handed out to anyone and it’s feasibly impossible for them to reverse engineer. Figure out your private key from your public key, which is why you can see listed on places like ITO Scanga I, O, or you’re sending when you’re requesting cryptocurrency from someone or you’re linking a wallet. So your public key and your private key allow you to access your cryptocurrency, but only together, right? One or the other will not. A cryptocurrency is you can only spend your funds if you’ve got the corresponding private key. When you make a transaction, you’re announcing to the network that you want to move your currency. This is announce in a message transaction which assigned and add it to the cryptocurrency database or block chain. This practically looks like you receiving transactions as a minor and validating them. Your computer does this automatically for you. So it’s gonna do I sleep, however, it’s important to know what it looks like. So let’s take a look at that just for a moment. Nowadays, block chains don’t just allow users to send or receive funds, but to run decentralized applications or apps using smart contracts, cryptocurrencies are exclusively meant to serve as money, whether as a medium of exchange store value of both. Each unit is functionally fungible, or one coin isn’t worth as much as another. Bitcoin. And other early cryptocurrencies were designed as currency, but later block chains sought to do more. If they’re here, for example, it doesn’t just provide currency functionality. It allows developers to run code smart contracts on a distributed network and create tokens for a variety of decentralized applications. Tokens can be used like cryptocurrency, but they’re more flexible. They can serve as anything from digital receipts representing a stake in a company to loyalty points. And what enable you to go on such defy apps like compound and earn interest rewards. Pretty cool. You could read more about that in the supplemental readings. A smart contract capable protocol, the base currency used to pay for transactions is separate from its tokens in a theory and for instance, and native currency is ether ETH, and it must be used to create and transfer tokens within the Ethereum network. What’s important to understand is that when you’re making transactions on the Ethereum blockchain, for instance, paying gas, we use an ether because you’re working on that blockchain. But the coins and the tokens that you’re receiving in order to receive interest on compound or other defy apps. Those are tokens, right? You’re paying for the gas to transfer your money, ought to compound in ether. And you’re receiving comp Tokens.c. Die in order to receive those rewards are interest rewards and you’ll need a cryptocurrency wallet to store those. It can be a purpose-built device like a hardware wallet or an application on your PC or smartphone, or even a piece of paper. Wallets are simpler interface, which is why we’ll focus on are coinbase, for instance, we rely on them to interact with cryptocurrency. So now that you know what cryptocurrency is, I encourage you to take a look at the supplemental readings and read What is a theorem. Because we’ll be focusing on a theory in this course. Mostly because of the global community that’s built around it, but also because some of the tools and applications that you can use based on a theorem that will help you engage more fully with that global community. Ready to dive in.

4. What is Cryptocurrency Mining?: So what is cryptocurrency mining? Mining is the process in which transactions between users are verified and edit to the block chain, the block chain public ledger, that is because it’s publicly available. The process of mining is also responsible for introducing new coins into the existing circulating supply and is one of the key elements that allow cryptocurrencies to work as a peer to peer decentralized network without the need for a third party central authority. Bitcoin is the most popular and well stabs example of a mineable cryptocurrency. But it’s worth noting that there’s also staking of proof of stake consensus algorithm based block chains. Bitcoin into theorem are to that work on a proof of work algorithm in those two block chains are ones where you can physically mined by using specialized computer, hardware and software in order to mine. How does it work exactly? Well, a minor, what you’re going to be potentially is a node in a network that collects transactions and organizes them into blocks. Let’s take a look at what that looks like now on a mining interface, when the transactions are made, nodes receive them, all the nodes receive them and verify their validity. So everybody’s getting the same transactions. Then a minor nodes gathered to this transaction for the memory pool and begin assembling them into blocks. The first step in mining a block is to individually hash each transaction taking from the memory pool. But before starting the process, the minor nodes at a transaction where they send themselves a mining reward, block reward. This transaction is referred to as a way for it coin-based transaction. Hence the name for coinbase, I believe, which is a transaction where coins get created out of thin air. And after every transaction is hashed through several iterations, you reach what’s called the root hash. And a lot of computer code is compiled in a certain way in order to identify this block, validated, validate transactions in it, and link it to the previous ones. In order to be considered valid, the output must be less than a certain target value that’s determined by the protocol. In other words, the block Hash must start with a certain number of zeros. And that target value, also known as a hashing difficulty, is regularly adjusted by the protocol, say the theorem protocol, ensuring that the rate at which new blocks are created remains constant and proportional to the amount of hashing power devoted to the network. Therefore, anytime new miners join, like you and I, and competition increases, the hashing difficulty will raise because not all competition we’re working together to, to increase a hashing power. Remember, this prevents the average block time from decreasing. In contrast, if miners decide to leave the network, the hashing difficulty goes down. A theory and block is mine about every 15 seconds, but give or take a few seconds. The process of mining requires miners to keep hashing the block header over and over again, but iterating through the not’s until one in the network eventually produces a valid block hash. One about hashes found the founder node will broadcast a block to the network, all the other nodes, we’ll check if the hash is valid and if so, add the block to the copy of the block chain and move on to mining the next block. Now when you’re working together in a pool, this works on the same basis except you’re combining your hashing power. We’ve mentioned previously. While the block reward is granted to the miner who discovers about hash first, the probability of finding the hash is equal to the proportion of the total mining power in the network. So say just you alone. You have very small proportional chance of unlocking a black mining pools. Solved this problem by pulling resources who share the processing power over network and split the reward equally among everyone, more or less, according to the amount of work that they contribute to the probability of finding a block. So you’re not necessarily unlocking a block by yourself in the pool, but you’re working together to do so. And there’s different payment schemes, which is why I say more or less, that’s how they work. Because in some pools, like the one we’re gonna go over, the payment scheme is actually pretty even and you are getting equal shares. However, there are some that don’t work quite like that. And we’ve links and resources in the supplemental readings to discuss how those payments schemes, where it’s worth taking a look at because it’ll help you decide between which pool. So join. If you’re mining on what are the block chains where you can mine with proof of work like Bitcoin or theorem. If you’re not mining on one list block chains and you want to look at more of a staking blockchain, it’s worthwhile to take a look at the availability on coinbase for staking your coin and sticking your funds. A key takeaway here for later lessons is to know that mining cryptocurrency over time and with an ever increasing number of people becomes harder. That doesn’t mean we can’t do it as a beginning user. However, that does mean we’ll have to take into some special considerations, including the type of corn that we’re mining. Fortunately, we’re focusing on some of the more accessible coins like a theorem in altcoins. And those will allow you to engage in cryptocurrency mining as a beginner.

5. Foundations of Mining: Alright, so now that you have some of the basic concepts, let’s look at the tools that you’ll need to get started. As a reminder, we’re going to be doing some hands-on learning to create a cryptocurrency wallet and a crypto currency exchange. These are both application-based, they’re web-based, and there’s something that you can do for free. However, it was not something that you feel comfortable doing. So free to follow along just as to know what we’re talking about for lists of wallets and exchanges. Check out the supplemental readings that are linked on the class project page and the description page. We’re going to be focusing on one company’s while it and exchange. It’s called Coinbase. And it’s also one of the ones that will allow you to earn some fruit cryptocurrency just by getting on the exchange. It also has a great educational and interactive platform that allows you to learn more about the cryptocurrency that you’re exchanging and has some good links to the white papers or original documentation establishing those currencies. If it’s a really cool tool, not only that you can refer a friend and get $10 with a free Bitcoin. In addition, some burning, some other cryptocurrency just by watching educational videos. The coin-based while allows you to earn interest on your cryptocurrency. So that’s something that’ll be advantageous once we start gaining cryptocurrency or mining cryptocurrency to store in that wallet. Setup is fairly similar. And all these apps take you through a setup questionnaire that identify some personal information about you and allows you to set up two-factor authentication and some other security questions that’ll keep your account secure. I’m not gonna do it for demonstrative purposes because I don’t want to get kicked off, run into any issues with my exchange. However, it’s pretty simple and you can even watch YouTube videos and tutorials about how to set up these exchanges. You can do it on your phone or a desktop computer. The Coinbase Wallet app is just on the phone. However, there are lots of different wallets. Right now we are going to be setting up a software while on the Coinbase Wallet app. But there’s also cold storage wallets or hardware was like the ledger nano S or the ledger nano x, that are probably the safest and most secure way to store your cryptocurrency. And note on security, how do you stay secure in the digital space? Pretty much the same way that you would say secure on your email server or on your computer when you leave it out in a cafe, never give out your login information. Anyone who makes sure to make a strong password, but also make it something that you can remember. Backup your security key. Throughout the process of setup when you’re setting up these applications, create what’s called a secure key or private key, is what allows you to recover your account, what allows you to access your account, and what allows you to access the cryptocurrencies that you have stored in your wallet. So never give that up. Keep in mind on things that you would do in the traditional digital space. Say, in linking your bank account, you would do in the cryptocurrency space. Same digital precautions. The technology behind the security new cryptocurrency is actually pretty cool. Your security with a cryptocurrency wallet is known only based on your password. It’s also based on asymmetric cryptography. So how does that work with my cryptocurrency? First thing that you do is generate a private key. Then using this private key and public key is derived when two parties exchange public keys that are ready to begin exchanging cryptocurrency. So you link your wallet with the d phi app compound. When one party wants to send you cryptocurrency, they’re gonna use your public key to encrypt and then send the corn, say, compound descending your interest. You are more like your wallet application with your permission, can then use your private key to decrypt the cryptocurrency and it shows up in your wallet. Because of the relationship between private, public keys, only your private key can decrypt corn encrypted using your public key. And the same is true of the other parties. The strength of asymmetric encryption comes from the computational difficulty of figuring out the corresponding private key. Given a public key. That public key is what you’re going to share or link to other decentralized finance applications or to your minor in order to receive cryptocurrency or put it onto different applications to invest it. However, your private key is what allows you to unlock the cryptocurrency sent using your public key. So the public key allows others to send an exchange cryptocurrency, and it allows them to send it to your wallet, for instance. So what’s most fascinating about cryptocurrency watts themselves is that your cryptocurrency is not actually in the wall, is stored essentially on the block chain. You can access that blockchain and look at all the different transactions that are recorded there on places like either scan dot IO, if you want to know more about cryptocurrency and asymmetric encryption, Take a look at the supplemental readings now, keep in mind and one consideration that will have to deal with as we go into cryptocurrency mining and investing the transactions that take place on your exchange and in the wallet, I’m not free. You’re charged something called gas. You can think of it kind of like a bank transaction fee, but it’s not going to one person or the owner of the bank. It’s distributed across a network. It goes to a cryptocurrency miners mining cryptocurrency validators, verifying proof of work, and also to the software developers that are making the applications. So you’ve just successfully access the global community of crypto currency. You’ve set yourself up to mine successfully and you’re able to sell by trade and invest cryptocurrency even without mining and all for free. But what does this global community that I keep referencing? Let’s take a look at this global community next.

6. Global Community: When I first started exploring how I can mind crypto currency, it could be a little overwhelming. There was a lot of information out there. I found that I wasn’t alone. In fact, this whole communities or groups of people out there who are simply conversing about how to mind most effectively and how to get involved in cryptocurrency mining. How to tune your computer, how to make your computer parts to use for your computer. You’re going to be working with a bunch of people all across the globe. I think that’s one of the best parts about cryptocurrency is that it’s based on this global community of people interacting. There are tons of articles, instructional, advice forms, and otherwise that can make this journey way more possible for you. I recommend The first step in mining Cryptocurrency right now, especially as a beginner, would be to join a pool or groups of people out there who worked together to combine your hashing power to make it so that you’re unlocking those blocks faster so that you can get paid more regularly. So it’s a great way to earn a steady income mining as opposed to going it alone. If you remember from earlier lessons, mining cryptocurrency over time becomes a little bit more difficult for a specific epic or period in a theorem and the theorem blockchain that requires computational power, that might not be achievable just by yourself. Let’s spend a brief moment looking at what one of those pools is. I chose HI vaughn as the pool that I joined in one than other use in building our minor for the most part, we came to this page to explore the community of support that can help you along your mining journey. There’s a knowledge base, there’s a chat feature, and there’s also a community forum in all of these are very quick and easy ways to get more information about mining and to help you through some of the more technical aspects of mining, some of the challenges that you may face. We’re just asking questions to get to know the poor and to get it to no mining from experts or individuals like yourself, this is a great way for non-technical users to break into mine. So you can see out there, there’s a lot of different support for cryptocurrency mining. And for you just getting started out, it’s important to take a look at some of the other pause and take a look at some of the other payment schemes that might interest you. However, I highly recommend this poor HIV on poor, not because of any sort of paid endorsement or sponsorship. I wish I had the t-shirt, but mostly because they provided really great support and they enabled me to be successful, starting out and knowing very little about cryptocurrency mining for now, just remember that you’re not in this alone. You have a global community support out there. And if anything, you can just reach back out here.

7. Decentralized Finance (DeFi): So previously we discovered a whole world out there of cryptocurrency and a whole community of advice and help for you to get started. Now let’s talk about what that community enables. Talking about Decentralized Applications or decentralized finance applications. More specifically, it’s what you can do with your cryptocurrency. Once you get it, you can invest and grow your cryptocurrency assets through Decentralized Applications and through decentralized finance applications. And those are things that you can link to your cryptocurrency wallet and cryptocurrency exchange. It comes with risks and it comes with rewards. And those are two things will need to take a look at before you get started. You can take a look back at the thorium website and filter down to the pages about decentralized finance applications and decentralized applications in general, takes more and more about what you can do in which you can link to your wallet. A key word here is fiat currency. If you haven’t heard of fiat currency, that’s just currency based on a national currency like the US dollar. Because a lot of these crypto coins are based on fiat currencies, like the dye stable coin or use the coin. Although that’s not necessarily a defy, token, is a Sci-Fi token. More on that in a supplemental reading. For now, let’s take a look at what d phi apps are generally and what you can do. Dfs or decentralized applications run on a peer-to-peer network, as opposed to a typical applications that are run on centralized servers. D apps are typically open-source, decentralized and incentivize through providing tokens like cryptocurrency. They run on distributed computing systems, such as the theory of and are stored and executed by a blockchain system. This makes d apps have NO owners. They’re free from censorship. They’re anonymous, they’re backed by cryptography, and they’re oftentimes very, very quick. Defy apps run on the same processes and are an umbrella term for a variety of financial applications in cryptocurrency or block chain geared towards disrupting financial intermediaries. Defy, draws its inspiration from the block chain. Using Decentralized Applications to borrow and loan money doesn’t involve a bank. It involves peer-to-peer networks in involve smart contracts executed to pull out your money. If someone defaults or lend out money based on collateral, it doesn’t involve an actual human being who’s taking in collecting fees. There are gas fees that go out and are distributed to miners. However, those are also peer-to-peer. So your peers are helping to validate the transactions and keep them secure on the block chain. And you are able to borrow, loan, invest, and grow your cryptocurrency. Although decentralized finance, six, to eliminate the centralization of banks, it may not necessarily eliminate all the fees involved. But those fees again, are really important to powering network. Take a look at Eat the scan dot IO. You can switch between the different gas phase depending on the day. Great. So what do I link up these D apps or defy apps? Where do I find them? Start here on the Ethereum website, which has a dedicated page for Decentralized Applications, tells you a little bit about how to get started. And you can see we’ve already done a couple of these steps, which is great. So we can focus on exploring decentralized finance in Decentralized Applications. And there are a lot of them out there. The next place I’d head is your currency exchange account. Rs here is coinbase. The next place that you’ll wanna take a look at is your cryptocurrency wallet is one of the places that you can start putting your cryptocurrency to work for you. Now, one of the places that we do this was compound. You’re supplying your cryptocurrency to a pool of cryptocurrency that is then used to make loans. Okay, so we talked about de apps and decentralized finance apps and what you can do, borrow land and vest game, whatever you want. Let’s take a look at some considerations. D5 borrowing and lending apps work based on smart contracts that are based on the Ethereum blockchain protocol. After you deposit your cryptocurrency in a defy smart contract, that contract lends it out to borrowers based on collateral that they provide. It executes on certain parameters when those parameters are met. And if someone defaults or doesn’t mean certain parameters, you get your money back. However, there are still risks associated. These defy apps are not backed by the FDIC, which NOR banks are also there gas views which we’ve touched on a number of points before this. And they increase based on the amount of cryptocurrency that you transfer around. However, they do start to add up depending on the amount of cryptocurrency you move around. Next up, let’s talk about the hardware and software involved. How you wanna start.

8. Three Options To Mine With: Okay, so there’s a couple of different ways that you can mine. You can use your own pre-built hardware that you already have, like your laptop or your smartphone. You can make a custom minor or you can buy a custom-built minor. Let’s talk in brief about what you can do with the stuff that you already have, the stuff that you’re viewing this course with. If you want to use your laptop or your smartphone, there are a limited number of options that you can use in order to mind, including staking. Now, not every block chain works on mining or supported by mining. For instance, there’s blockchain that supports the SaaS token, which works on staking or you participate in the system and therefore earn sticking rewards. Kinda like generating interest on that token. By participating in, by holding that token, you’re rewarded with more tokens or parts of tokens in order to stake or support that block chain. And therefore, you’re validating In the same way that miners would validate on the Ethereum block chain or the Bitcoin block chain. And that’s one of the ways that you can mine with your mind, with your laptop or a smartphone in a way that doesn’t require any hard hardware or additional mining power or like a special GPU or a special software. So that’s a really great option. Another option for you is the cloud mine. I recommend cloud mining applications like nice hash or a honeymoon it. They’re fun and easy to use and very simple to download and install on any computer. If you have a more sophisticated gaming computer, DES may still be a very good option for you because your hardware will support greater mining capabilities. All the same. You’re not going to be turning a huge profit from these Mining Applications unless you purchase more power rented from the cloud, which you can’t do through these applications without ever having to build your own equipment. They’re fun and easy to use in a great option for those of you who don’t want to build. For those of you who want to cloud mine or use your own home or gaming computer and could find links to honey minor nice hash. You just create an account, download and start mining. So with no additional parts, you download some software, star mining 0 initial start-up costs. You can also buy a preassembled mining computer called an asic. Well, you can see a list of what are known as A6, which I’ve also linked in the supplemental readings. This is a great way to familiarize yourself with not only the hardware out there in this form, but also do a quick profit loss analysis based on the device. For instance, the ant minor estimate teen Pro. And you can see quickly how much profit you may make one mining with it a little bit more about the device and where you can buy it. And oh my, and it looks like it’s all sold out anyway. If you want to build your own minor, then you can replicate what you have at home by piecing together something from the parts that you can acquire easily online at places like New AIG or Amazon. I’ve talked a lot at this point about putting computer parts together. And we’re going to do just that in the optional project when you’re looking at the options that we’ve just talked about, you want to look at something that has a highest hashing power. Generally that’s a GPU and high-power GPU that you’re going to use in a custom-built mining rig. The two best graphics cards that are out there on the market that will give you the high saturate with the lowest energy consumption or low wattage consumed. That will also allow you to minor theorem because IT come in eight gigabyte versions are the RX, AMD, RX 570. And the better of the two, which is also harder to get the RTA X 306 O TI. And those are currently the two darlings of the hashing world, at least for low energy consumption. Let’s focus on determining the balance between the hashrate of the hardware that you’re using and how much electricity that draws. So fortunately, we can use a number of calculators online as long as you know three things. The hash rate of your hardware, they’ll watts of power it takes, and what your utility company charges on average per kilowatt hour. So things to take into consideration like pool fees. If you’re in a mining pool, and don’t forget to change the measure of the hashing rate. So we can see here if I put it in different hashing power that the profit per day changes, profit per month is indicated, well, simply put, it’s a balance between the hashrate of your hardware and how much electricity that hardware uses. And you can generally assume that as hashpower goes up, so too does your profitability. You can increase the hashing power by doing things like overclocking GPUs or overclocking the hardware that you’re using, as well as by configuring them to different algorithms for mining. And that’s really based on the software that you’re using. And we’re gonna take a look at some of the profiles that you can use in order to overclock and configure your GPU, said it’s the most efficient, has a highest hash rate and lows power draw in order to maximize your returns. So how do I make sure that I have the right pieces? Well, the optional project, we’ll list them off. But also there’s one important thing to keep in mind. If you ever decide to go with build a computer, then you need to make sure that the parts u by r, what is called compatible or fit together. If you’re ever unsure, there are easy ways to check. And one of the easiest ways is linked in the supplemental readings for more information about how computer hardware fits together on a fundamental level, you can also check out the supplemental readings we’ll go through in our minor built later on in this course. Whether you want to build a computer or use your own is up to you. But the key takeaway here is that the more powerful equipment you have, the more cryptocurrency you’ve combined.

9. Hardware & Software Detailed: We’re not going to delve in too much into the details of modifying your existing hardware will mostly cover what you can do on a fundamental level and then dive into building your own computer so that you can see how all the different components we’ve discussed fit together. The same basic processes are available for all the equipment that you’re going to be using. But some of the equipment, if it’s not building your own or purchasing a custom-built async minor will be limited by the form and also by the hardware that’s preexisting in that form. What do I mean by that? Well, say you have a MacBook Air. You’re not going to be able to fit a full sized graphics card into that. Mining theorem is so complex nowadays that you can really only upgrade a GPU in order to mine it effectively. For a list of sort of the best GPUs, you can take a look at this site here. It’s linked in the supplemental readings and you can see the name of the GPU some the specification is and where you can get it, and also the hash rate. And then you could also see different options and Oh my look at that price. If you’re on a laptop, you’re basically limited to the software that you can download and put on their laptop, the same as with your phone. You’re basically limited to the software you can download and put in that phone. Which at this current time is kinda limited, but don’t be discouraged. Instead, you could add the graphics card to say, your desktop, but that’s also limited by its form or size and shape of the case that’s encasing all the hardware in their desktop computer. And also whether or not your motherboard has the 16 pin PCI slot or doesn’t have a PCI slot where you can connect a riser. Those are some parts of a motherboard that you wanna take a look at. Some pieces that you can add to a motherboard that allow you to mine with your own hardware. We can briefly explore some of the links shared and supplemental readings to get a feel of what we’re looking at for software. You can also find that most mining pools have their own mining software they recommend and can guide you through installation with, for instance, I can look at the ether mind Pool and see that it takes me to the mining full-page. And it also has links to where you can find the software that, that mining poor uses depending on what kind of format you need. More importantly, that’s a pull people that can help you use the software and answer any questions that you may have. Such as we’ve explored on HIV on poor. As you may see here, all software has downloadable to click of the mouse comes in different formats. And you can do this directly from your mining computer, put the software on a USB or CD and load it in that way. And tear mining computer. With the Build Your Own computer route or build your own mining rig. You control the cost, you control the electricity draw, and you have to build it is something that you control more of the parts based on hardware that you buy. But there is an initial investment, some initial considerations, A6 and pre-built hardware. They’re often really expensive. They consume lots of electricity and they’re loud and hot, but you don’t need to build it. But it’s a huge startup costs. Some considerations of cost for the home computer and phone as hardware is unlimited capability to mind and what these cloud mining is best route. There’s no startup costs, but if you have a more powerful game and computer, as we mentioned, you could probably mine a little bit more effectively because hash rate or graphics integrated into that computer may be powerful enough to mind some considerations. The software you use is not much. However, I would consider one thing I’d stick to peer reviewed or software downloaded from like a Pools page, right, on HIV on pool. So now that we know some of the parts so we can use and specifics of the hardware and software as well as how you can avoid some of the pitfalls when working with different mining softwares. Let’s take a look at what mining looks like so you can get a better idea of what you’re getting into as a minor.

10. A Practical Look at Mining: If you’re working with your own custom equipment, mining practically looks like a lot of updates and sometimes rebooting your minor so that those updates can install if you’re mining on a pool, generally through their interface. And they’ll lists and most up-to-date software and they’ll push out messages that tell you, hey, it’s time to update your minor. If you’re just cloud mining, then you generally pretty good because on the cloud they’ll services are managed and updated automatically. Check out the chat groups in the forums that are associated with pools that you might be involved with because those are really helped guide you through and you can talk to users that are just like you figuring it all out together. For instance, one time I couldn’t connect to my minor and I had no idea why. I hopped on Telegram, which is used by Hive pool and found out that the network was down. Don’t worry about it. You’re minors still mining and everything is working just fine. Another advantage to being on a pool. Also, mining practically is updating algorithms and making sure that you’re fine tuning the overclocking profiles of your graphics card or computer on HIV pool, which is the mining pool that will explore. You can adjust your overclocking profile to make your minor or GPU more efficient based on the different algorithm or type of hash that you’re mining width. I don’t have to do anything physically into my computer. I can just do everything through that dashboard interface. Pretty cool. However, you’ll need to experiment with those profiles and take a look at what some of the examples that other people have done in order to fine tune your machine. Again, if you’re building your own custom minor through different interfaces, this may look different. Which is why I recommend HIV pool for this bill because it’s one of the User-friendly interfaces out there for beginners.

11. Building a Miner: Ok, the moment that we’ve been highly anticipating this whole course, building a mind. Well, this stuff, the parts here for you to follow and we’ll connect it a little bit later on to the software and configure it. However, you can also take a look the e-book, which has a step-by-step guide in the specific parts and where to get them listed in it. I created that as a resource for you to follow along and build this minor. If you so choose. The total cost is about $400, a little bit less. And it also depends on where you get the parts really great. If you’ve seen some of the parts that we’ve sourced out there in previous lessons. Or if you’ve already started researching, buying your own async minor or building your own company. You’re going to go with a GPU that’s able to mine it Theorem. Remember that the one that’s pictured in this bill, not currently able to mine a theorem based on a theorem epic due to the DAG file taking up about all, if not more of the four gigabytes of RAM in the RX 550 cards. And you’re gonna want to get an eight gigabyte graphics card. Those will cost you about as much as it cost to build this entire built. So something to consider if you wanted to mind different coins at theorem classic or other Altcoins, this bill is still highly relevant and something that you could do on the cheap if you wanna build your own custom computer, has start mining right away. All the parts used in this are compatible and fit together well, compatibility, you can check if you’re looking for different parts online, just Google a compatibility calculator or search for it in our supplemental readings from previous lessons. Ready to get started? Let’s go. Here we are finally at the computer built exciting, right? You might see a little cup on here as well, keeping some of the screws. You’ll notice that some of the parts come in these weird plastic bags and that’s to help prevent it in damaged with any sort of static electrical shock. You never want to sit your motherboard directly onto the floor of a case. And all of these components are compatible to the mini ITS form factor. Let’s just talk about the pieces that we have in front of us. You saw our silver stone case. We have our anti-static and small Phillips heads from Driver that pieces that came in this case, we also have our graphics card or R x 550 memory, which is here, ma’am. Very small RAM for UX pico PSU or pico power supply, the plate and it goes sort of down here. Our motherboard, Santa cables. So you don’t need additional set of cables. So let’s start with our case from the back, and I’ve already removed from screws on the back. Next, I’m going to disassemble the hard drive cover, which I’ve already done by taking off some screws on the top and some screws on the side. And remove those pieces. And then you can see inside our k say in here, as well as some table of connected cables for all of the USB drives. The microphone jack, the headphone jack, the power button, et cetera. And we have pre-built risers into our case. We’re going to set the motherboard on top of. We are going to connect our anti-static bracelet. Take the motherboard out of its anti-static packaging and take a look at the ports on the backside you Sally CPU heat sink there, it’s passive. There’s a PCI, PCI 16 slot which lines up with these greats. There’s a further cases, the back of the case. And we’re going to set the motherboard on top of these four risers, which align with the screw holes on the motherboard helps you orient the motherboard. But just so you know, that 24 pin connection for the power supply faces the front. The ports face the back where this phase plate will go that came with our motherboard. Make sure to pre drill the hole for the external Jack for the power supply before you clip it into place and it just sort of slides into place, will align with the ports on the back of your motherboard, which will also help you align the motherboard on the risers. So it’s really easy to just screw down. Once you slide this in a place, the external jack will go through a little hole, which is drilled next to the very far left hand side of the back face play. Degassing you, pushing it into place. Now I’m going to screw it in and we’re going to go from there. You also see that I connected the power supply already to the motherboard and did things a little out of order just so that you could see where the power supply went to orient the motherboard. So there you have it as a face plate. You can see the external jackal. Now it’s time for the SSD. And the 2.5 inch has some guy Rails inside it that will help you align. The SSD is also some screw holes, so I’m are inset and it slides right in there and lines up with those screw holes or screw holes already in the SSD as well. Here’s another angle for it. And again now screws might be inset or they might be right up against the surface. On the other side of this 2.5 inch SSD casing, so screwed in. Peasant ones right upon the surface. There are some connections for the power and the sadder cable, which we’ll see connected in just a moment. And the two prongs face a friendly case. Point, the power supply like this, and make sure to support it with your fingers underneath the motherboard. Once you push it into place, it goes to the very far left hand side. If you’re looking at the front of the case in the pin slots, it’s not going to use all the pins slots. Then you can connect the external jack through the back face panel and cinch it down with the in-laws washer. There it is. Now the rest of the connections lineup with some pins on the motherboard and there’s a lovely little pins. Some of them are really obvious because they correspond with the number of holes on these connections. But you could also look at the motherboard instructional manual to tell you where some of these things go. If you want to know more or in detail about where they go. I did also outlined that in e-books, so it’s really easy to follow. And I highlighted where each one of these and gave you a kind of a close-up shot like where we can put the CPU fan, as you see here, in two different spots. These little guys are kinda hard to place just because it’s so tiny, littering space to the front of the case. And I give you a close-up shot of what that looks like in the book as well. There is a saddle cable going to connect that, as well as the black cable from the PSU that connects to the SSD. They both have a little L shaped that matches up with the port under the clips on either one of the RAM slots slide in there and we do the clips, and then it’s time to put in your graphics card. So you can do away with the covers on the graphics card slots, but keep that little L shaped piece you’ll need that later. Align the slot with the port on the motherboard, slide it in there. You also need to undo clip that’s on the very back of the PCI slot, as you’ll see here in just a moment. Here it is. Before you slide the graphics card in and then replace it. Once you slide the graphics card and align the graphics card with the back of the case again, put that little L-shaped middle piece screw back down and the great covers you can do away with. There are also some plastic pieces in the case that come with the case where you can organize the cables and make sure they’re off the heat sink, off the GPU, off the motherboard, things like that. All right. Everything is in place. Now you can screw down your SSD casing. And it is time to put the Bakke case on again, you can do away with these two pieces of the 3.5 inch and the back great covers, you can do away with their four screws that hold in the 2.5 inch SS T. And then once we put the bad case on there, four screws that hold the Bakke case on it kind of slides on, just like we took it off. They go, okay, the last thing that we’re going to do is put the rubber risers on the very bottom of the case. We do that, then it’s time to boot it up and see if it’s going to work. So let’s check it out. Okay, it works. And there’s the boot menu. And you could see how it is just booted into by pressing F2, everything’s connected. An honor, I removed the case for demonstrative purposes. And once we go into the boot menu, you’ll want to configure a couple of things in the bios. Number one, if you’re going to be booting a couple times just to figure things out and clay around, you might want to extend the time that the boot screen originally last. So instead of like one or two seconds, make sure it says like five to 20 seconds. You’re also gonna wanna make sure that your internal graphics card is not the primary. And then you can make sure that your PCI slot is set to Gentoo, gen one or auto as speed. You can page through the different menus and just take a look at the options there, but those are some of the main ones. And I go through that again, also an e-book and just outline it in detail and, or in greater detail. What do you wanna do when you’re biases? Check and make sure everything’s connected and displayed like your RAM. And then it’s time to head over to the HIV OS installation guide and you can make sure that you put your software on your computer correctly. One thing I didn’t show was at, I recommend flashing the SSD that you installed in housing before you put it into the computer. So again, take a look at the book if you want to go through and false step-by-step exactly how I built this. And if not, no worries, happy mining either way.

12. Connecting Your Custom Mining Rig & Start Mining: So great. We just built a crypto currency minor. How cool is that? Or you totally skip that part because you want to use your home computer, laptop, phone, or are going to plug into GPU on your desktop computer. Also cool. You know, what’s really great is that you’ve created two things for sure, a crypto currency exchange and a cryptocurrency wallet. If you have it or need a refresher on how to do any of the things that I just mentioned. Go back through the courses previously and take a look at the supplemental readings for some guidance. Now it’s time to link that cryptocurrency mining device to a mining software and start mining. Finally, let’s get started. Now it’s time to head over to HI vaughn.net so you can install the HIV operating system on your custom-built mining Rick. This is a quick install guide, goes over every step that you need to take in order to get started. And first one, of course, is creating an account on their online portal. And then making a worker profile is what they call the profile for your mining rig that you just built. And it talks about downloading a little file that you just copy and paste into the zip file that you download. But you download, choose your zip Torah, whatever you want, and then flash that image onto a USB drive or your SSD, if you do that before you install it into your minor, and they show some options. I chose ballin, et cetera. And we’ll take a look at what that looks like in just a moment. They also have some quick tutorial videos that you can look at as well. As I mentioned, you’re going to have to write the HIV operating system image by downloading warned of the torrent or zip files that you’ll then flash onto the USB drive. Plug-in your USB drive and make sure it’s at least eight gigabytes. 16 is preferable. So I chose by literature because it was pretty simple. You choose a zip file that you downloaded. You select the USB drive that you just plugged in, and you select flash and that will write the operating system onto that Dr. once it’s done, you can remove that USB to plug it back in your rig before you boot up. Buddha, everything should be running. You’ll be taken into the bios. Are you if phi, in the case of our motherboard, in the build in this course. And you can set some settings, but you should be able to play around a little bit and make sure everything is connected, as previously mentioned, and that you have all the pieces of hardware that you install in your mining rig, then you can powered off, rebooted after plugging in your USB drive with the HIV image flashed onto it and you should be good to go. It should start up your minor and connect to the software.

13. Conclusion: That was a lot. Congratulations. You just joined a community, no matter what you’ve done of people all around the world who are cryptocurrency miners, traders, investors, and hopefully you know more about where you can take your journey from here. We’ve learned so much about cryptocurrency. Importantly, we’ve learned how it can join a group of people who are mining on a pool. Just a knowledge base to support your mining of cryptocurrency adventures. Thank you so much for learning with me. I hope you’re excited to go out and learn more. And remember, post your projects and ideas on the project page, but don’t give away personal information. Login, user credentials, secure key, your private key, or any other identifying information to users who are viewing this course and that you don’t want them to have that could compromise their security. Remember, post your projects or ideas or descriptions of the project description page and happy mining.