Passive income is one of the hottest topics within the financial industry, and for good reason. It is the doorway to freedom. It enables you to live life according to your own rules as you will no longer be a slave to anything monetary.
Because of that, it is important to be on the lookout for different ways that you can create multiple streams of cashflow. Acquiring cashflow is the ability to take in money passively through investing in assets.
I believe that with the recent boom in cryptocurrency, there is another opportunity to increase cashflow in our lives. It’s called mining cryptocurrency, and it has become one of the most efficient ways for a beginning investor to begin generating income.
I will be giving you every part I personally use in order to fully build one of these money making machines so you can easily find the pieces you need in order to build your very own.
What is Mining Cryptocurrency?
Being a decentralized form a currency, coins like Bitcoin require people called bitcoin miners in order to track the currency as it is being used. When people buy, sell, or trade Bitcoin, the transactions must be approved on something called a blockchain.
The blockchain is a direct history of where that cryptocurrency has been. It allows the user of that coin to know that the currency is valid and real. Unlike government currency which is physically transmitted from one person to the next, cryptocurrency must rely on this blockchain in order to sustain itself.
This is where cryptocurrency miners come into play.
In order for those transactions that are happening on the blockchain to occur, they must be approved through a miner. These miners create a machine which uses the fast processing power behind graphics cards and approves these transactions.
How exactly does one do this?
I use a software called Nicehash. It’s a great way to get started, especially because they have tools which make mining cryptocurrency A LOT easier than it would be if you tried to run a custom software through linux.
With the press of a button, Nicehash detects which graphics cards you’re using and automatically sets the algorithms to mine based on your card specs. This makes it extremely easy for someone with little experience in computer science to participate in this lucrative endeavor!
So how exactly will you be making money from something like this?
Amazingly, Nicehash has made the concept of mining cryptocurrency and generating money one of the most attainable investments of recent months. Through using the power of your graphics cards, you will be getting paid to approve these transactions which are occurring on the blockchain.
Your rate at which you are mining is known as your hashrate and depending on the amount of transactions that are occurring, your rate will fluctuate. A 3060ti for example will mine on average anywhere from $6-$7 dollars a day but can even reach highs of $10 dollars on good days.
As you can imagine, this can become very fruitful depending on the scale at which you decide to mine at, let me walk you through some numbers.
The Potential Behind Mining Cryptocurrency
As I said previously, with one card you will be able to make on average $6-$7 dollars using the current transaction rates of ethereum. By using a month with an average of 30 days, that would mean an investor could expect to generate a return of $210.
Now imagine if you had 6 graphics cards.
With an average of $6-$7 dollars and a month of 30 days, that investment would generate around $1200 per month.
If you create an initial investment of $6000 in order to build and run the entire mining rig and factor in electricity costs, your breakeven point will sit anywhere between 4-6 months.
JUST FOR RUNNING A SOFTWARE.
This is the type of passive income that more people need in their lives in order to unlock more freedom. By adding another $1200 per month, you can allocate that money towards so many other aspects in your life. Not to mention the rate of which Bitcoin is growing is astronomical.
Of course with any investment there are some risks involved.
For example, your hashrate or the rate at what you’re mining at, will vary depending on the transactions that are occurring on the blockchain. Because of this, your hashrate is subject to change in the future and can decrease. Moreover, if cryptocurrency decides to crash for some reason, transactions will likely slow down as well, inevitably lowering your rate at which you make your money back.
Although both of these seem like pretty big risks there are some factors which should be considered before completely ruling out this investment.
- Cryptocurrency has boomed into a billion dollar industry and has been adopted by billionaires around the world.
Well known entrepreneurs and investors are showing their faith in this new currency and are investing billions of dollars into this new phenomenon. The potential for this industry is just getting started and growing at an insanely fast rate. Imagine not only mining bitcoin, but also participating in the overwhelming growth of it as well. For more on the future of cryptocurrency check out one of my latest posts here.
- Your mining rig can be sold for an even greater price than what you bought it for.
There is currently a huge shortage in tech due to the coronavirus pandemic which has skyrocketed the value of computer parts. Semiconductors are not being produced at a fast enough rate to currently meet the demand of consumers. Because of this, a $600 graphics card is currently reselling on Ebay for $1300, enabling you to be able to sell your rig for double what you will be building it for should cryptocurrency fail.
As investors, we should be careful in determining our risk tolerance and if an investment will bring more prosperity than turmoil. These two factors above create a safer environment now more than ever to begin taking a piece of this pie.
Imagine feeling safe investing into this passive money making machine knowing that everything after a max of 6 months is strictly profit. One could see the benefits behind why making one could prove to be a lucrative opportunity.
Ready to build one? Here are my exact parts that I am currently using in order to mine $1100 per month.
Parts Needed to Build a Cryptocurrency Mining Rig
These parts are the exact pieces which I am using with my current build. Keep in mind, graphics cards are extremely hard to get currently so it might be worth it to join a discord server which tracks their stock availability.
- Gigabyte GeForce RTX 3070
Here is the first part that you will need, by far the most important and the corner stone of your mining rig. If you can get your hands on a 3060ti that will also work well as they carry the same amount of VRAM needed to mine the hashrates we talked about above. This doesn’t need to be any specific type of 3060ti or 3070 just make sure it is one of those two models. No need to worry about compatibility regarding NVIDIA graphics cards with this build.
- ASUS Prime Z390-P
This is your motherboard concerned with the build. Included in this motherboard is the 6 PCI-E slots that you will need in order to sustain all 6 graphics cards included in this build. IMPORTANT: Make sure to use the same CPU I use or a compatible Intel CPU with this motherboard. More info on compatibility can be found here.
- Intel Core i3-9100F Processor
CPUs in mining rigs generally aren’t too important unless you are thinking about mining with your CPU as well. This CPU is both cheap and compatible with the motherboard listed above.
- Corsair 850 Watt Fully Modular Power Supply
If you can get your hands on two of these, you will have more than enough power for this build. It is important to dedicate extra power to your mining rig as overclocking usually increases the power needed to sustain running the build. You may also want this Thermaltake Dual 24-pin Adapter in order to connect both PSUs to one motherboard.
- Western Digital 1TB Hard Drive
Here is a cheap and affordable hard drive to store your OS as well as dedicate VRAM usage to. More than likely you’ll need to dedicate some of your VRAM storage to this as you will be managing nearly 48 GB with all 6 graphics cards combined. For faster loading times you can also replace this with an SSD.
- Mining Rig Frame for 6 GPUs
This mining frame is a very useful prebuilt structure which allows you to screw all necessary parts in simply and safely. I highly recommend buying a frame like this one as it has predrilled holes for screws making parts easily installable. The fans aren’t included with this purchase but click here for the fans I use.
- Powered GPU Risers
GPU Risers allow you to install the graphics cards from a distance without having to be directly plugged into the motherboard. These powered risers are very nice as they protect your graphics cards from power surges should they occur. Better to be safe than sorry!
- DDR4 RAM
Storage is very important for sustaining a mining rig. Although I use a hard drive to manage my VRAM, it is definitely more beneficial to use RAM in its place. Depending on your budget, definitely pick up some RAM for your build.
That’s all! This is everything that you’ll need in order to start your investment today and get to mining! Putting together the PC is relatively easy, just look up any video regarding how to build a mining rig and they will guide you through the assembly process.
If you have any questions about parts, how to put together the rig, or just want to chat, don’t hesitate to reach out! Also if you found this article helpful a share and a follow are much appreciated!
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Andrew Martinez, owner and writer of Minerva Money