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In 2021, most people are mining cryptocurrencies using GPUs. But is GPU mining profitable in 2021? The answer to that question is yes! There are a few factors you need to take into account when deciding whether or not GPU mining will be profitable for you in 2021. In this blog post, I’ll show you what factors affect the profitability of GPU Mining. Let’s get started!
What Is GPU Mining and How Does It Work?
GPU mining refers to the use of a graphics processing unit (GPU) for Bitcoin computations. It is called ‘mining’ as in this process new Bitcoins are created for the first time.
In other words, the CPU or Central Processing Unit is a hardware device that carries out the instructions of various software applications. GPU stands for Graphics Processing Unit which is a specialized electronic circuit built for the purpose of solving mathematical calculations, particularly very large and complicated ones.
A GPU creates images on your computer screen, it handles every animated object in a video game and so much more.
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Why Should I Mine Cryptocurrency With a GPU?
Mining refers to the process of validating cryptocurrency transactions and adding them to a public chain. A special algorithm is used in order to create new coins or tokens which are added for free into circulation.
The person who runs the mining software on their computer will be rewarded with these newly issued coins. One of the main reasons why people take up mining is to make a profit.
The new coins get created by solving complex mathematical puzzles which require a lot of computational power. It is true that there are many companies out there who do this work for you and they take up all the rewards, but it costs you nothing except setting up the hardware.
Think about it this way; if you have 1,000 computers each doing some amount of calculations then those 1,000 computers will be much faster than only one computer even though they will both finish at exactly the same time.
What I am talking about here is known as ‘pool mining’ where different people combine their resources in order to achieve success. On your own you might take decades to solve a single problem, but if you join 20 other people the problem will be solved much faster.
Your mining power is proportional to your contribution to this pool which means that the more computers you add then the higher your reward. Basically, what I am saying here is that GPU mining can earn you a large amount of money if done properly and as long as you choose the right currency and hardware.
The process might seem reasonably easy but it actually takes time and effort in order to see any progress with profit-making.
Choosing the Right Cryptocurrency to Mine
There are many different cryptocurrencies and you can choose whichever one you want.
The question is: Which cryptocurrency will bring you the best results?
There are certain factors that need to be kept in consideration when deciding which currency to mine in order to get the highest profit out of it. These factors include:
- The current market value of the chosen cryptocurrency
- The difficulty level (how hard it is to complete)
- How often rewards are issued
- Transaction speed
If you take a look at the graph above then you will see that sometimes, the currency’s value can fluctuate drastically. Especially when Bitcoin experienced its peak.
Its current price might seem really impressive but the truth is that this was no ordinary rise. This cryptocurrency went up several thousand dollars in a matter of days, which had a direct effect on the difficulty level of mining it.
Consider Investing in a New PC Only for Mining
Even if you choose the cryptocurrency with the right features, things can still go wrong when mining it. If you plan on joining a pool then you will need to make sure that your rig is up for the task and it won’t slow everything down.
The cost of a high-end PC for mining purposes is really not so high and as long as you can make some profits then it will be well worth the investment.
Of course, there is also the option of buying pre-assembled mining rigs which are available on sale. You might even find someone to sell a rig for cheap because of their unprofitable experience with crypto mining in the past.
The main thing is that if you want to make money in the long run then you will need to get a proper PC because this is the key for any mining process. If your computer is not powerful enough, trying to work with even one cryptocurrency will slow everything down and eventually lead to failure.
Mining With Your CPU or GPU
When it comes to CPU vs GPU mining, GPU is the superior choice. This is owing to the efficiency and speed with which it operates.
GPUs have much more processing capacity than CPUs, up to 800 times more in certain instances. GPUs are more efficient in mining cryptocurrency, and they are deemed safe for long-term usage.
How To Choose a GPU for Mining
There are certain things that you should keep in mind when choosing a GPU for mining. These include:
- The number of GPUs that your rig will have
- The power consumption of the graphics cards
- How much (if any) noise will they make?
- The type of graphics card
The most important thing to take into account is, as already said, the number of GPUs that your rig will have. An ideal setup would be 6 or 7 AMD Radeon RX480s with 8GB memory each.
Having more than 9 GPUs in your rig might save you some money on electricity costs but it’s not really worth it because of all the extra work and maintenance involved. If you want to mine Ethereum then things are a little different because a single GPU can do its job quite easily.
A good option would be getting an AMD Radeon RX 480 4GB instead of several cards and expanding later on if needed. Keep in mind that when choosing a GPU there are some things to consider, such as power consumption.
While a GPU does consume more electricity than a CPU it can also process more transactions per second, which is why people still prefer using GPUs for mining purposes.
How to Calculate Profitability of a New Mining Rig
If you are planning on building a mining rig then it would be logical for you to want to know whether your plan will be profitable or not.
- Bitcoin Value – The first thing that you need is data about the coin that you want to mine, including its current price per unit.
- Difficulty Level – This basically refers to how hard it is to solve a block and earn rewards for doing so. At times where the mining difficulty level is high then there are good chances of profit but this does not last long because soon enough other miners get their computers working at full throttle (which increases the global hash rate) and the profits start dropping again.
- Electricity Cost – Before going ahead with your mining operation, you need to figure out just how much money can be saved in the long run because of reduced power consumption.
- Hash Rate – The hash rate tells you how many hashes (mining calculations) your GPU will be able to perform every second. This will define how much cryptocurrency can be mined in a day and this is something that becomes more important as you add more GPUs to your mining rig.
Is it Worth Buying Graphics Cards for GPU Mining in 2021?
If you have been reading this article from the beginning then you will know by now that if you want to mine cryptocurrency then your best bet would be using a GPU. You should also keep in mind that GPUs are not cheap and easy to come by, especially when buying them in bulk – which is what most mining rig owners do because of how much of a financial benefit it can be.
This means that if you want to mine cryptocurrency then it would be a good idea to buy the graphics cards upfront and not rent them because this way you get to keep all of your profits (which can be significant). If you were to lease them, then there is a good chance that the mining profitability will not be enough to give back your investment.
If you can get your hands on a cheap GPU rig then go for it. This combo will help you reduce the cost of electricity bills (in the long run) while increasing the amount of money that is made from mining.
However, if you are just starting out with crypto mining then I would advise against getting too much hardware. It is not that you won’t be able to reap good profits but more often than not the returns would just start diminishing and your rig might end up being an expensive paperweight.
The Risks Involved With Mining and How To Protect Your Computer From Them
No matter how much you try to secure your rig there is always a chance that it might come under attack from hackers or malware. Keeping this in mind, the first thing that might help you protect against such attacks is to spread out your mining hardware over multiple computers (in other words, don’t keep all of them on one PC).
Another risk prevention method would be to install a firewall and make sure that it is instantly updated with the latest security patches. Next, you need to have an effective antivirus installed which will monitor your system for suspicious activity (the sooner it acts on this activity the better). It would also not be wrong to add an ad blocker to your browser because these are another point of attack and can be troublesome at times.
Tips for Reducing Power Consumption While Still Being Able to Mine Efficiently
The most important thing is to make sure that all the components of your rig are working at maximum efficiency, and one of the best ways to achieve this is by lowering the power consumption.
This means removing any parts which will not be needed for mining (especially if these parts consume more power than they contribute). One good example would be USB devices such as your mouse and keyboard.
Next, ensure that all the fans are running at minimum speed and if you have a graphics card which supports automated temperature control then reduce the temperature as much as possible (but don’t let it go below 20 degrees). Voltage regulators can also help in this regard but only with older models of GPUs.
Can Mining Harm The GPU?
The answer isn’t that straightforward. Mining could be bad for your GPU since one of its side effects is that it generates a lot of heat. If you operate your mining setup at a high temperature all the time – over 80/90 degrees Celsius – the GPU may be damaged, which will shorten its lifespan. For this reason, you need to have a good cooling solution in place which will keep your PC’s temperature under control.
Best Mining Software for Windows 10: Ezil – ETH+ZIL Mining Pool
Ezil mining pool for GPU is a good alternative to other pools out there. It has been around since 2015 and is offering rewards to miners who make contributions by allowing their computers to mine in the pool.
Ezil mining pool offers a lot of reasons to mine at its pool. A few key reasons are:
Connectivity – When you’re looking for a good mining pool it is very important that your rig can connect with the server and start getting work almost instantly. The higher the connectivity rate, the faster that your rig will start mining and begin earning rewards. Ezil pool has a very high connectivity rate (99%+) which means that miners can connect to the server within seconds.
Stratum Servers – The stratum servers are specially developed for this pool. They make sure that mining continues at full efficiency even when there is a lot of traffic on the network.
How To Get Started With Ezil?
Getting started is easy as 1-2-3. All you need to do is go to the official website of the pool and create an account there by entering your email ID, a password and name for yourself.
Once this is done, you will be automatically assigned with a worker. This will signify how much of the rewards from mining can be credited to your account.
Next, download one of the specially developed miners for this pool (AMD and NVIDIA) and then install it on your computer like any other software.
After installation, start mining by opening the miner program and connecting to the pool’s server. You will start seeing your rig mining almost immediately and earning rewards in real time.
What Are The Plans Of Ezil For GPU Mining In 2021?
Ezil plans to become one of the biggest players in the GPU mining industry by 2021. It wants to achieve a monthly income of $100 million, which is a big number. But if that happens, it will be possible for the pool to start paying out good rewards to the miners who are in it, which will increase the popularity and profits of this pool even more.
Which GPUs Are Best for Mining, and How Much Can You Make From Them?
The best GPUs for mining in 2021 are: RX 580, RX 480/470 and R9 390/290. You can use any of these to mine some popular altcoins like Ethereum (best), Zcash, Monero or other cryptos which are not as difficult to mine.
There is no need to worry about power consumption since your electricity bill won’t go up that much. You should be able to earn $60-$200 per month from each GPU depending on how effectively you optimize it and tune its parameters.
Best Places To Buy Gpu Online for Mining?
So, the most common question I have been getting is which site to buy GPUs. I had many people asking me about which site has the cheapest prices or which sites are reputable.
I have ordered from all the major sites, and here are my thoughts:
Newegg.com
My hands down favorite place to buy GPUs online. They almost always have the fastest shipping, best prices, and great customer service!
Price: 8/10 (can get much cheaper if you catch a promo or sale)
Shipping: 9/10 (They are fast even if you live on the west coast or in Hawaii. My order was shipped 2 days after I placed it and arrived a week after that)
Tigerdirect.com
Good site for cheap hardware, but they always have to restock their GPUs. Sometimes this can take up to a week. They have frequent sales and coupons as well but you would have to be patient for them to restock.
Price: 6/10 (Depends on what you are looking for)
Shipping: 3/10 (I waited around 1-2 weeks when they didn’t even ship out my order until I called them)
Neweggbusiness.com
If you are in the market for big orders, this is probably the best place for you. They have a dedicated business account and do not seem to charge any extra tax or shipping cost for it (other than the $200 minimum). Unfortunately they don’t seem to offer free returns, but their prices are pretty good as well!
Price: 8/10 (Depends on what you are looking for)
Shipping: 9/10 (The order I had shipped in 2 days, and arrived around a week later.)
Aliexpress.com
If you are looking for a cheap GPU for mining, this is the place to go. You can find some great deals on here, but another downside is that you might not be getting an authentic GPU from them as there have been many problems with fakes in the past. Also beware of scams as well! When ordering from Aliexpress, always check their reviews in case of fake or grossly overpriced listings! Most of the sellers there are reputable, but there are always scammers to watch out for!
Price: 6/10 (Depends on what you are looking for)
Shipping: 5/10 (It took around 3 weeks to arrive after shipping, but other than that it has been pretty good.)
There are lots of other sites like Amazon or eBay and they also sell used or refurbished products. Some people have reported getting bad GPUs when buying refurbished ones from these sites. If you still insist on buying used ones, make sure they come with an RMA or something so you can get a refund if there are any problems!
These rankings go by my opinions and experience. If yours will be different, please comment below and let me know why!
How Profitable Will GPU Mining Be In 2021?
Even though the present profitability of mining can seem like an excellent opportunity for you, there are still a couple of things that need to be kept in mind.
The value of a currency can drop drastically, which will have a huge impact on your earnings. If you are mining in a pool then you will get less profit because of the fees that they charge.
The difficulty level rises every few days or weeks, which means that it is becoming harder to mine. This might sound like an alarming situation when put this way but the good news is that you can still get some profit via mining and the more money that you invest then the more your earnings will be.
Bitcoin was just as successful in this way when it came out because of its value, which made people want to trade it for other cryptocurrencies. It was basically like an introduction into cryptocurrency mining.
Final Thoughts
Mining cryptocurrency is no longer just for those with high-end CPUs or GPUs. Now, anyone can mine crypto coins like Bitcoin and Ethereum using their computer’s GPU without spending a fortune.
But before you jump in head first, make sure to consider the risks involved as well as your power consumption and whether it will be worth mining in 2021 when prices are expected to rise even higher than they already have been this year!
I sincerely hope that this article has helped make sense of the process both from an investment perspective as well as how much money you can expect to generate with different GPUs on the market today.
If you’re ready to start mining today, I recommend looking into EZIL. That should get you up and running quickly so that you can focus on more important things like finding the next big cryptocurrency to mine that’s about to take off!
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