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How to start a Bitcoin Mining operation Part 2



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How to start a Bitcoin Mining operation Part 2

Lets get rite into it part 1 we talked about the basic things you need to start a Bitcoin mining operation. Just to do a little reminder it was housing for your miners, electricity work, Networking equipment and the miners. Now that we have everything we need and its all set up i will teach you how to start mining and how to negotiate a better electricity rate so you can make more money.

Before you set up your miners for mining you will need some kind of wallet. I personally recommend keepkey a offline solution is always the safest. You can set up a site like Coinbase just to transfer your coins into cash. I always tell people to use cold storage for the majority of your Bitcoins. Once this step is taken care of your ready to start mining.

Now that you have your wallet, everything is on racks you have power and a building you need to start the miming process. First before you start your machines you want to pick a pool. They have many pools to choose from like Antpool, F2pool, and others. This is very simple once you choose the pool you want sign up and start to set up your workers. Make sure your you also put the wallet you want the coin to go to in the required fields. Once you assign user names and passwords for all of your miners on the pool you will want to do the same on each of your miner Dashboards. To do this you will have to power them on and find the IP address. I use IP scan to scan the network giving them static IP's helps tremendously. Click miner configuration and add the details matching what is on the pool site. When you complete this your miner will start mining the pool site will give you all the details you need, how much you make, hash rates, etc.


We are now mining and have started an amazing process, but how much are we paying for electric? The average home in America is paying .10 per KWH and unless you want to break even or lose a little bit you want to call and negotiate this rate down. How can you do this? Its alot easier than people think. All i did was Google cheap electric companies and the state i am in and a list of resellers came up. Before you call to negotiate you need to know what factors plays a roll in what rate they give you. The most important one is your usage the more you use the cheaper your eclectic bill will be. The second is your location and if you qualify to have your building under commercial. The KWH charge is 60% of your bill but you also have a delivery charge which is 30-35% of your bill, and commercial buildings get a cheaper delivery charge. If you can negotiate both the KWH and Delivery charges down you will have a profitable mining operation and will be able to generate a nice monthly income.


As always guys i appreciate you reading and i hope you enjoy this one.

Please don't forget to follow me.

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RaduV
Sounds easy, however we can't play with the power price in our place so I'm not sure if we can make it work.
Do you need some particular specs for your computer to mine faster? I know that when Bitcoin was launched I did try to mine with my computer. Needless to say that it was not sufficient to get any real profit. I had something like 0.000000012% after 2-3 days of mining..

Do you have some special configuration in mind? What do you thing about this one AntMiner S7?
Can you buy more, like 2 or 3 units and connect them?

Do they need special care, I mean from time to time I'm leaving my house for 2-3 months and I don't want to let anyone touching it. Can I make them maintanance free for a while?



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CryptoGuru
The electric you use pays for itself. The miners profit you just have to negotiate your electric bill down. You have to run special mining hardware from Bitmaintech called Antminers. We currently own 16 S7's and one S9 we plan on buying 6 more S'9 soon. They are not connected to each other but they do mine the same pool and are on the same network. They are computers that are designed to do one specific job they do not require any work you just have to watch the hash rates to make sure you don't have any problems. You can access your mining operation remotely from anywhere in the world. This is the easiest thing i have every done in my life, and its profitable i recommend it to everyone who has the start up cash. The only problem you would run into is if you have a power outage nobody will be able to power them back on. We also house peoples machines so if you wanted to skip the cost of electrician to come in and put 240V we could put your machine here and send you the money minus electric.



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Lynne
Oh dear this is where I won't be able to negotiate any better rates. As I mentioned on your first post about Bitcoin mining we have a monopoly here. They don't care about customer service or giving better rates or anything.

Our internet speed is also damn slow, thanks third world... sometimes I struggle to even run my website with my connection speed!



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Cristian
Same here for the electric costs, the speed of internet connections is high here.
I'm thinking, if you have enough cash and you really want to invest in bitcoin mining like a pro, maybe you should also invest in getting green energy yourself, like using solar panels or wind turbines if you have the location and enough space on your own land.
It will definitely cut your cut your energy costs a lot and make everything more profitable. I wonder how much time it will take to have ROI on such an investment.



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Lynne
A while LOL, getting solar panels put in here is very costly to do but then I guess in a few years they would pay for themselves. I looked into it a few months back and then of course if a panel or something gets damaged then maintenance could work out costly too.



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CryptoGuru
The miners just send text files back and fourth to the pool fast internet is not needed. The electricity situation is unfortunate where you live. It would take us almost 20 years to make our money back on solar. The ROI goes up like crazy when you add in all of these extra expenses thats why we opted to wait until where making a certain amount monthly. Thanks Lynne Thanks Christian.



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Corzhens
My usual question with bitcoin mining is the source of the bitcoin. I am assuming that the mining site is a website which we have to monitor by clicking on its web page. Am I correct on this? But what about the reward, why would the mining site give you the reward? Pardon me for the questions that I seem inquisitive. To be honest, I have read so many discussions already but until now, I still cannot understand how the mining site earns from the miner’s effort in mining.



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