Make Money As A Gamer: Cryptocurrency Mining All The Way To The Bank

If you’re a gamer, you know that there are a few ways that you can make money. Gamers aren’t just stuck in their home broke anymore. Virtual assets are a hot commodity, but you don’t need to just farm gold or sell accounts.

You can venture into another, lucrative area to make money: farming cryptocurrency.

Or, mining cryptocurrency.

This is just one of the many ways to make money as a gamer.

Don’t be intimidated either.

When I first started mining cryptocurrencies, I was very intimidated. I didn’t know what to expect, the details on how mining worked were fuzzy, and I didn’t even know what I had to do to get started.

Luckily for you, I am going to outline how to start cryptocurrency mining as a gamer.

It’s a lucrative gig, but there are additional costs associated with mining that you wouldn’t accrue with gaming.

mining hardwares

1) Preparing to Mine Cryptocurrency

You’re going to need some capital to invest in your operation. When you mine cryptocurrency, it’s an intensive process that will use your computer’s hardware to mine for currency. You’ll need powerful equipment to be able to mine currency with any level of success.

How much will you need?

You’re going to need $2,000 – $3,000 to invest in your venture.

Now, if you have an awesome rig already, you might be fine. But if you’re literally just starting out or your rig is a couple years old, you’ll need to upgrade or start fresh.

There are also a few other things you’ll need:

Wallet. A digital or hardware wallet is needed to store your mined currency. Trezor or Nano Ledger S work well, but you’ll find plenty of wallet options available. Hardware wallets are recommended for anyone with substantial currency because there are fewer security worries than dealing with digital wallets.

Place to mine. You need a location for your mining operation. Rates will vary a lot, but you want to find a place with cheap electricity. You can run your operation out of your home, too. If you have the option to mine in other countries, choose a country with the cheapest electricity rates, but also focus on reliability.

Building your rig is intensive, so move on to the next section to really understand how to build your rig and the costs associated with rig building.

mining rigs

2) Building a Mining Rig

You’re going to need to build your own mining rig, and with so many resources online, it seems redundant to reinvent the wheel. Vice has a great tutorial that will help you start setting up your mining rig.

You can watch the video here.

The video is a mere six minutes long, so there are a few things that are overlooked. A few key points to keep in mind are:

– Graphics cards are the real power behind a rig, and AMD and Nvidia are the two most powerful options available.
– You can buy motherboards made specifically for mining. You’ll find some models, such as the Asus B250, that can support 19 graphic cards at once. Your goal is to have as much processing power or options as possible, and these motherboards offer serious options.
– CPUs matter a lot less for a mining rig. A modern CPU with multicore technology will suffice.
– RAM also isn’t that important, and 4 – 8 GBs of DRAM will more than suffice for most users.
– Power is going to be vital for your rig. And you’ll need loads of power when running a lot of graphics cards at once. The minimum you’ll need is a 1000W gold rated power supply. Multiple power supplies can be attached to larger rigs. You’ll need a dual PSU adapter cable for this, which costs around $10 or less.

One word of caution is that most homes can only handle a certain amount of juice on a single circuit. In the United States, a single circuit may only be able to handle 1725W or so of power before it trips.

You would need to have rigs on different circuits if you start to scale your operation in the future.

Depending on the currency you plan to mine, you should be able to make your mining rig for $800 – $3,000.

Note: I recommend investing in advanced cooling options in the future to ensure that your hardware lasts as long as possible. Running multiple GPUs is intensive, and while they do come with their own cooling, it’s vital to keep all of the other internal components cool, too.

Keep in mind that there are pre-built mining rigs, but it makes sense to build your own. When you build your own rig, you know exactly what you’re getting, you better understand your rig’s capabilities and you have a more intimate understanding of your mining operation.

You’ll also save a lot of money when you build your own rig.

cryptocurrency

3) What Cryptocurrency Should You Farm?

If you watched the video above, you may have noticed that it’s geared towards Ethereum. You might not even know what that is, but it is one of the hottest cryptocurrencies available. Bitcoin is the obvious king of cryptocurrencies, but farming cryptocurrency with a basic rig means Bitcoin will be very difficult.

There are a lot of different virtual currencies for gamers to make money with, including:
– Zcash
– Zencash
– Bitcoingold
– Ethereum
– Ethereum Classic
– Siacoin
– Litecoin
– Ripple
– Bitcoin Cash

But the cryptocurrency needs to be worth it. There are a lot of ways to make money as a gamer, but you never want to start out in a losing position. There are a ton of different cryptocurrencies to mine, and you’ll want to take a look at the site below to get a better idea on what to mine based on your setup:

https://whattomine.com/

The setup you have will dictate which cryptocurrency to mine. AMD and NVIDIA cards are better for some mining operations than others. Using the site above, you’ll be able to pick from the top graphics cards to find out how much each coin requires in terms of:

– Power
– Daily cost

I recommend getting your hands into everything. Why? Volatility in the market is real. You’ll have prices soar one week and crash the next. It’s great to diversify your holdings in the same way that you would stocks and bonds.

Take Bitcoin for example. The currency was near the $20,000 mark in December and fell to under $6,000 over the next two months. Bitcoin is now over $10,000 a coin right now, and if you only had your money in one currency, you would have suffered a significant loss.

Make sure that you take the time to understand which currencies are best suited for your rig.

It’s worthwhile to mine coins that are actually possible rather than trying to mine Bitcoin, which takes some serious computing power to do so. People are still mining Bitcoin, but a lot of the high-end miners will be using ASIC machines that are even better for mining.

Educate yourself about the process before you jump in head first.

cryptocurrency exchange site

4) Where to Sell Your Cryptocurrency

Great – you’ve mined cryptocurrency, but now what? Well, you might want to hold on to your currency as the value rises, or you may want to sell immediately. Everyone has their own risk tolerance, and if there is one thing that virtual currency has shown investors, it’s that volatility can be insane with new investments.

When it comes time to cash in and sell your coins, you’ll find a few major exchanges:

https://www.bitfinex.com/
https://www.kraken.com/
https://poloniex.com/

There are a lot more, too. What you need to know is that not all exchanges are made equal. First, you need to deposit your currency into the exchange before selling it. A very important aspect to check is that you’ll be able to withdraw money to your country.

If you can’t withdraw your money, you’re at a loss.

Do not keep your currency on exchange sites for long. Deposit them, sell them and withdraw your money. If there is one thing I have learned from the news lately, it’s that hackers have been targeting exchange sites.

Hundreds of millions of dollars have been stolen from exchange sites.

This is why you’re much better off storing all of your cryptocurrency on a hardware wallet until you want to sell. Otherwise, you’re going to be in for a lot of heartbreak if someone hacks an exchange and you lose all of your currency.
It has happened, and while there’s always a risk of a hack occurring, this doesn’t mean you have to add to the risk by holding your currency on an exchange site.

I’m not going to compare every exchange, but I will compare one exchange so that you know what to look for when choosing an exchange.

You see, fees vary from one exchange to the next. These exchanges aren’t free, and they will impose fees when you place a sell order. Fees add up quickly, and they will eat away at your bottom line.
Fees are inevitable, but let’s play it smart to make the most out of our investment.

Kraken lists their fee schedule, and they have a tier-based system. The more you trade, the more you save. You’ll see that there are fees for:

– Per-trade
– Paper copy fees
– Fees based on the currency

Then a quick look at their FAQs, and you’ll see that you can trade between euros, Bitcoin, Canadian dollar, yen and USD. You’ll also see withdrawals can only be made in other digital currencies, Bitcoins, yen, euros, USD and Canadian dollars.

If you want to withdraw in another currency, it’s not going to happen.

You’ll want to make sure that you look over the fees and choose an exchange with the best returns.

A lot of people will jump between different exchanges because one may offer lower fees for one currency over another. It’s a game of small fees, but over time, these fees will eat away at your profits, which is never a good thing.

whattomine results

5) What Kind of Returns Can I Expect?

What returns can you expect? This is a difficult question to answer. A lot of variables are at play, and you have to consider market fluctuations, too. Remember, the market is wild, so you might be able to enjoy much higher returns than what I am stating.

Let’s say you’re a GPU miner that has spent $3,000 on a 6x AMD RX470 GPU rig.

Powerful enough to get started, your yield on a daily basis would be around $12 – $20. Not too bad, but also not what a lot of people are expecting. Making hundreds a day is going to cost tens of thousands of dollars.

But let’s just say that you earn $15 a day on average.

Based off of this figure, you’ll earn $450 a month with a low-end of $360 and a high-end of $600.

Electricity costs aren’t calculated in this equation, so you will make less because you do have overhead when mining. But if you made $450 a month, you would pay off your rig in seven months or so.

This means that after 6.6 months ($3,000 / $450), you’ll start to see a return on your investment. You’ll be able to pocket your money faster than buying stocks, and you’ll actually have an income-generating investment.

It takes under seven months to pay off your rig and make some cash.

In the remaining months, everything is profit.

I would personally keep flipping my money into new rigs and scale my operation. If this is just some side cash to help you make money as a gamer, you might be happy with making $450 or more a month.

Taxes will need to be declared. You’ll want to declare your earnings, after you sell the cryptocurrency. This will be declared as extra income on your tax returns.

Make sure you speak to a tax professional because you’ll also be able to write-off your electric and cost to make your rig if you want to operate as a business. Maximizing your profits is key, and an accountant who is well-versed in cryptocurrency can definitely help in this regard.

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