To the uneducated mind, mining appears to have lost its luster as the advent of other methods of acquiring crypto have abounded (such as proof of stake, etc.). However, those in the know will scoff at such assertions as they continue to gain wealth from their various setups. Nevertheless, one thing that has become more prominent over the past few years is the prevalence of hacks and general thievery that has always plagued the crypto industry but seems to have gotten worse as the rewards from mining are ever-increasing due to scarcity. This guide will provide a general overview of the actions you can take to secure your rigs and keep your precious investments from falling into the hands of the lazy and morally corrupt.
Table of Contents
Ensure You Use The Correct Hardware (And Keep It Up To Date)
When it comes to crypto mining, your rig is perhaps the most crucial element. Without a quality machine (or set of machines) to run the intensive calculations required to “mine” the tokens, you will be unable to profit from your efforts. However, while your rig is vital to the entire operation, it’s also the most vulnerable aspect and can leave you open to hacking and other nefarious attempts on your crypto if you don’t use the proper hardware. Regarding this issue, it’s typically considered good practice to use Application-Specific Integrated Circuit (ASIC) machinery to ensure a far higher level of security than you would otherwise get from non-ASIC options. It’s also vital to purchase your equipment from reputable sources. According to Asic.guide, you should choose a resource that provides reliable information regarding this particular ecosystem which should enable you to end up with the right parts for the job. Furthermore, once you have invested in the correct components, you must ensure to keep them updated with the latest firmware to avoid security vulnerabilities that can arise from time to time.
Never Share Private Or Sensitive Information With Other Miners
Although this point should go without saying, it’s still worthwhile reiterating the fact that you should never share any sensitive information with anyone, regardless of how much you might trust them. This includes the usual suspects of your login credentials, wallet details, or any personal information that could leave you vulnerable to hacking attempts (although it won’t really be considered a hack if you readily provide such valuable data). It’s important to remember that not everyone in the crypto-mining community has good intentions, and some may be looking to steal your hard-earned assets.
Be Aware Of The Risks Associated With Mining
Your first line of defense against any form of danger is to arm yourself with all the knowledge necessary to stay safe. Regarding crypto mining, this might include becoming au fait with the different types of hacks you may encounter to harden your systems against them. Moreover, you should gain some insight into the physical risks that can arise as a result of incorrect power transmission and the fire risks associated with the infamously power-hungry process of mining.
Monitor The Markets And Trends To Ensure Maximum Profitability
Those of you who have invested the time and energy into purchasing and setting up the equipment are probably the type who wants to make a lot of money. There is certainly no shame in that, but if you really want to make the big bucks, you need to think more laterally and spend time monitoring the various crypto markets in order to follow trends. This research extends to non-crypto news, as almost anything could result in unexpected spikes or drops in the price of a coin. When you predict a coming bull market, you might consider investing in more machinery or upping your power consumption to pump out as many coins as possible so you can ride the wave. Conversely, if a bear market appears imminent, it could be prudent to sell your existing tokens and button down the hatches until better times roll around. It’s up to you regarding strategy, but the critical point is that you must take time to dig deep and get involved in the entire community to take full advantage of your mining efforts.
Educate Yourself On The Regulations And Laws Related To Crypto Mining
Similar to the previous paragraph, you should endeavor to stay abreast of the laws and regulations surrounding mining and crypto more generally. As you saw in China and a few other nations, the government can make your life miserable very rapidly if they decide that crypto is causing more hassle than it’s worth. While you can’t do much if the government changes the law, if you feel an impending regulation is approaching that could cause chaos, you can make an effort to sell your equipment before it plummets in value.
Monitor Your Energy Consumption To Reduce Costs
Cryptocurrency mining is a notoriously power-hungry activity due to the complexity of calculations that need to be performed. Therefore, if you want to remain to make money, you need to find ways to lower your energy consumption, when possible, to avoid your electricity bills eating into your profit. This is now more vital than ever since energy bills have risen across the board for various geopolitical reasons. The best step you can take is to determine what the energy usage is for mining and see if it remains a profitable activity.
Use A Secure Wallet To Store Earned Coins
As any self-respecting crypto enthusiast will know, it ain’t wise to keep your assets in an exchange or somewhere liable to hacking. As such, you must use a reputable wallet and regularly transfer your earnings into it to ensure they are safe from outside influence and that you have total control over them. You can choose from a wide variety of wallets, but the gold standard is generally agreed to be some kind of offline, cold storage solution. If it doesn’t connect to the web, there is zero chance of your assets being intercepted and stolen. Nevertheless, if you lose your cold ledger, so too will you lose your crypto, so be careful and remember where you leave it lying around!
Mining is still a viable option for several types of crypto, but without adequate education, you can fall prey to security issues, energy overconsumption, and the risk of losing a lot of money. If you educate yourself on these matters, you can steer clear of them and keep making money for the long term.
