Key takeaways
Building a Bitcoin mining rig in 2024 requires a significant upfront investment and ongoing electricity costs.
Joining a mining pool can help offset costs and provide stabler monthly returns compared to solo mining.
The type of cryptocurrency you choose to mine will determine your hardware and software requirements, with Bitcoin requiring ASICs, while other cryptocurrencies like Ravencoin and Monero are optimized for GPUs and CPUs, respectively.
Beyond hardware, essential additional requirements for mining include specialized mining software, a reliable internet connection and secure cryptocurrency wallets.
Building a viable Bitcoin mining rig in 2024 is likely to set you back a couple of thousand dollars at least. Additionally, you need to be prepared for high monthly electricity bills that can run into the hundreds.
But does it have to cost this much?
If you’re looking to join a mining pool, an initial investment is necessary. At this level, you’ll begin to see monthly returns that outweigh your electricity and upkeep costs.
However, you don’t have to join a pool. Instead, you could aim to mine blocks entirely on your own, even with a device as small as a Raspberry Pi.
While it’s unlikely that you’ll be able to mine a block with such a small amount of hardware, it is possible. The process of mining essentially involves checking random encoding combinations until you find one that meets the network’s “difficulty” standards.
Think of it like finding a ring lost in a forest, where the hash power is essentially how many people (on your team) you have out looking for the ring.
Even though there are tens of thousands of people from different teams searching for the ring, it’s still possible, although very unlikely, that your five-year-old sister out on her own could stumble across it.
Did you know? In January 2022, a solo Bitcoin (BTC) miner with a modest hashrate of just 126 terahashes per second (TH/s) managed to mine a new block and received a reward of 6.25 BTC. This rare event, often referred to as “lottery mining,” demonstrates that even small-scale miners can occasionally strike it lucky and earn substantial rewards.
You’re much better off building a viable mining rig, joining a mining pool and reaping stable monthly rewards.
Today, we’ll focus on the initial part of that process — how to build your own mining rig.
Step 1: Choose your cryptocurrency
While you’re probably set on mining Bitcoin, it’s important to know that there are other, often more profitable, avenues.
It’s important to make the decision before building your rig itself, as it’ll influence your hardware and software requirements and the complexity of the setup and maintenance.
For example, Bitcoin (BTC) mining requires specialized hardware called application-specific integrated circuits (ASICs) due to their superior efficiency over general-purpose graphics processing units (GPUs).
If you’re interested in mining Ravencoin (RVN), you’ll find that its KAWPOW algorithm is optimized for GPU mining, making GPUs the ideal choice.
Monero (XMR), on the other hand, is optimized for CPU mining, utilizing the RandomX algorithm.
The conclusion is that to maximize your profitability, it’s important to do the research on what you plan to mine beforehand.
A tool to base your research around would be Whattomine, a site that provides detailed information on the profitability of mining various cryptocurrencies based on your hardware specifications, current market conditions and electricity costs.
Did you know? The largest cryptocurrency mining farm in the world is located in Rockdale, Texas. Operated by Whinstone US, a subsidiary of Riot Platforms, this facility boasts a hashrate capacity of over 3.6 exahashes per second (EH/s) and covers 100 acres, making it a significant player in the global mining industry.
Step 2: Plan your budget and gather components
Mining rigs can be expensive, so it’s crucial to determine your budget before you start. This budget will guide your choices for hardware, power consumption, cooling solutions and electricity costs. Here’s a detailed breakdown of options for different budget levels:
Low budget ($500–$1,500).
Hardware
GPU: Opt for mid-range GPUs like the Nvidia GeForce GTX 1660 Super or AMD Radeon RX 570. These are more affordable but still provide decent performance.
CPU: A budget-friendly CPU like the Intel Pentium G4560 or AMD Ryzen 3 1200 will suffice.
ASIC: It’s probably better not to consider ASIC miners at this budget, but if you must, low-end ASIC miners such as the Bitmain Antminer S9 can be found in this price range. These older models are less efficient and may not be profitable due to their lower hashrate and higher power consumption.
Motherboard: Choose a motherboard that supports multiple GPUs but is cost-effective, such as the ASRock H81 Pro BTC.
RAM: 4GB to 6GB of DDR4 RAM will be sufficient for a budget mining rig.
Storage: A small SSD (120GB) will be enough to run the operating system and mining software.
Power Supply Unit (PSU): A reliable 600-watt PSU from a reputable brand like Corsair or EVGA.
Frame: Consider building your own frame from inexpensive materials or purchasing a budget-friendly mining frame.
Power consumption
These setups generally consume less power, around 300W–500W.
Cooling solutions
Basic air cooling with additional fans to ensure proper airflow. You can find affordable cooling fans from brands like Cooler Master or Noctua.
Mid-range budget ($1,500–$3,000)
Hardware
GPU: Invest in higher-performing GPUs like the Nvidia GeForce RTX 3060 Ti or AMD Radeon RX 6700 XT.
CPU: A more powerful CPU such as the Intel Core i5 or AMD Ryzen 5.
ASIC: At this price range, you can start to consider ASIC miners; mid-range options such as the Bitmain Antminer S17 or MicroBT Whatsminer M20S will become available to you. These offer better efficiency and higher hashrates than older models.
Motherboard: A motherboard with better support for multiple GPUs, such as the Asus ROG Strix B450-F Gaming.
RAM: 8GB of DDR4 RAM to ensure smooth operation.
Storage: A larger SSD (240GB) for improved performance and capacity.
PSU: A high-quality 850W PSU to handle the increased power requirements.
Frame: A pre-built mining frame designed for multiple GPUs.
Power consumption
Expect power consumption to be in the range of 500W–1,000W, depending on the number and type of GPUs.
Cooling solutions
More advanced air cooling systems, potentially incorporating higher-end fans or even a basic liquid cooling setup for the CPU.
High budget ($3,000+)
Hardware
GPU: Top-tier GPUs like the Nvidia GeForce RTX 3080 or AMD Radeon RX 6800 XT, and consider using multiple GPUs — e.g., four to six GPUs.
CPU: High-performance CPUs like the Intel Core i7 or AMD Ryzen 7.
ASIC: High-end ASIC miners such as the Bitmain Antminer S19 Pro or MicroBT Whatsminer M30S++. These offer the highest efficiency and hashrates currently available.
Motherboard: High-end motherboards with extensive GPU support, such as the Asus Z490-A Pro.
RAM: 16GB of high-speed DDR4 RAM.
Storage: High-capacity and high-speed SSDs (500GB or more).
PSU: Multiple high-wattage PSUs, such as 1,000W or higher, to handle the rig’s power requirements.
Frame: Professionally built mining frames designed for optimal cooling and support for multiple GPUs.
Power consumption
High-end rigs can consume between 1,000W and 2,000W or more.
Cooling solutions
Advanced cooling solutions, including custom liquid cooling setups for both the CPU and GPUs to maintain optimal temperatures.
Additional cooling systems like exhaust fans and temperature monitoring equipment.
Did you know? The most expensive Bitcoin mining rig ever sold was the Bitmain Antminer S19 Pro+ Hyd, which was priced at over $15,000. This high-end ASIC miner offers one of the highest hashrates available, making it a powerful yet costly investment for serious miners.
Additional crypto mining requirements
Beyond the essential hardware components, and regardless of budget, several other elements are crucial for setting up a mining rig in 2024. These include:
Mining software: Choose from advanced mining software like CGMiner, EasyMiner or BFGMiner. Ensure the software is compatible with your chosen cryptocurrency and hardware setup.
Operating system: Use specialized mining operating systems such as Awesome Miner, RaveOS or Hive OS to optimize and manage your mining operations effectively.
Crypto wallet: Set up a secure cryptocurrency wallet to store the coins you mine. Options include hardware wallets like Ledger or Trezor or software wallets with robust security features.
PCIe risers: Use PCIe risers to elevate your GPUs and improve airflow within the rig. This helps in maintaining optimal temperatures and prevents overheating.
Stable internet connection: Ensure you have a reliable and fast internet connection to maintain uninterrupted mining activities and communicate with the mining pool or network.
Flash drive: Have a flash drive with at least 16GB of capacity. This can be used for installing the operating system or other necessary software updates and backups.
Step 3: Assemble a mining rig
As we’ve seen, depending on your budget and currency choice, you’ll likely be assembling one of three rigs. Let’s take a look at an assembly for each.
Basic CPU miner assembly
1. Install the CPU
Prepare the motherboard: Place the motherboard on a non-conductive surface.
Place the CPU: Lift the CPU socket lever, align the CPU with the socket, and gently place it in. Lower the lever to secure it.
Apply thermal paste: Apply a small amount of thermal paste to the center of the CPU.
Attach the CPU cooler: Secure the cooler on top of the CPU and connect its power cable to the CPU fan header on the motherboard.
2. Install RAM
Open the RAM slots by pushing down the clips.
Align the notch on the RAM stick with the slot and press firmly until it clicks into place.
3. Mount the motherboard
Place the motherboard in the case and align it with the standoffs.
Secure the motherboard with screws.
4. Install the power supply
Mount the PSU in its designated spot and secure it with screws.
Connect the 24-pin ATX power connector to the motherboard.
Connect the 8-pin CPU power connector to the motherboard.
5. Connect storage
Mount the SSD in its designated spot.
Connect one end of the SATA cable to the SSD and the other to a SATA port on the motherboard.
Connect the SSD to the PSU using the SATA power cable.
6. Cooling setup
Install additional cooling fans if necessary and connect them to the motherboard or PSU.
Final steps
Double-check all connections.
Power on the rig and enter BIOS/UEFI to ensure all components are recognized.
Install the operating system and mining software.
Basic GPU miner assembly
Did you know? Graphics processing units (GPUs) first arrived in the late 1990s, initially designed to accelerate rendering in video games. Their parallel processing capabilities were later harnessed for cryptocurrency mining, drastically improving efficiency and performance for mining tasks compared to traditional CPUs.
1. Install the CPU
Prepare the motherboard: Place the motherboard on a non-conductive surface.
Place the CPU: Lift the CPU socket lever, align the CPU with the socket, and gently place it in. Lower the lever to secure it.
Apply thermal paste: Apply a small amount of thermal paste to the center of the CPU.
Attach the CPU cooler: Secure the cooler on top of the CPU and connect its power cable to the CPU fan header on the motherboard.
2. Install RAM
Open the RAM slots by pushing down the clips.
Align the notch on the RAM stick with the slot and press firmly until it clicks into place.
3. Mount the motherboard
Place the motherboard into the case and align it with the standoffs.
Secure the motherboard with screws.
4. Install the power supply
Mount the PSU in its designated spot and secure it with screws.
Connect the 24-pin ATX power connector to the motherboard.
Connect the 8-pin CPU power connector to the motherboard.
5. Connect GPUs
Insert PCIe risers into the appropriate PCIe slots on the motherboard.
Attach each GPU to a PCIe riser card and secure them to the frame.
Connect power cables from the PSU to each GPU.
6. Connect storage
Mount the SSD in its designated spot.
Connect one end of the SATA cable to the SSD and the other to a SATA port on the motherboard.
Connect the SSD to the PSU using the SATA power cable.
7. Cooling setup
Install additional cooling fans to ensure proper airflow.
Connect the fans to the motherboard or PSU.
Final steps
Double-check all connections.
Power on the rig and enter BIOS/UEFI to ensure all components are recognized.
Install the operating system and mining software.
ASIC miner assembly guide
1. Unbox the ASIC miner
Carefully unbox the ASIC miner and inspect it for any visible damage.
2. Place the ASIC miner
Position the ASIC miner in a well-ventilated area or on a rack designed for mining rigs.
3. Install the power supply
Mount the PSU in its designated spot (if not integrated).
Connect the PSU to the ASIC miner using the provided power cables.
4. Connect to network
Connect an Ethernet cable from your router to the ASIC miner to ensure a stable internet connection.
5. Cooling setup
Ensure the built-in cooling fans are unobstructed.
Place additional fans around the ASIC miner if necessary to improve airflow.
Final steps
Plug the PSU into a power outlet and switch it on.
The ASIC miner will start its boot process, during which you should observe its LEDs and cooling fans to ensure they are functioning correctly.
Step 4: Software installation
Now comes the software. This, again, depends on the kind of miner you’re setting up.
CPU and GPU miner software installation
1. Operating system
Choose and install a preferred operating system. Windows is more user-friendly and easier to set up for beginners, while Linux (especially distributions like Ubuntu) can be more efficient and stable for mining operations.
2. Drivers
For Windows: Download and install the latest drivers for your GPUs from the manufacturer’s website (Nvidia or AMD).
For Linux: Install the necessary GPU drivers using package managers. For example, on Ubuntu, you can use commands like “sudo apt-get install Nvidia-driver-460” for Nvidia cards.
3. Mining software
Select mining software based on the cryptocurrency you plan to mine.
Bitcoin (BTC): CGMiner or BFGMiner
Ether (ETH): PhoenixMiner or Ethminer
Multicurrency: NiceHash or Awesome Miner.
Download the chosen mining software from the official website and follow the installation instructions.
4. Joining a mining pool
Visit the website of a mining pool that supports your chosen cryptocurrency. Create an account and follow their instructions to configure your miner.
Configure software: Open your mining software and enter the pool’s settings, including the pool address, your worker ID and your wallet address.
Start mining: Save the configuration and start the mining software. Monitor the output to ensure that you are successfully connected to the pool and mining.
ASIC miner software installation
1. Access the miner’s interface
Connect to network: Ensure your ASIC miner is connected to the internet via an Ethernet cable.
Find IP address: Locate the miner’s IP address through your router’s interface or using an IP scanner tool.
Log in: Open a web browser, enter the IP address, and log in to the ASIC miner’s web interface using the default credentials provided in the user manual.
2. Mining software configuration
Enter pool details: Navigate to the configuration or settings page within the ASIC’s web interface.
Configure mining pool: Enter the mining pool address, your worker ID and your wallet address.
Save and apply: Save the settings and apply the configuration. The ASIC miner should now be connected to the pool and start mining automatically.
3. Monitor performance
Dashboard: Use the miner’s web interface dashboard to monitor hashrate, temperature and operational status.
Adjust settings: If needed, adjust settings to optimize performance and ensure stable operation.
Step 5: Configuration and optimization
Once again, further steps depend on the setup. Let’s break it down.
CPU and GPU miner configuration and optimization
BIOS settings
Update BIOS: Ensure your motherboard’s BIOS is up-to-date to support the latest hardware and features.
Enable “Above 4G decoding”: This is crucial for mining rigs with multiple GPUs. Navigate to the BIOS settings and enable this option.
Primary display: Set the primary display to the integrated GPU if your CPU has one. This frees up your dedicated GPUs for mining.
Overclocking
Use overclocking software: Tools like MSI Afterburner, EVGA Precision X1 or AMD WattMan can be used to overclock your GPUs.
Adjust core and memory clocks: Increase the GPU core and memory clocks incrementally while monitoring stability and performance.
Manage power limits: Adjust power limits carefully to avoid overheating. Many overclocking tools allow you to increase power limits for better performance.
Monitor temperatures: Keep an eye on GPU temperatures using monitoring software. Aim to keep temperatures below 70–75°C for optimal longevity and performance.
Power settings
Windows power settings: Set your power plan to “High Performance” in Windows settings to ensure maximum processing power.
Linux power management: In Linux, configure power management settings to ensure the system is running at full power. Use commands and scripts to prevent the system from sleeping or throttling performance.
Optimize efficiency: Adjust the power settings in your mining software to balance performance and power consumption. Some mining software allows you to set power limits directly within the program.
ASIC miner configuration and optimization
Firmware update
Check for firmware updates from the manufacturer’s website and apply them through the ASIC’s web interface. Updated firmware can improve performance and security.
Overclocking
Use the overclocking options available within the ASIC miner’s interface. Be cautious and follow the guidelines provided by the manufacturer to avoid damaging the hardware.
Power and performance
Monitor the miner’s performance and temperatures closely when overclocking. ASIC miners have built-in protections but can still be pushed too hard.
Power settings
Ensure your power supply is adequate for the overclocked settings and provides stable power.
Optimize efficiency
Some ASIC miners allow you to adjust power efficiency settings to find a balance between maximum performance and energy consumption. Adjust these settings within the miner’s interface for optimal results.
Are profits from Bitcoin mining guaranteed?
For those running a lottery miner, the answer is definitively no.
If you’re part of a mining pool, the prospects for profitability are better but still not assured. Even though the total rewards are shared among all participants, individual earnings can be heavily dependent on the pool’s overall success.
One significant factor impacting mining profitability is the gradual shift from proof-of-work (PoW) to proof-of-stake (PoS). Stablecoins running on sustainable PoS consensus mechanisms that don’t require mining, such as Tether’s USDt (USDT), are becoming increasingly popular in the face of Bitcoin.
Moreover, cryptocurrency prices are highly volatile, and this volatility plays a crucial role in mining profitability.
Bitcoin, for instance, has experienced dramatic price swings over the years, impacting the revenues miners can earn. Halving events, which occur approximately every four years, reduce the block reward by 50%, directly slashing the income of miners.
These events are designed to control inflation but pose significant challenges for miners, especially when combined with price volatility. Other cryptocurrencies also face similar issues, making the long-term predictability of mining income challenging.
Another critical factor affecting mining profitability is the cost of electricity. Mining operations are energy-intensive, and rising electricity prices can quickly erode margins. As global energy prices increase and as more regions implement stricter regulations or higher tariffs on energy consumption for mining, the operational costs for maintaining a mining rig rise.
This trend places additional pressure on miners to seek more energy-efficient solutions or relocate to areas with cheaper electricity, which is not always feasible.
If miners can access sustainable energy sources, they still reduce the availability of these resources for the general population. This issue could be mitigated by transitioning to more efficient consensus mechanisms.
For these reasons and more, while profits might be worth the effort in the short term, the long-term profitability of cryptocurrency mining remains uncertain.
So, just keep that in mind before diving in.
