Home Cryptocurrency News Earn Bitcoin Mining 101: How To Use NiceHash To Earn Bitcoin

Mining 101: How To Use NiceHash To Earn Bitcoin

22 min read
0
115

Part 1 we dove into the basics of blockchain technology and what purpose mining actually serves. Today’s article is an introduction to a service called NiceHash, which is an easy gateway into the mining world for people with existing Nvidia or AMD gaming rigs, or those of you who want to put your extra hardware to work.

Pixabay (Creative Commons)

NiceHash lets you easily sell your PC’s computing power in exchange for Bitcoin

If you missed the last article in this series, give it a quick read:

–> Part 1: An Introduction To Cryptocurrency Mining

In this guide you’ll learn what NiceHash is, how it works and how to get it installed and running. I’ll point out some strong advantages NiceHash has, but also list some reasons you may want to avoid it. Then we’ll jump into some advanced tuning to maximize performance and profits.

What Is NiceHash? 

NiceHash Marketplace

NiceHash is a marketplace that buys and sell hashing power. Hashing power is the measure of mining performance your GPU or CPU has with any given coin algorithm. If you’re a seller (that’s you), you’re contributing your PC’s hashrate to buyers actually mining a certain coin. Those buyers use NiceHash as the middle man and pay you in Bitcoin for your efforts. You can then transfer your earnings to an exchange like Coinbase or GDAX and buy other crypto coins if that’s what you’re after, or simply connect a bank account and cash out.

To incentivize sellers, the NiceHash software auto-switches to the most profitable coin algorithm at regular intervals to maximize your earnings. Since the cryptocurrency market is constantly fluctuating, this is a helpful feature. It means that instead of obsessing over coin values and doing endless research, you can just set it and forget it.

You can even tell NiceHash to start mining when your PC is idle, and stop automatically when you resume using it. Now that you know what NiceHash is, let’s look at the pros and cons.

Reasons To Use NiceHash:

  • It’s mining on autopilot
  • Super simple to setup
  • Switches to the most profitable algorithm to maximize profits
  • Daily payouts in Bitcoin
  • Can be set to auto-mine when your PC is idle

Reasons Not To Use NiceHash:

  • You’re mining — but for someone else
  • Your electricity costs are excessively high
  • NiceHash was hacked in 2017 but is slowly reimbursing their users
  • Profitability can be slightly lower than directly mining coins
  • Bitcoin transfers can be slow and fees higher than coins like Litecoin and ZCash

The decision is yours to make. I used it for about 2 months and enjoyed the experience, but was ultimately compelled to enter more advanced waters. As I said earlier, it is a great doorway into mining and I do recommend it for beginners.

Still on board? Grab a beverage and let’s do this.


Step 1: Register an account at NiceHash

Whether you have AMD or Nvidia hardware, it’s a good idea to register an account at NiceHash. Doing so will automatically create a service-side Bitcoin wallet for you, which Nicehash automatically deposits into. Registration is optional if you want to mine directly to your own Bitcoin wallet, but there are higher fees associated and higher minimum payouts. I’ll tell you how to move your Bitcoin out of Nicehash and into a personal BTC wallet with minimal transfer fees, and explain you how to change that to Fiat money (e.g. U.S. dollars) in a separate guide.

Step 2: Download NiceHash For Nvidia Or AMD Radeon Cards

What is NiceHash Miner?

NiceHash has two versions: NiceHash 2.0 (for Nvidia and all CPUs) and NiceHash Legacy (for all GPUs and all CPUs). Download the one appropriate for your software here. (AMD users, you’ll be led to GitHub where you should download the first zip file in bold type.) The Nvidia version is more elegant and easier to use than NiceHash Legacy, but does not support AMD cards. On the plus side, the AMD version has more advanced options for power users and also supports Nvidia cards.

NOTE: It would have been easier to write a guide using only NiceHash Legacy since it supports both AMD and Nvidia. However, the Nvidia version really has a great user interface and is so much simpler that I didn’t want to over-complicate things for the GeForce crowd.

So let’s split up right here to walk through both Nvidia and AMD setups. If you downloaded NiceHash 2.0 for Nvidia, hit step 2b. If you’re rocking NiceHash Legacy and AMD cards, skip down to step 2c!

Step 2b: Installation And Setup For NiceHash With Nvidia GPUs

NiceHash Risk Acknowledgment

Go ahead and launch the installation file and acknowledge the license agreement and read the risk acknowledgement. I know we normally gloss over this stuff, but this one matters. If your rig doesn’t have sufficient cooling, you shouldn’t be using it to mine 24/7 (or to game frequently either). If you’re content with your case’s airflow and your GPU thermals, then let’s keep going.

Step 2c: Installation And Setup For NiceHash Legacy With AMD GPUs

Go ahead and launch the installation file and acknowledge the license agreement and read the risk acknowledgement. I know we normally gloss over this stuff, but this one matters. If your rig doesn’t have sufficient cooling, you shouldn’t be using it to mine 24/7 (or to game frequently either). If you’re content with your case’s airflow and your GPU thermals, then let’s keep going. 

NiceHash First Run

The last step to installation may be automatic downloading of a few mining apps that work in the background. This is OK, and Windows Defender should not flag any of it as a virus threat. If it does, I can assure you it’s not.

“>

Welcome back to a series of guides on cryptocurrency and mining! In Part 1 we dove into the basics of blockchain technology and what purpose mining actually serves. Today’s article is an introduction to a service called NiceHash, which is an easy gateway into the mining world for people with existing Nvidia or AMD gaming rigs, or those of you who want to put your extra hardware to work.

Pixabay (Creative Commons)

NiceHash lets you easily sell your PC’s computing power in exchange for Bitcoin

If you missed the last article in this series, give it a quick read:

–> Part 1: An Introduction To Cryptocurrency Mining

In this guide you’ll learn what NiceHash is, how it works and how to get it installed and running. I’ll point out some strong advantages NiceHash has, but also list some reasons you may want to avoid it. Then we’ll jump into some advanced tuning to maximize performance and profits.

What Is NiceHash? 

NiceHash Marketplace

NiceHash is a marketplace that buys and sell hashing power. Hashing power is the measure of mining performance your GPU or CPU has with any given coin algorithm. If you’re a seller (that’s you), you’re contributing your PC’s hashrate to buyers actually mining a certain coin. Those buyers use NiceHash as the middle man and pay you in Bitcoin for your efforts. You can then transfer your earnings to an exchange like Coinbase or GDAX and buy other crypto coins if that’s what you’re after, or simply connect a bank account and cash out.

To incentivize sellers, the NiceHash software auto-switches to the most profitable coin algorithm at regular intervals to maximize your earnings. Since the cryptocurrency market is constantly fluctuating, this is a helpful feature. It means that instead of obsessing over coin values and doing endless research, you can just set it and forget it.

You can even tell NiceHash to start mining when your PC is idle, and stop automatically when you resume using it. Now that you know what NiceHash is, let’s look at the pros and cons.

Reasons To Use NiceHash:

  • It’s mining on autopilot
  • Super simple to setup
  • Switches to the most profitable algorithm to maximize profits
  • Daily payouts in Bitcoin
  • Can be set to auto-mine when your PC is idle

Reasons Not To Use NiceHash:

  • You’re mining — but for someone else
  • Your electricity costs are excessively high
  • NiceHash was hacked in 2017 but is slowly reimbursing their users
  • Profitability can be slightly lower than directly mining coins
  • Bitcoin transfers can be slow and fees higher than coins like Litecoin and ZCash

The decision is yours to make. I used it for about 2 months and enjoyed the experience, but was ultimately compelled to enter more advanced waters. As I said earlier, it is a great doorway into mining and I do recommend it for beginners.

Still on board? Grab a beverage and let’s do this.


Step 1: Register an account at NiceHash

Whether you have AMD or Nvidia hardware, it’s a good idea to register an account at NiceHash. Doing so will automatically create a service-side Bitcoin wallet for you, which Nicehash automatically deposits into. Registration is optional if you want to mine directly to your own Bitcoin wallet, but there are higher fees associated and higher minimum payouts. I’ll tell you how to move your Bitcoin out of Nicehash and into a personal BTC wallet with minimal transfer fees, and explain you how to change that to Fiat money (e.g. U.S. dollars) in a separate guide.

Step 2: Download NiceHash For Nvidia Or AMD Radeon Cards

What is NiceHash Miner?

NiceHash has two versions: NiceHash 2.0 (for Nvidia and all CPUs) and NiceHash Legacy (for all GPUs and all CPUs). Download the one appropriate for your software here. (AMD users, you’ll be led to GitHub where you should download the first zip file in bold type.) The Nvidia version is more elegant and easier to use than NiceHash Legacy, but does not support AMD cards. On the plus side, the AMD version has more advanced options for power users and also supports Nvidia cards.

NOTE: It would have been easier to write a guide using only NiceHash Legacy since it supports both AMD and Nvidia. However, the Nvidia version really has a great user interface and is so much simpler that I didn’t want to over-complicate things for the GeForce crowd.

So let’s split up right here to walk through both Nvidia and AMD setups. If you downloaded NiceHash 2.0 for Nvidia, hit step 2b. If you’re rocking NiceHash Legacy and AMD cards, skip down to step 2c!

Step 2b: Installation And Setup For NiceHash With Nvidia GPUs

NiceHash Risk Acknowledgment

Go ahead and launch the installation file and acknowledge the license agreement and read the risk acknowledgement. I know we normally gloss over this stuff, but this one matters. If your rig doesn’t have sufficient cooling, you shouldn’t be using it to mine 24/7 (or to game frequently either). If you’re content with your case’s airflow and your GPU thermals, then let’s keep going.

Step 2c: Installation And Setup For NiceHash Legacy With AMD GPUs

Go ahead and launch the installation file and acknowledge the license agreement and read the risk acknowledgement. I know we normally gloss over this stuff, but this one matters. If your rig doesn’t have sufficient cooling, you shouldn’t be using it to mine 24/7 (or to game frequently either). If you’re content with your case’s airflow and your GPU thermals, then let’s keep going. 

NiceHash First Run

The last step to installation may be automatic downloading of a few mining apps that work in the background. This is OK, and Windows Defender should not flag any of it as a virus threat. If it does, I can assure you it’s not.

Let’s block ads! (Why?)


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

UK Mosque Collects 14,000 GBP Worth of Cryptocurrency Donations

Cryptocurrency is not always considered to be halal for the Islam. The decision by a UK mo…