Is mining still profitable in 2024? A complete guide to building a mining rig from scratch.

First, let's state the conclusion

Want to build your own mining rig to mine coins? Be mentally prepared for two things:

1. High initial investment

• Bitcoin ASIC miners: start from a few thousand dollars for the cheapest, professional level over 3000 dollars.
• Electricity cost: Monthly electricity bills can eat up nearly half of the profits.
• Cooling systems, accessories, networks… pouring money into them one by one

2. No guarantee of making money

• The price of the currency fluctuates too wildly; you might make money today but lose it tomorrow.
• Halving occurs every four years, and the block reward is directly cut in half.
• Joining a mining pool can reduce risks, but it also means that profits are dispersed.

Choosing a coin is crucial

Different coins are suitable for different hardware, getting it wrong is equivalent to working in vain:

Tool Recommendation: Go to the Whattomine website, enter your hardware specifications and electricity price, and it will automatically calculate which coin is the most profitable.

Three Budget Plans

Poor Man's Plan: 500-1500 USD

• GPU Selection: Entry-level (GTX1660 Super, RX 570)
• Power: 600W is sufficient
• Power consumption: 300-500W
• Reality: This configuration is basically just for fun; the monthly earnings may not even cover the electricity bill.

Middle-class plan: 1500-3000 USD

• Upgrade GPU to mid-to-high end (RTX 3060 Ti, RX 6700 XT)
• You can consider purchasing mid-range ASICs (Antminer S17, Innosilicon T3+)
• Power Consumption: 500-1000W
• Reality: There is some profit margin, but you need to join a mining pool to earn money steadily.

Tycoon Plan: $3000+

• High-end GPU or multi-GPU combination (RTX3080)
• High-end ASICs (Antminer S19 Pro, Innosilicon M30S++)
• Power Consumption: 1000-2000W+
• Liquid Cooling System
• Reality: Professional level, requires professional operations and maintenance, but has the strongest profitability.

Hardware Setup Full Process

Little White CPU Mining Machine (the simplest)

1. Apply thermal paste on the CPU socket, just snap it in.
2. Insert the RAM stick (align the notch, push it all the way in)
3. Fix the motherboard screws to the chassis
4. Connect the 24-pin power and 8-pin CPU connector
5. SSD connects to SATA power and data cables
6. Add a fan (to prevent overheating)
7. Enter BIOS to confirm hardware recognition and install the system

GPU mining rig setup (a bit complicated)

The first five steps are the same as the CPU plan, then:

• PCIe adapter card is inserted into the motherboard PCIe slot
• Each GPU is plugged into the adapter card.
• Each GPU needs to be connected to a separate power cable.
• Add a few more exhaust fans to ensure it doesn't overheat.

ASIC miner (the simplest)

ASIC is a finished product, directly:

1. Check the package for any damage.
2. Find a well-ventilated place to store it.
3. Power connected
4. Connect the network cable
5. Plug-in to power on
6. Wait for it to start up by itself.

Software Configuration

system selection

• Windows: User-friendly for beginners, but mining efficiency is slightly lower.
• Linux (Ubuntu): More efficient, suitable for professional miners, but has a learning curve.

mining software selection

• BTC: CGMiner, BFGMiner
• ETH (can still be mined): PhoenixMiner, Ethminer
• Multi-Currency: NiceHash (a must-have for lazy people), Awesome Miner

must join the mining pool

Solo mining? Unless you're incredibly lucky, you'll never mine a block in a lifetime (just like a person searching for a gold ring in a big forest).

Joining a mining pool can:

• Consolidate computing power with others
• Small probabilities accumulate into large probabilities
• Stable income every month

Overclocking Optimization (For those who want to earn more)

GPU overclocking

• Using tools like MSI Afterburner, EVGA Precision
• Gradually increase the GPU core and memory frequency
• Key: The temperature must not exceed 75°C, otherwise the hardware will die early.
• Increasing power limits can boost performance, but it also consumes more electricity.

BIOS tuning

• Enable “4G and above decoding” (multiple GPUs required)
• Set integrated GPU as the primary display (release full power of the independent GPU for mining)
• Change Windows power to “High Performance” mode

The Real Talk: Is it still possible to make money?

Possible in the short term, difficult to say in the long term

Risk One: Price Volatility

Bitcoin has experienced significant volatility in its history, with sharp price drops directly reducing returns.

Risk Two: Halving Event

Approximately every four years, the block reward is halved directly.

• First halving in 2012
• Second halving in 2016
• Third halving in 2020
• Next time it has occurred in 2024

This means that miners' income is also halved, and with the volatility of cryptocurrency prices, it's tough to get by.

Risk Three: Electricity Cost

• Mining is particularly power-consuming
• Global energy prices are rising, and regulation is becoming increasingly stringent.
• Some regions impose tariffs directly on mining.
• Electricity bills can consume 40-60% of the profits.

Risk Four: Technology Upgrade

Many coins have transitioned from PoW (Mining) to PoS (Holding).

• Ethereum has changed (2022)
• This means that those coins cannot be mined at all in the future.

Risk Five: Mining Pool Risk

Joining a mining pool does not guarantee 100% profit. The overall earnings of the pool are distributed among all participants, and individual earnings can still fluctuate greatly.

Summary

If you want to give it a try , it is recommended:

1. First, calculate: how much can you earn per month based on the current coin price and electricity costs?
2. Calculate the ROI (Return on Investment period) on Whattomine
3. Start small, don't just jump in with $3000.
4. Join a reliable mining pool, don't go solo.
5. Be mentally prepared for a 50% drop in coin prices.

Bottom line: If your ROI exceeds 12 months, it is generally not recommended to enter the market. The current market has strict environmental policies, uncertain coin prices, and ongoing technological upgrades; these three challenges are enough for mining players to deal with.