The world of crypto is growing at a faster pace than any other market has ever grown. The process of generating these crypto currency coins is called mining. After the Bull Run of late 2017, Bitcoin, Altcoin mining has gained immense popularity and a lot of people are setting up their own mining rigs to generate profits. Today, The Crypto Sutra brings you the complete guide on How to mine Zcash. In this article, we will share with you the complete Zcash Mining process for beginners and what GPUs you should use for it.
- 1 What is Mining?
- 2 Mining Solo Vs Mining Pool
- 3 Start Mining Zcash
- 4 Setting up a Mining Rig for Zcash
- 5 Participate in Zcash( ZEC) Mining Pool
- 6 How ZCash Mining is Different from Bitcoin Mining
- 7 Mining Software Setup For Zcash
- 8 Withdrawing Mined ZEC Coins To Your Wallet
- 9 Best Mining Pools
- 10 Conclusion
What is Mining?
Till now, money as we know it are created by authorities, governments. They print paper notes which are marked with a certain value and we use these bills to buy things and make transactions. While, on the other hand the crypto currency world in decentralized, which means there is no central authority that decides the value of a coin.
The transactions are not processed by any central authority, but is done on the blockchain technology. Blockchain is nothing, but a distributed ledger where a lot of computers around the world called nodes maintain and update a copy of the ledger which is updated every time a transaction is made.
The core of the blockchain technology is encryption. All the transactions are encrypted and fully secure. And, this requires processing power. A transaction is broken down into small mathematical problems which are solved by miners to write the next block in the chain. In return of solving these problems, miners are rewarded with a small fee whenever a transaction is made.
The strength and security of any network can be determined by the strength of the miners on that network.
Mining Solo Vs Mining Pool
This is the one of the first question that comes to mind when we start talking about mining. Mining solo in most cases is not profitable. But, if you have strong rig setup then you can opt for solo mining. Mining pools are recommended because, in most cases pool setups are better and thus have higher chance of solving the block and getting the reward, which is then equally divided between the participants. In case of solo mining, the chance of you solving the block before anyone else is significantly less, and in most cases you won’t get any reward.
Start Mining Zcash
Zcash or ZEC is a very similar coin to the bitcoin. It is a fork of Bitcoin, which means the underlying technology is same with some changes. Zcash provides extra security and anonymity over bitcoin. Unlike bitcoin, people can not see the balances of any Zcash wallet.
We have chosen Zcash for this post because, mining big coins like Ethereum aren’t much profitable anymore. While coins like Zcash can still give you good returns. While choosing the coin to mine, you must consider two things
- The coin should not be highly saturated.
- It should not be a very young or less popular coin.
Zcash is a mature coin now. But, at the same time it is not very much saturated. So, let’s start with the process of setting up a rig.
Setting up a Mining Rig for Zcash
How to mine ZEC: For ZCash mining, we recommend the a gpu which can cover your investments easily by managing power utility and efficiency easily. You can check out the below Mining Hardware for Zcash on amazon. We have listed the three best ones according to different price segments.
1. Gigabyte GTX 1080 Ti Aorus
2. ASUS ROG STRIX GTX 1070 TI Advanced Addition
Average annual return:$1250
3. MSI RADEON RX 480
Participate in Zcash( ZEC) Mining Pool
Assuming you have a powerful enough rig, now you have to sign up on a good online mining pool. For easy understanding, we will explain how you can join Mining Pool Hub, which is one of the most popular and oldest pool mining site for Zcash. Click on this link, and sign up on the website. On the left side you will see the available crypto currencies that you can mine.
Select Zcash from the list of available currencies. It will ask you to enter you ZEC wallet address. Enter the wallet address and update your profile.
How ZCash Mining is Different from Bitcoin Mining
The main difference between ZCash and Bitcoin is the privacy protocol of Zcash which is called the zk-SNARKS protocol. This makes Zcash more anonymous and private. The hashing algorithm used in the Zcash is also different than Bitcoin, which has faster block time of 2.5 minutes, as compared to Bitcoin’s 10 minutes. But, the Equihash algorithm makes Zcash incompatible with special hashing hardware (ASICs).
Therefore, we recommend using GPUs to generate higher profits while mining ZCash.
Mining Software Setup For Zcash
We recommend downloading the latest version of Nheqminer which is best for mining Zcash. We will soon publish a miner software guide, listing the best available software and comparison between them. Download the software and create an executable file (mine.bat) which should include the following inside it:
exe -cd 0 -t 4 -l us-east1.zcash.miningpoolhub.com:20570-u MININGPOOLHUB_USERNAME.rig9 -p x
Enter your own username in place of MININGPOOLHUB_USERNAME in the above line.
Now, go back to MiningPoolHub account, click on workers and choose one of the jobs, according to the hardware that you are using. You will now see a message approving your workers. If you do not see any message, read the above steps again to check if you’ve done some thing wrong.
After its successfully configured, you will see the worker running in the “Workers” tab. Congrats! You are already making profits now. After this, you can see your mining data on the “Dashboard” tab on the MiningPoolHub website.
Withdrawing Mined ZEC Coins To Your Wallet
After you’ve mined enough ZEC, you can withdraw them. Click on the “Wallet” tab, where you can cash out. It will show you the Zcash wallet address where it is going to credit the amount. Verify the address and confirm the cash-out. You will receive your Zcash within few minutes in your wallet.
PPS vs PPLNS, Which payment is best
The most simple way of getting paid for mining is PPS (Pay Per Share). In this, miners will be paid a fixed amount depending on the amount of work their rigs are doing (hash rate). The amount is fixed for each successfully completed hash, but as we know, the DAG size (difficulty of the block) keeps on increasing. This means as the time passes. The rewards will start decreasing slowly and stretch your ROI.
PPS is more suitable for miners who do pool hopping, which means regularly shifting the coin you are mining based on highest profitability. Also, due to its simplicity and ease of understanding. PPS is still the more preferred way of payments for miners. Though currently, MiningPoolHub does not support PPS so if you want to get paid via PPS you can go with Zpool.
Pay Per Last N Shares is a slightly luck based payment system. Unlike, PPS where you are paid a fixed amount per share, in PPLNS the rewards are proportional to the number of blocks that the pool finds. This is the standard payment method offered by MiningPoolHub. PPLNS also pays higher than PPS. On average, PPLNS users get paid 5% more as compared to PPS users.
This means if you have a powerful enough rig (with good hashrate), go for smaller mining pools if you are opting for PPLNS, as your power will be valued more there. Your last “n” shares can vary depending on various pools. Pools have different shift systems, some are time-based while others are based on a number of shares submitted by all people mining on the pool.
So, unless you understand this completely and know what you are doing. We recommend you to go with a more predictable, PPS payments method.
Best Mining Pools
If you are not sure about Mining Pool Hub, there are a lot of mining pools available. We have created a detailed list of Best Highly Profitable Mining Pools in 2018. You can easily compare different mining pools and choose the best one for you.
In the end, we will like to inform you that mining cryptocurrencies, depends on various factors like electricity costs in your country, temperature and market conditions of course. Kindly, consider all the conditions in your region and then calculate the average profits that you could generate using any of the various online profit calculators. Only then you should consider mining Zcash. For any other queries regarding Zcash mining process or choosing the best rig for mining, feel free to ask us anything in the comments section below.
We hope this article has solved almost every query on, How to mine ZCash for highest profits. Though, if you are looking for some more advanced tips on mining you can arrange a private consultation with the author of this article. Hit us up from our contact us page.