Many people who want to start mining Bitcoin are not sure how to find the best ASIC Bitcoin Mining Machines, but you should know that many Professional Bitcoin Miners use these 5 Simple Tips On What To Look For, To Help With Buying Bitcoin Mining Equipment.
Are you one of the fortunate ones who has seen the light of Bitcoin and cryptocurrency? Or, are you someone who has not yet entered the world of Bitcoin and/or crypto-but you’re looking to get started soon.
Are you someone who prefers to simply just buy Bitcoin and cryptocurrencies, or would you prefer to be a bit more involved in the game? More specifically, are you someone who wants to start mining bitcoin?
For many people, for many reasons, the best way to stack more BTC is definitely to become a Bitcoin Miner.
If you’re one of the adventurous people out there who wants a bit more involvement in the world of Bitcoin, and particularly if you have a desire to earn money while you help secure and decentralize the bitcoin network, chances are good you may have thought about becoming a bitcoin miner. You’re in for a heck of a ride, and your future self may just thank you for starting to mine bitcoin today!
You may already know a little bit about how to get started mining bitcoin, you might have 3 or more reasons it’s not too late for you to start mining bitcoin, and- whether at home or with a professional mining equipment hosting and colocation provider like MinedPool Technologies– you might be looking very seriously at starting to mine bitcoin. You might even know you need to join a mining pool to mine bitcoin, and now you’re looking for the right equipment to get you started.
This article isn’t about how to mine bitcoin, but instead it’s about how to find the best bitcoin mining equipment for your budget and personal preferences. Obviously, this isn’t meant to be any sort of financial advice and this is purely being published as an educational resource intended to help those interested in bitcoin mining.
Beyond knowing that you want to buy bitcoin mining equipment of some kind, it’s often tough for those new to the bitcoin mining world to really know how to identify whether a specific model of ASIC Bitcoin Mining Machine is right for you. How much hash rate can you afford to buy AND run? Where will you run your bitcoin mining machines? Did you know bitcoin miners are very loud machines that produce copious amounts of heat? Do you really want to monitor your machines 24/7, or- if you could earn a similar amount or ideally even more- would you prefer to have someone else do all your mining work and machine maintenance for you?
Plus, buying bitcoin mining equipment can be a bit difficult to do for a beginner because some people are not comfortable paying for equipment using cryptocurrencies or bitcoin. If you buy your mining equipment from a marketplace like eBay or Amazon, then you may be able to use a credit card, but largely bitcoin mining equipment is bought and sold using bitcoin because most of the vendors and manufacturers only will take payment in BTC.
Also, many people may not know this- but many banks and credit card processing companies are hostile towards bitcoin miners to the point where they do not want to work bitcoin mining companies or those who do any business with crypto, so sometimes a company that holds bitcoin and sells bitcoin mining equipment may not be able to bank at all and that may be one reason why you see a company only accepting payments in bitcoin or crypto. Of course, there are many legitimate companies operating today that take only crypto payments- but there are also some bad-actors out there looking to scam the hard-working bitcoin community, so never buy from someone who uses a messaging app like Telegram or WhatsApp, or a social media site like Reddit or Facebook, to sell bitcoin mining machines.
Buying directly from the bitcoin mining computer manufacturers like Bitmain and Canaan is preferable for some individuals, when possible. However, when you are attempting to buy directly from the bitcoin mining equipment manufacturers-you will find there are many impediments which make things rather difficult for the average person to obtain the best service because the manufacturers are naturally most focused on larger orders. Also, sometimes manufacturers of bitcoin mining machines may impose limits on the amounts of machines you can individually buy- or they may stop selling certain models altogether- whereas resellers can most often circumvent these restrictions to ensure you can obtain as many machines and the exact type of mining machines which you desire. While there are some cons related to purchasing bitcoin mining equipment from manufacturers, there are also positive aspects to buying direct from the manufacturers, like that you will often get a warranty if buying brand-new equipment. Depending on where you live, it’s very important to note thoroughly: it’s likely you will be heavily surprised by the shipping costs when you factor in importation of your mining equipment. For example, Bitmain’s website states they impose a 2.76% tax PLUS a 25% import/duty fee for orders to the USA. Sometimes you can’t get around shipping costs being high, but at all times you should account for your shipping expenses when you are buying bitcoin mining equipment.
Of course, since most people don’t choose to buy their bitcoin mining machines directly from the manufacturers like Bitmain- it’s quite common to buy mining equipment from third-party suppliers/resellers. For both new and used bitcoin mining machines, there are many legitimate vendors of bitcoin mining equipment out there, but it’s also important to watch out for scammers who are trying to take advantage of you by selling you broken equipment or by just not delivering anything at all.
While we won’t name names in public, we will say there are quite a few very unprofessional companies out there in the world of crypto mining equipment sales and bitcoin miner hosting that you should watch out for- but, again, we need not say names because you’ll find out the scams quickly once you do your own research. With this article, you should be able to do a bit more research.
For example, there is a well known hosting company or 2 that many consumers are starting to complain may be running essentially a “bait and switch scam” by selling you “cheap” mining machines with a predatory hosting package that has a guaranteed deployment date- only to delay your dates unexpectedly, multiple times, for 6-9 months, while they mine with your machines the entire time sadly. There are also mining machine resellers out there lurking waiting to scam people, and we’d name some of them as well because we’ve even had a few bad experiences ourselves…but, you know what they say, “if you don’t have something nice to say, then don’t say anything at all.”
We should clarify that nothing in this educational article is intended to be financial advice whatsoever, and bitcoin mining may not be an activity that is of interest for everyone. For those who do want to mine bitcoin, an essential piece of the puzzle
Since there don’t seem to be many helpful resources out there that help you identify what you should consider when choosing what mining equipment to buy, we wanted to publish this free resource that will hopefully help you shop for bitcoin mining equipment like a professional from now on.
Now, with your new resource of 5 Simple Things To Look For When Buying Bitcoin Mining Equipment, you’ll always feel confident when buying Bitcoin Mining Equipment.
5 Tips For Buying Bitcoin Mining Equipment
1- Consider Machine Hash Rate AND COST OF MINING vs. The Price Of Your ASIC Bitcoin Mining Machine(s) To Understand Potential Future ROI
Certainly, the hash rate of an ASIC Bitcoin Mining Machine is very important for your overall mining productivity and you can somewhat get a general idea of future earnings potential based upon your understanding of hash rates produced by specific ASIC Bitcoin Mining Machines by using some tools like whattomine.com and others. While this article is about tips for buying bitcoin mining equipment successfully and not necessarily about how to mine bitcoin, it’s still important to have a simple understanding about hash rate and other simple statistics like power wattage/amp requirements. If you want to learn more about what a hash, and hash rate, really is before you go buy your new bitcoin mining equipment, we can give you the simple breakdown or you can find the most detailed explanation possible if you want to go check out pseudonymous bitcoin creator Satoshi Nakamoto’s official white paper that started Bitcoin.
And, logically, it literally pays to make sure you have the highest hash rate you possibly can. No matter what mining pool you choose to join, and no matter whether you host your machines or mine at home, your earnings are dependent upon several factors-but a few of the most important ones to factor in are your 1) hash rate, because that helps you know how much of a share you’ll have for each mining reward; 2) cost of mining, because this obviously determines how profitable you are; and, 3) price of your machine(s), including shipping and expenses and all maintenance PLUS your opportunity costs, i.e. how valuable is the time you’re giving up if you’re going to maintain your own miners, and is it even worth it for you? Also, just because you get a machine from a source that has a really good price-
Many people who start out mining at home find transitioning to hosting/colocation is the best option for them-but there are the brave ones out there who decide mining at homes gives a good enough return to be worth it. Whether you have 1 miner or 1,000- mining bitcoin is one activity that mathematically makes miner’s earnings- and costs- increase along with their hash rate increasing. Also, ASIC Bitcoin Mining Machines have increased significantly in price over the years right along with the bitcoin price- but, conveniently, there are a variety of choices available to match every budget.
Why do higher hash rates lead to higher mining costs? For one thing, the most powerful mining machines are typically the most expensive on the market. Some of the best new bitcoin mining machines available today, like the Bitmain Antminer S19j Pro, may deliver 100 TH/S- but they also cost significantly more and take nearly 3x AS MUCH ENERGY as a Bitmain Antminer S9 that will deliver 13-14 TH/S without firmware upgrades.
Energy/utilities costs will be one of your most significant mining expenses after obtaining a bitcoin mining machine, and your energy and utility costs in most locations/countries (including the USA, UK, Australia, Canada, and more), will often be so exorbitant at home that it may be tough (or even impossible) to turn a profit on your machine if mining at home. When you use a professional hosting/colocation service like MinedPool Technologies, your mining expenses will be much lower and you will have a much better chance of becoming profitable. No matter where you mine, in the simplest terms possible, you can see with simple multiplication how your costs will increase significantly as you grow your mining operations from 1 machine to 2, 3, 5, 50, 500, and on, and this is why higher hash rates literally lead to higher mining costs.
So, is one type of ASIC bitcoin mining machine better than any other? Beyond simple mathematics and the technical specifications of each machine, it is hard to say if one type of mining machine is really “better” than any other. Many bitcoin miners with vast experience will tell you they have had both good experiences, and bad experiences as well, with equipment from every single major mining machine manufacturer, including: Bitmain and the AntMiner range of ASIC mining machines, MicroBT’s WhatsMiner range, Innosilicon, Canaan AvalonMiners, Aladdin miners, Goldshell, and on. Overall, Bitmain dominates the mining equipment market with an overall share that is estimated by some experts to be as high as 80%. While there are some people who still love running a certain type of machine they start out with-most people like to diversify their mining operations once they start to grow to larger scales beyond 1 machine, and many bitcoin miners may have a mix of models or brands. At the same time, some people want to obtain a fleet of mining equipment that gives them the fastest miners on the market and nothing less. At the end of the day, beyond the technical specs and things like hash rate-it’s really a matter of preference and budget that will help determine what bitcoin mining machine/machines you will choose to buy.
Overall, the most important thing when it comes to bitcoin mining is to simply get started mining bitcoin! Whether you have one Bitmain Antminer S9 with 14 TH/S or a MicroBT WhatsMiner M21S at 68 TH/S, or you have 1,000 Bitmain Antminer S19j Pro running at 100 TH/S each, every miner’s contributions to the bitcoin network are important.
2- FIND A SUITABLE LOCATION TO RUN YOUR ASIC BITCOIN MINING MACHINES!
Before you buy any bitcoin mining equipment, you should strongly consider specific aspects of your future mining operations, perhaps none more important than the location where you will run your powerful ASIC Bitcoin Mining Machines. The last thing you want to do is buy a bitcoin mining machine that you can’t run at home, so be sure you already have a mining location planned for your machines before you buy for best results.
You certainly need the right conditions to mine bitcoin, and the most basic things you will need are an internet connection and heavy power. Also, it is best to check your local laws regarding bitcoin mining if you plan to mine at home or at your own space because bitcoin mining may not be legal in all locations. Luckily, in the USA and other areas across the world- bitcoin mining is becoming more easily accessible to everyone by the day thanks to pioneers in the industry like Riot Blockchain, Blockstream Mining, Core Scientific, Compute North, and newcomers like MinedPool Technologies.
As much as we love mining bitcoin, it is admittedly not feasible for everyone to mine bitcoin at home for various reasons. Some of the most common reasons cited by bitcoin miners for not wanting to mine bitcoin at their own homes include heat, noise, time/labor requirements, lack of power and/or high utility bill expenses, among others.
Most homes, apartments, and office spaces will not have power adequate enough to run more than 1 or 2 bitcoin miners at most and some can’t run any at all. Most homes, certainly in the USA, don’t have 220v or 250v power outlets in many places other than a laundry room, if they have one at all. Certainly, 3 phase power is something that also comes in handy for all power-intensive activities, bitcoin mining included, but many people won’t have access to this essentially more efficient power either. Even if you run your mining machines on 110v power outlets that come standard across the USA, which can be done- it’s a less efficient process and can easily overload breakers.
Believe it or not, even one single ASIC Bitcoin Mining Machine can run with a high-pitched whine at 70 decibels or louder- and, if you have several machines running at one time, it’s akin to a jet engine or something similar. We’ll never say something is impossible, but we will say it is extremely difficult to mine bitcoin at one’s own home under the absolute best of conditions.
Many bitcoin miners are forced to move their operations out of their home due to pressure from significant others and family, or due to the extreme discomfort mining at home can cause. After all, ASIC Bitcoin Mining Machines are professional/industrial grade machines which are not really made to run inside your house per se.
Long story short, you probably don’t want to have an ASIC Bitcoin Mining Machine running in your home because it will make things very uncomfortable for you and your guests. Also, if you have neighbors and try to run ASIC Bitcoin Mining Machines in a normal residential area or apartment- expect noise complaints to follow more often than not.
So, if you want to mine bitcoin but don’t want to mine at home- then, what do you do? To mine bitcoin at a professional level, many individuals will turn to a hosting/colocation company like MinedPool Technologies
3- ENSURE YOU HAVE ADEQUATE POWER FOR YOUR BITCOIN MINING EQUIPMENT!
Ensure you have adequate power for your mining machines and related infrastructure, either at a hosting facility or at home. If you try to run your mining machines at home, ensure you are being as safe as possible to avoid fire hazards and other potential issues. If you choose to use a hosting/colocation and managed bitcoin mining service like MinedPool Technologies and other companies provide, then you don’t have to do anything or worry about anything other than collecting your mining rewards.
Power is obviously essential for running your mining machines, so it is paramount for you to ensure you have the appropriate types of outlets and ample power to run your machines. Also, ideally, you want to be in a location that has a stable power grid in order to ensure you can avoid power outages. After all, having your bitcoin mining machines offline is the last thing you really want to do when you are trying to be profitable.
For any electrical work of any sort, the safest route is to always use an electrician who thoroughly understands their craft. Since it is generally considered not safe for the average person to attempt electrical work without proper training and safety equipment, and for proprietary reasons, we will not share any tips specifically related to how you should set up power for your mining machines…but please be safe at all times, and ideally leave everything to the professionals!
As of now-there’s just no way around it: if you plan to mine a lot of bitcoin, then you need a lot of power. If you have high power needs which exceed the typical 200 or so amps you will find in many homes- you obviously need to find somewhere that has power for your machines or you need to upgrade your power if mining at home. As we already noted, particularly for those in the USA, it is not particularly common to have 220v power outlets readily available in the home- and 220v outlets are what most miners require for optimum efficiency. While it is possible to run some ASIC Bitcoin Miners with 110v outlets, it’s not ideal and that’s just one other reason why mining at home is quite difficult.
4- PICK BETWEEN NEW BITCOIN MINING EQUIPMENT AND USED, AND BE SURE TO LOOK FOR THE RIGHT THINGS!
Some people love shiny new things, and who can blame them? At the same time, some people love to give new homes to lightly used items- bitcoin miners alike. When it comes to ASIC Bitcoin Mining Machines, the newest and most powerful models around are typically a smart decision when feasible. But, in reality, it’s not realistic for everyone to afford the newest and most expensive models of anything- bitcoin miners included- and you can still truly find many amazing choices when looking for used mining machines.
Particularly if you have a penchant for being environmentally friendly, you may strongly want to consider machines that are user or a bit older than the newest edition miners. Why? If used mining rigs aren’t given a good home, then they end up in a landfill. Instead of throwing perfectly usable bitcoin mining machines in to the trash, the best choice for the environment, for Bitcoin, and oftentimes for the miners’ wallets, is to keep mining machines in circulation as long as possible.
When buying new bitcoin mining machines, there isn’t much that should go wrong right away unless the machines are damaged during transit- but you just never know and there are always exceptions. Some models are renowned for their terrible quality and lack of reliability, and some are known for their durability. However, overall, new mining machines should work as intended without much need for inspection.
If you see somewhere with prices that seem too low or too good to be true, you can trust that there is definitely a catch- so, tread carefully if you see a bitcoin mining equipment seller that has equipment priced drastically lower than other places. If the equipment is priced far too low, you can almost guarantee it will be low quality, dented, rusted, often inoperable and/or faulty mining equipment, scraped out of mining farms in China, being sold to you only after the best days are far behind, OR new equipment with a plethora of predatory strings attached and the chance you may not actually get to mine with the equipment you buy for many months after paying. Think about it… a mining vendor selling your machine supposedly cheaper than anywhere else is either, in the best case, giving a great deal because they can do so, and- in the worst case- they are not a legitimate seller at all and/or are selling broken equipment.
Think about this also… if you go to buy some new bitcoin mining equipment, and even find a hosting/colocation provider that sells you a machine supposedly cheaper than anywhere else, but then that company doesn’t let you start mining with your machine for 6 months-9 months or a year after paying, and then the same company also locks you up in a contract where the first year’s agreement is only the start before you have to “renegotiate” with them-it would appear there are issues. This situation would mean your equipment and mining operations are obviously poorly managed at best, and a worst case-scenario (aside from total theft) is your hosting provider is most likely using your “new” machines to help make a profit for themselves and to compensate for the machine costs they could charge, before finally deploying your equipment whenever it suits them best. You don’t want this sort of arrangement, whether you buy new or used equipment, and that’s why it’s best to ensure you find a company that works to speedily deploy your mining operations to ensure you can start stacking some sats as a bitcoin miner as fast as possible.
Make sure you only deal with legitimate companies, like Bitmain/Canaan/MicroBT, and resellers like MinedPool Technologies, eBay, Amazon, Newegg, and others, if you plan to buy new or used bitcoin mining equipment. And, certainly, if you can find top-quality equipment at a great price- it’s always a fine move to get that equipment and to host it with MinedPool or to mine at home.
When buying used bitcoin mining machines, it’s an entirely different activity altogether as opposed to buying new ASIC bitcoin mining machines. There are high-quality used bitcoin mining machines out there that can last for a long time, but there are also some that will arrive inoperable, rusted, and filled with dirt and broken components. Especially if you think there will be some sorts of issues with the machines you are ordering, it is best to pass on them. If there is any way to get pictures of your used machines, obviously it won’t tell you much of a story about the equipment but it will give you a general idea of the physical state of the machines.
When buying used bitcoin mining equipment, it’s best to either use companies like MinedPool that work to find the best suppliers on the planet OR to buy from someone you personally know and trust if at all possible.
Some unscrupulous mining equipment sellers out there, like a couple you will see advertising on reddit, will sell machines that were literally out in the desert in outdoor bitcoin mining operations in China. Obviously, these machines are in terrible condition and never should be sold- but some people choose to do so anyway. For these reasons, sometimes refurbished used machines are not the worst solution around because they may have new components in them. Or, as we do at MinedPool for our MinedPool Mining Pool/Hosting Members, some individuals/companies know how to find very lightly used/great condition bitcoin mining machines that still have a long life left.
5- ACCOUNT FOR SHIPPING COSTS, DELIVERY TIMES, AND MINER DEPLOYMENT TIMES WHEN BUYING YOUR MINING MACHINES.
At MinedPool Technologies, we include shipping costs in any prices you see for bitcoin mining equipment because it is the most transparent way to operate and because it gives you the best idea of total costs for equipment. Also, we try to ensure your machines are shipped as expeditiously as possible so you can start mining as quickly as possible.
There are other legitimate vendors for bitcoin mining equipment online, however the manufacturers themselves are the best source to use if not using a trusted third-party supplier like MinedPool. When you are buying mining machines from sites that are trying to hide something or mislead you, they are not going to show you the costs of shipping until the end because shipping mining machines far distances can be a costly endeavor and prices look much lower without shipping added (even though the prices you see for mining machines are not the true costs until shipping IS included, obviously).
For an example of how shipping costs can increase the price of your bitcoin mining machines significantly, take an example of ordering from China’s Bitmain or third-party suppliers in China and shipping to anywhere in the USA will incur a 25% import duty fee, plus an additional tax of 2.76%, plus other local taxes/fees, so oftentimes equipment costs are 30% or more above the listed retail price once you actually find out your “door to door” price. Even shipping within the USA or within any other country can be somewhat costly, because mining machines are rather large and heavy items which also must be treated carefully due to their fragility.
Also, whether we like it or not- it seems that shipping of bitcoin mining equipment from China to the USA, and to other locations around the world, almost always takes a bit longer than anyone would like due to customs/import issues, global shipping backlogs, and other factors. So, long story short- plan accordingly.
Now, importantly, shipping is only part of the puzzle when it comes to getting your newly purchased bitcoin mining machines to officially start mining bitcoin. Your mining deployment time is the next factor you must consider after shipping in order to fully understand your mining equipment’s potential for profitability over time.
Think about it- if a company supposedly has machines available for you, but then makes you wait for 6 months or 9 months or more before letting you start mining…is that really a good deal? NO- the answer is no. When you factor in all the time you lose by not getting started mining as fast as possible, and you start to understand all the money you have lost by not earning bitcoin mining rewards for months despite owning machines, then you start to understand even further that some things are truly not worth your time. Some bitcoin miner hosting/colocation companies like MinedPool Technologies, however, not only won’t delay you for ridiculous amounts of time, but will even work strenuously to deploy your mining operations quickly after your machines arrive. So, just like with every other aspect of life- whether you’re talking about buying bitcoin mining equipment or hosting/colocation for bitcoin miners, remember that not all bitcoin mining companies are created equally. If you are planning to mine at home, you ideally will have your infrastructure in place before your mining machines arrive for the fastest bitcoin mining deployment times- but you may not always find this feasible depending upon your level of commitment and need for equipment, or power upgrades, and so on.
Overall, buying bitcoin mining equipment is not extremely hard- but, it does pay to do your research. Hopefully, now that you have a bit more information, you will feel like a real pro the next time you go to buy bitcoin mining equipment. Thanks for reading this article from MinedPool Technologies, and be sure to watch the MinedPool Blog closely for all the latest and greatest news about Bitcoin, Bitcoin Mining, Crypto News, Bitcoin Mining Equipment, and more.