Cryptocurrency mining is essential for validating and confirming new transactions to the blockchain and preventing terrible actors from double-spending. For it to work, miners need ultra-high-powered computers, mining hardware or tools to solve complex maths problems for coins.
With crypto increasing demand, many specialised mining hardware and tools are now available. For that, we examine the best crypto mining tools available in Nigeria and the world.
What is crypto mining?
Crypto mining is the method of verifying crypto transactions and adding new blocks to the blockchain. To verify the transaction, miners must solve a massively complex mathematical equation. Whoever does this first gets a block reward which comes in the form of newly-minted cryptocurrencies.
Thus, it can be profitable to mine cryptos as long as you’re the first to solve the puzzle and receive more than your mining costs. Crypto mining in Nigeria has become a popular way to get passive income. To get started with it, you’ll have to know which tools to use first.
How does crypto mining work in Nigeria?
There are three main methods for acquiring Bitcoin and other cryptos. You can purchase them on an exchange such as Binance, accept them as payment for services or products or mine them online.
Mining is a virtual process involving large, decentralised networks that verify and secure blockchains. It requires high-quality computer hardware and a large amount of energy source.
If you want to try your hand at this work, you must have the tools for crypto mining, as it requires trillions of computing power. To understand more about it, here are the basics you’ll need to start mining Bitcoin:
- Setting up a crypto wallet
Set up a crypto wallet before you mine. This is where you will keep any crypto you earn from your mining efforts. A wallet is a secure virtual account that allows you to keep, send and receive Bitcoin or other cryptos. Exodus, Binance, and Coinbase are just a few exchanges providing Africa’s best crypto wallets.
- Choosing a cryptocurrency
Mining is the process of confirming the transactions of cryptos and making new coins. When mining cryptos, choose which crypto you want to mine. This is because mining different cryptocurrencies vary depending on the protocol.
- Picking a mining hardware
The hardware is the most expensive aspect of Bitcoin mining. To successfully obtain Bitcoin, you’ll need a powerful computer that consumes massive amounts of electricity. The hardware expenses frequently reach $10,000 or higher. You’ll need to set up a specialised mining rig.
The exact rig you’ll need depends on the currency in question. For example, Bitcoin is commonly mined using application-specific integrated circuit (ASIC) rigs, costing thousands of dollars each. On the other hand, if you want to mine Ethereum, using ASIC rigs isn’t a good decision since Ethereum uses the Ethash algorithm, meaning Ethereum is an ASIC-resistant crypto. The needed Ethereum mining rigs are the power supply unit and the GPUs.
- Joining a mining pool
You can run a rig alone and shoulder all expenses or join a mining pool to get some benefits. In pool mining, a miner collaborates and shares their resources with the other pool members. This means splitting some of the high costs of mining.
However, shared resources mean shared rewards. Your potential payout is thus smaller when working in a pool. But if you don’t have a lot of computing power, pool mining can be a good way to get started in mining.
- Choosing a mining software
You will need specific software besides the hardware. Once the required hardware and the software are linked, you can mine Bitcoin. You can find many mining software providers which are free to download and run on Mac and Windows computers. Some options, like CGMiner, are open-source and cost nothing, whereas others, like Awesome Miner, charge a fee.
- Verifying transactions
Crypto operates on a decentralised computer network or distributed ledger that records crypto transactions. But before these transactions are permanently recorded on the blockchain, network computers verify them through mining. Afterwards, they’re processed and become irreversible.
- Uploading new blocks
Block contains some or all of the most recent transactions the network has not yet verified. For miners to create a new block of transactions, they must solve a maths problem first. Afterwards, the consensus method adds the new block to the blockchain. As a result, it incentivises the miner who solved the problem with what is referred to as the block reward.
- Getting rewards
The block reward depends on the crypto and its protocols. In Bitcoin’s case, they receive 6.25 BTC. The reward amount will be cut in half in 2024 and every four years after that. That process is called Bitcoin halving. It should be noted that as mining difficulty increases, the reward will keep decreasing until there are no more Bitcoins to mine. The winning miner will almost always claim a block reward by including it in the first transaction on the block in question.
Best cryptocurrency mining tools in Nigeria
Crypto mining, especially Bitcoin, can be highly profitable, but it requires a power-hungry computer and a deep knowledge of blockchain. To be productive and profitable, you also need the best mining tools, crypto wallets, hardware, applications, and many more.
In mining, having the best crypto-mining tool makes the difference between getting the rewards and not. Here, we list all tools you need to mine crypto well.
Mining Bitcoin requires specialised Bitcoin mining hardware known as application-specific integrated circuit devices or ASICs. There are many ASICs on the market today. When evaluating ASIC hardware for Bitcoin mining, consider the power of the hardware versus the power it draws and the cost of electricity in your area. Because ASIC hardware is highly specialised, miners can mine faster using less electricity.
Antminer S19 Pro ASIC Bitcoin miner
The Antminer S19 Pro ASIC Bitcoin miner is currently the best crypto mining tool for Bitcoin and other SHA-256 cryptos, given it has the highest hash rate. Despite that, it also consumes less power, making it more energy efficient.
Additionally, it features a next-gen 5nm chip, 4 cooling fans, a 12 V supply unit and Ethernet connectivity that results in a more efficient performance.
Miners used to mine using CPUs, but the results depreciated, so they shifted to graphics processing units (GPUs) instead. Compared to CPUs, GPU hardware is optimised to handle heavier workloads, with greater processing power and higher memory bandwidth. But for a GPU to perform well in mining, you need a high-performance and powerful mining one with high hash rates.
NVIDIA GeForce RTX 3060 Ti
It takes a lot for a GPU to be acknowledged as the top pick since it’s made for computers and not mining specifically, but the NVIDIA GeForce RTX 3060 Ti succeeds in doing just that. Once everything is optimised, it has a hash rate of roughly 60MH/s, and the modest 200W TDP makes it easier to control heat output while maintaining a high-efficiency level.
Running the proper software on your machine is equally important as finding high-quality hardware. Many cryptocurrency mining software options are available, each with unique features and support for specific use cases.
CGMiner is one of the first Bitcoin mining software on the market, providing an open-source mining programme compatible with a wide range of mining hardware designs and operating systems. It also offers many customisation options, enabling users to regulate fan speeds, overclock their processors and set up remote control of their devices.
A powerful Bitcoin mining software called Awesome Miner provides centralised control over your mining farm or pool. It is intended for large-scale crypto miners. Its well-designed user interface supports many cryptos, and lets users view all their mining activity in one location.
Crypto mining requires more than just graphics cards. This is where the power supply comes in since those graphics cards need lots of clean, stable power.
The Corsair RM850x is one of the market’s most popular consumer desktop power supplies. This power supply can easily support a current and a strong graphics card, or you can use two graphics cards with less consumption for a better experience.
The main benefit of joining a mining pool is combining hash rates with other people to make up a bigger total more likely to win a block. That’s why crypto miners get more payouts when mining together than solo, even if they share rewards. You don’t have to invest in a high hash rate when mining in a pool to win a block, unlike when mining solo.
Slush pool is one of the biggest crypto mining sites, with over 15,000 miners from countries in Europe, the USA, Russia, Singapore and Japan. You can mine Bitcoin and Zcash coins safely in this pool, thanks to its security toolkit, including 2FA and cold storage locations.
One of the big problems of crypto miners when it comes to mining is controlling the heat of their mining rig. That’s when the cooling system comes in handy. To achieve the best performance without overheating, ensure your crypto mining rig has a cooling system.
JetCool’s closed-loop water cooling solution is a low-maintenance, easy-to-deploy cooling option for miners. Their water cooling solutions provide improved overclocking, 50% energy savings on cooling and 97% cost reductions on fluid expenses.
Digital wallets are like banks, where you send cryptos and store digital asset keys and mining rewards. These maintain your private keys or passwords for easy access to your cryptos securely and conveniently. The public key is a wallet address for receiving funds, whereas the private key is for you to access your funds.
A reliable wallet means better protection from scammers, so choose a trusted digital wallet like Metamask, which offers reliable security and faster transactions. Since cryptos are high-value targets of hackers, digital wallet security is essential. Check the best Bitcoin wallet in South Africa to find digital wallets in Nigeria.
Criteria for the best cryptocurrency mining tools
Since Bitcoin’s creation in 2009, the network has grown, which has made mining and securing BTC more complex. Because of this, miners need to shift to powerful mining rigs and other tools to keep up with the demand. However, choosing which tool to use requires intensive research considering their high prices.
To help you make your choice, here’s a list of criteria to consider when looking for a mining tool:
- ashrate – You should have a high hash rate hardware because the higher the hash rate, the more likely you are to solve the next block in the BTC blockchain.
- Power consumption – You should look into the power consumption of your mining rig, including its efficiency in terms of hash rate and overall energy consumption. You need to have sufficient energy to be profitable. Otherwise, electric costs may be higher than any mining payments you receive in return.
- Efficiency – Bitcoin mining involves converting electricity into Bitcoins. That’s why focusing on energy efficiency is a good place to start when choosing Bitcoin mining hardware.
- Cost-effectiveness – Bitcoin mining gear costs vary according to operational efficiency, durability and processing power. Cheaper hardware will typically result in lower profits and efficiency.
- User-friendliness – Ensure the Bitcoin mining tool or software has a web-based or graphical user interface that makes operation much easier.
Pros and cons of crypto mining in Nigeria
Like crypto trading, mining has surged in popularity in Nigeria because of its advantages, such as an extra source of income and high secured process. However, some people prefer not to take a risk because of its disadvantages, like requiring a costly crypto-mining tool. Let’s take a look at some of the pros and cons of crypto mining.
- Passive income – Mining can help you earn income. Because of the high block rewards, people with powerful mining rigs have a higher chance of making more than those who trade and invest in cryptos.
- Parallel crypto trading – After earning crypto from mining, you can immediately sell or trade it to generate more profit. You won’t have to convert fiat to crypto.
- High security – It is difficult for hackers to access your computer system and steal your money through mining because it relies heavily on the blockchain network to confirm a transaction, so it cannot be faked.
- Costly – When setting up mining rigs, you need to spend a large amount of money because mining rigs’ hardware and other equipment are pricey.
- Risks – Crypto, in general, is a risky venture because of its fluctuating price. Because of crypto volatility, other people aren’t taking any risks.
Tips before choosing the best crypto mining tools in Nigeria
Selecting mining tools, cryptocurrency wallets and a crypto mining app in Nigeria may look easy, but it’s challenging. To become a successful miner, you must choose the necessary mining tools like a GPU, CPU, ASIC or mining pool.
It is very complex, but here, rest assured, you can learn it quickly. Here are a few tips that can help you along the way:
- Mining objectives – Identify your mining objectives before entering the crypto mining world. Which crypto do you want to mine? Is it Bitcoin or Ethereum? This is important because there are tools for specific cryptos only.
- Budget – Know your budget when entering crypto mining because it can be costly depending on the mining rigs you want to get.
- Knowledge – You must have sufficient knowledge about crypto mining and crypto, in general, before entering because there are a lot of technical words you will encounter along the way. Make sure you know your crypto terms first and foremost.
- Energy – Ensure you assess the crypto mining apps you are using. Is it energy efficient? Because if not, it will consume energy that costs a lot of money.
- Mining tools – There are a variety mining tools available, and before buying one, make sure you examine and try it first. Ask yourself these questions: Is it beyond my budget? Is it energy efficient?
Choose the best crypto trading tools and be the best trader
If you want to be a successful miner, have the best crypto mining app and tools in hand. This begins with knowing how to choose the best mining tools for cryptocurrency. Each tool listed above offers advantages, but the decision is up to you depending on your preference and desires.
To succeed, have the best crypto mining app and tools. This begins with knowing how to choose the best mining tools for cryptocurrency. Each tool listed above offers advantages, but the decision is up to you, depending on your preference and desires.
Crypto mining tools FAQs
What is the best crypto-mining tool?
CGMiner is one of the best crypto-mining tools, especially for experienced miners.
What tools are needed in crypto mining?
The tools you need for crypto mining are computers, a power supply, a cooling system and a digital wallet.
How do I start crypto mining in Nigeria?
Crypto mining in Nigeria is legal, so it is easy to start this business. All you need are the necessary tools to start mining.