Zcash Mining: The Complete Guide
This article describes the best way of Zcash mining and what this Altcoin actually is. Later in the article, there’s a step-by-step guide to mining the Zcash cryptocurrency. It’s pretty easy to mine Zcash – you don’t have to download a full blockchain or run the program in command-line mode.
Fans of AMD cards are better off mining Ethers. Zcash mining with the EWBF miner is a great way to earn money with your hardware. The program is specially optimized for the CUDA core from NVIDIA and allows maximum performance when mining.
Zcash Mining: The Benefits
Zcash can easily be traded against Bitcoin. This means that mining Zcash is the cheapest way to gradually build a position in the expensive cryptocurrency. Bitcoins can later be exchanged for the classic currencies, so Zcash mining can help to improve the account balance.
Additionally, some large exchanges allow the direct trading of ZEC to the dollar or euro. Zcash mining can be a great way to get started in the cryptographic money market.
Zcash mining and cryptocurrency storage should follow the old adage of buying cheap and selling high. Granted, most enthusiasts have no idea about technical analysis, so simply buy and sell them at the most inopportune time. They invest money at the peak of growth and sell during the correction – a typical strategy for long-term trends.
Profit and Loss Account
When you buy the equipment and then mine a cryptocurrency, you are investing in a sought-after asset. Its value in the secondary market is maintained at a high level and sometimes even exceeds the purchase price.
The GPUs purchased for mining in 2015-2016 often exceeded the original price in 2017 due to the market demand. You can also sell the equipment for mining after a while on the secondary market and earn some money as well as recoup your initial cost – and the mined cryptocurrency will be a nice bonus.
The Hashing Speed, Complexity and Price
Since the launch in the fourth quarter of 2016, the hashing speed of the Zcash network has skyrocketed. However, the time to calculate the blocks is not reduced. The Zcash blockchain adjusts the complexity of the block automatically to keep the average time for a block. The complexity is closely related to the speed of hashing. This year it is rising exponentially.
The bottom line is that the computing power of the network is following the explosive price increase that began in May 2017. In just a few months, ZEC quotations rose from $50 to $400.
How Can You Calculate the Profitability of Mining Zcash?
It’s time to do some economic calculations. At whattomine.com you can find the latest data and prices, the block calculation time and the hash speed (in millions of operations per second or MH/s). Select the model of your graphics card and the information about hashing and profitability will be shown (Zcash must be selected for the calculation of the “”Equihash”” algorithm).
What You Need for Zcash Mining
To mine ZEC, you must first do the following:
- Select the basic mining equipment
- Select additional equipment (power supply, cooling)
- Connect to the pool
- Install the mining program
Formally, Zcash is also mined on the CPU (with processor power). However, this is inefficient; electricity costs are likely to be too high. Therefore, the optimal option is a graphics card (GPU) or even a farm. GeForce cards (GTX1060, GTX1070, GTX1080) are recommended for building farms.
Here is an approximate profit calculation (excluding the cost of the graphics cards) for a 4x GTX1080 farm, taking into account the electricity tariffs, the current exchange rate and the complexity, there are $11 of earnings per day, resulting in an annual revenue of $4015.
Do not forget the cost of additional equipment. When ZEC is mined, the cards heat up, requiring a cooling system, and the most important thing is the history and complexity of the network. These variables are subject to change.
Note that the cost of four GTX1080 cards is about $3,000.
Potential pools for mining are Nicehash, MinerGate, Claymore and EWBF.
Instructions for Starting the Mining
The first step in ZEC mining is to open your own wallet. It can be a software wallet like Zcash4Win, a hardware wallet (e.g. Ledger Nano S, TREZOR) or an online wallet. We recommend staying with the last option. Go to Cryptonator.com and open an account by just entering your email address and password.
An activation link will be sent via email. After activating the account, log in. You will be asked immediately to select the purses you want to open. This list also includes Zcash. Just click on the wallet and it will be created.
All that remains is to generate its address. Click the appropriate button and then “”Next”” and then your wallet will be ready for use. Then choose the MinerGate pool. Go to the site and open an account there. After registering and activating the account, enter the Zcash pool information in your personal area.
Now you have to download the software for the miner. We chose Claymore. Download the archive with the latest compatible version. Extract the archive, open the configuration file and enter the email address that you used when registering for MinerGate instead of the characters in the -ZWAL line.
Run the ZecMiner64 file and Zcash mining can now start.