There are many things cryptocurrency fans can do to earn money. Dash mining’s one of them. Read this tutorial and see what Dash is all about. If you like what you read, consider Dash mining for yourself.
We’ll tell you everything you need to know to get started in this tutorial. What’s dash mining, what hardware do you need, how much can you expect to mine? These are all questions we’ll answer.
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Are you ready to learn how to mine a dash coin? Let's go!
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Table of Contents
- 1. What’s Dash Mining?
- 1.1. What’s Dash?
- 1.2. How's Dash Mined?
- 2. What Do I Need to Mine Dash?
- 2.1. Hardware
- 2.2. Why Is Hashrate Important?
- 2.3. The Cost of Dash Mining
- 3. Mining Pools
- 3.1. What Are Mining Pools?
- 3.2. How Do I Join A Mining Pool?
- 4. Cloud Mining
- 4.1. What's Cloud Mining All About?
- 5. Okay, What Else Do I Need?
What’s Dash Mining?
Before learning what dash mining is and what you need to get started, we first have to discuss the Dash coin itself. Who knows, you may find the idea of Dash ridiculous and have no wish to get involved with Dash coin mining.
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Dash is an altcoin. Its founders created the name by combining the words digital and cash. It's an altcoin aimed at making a cryptocurrency, which is useful for payments. It’s gathered by a process known as Dash coin mining.
Everyone advertises cryptocurrencies as the next evolutionary step in finance. That’s not the case. The UI (User Interface) is too complicated. The payment process takes too long. It's hard to use in real life.
Dash promises to solve these problems.
This cryptocurrency reroutes miner incentives to speed up the entire system.
It's standard that the miner who solves the hash function gets the full reward. The Dash system splits the reward in three ways. 45% goes to the miner, 45% goes to the Masternode, and 10% falls to the treasury.
What are Masternodes? They are users who own at least 1,000 Dash and agree to keep their system online 24/7. Masternodes maintain Dash's InstantSend and PrivateSend functions and vote on critical business decisions.
It's expected that Masternodes will wish to make the best decision for all. After all, the 1,000+ Dash they own incentivizes them to make sure that Dash is successful.
altcoin - cryptocurrency released after the success of Bitcoin.
hash function - a difficult math problem that encrypts the blockchain.
miner - blockchain user who uses his computer to solve hash functions. Solving the function first rewards the miner with the corresponding coin.
How's Dash Mined?
Before learning how to mine Dash coin, you need to learn what’s needed to do it at all. The process for mining Dash is the same as in every other cryptocurrency. You set up your computer, connect it to the Internet, and leave it alone.
People all over the world make transactions every second and record them. The problem is that people may try to dupe the system.
To prevent this, the Dash blockchain uses a concept known as Proof of Work and miners.
Miners' computers get a math problem to solve. This math problem gets more difficult the more miners there are at the same time. The one who solves it first gets to create the new block in the blockchain.
With this Proof of Work, the miner earns Dash for his efforts. Now, the rest of the blockchain checks the miner's version of the ledger against their own.
If the two matches, the blockchain reaches consensus and the process starts again.
The people who perform Dash coin mining operations are essential to the blockchain’s functionality. It’s important to work that can also get very well compensated with some powerful equipment to help.
What Do I Need to Mine Dash?
You need two things to start mining Dash: a computer and an Internet connection.
There are three distinct ways to get into Dash coin mining. You can use your computer's CPU. You can run the process through the GPU. Or you can use specialized ASIC computers.
The CPU-based Dash mining process is the cheapest. It's also the slowest. The CPU is much slower than the other two options. One of the best consumer CPUs on the market, the Intel i7 8700k has a hashrate of around 500 h/s.
Mining Dash with your GPU is more expensive but also faster. A $900 NVIDIA GTX 1080Ti could get up to 32 Mh/s, a more than a significant improvement over CPU mining.
The best and recommended way to go for Dash mining is using an ASIC computer.
ASIC (Application Specific Integrated Circuit) machines are tailor-made to perform specific tasks. In this case, it’s solving hash functions that are involved in Dash mining. We will talk more about them in the next section.
What is an ASIC computer?
ASIC computers are machines tailor-made for a purpose. In the case of X11 ASIC machines, that purpose is Dash mining. The makers of these processors strip out everything unnecessary, even Facebook. Yes, we are horrified too!
As a result, the hashrate ASICs have is incomparable to what even the best GPUs can put up. The $133 Bitmain Antminer D3 has a hashrate of 17 GH/s.
For comparison's sake:
- i7 8700k = 500 hash/s
- GTX 1080 Ti = 32,000,000 hash/s
- Bitmain Antminer D3 = 17,000,000,000 hash/s
Antminer D3 isn't even the best ASIC by any means. There are machines with even 540 GH/s and a price tag of more than $15k.
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Why Is Hashrate Important?
We have dropped some hashrate numbers on your head but haven't talked about why they're important in Dash mining.
In plain terms, the hash rate represents the hash function solving speed. Maximizing hashrate is vital.
Because only the first person to solve a hash function gets compensated with Dash. If your system is too slow, you will never get paid.
The Cost of Dash Mining
While it's true that Dash mining doesn't glue you to your seat, it does have some costs attached outside of time investment.
First of all, you will need to buy an ASIC for mining. The machine doesn't run on hopes and dreams. It requires electricity to function. It takes 930W to run the Antminer D3, and it's one of the less power-hungry ASICs.
If that wasn't enough, the system runs at full throttle 24/7, which results in it getting worn down and turning the room it’s in into a sauna. Buying an ASIC and expecting it to last you several years isn't realistic.
So, you have to pump electricity, maintain your gear and keep the machine cool. The effort isn't worth it if you don't earn a single Dash because your system is too slow, is it?
If you started rethinking the whole Dash mining idea after reading the last section, good! Keep on reading to learn how the real Dash miners do it.
What Are Mining Pools?
As you might have noticed, dash mining can be an expensive and fruitless activity. People of the Internet found a solution (of course). That solution is mining pools.
The idea behind mining pools is that the more people work on a problem, the more chance there is of winning. Think about it like this:
You can paint a fence alone in an hour or ask three friends to help and paint it in 15 minutes.
A Dash mining pool connects computers all over the world with a single purpose: mining Dash. These computers all tackle the same math problem while sharing processing power.
Let's say that the pool wins the right to create the next block in the Dash blockchain. Now, everyone who participated gets a part of the Dash the pool won. The size of the reward depends on the amount of work you put in. And that brings us back to hashrate.
How Do I Join A Mining Pool?
The first thing you want to do is hop on the dash.org forums and see what’s being said about dash mining in a pool. Reddit and skeptic-minded google searches are also a fabulous idea.
We could give you a list of our favorite mining pools, but a smart man said once: give a man a fish, and you feed him for a day; teach him how to fish, and you feed him for a lifetime.
You want to learn to fish, right?
Without a specified mining pool to go to, we can't tell you how to set it up. Even if we did, they might change something by the time you read this tutorial.
It's fair to say that any reputable and successful mining pool will have tutorials. After all, People = Processing Power for a Dash mining pool.
There is no doubt, Dash mining with an ASIC gives you the best hashrate. Joining a good mining pool helps you to get a constant trickle of Dash instead of a flood when you get lucky.
Electricity costs and maintenance work might bite a chunk out of your profits, though. For a tech-loving Dash miner, it could be part of the fun. What if you aren’t a techie and don’t want to fiddle with the hardware, though? Cloud mining takes care of that.
What's Cloud Mining All About?
Where there's a problem, a solution always comes up. Cloud mining is the solution. It's a godsend for the dash miner who doesn't want to pay more for electricity and maintain the rig.
Cloud mining services work by offering dash mining rigs to rent. You pick the plan you want, pay for it and start mining.
The more you pay, the higher the hashrate you get. The higher the hashrate you get, the more Dash you earn. When you earn Dash, the cloud mining service takes a small cut. It's used to pay for electricity and hardware maintenance on their end.
Let's say that you paid $500 for a 2-year plan with the hashrate of 50 GH/s. The numbers are imaginary, by the way. It took you six months to mine enough Dash to cover the $500 expense. Everything you make after that is profit after the cloud mining service’s maintenance cut.
If you buy the service tomorrow and Dash price rockets to $5000 in a week, you would start making a profit much faster too.
The biggest advantage of cloud mining is that your home will not be a furnace.
Cloud mining may sound like the best thing ever, but you should be diligent and conscious of scams.
There are many reputable and trustworthy cloud mining services around the world. There are even more scam sites, which promise you the sky and deliver zilch.
How do you know if the service you're considering is a scam? Perform a diligent Google search, ask around on forums, and take a skeptic look.
If it sounds too good to be true, it could be a scam. If it promises you something for nothing, it probably is a scam.
Okay, What Else Do I Need?
Let's say that you have a machine set up and ready to mine or cloud service you trust and want to try. You know how to mine Dash coin too and are anxious to get started.
Hold your horses, because you still need to set up some other things.
First off, you will need somewhere to keep your Dash. For that, you will have to get a wallet. Your Dash isn't exactly stored in the wallet. After all, it's only a record on the blockchain. Instead, you need a wallet to keep your private key. The public address, which identifies your transactions, ties you to the private key.
Losing or getting your private key stolen is a disaster because there's no way to prove it's yours. Without proving ownership, you can't recover the funds. There are several different types of cryptocurrency wallets, including:
- Hardware wallets
- Paper wallets
- Wallet apps
- Web wallets
Picking your wallet is a crucial decision. Your choice depends on the ratio between the safety and convenience you want.
A hardware wallet is the safest option but also the least convenient. Hardware wallets are small devices that can connect to the Internet when needed. While it's possible that a hardware wallet could get hacked, it's challenging. In comparison, wallet apps and websites are much more vulnerable.
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The best way to store your private key in a place secure from hackers is on a piece of paper. There is no way at all to hack it. The problem is that pieces of paper are easy to lose and burn in the fire.
If you want to use Dash to pay for stuff as it's intended, you will have to risk it with an app or some other practical method. You could try keeping spending money in your Dash wallet app and transfer the rest to a more secure wallet.
As long as you have Dash to lose, being conscious of security is always the best policy.
We hope that this tutorial helped you figure out what is the best way to get your hands on some Dash.