Mining for Crypto

bigpanda (66) in cryptocurrency • 7 years ago

I just recently finished setting up my first mining rig. It seems to be functioning well and producing a consistent output.

It all started about two months ago. I began to see the allure of mining for cryptocurrencies. I'm a bit of a treasure hunter by nature. I've been on many hikes around the western US searching for lost coins, mines, and other treasures hidden by the mists of time.

As I have become more and more involved here on Steemit and with various other cryptocurrencies in general, I began to see that mining for various cryptocurrencies is a bit like searching for lost treasure--but with a much more reliable return.

I finally decided to set up a mining rig. It took a bit of work, a bunch of learning, and a bit of investment, but my rig is all set up and running.

I am currently mining for ZCash and have a question for anyone else that might be mining for the same.

I am set up on the Flypool and receive somewhat regular deposits of small amounts of ZCash. I am currently sending these deposits to a JAXX wallet.

Where do you send your mined ZCash? I'm not sure JAXX is really the best wallet to use for mining. I'd love to hear which wallet you use for your mining returns.

**The picture is mine taken with my phone and altered with paint.net

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cryptocurrency mining zcash crypto blockchain

7 years ago by bigpanda (66)

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steveuk (59) · 7 years ago

I used to mine for bitcoin, just before it reached $1000, but when it fell dramatically it was pointless with the cost of electricity in the UK so I sold my rig.

Not sure about your wallet as I have been out of mining for a couple of years, but I'm sure there is help on google.

Good luck with your treasure hunt, and great to see you back on steemit.

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2 votes

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bigpanda (66) · 7 years ago

I wish I had been more alert to the opportunity of mining back when Bitcoin was around $1000.

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dhouse (57) · 7 years ago

Trezor supports Zcash. Get a hardware wallet, for sure!

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2 votes

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bigpanda (66) · 7 years ago

So do you know anyone that mines directly into their Trezor. I've read a bit about doing it and it seems people are split--some say yes and some say no, but I can't really see why I shouldn't.

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oleg326756 (64) · 7 years ago

Because the device's memory is limited and you shouldn't overwhelm it with a huge amount of small transactions. The best option would be to send your mining earnings to a desktop wallet (for example Exodus) and then do periodical withdrawals to your Trezor (like once every two months). That's how I do it with my Bitcoin and Dash mining earnings, anyway. Good luck!

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dhouse (57) · 7 years ago

If this is true then my entire understanding of how blockchains work is upside down and nothing makes sense.

I would be shocked and amazed if there was an issue with mining to a trezor wallet. Doesn't mean there isn't an issue, i have been known to be wrong quite a bit haha. But it doesn't make an ounce of sense to me.

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dhouse (57) · 7 years ago

What i mean is, your trezor doesn't have to be on. And amendment toy turn out on, it'll sync with blockchain like normal, shouldn't matter how many transactions there are. It's not going to "lose" your coins, it's all on the blockchain

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oleg326756 (64) · 7 years ago (edited)

Here’s a post that gives the same recommendation as I did:

It is not recommended to receive mining payouts to a hardware wallet (Ledger Nano, KeepKey, Trezor...). Hardware wallets are intended more as a long term savings account with few transactions, and less as a current account.

Solution

Instead it's better to consolidate the transactions on an online/local account and transfer them periodically to the hardware wallet.

It also quotes Ledger and Trezor’s knowledge databases on this issue:

Official explanation from Ledger:

If you have mining activities and receive multiple small payments, also called "dust payments", on your hardware wallet, it can saturate the synchronisation of your Blockchain transactions, and cause an unexpected length during every validation or verification processes. This issue is due to the unexpected number of small unspent transactions coming from your mining activities that your hardware wallet can hardly achieve to spend all in once.

Official explanation from Trezor:

In general, it is not recommended to direct pool payouts to hardware wallets like TREZOR. All hardware wallets have limited computational power, especially when compared to a desktop computer, and thus require more time to sign a transaction. This is not an issue with normal transactions, but when spending pool payouts, this can severely prolong the time required. Consolidate your pool payouts in an external wallet and then send your savings to your TREZOR. Alternatively, increase the threshold for pool payouts directed to your TREZOR, so that you don’t receive small amounts every day.

I hope it makes more sense now! :)

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