Most would agree that 2021 saw a huge increase in popularity for both memecoins and cryptocurrency mining. Tokens such as Dogecoin (DOGE) soared thousands of percent during this time, and a handful of crypto mining companies went public. Shiba Inu is a memecoin that has gained immense popularity. Here’s how to mine Shiba Inu in 3 short steps.
How to Mine Shiba Inu (SHIB)
Mining is a system used on proof-of-work (PoW) blockchains. This method allows computers to compete for the right to verify transactions and earn a reward. While Shiba Inu cannot technically be mined, you can tap into workarounds to earn SHIB in exchange for staking, which is a passive process similar to mining.
How to Stake Shiba Inu Tokens
- Buy hashing power.
To mine a cryptocurrency, you need a powerful computer. The more powerful the computer, the more hashing power, or hash rate, it has. You can mine Shiba Inu with either a central processing unit (CPU) or a graphics processing unit (GPU). Typically, GPU mining is more profitable as it can offer more hash rate per dollar.
The best CPU brands are from Advanced Micro Devices Inc. (NASDAQ: AMD) and Intel Corp. (NASDAQ: INTC), while the best GPU brands vary. Several companies produce GPUs, such as MSI, Gigabyte and EVGA. While all the brands are fairly similar, it is important to research prices and hashing power before making a purchase.
- Join a mining pool.
A mining pool collects all the hashing power from everyone in the pool and uses it to grab a larger share of computing power and generate larger rewards. Almost all mining operations, whether they are large scale or at home, are part of a mining pool because that system can greatly increase payouts and automate several processes. However, fees are involved when using a mining pool.
For Shiba Inu, the best mining pool is unMineable. This pool allows you to mine other tokens that it automatically converts into Shiba Inu and a variety of other cryptocurrencies. Additionally, the pool has a straightforward process that shows you the exact steps needed to begin mining on their pool.
unMineable charges a standard 1% mining fee. However, if you have a referral code, you can lower this fee to 0.75%.
- Monitor the markets and withdraw to your cryptocurrency wallet.
When you first begin mining, you provide a valid wallet address. This address allows the pool to keep track of your mining statistics and pay you when the time comes. Because of this requirement, it is important to have a secure wallet and wallet address when mining crypto.
Another reason to have a secure wallet address is that mining pools are not as safe as wallets. Since the pools gather the rewards for all members, they are often targets for cyber attacks. Because of this, it is important to withdraw your rewards from the pool often to mitigate risk.
Ledger hardware wallets and Coinbase Global Inc.’s (NASDAQ: COIN) software wallet are two of the best options for those looking to obtain a wallet address that is trustworthy. Ledger offers a physical device that stores the private keys needed to send crypto. Essentially, crypto cannot be sent from the wallet without the physical device present to verify the transaction. Coinbase’s software wallet uses a variety of safety measures to keep your funds safe, ranging from cold-storage to two-factor authentication.
How to Stake Shiba Inu (SHIB)
As you cannot directly mine SHIB, staking is a great way to earn a bit extra if you feel strongly about the project. Staking is a process used on proof-of-stake (PoS) blockchains. The process allows validators to give some of the token to the blockchain as collateral in exchange for the opportunity to verify transactions and earn a reward.
The best place for beginners to stake SHIB is on Crypto.com. To do so, navigate to the app. Create an account using an email and password, connect your bank account and begin trading. Use your bank funds to purchase SHIB. Then, navigate to the “earn” section and select SHIB. You can then stake your position. Depending on the length of the term, you can earn anywhere from 0.5% to 2% APY on your SHIB.
Most Profitable Cryptocurrency Miners
unMineable supports both CPU and GPU mining. However, GPU mining is often much more profitable. Here is a list of the most profitable GPUs in 2022:
- GeForce GTX 1060 6GB: These GPUs are several years old but can still pack a punch in terms of mining. You can expect to grab one for about $300 and earn around $0.17 a day for a potential ROI in just under 400 days.
- Radeon RX 570 8GB: Another older GPU, its mining abilities help it maintain relevance. They sell for an average price of around $350 and can generate around $0.13 per day to get a potential ROI in a little over 400 days.
- GeForce RTX 3060: This GPU came out last year and can easily generate over $0.72 per day. However it is expensive, with an average selling price of just over $700 and a potential ROI of around 430 days.
What Is the Best Cryptocurrency to Mine?
For the past several years, Ethereum (ETH) has consistently been the best cryptocurrency to mine as it offers the highest rewards and is relatively accessible. You can also mine ETH with CPUs and GPUs.
Another popular token to mine is Ravencoin (RVN). This token offers decent rewards with comparatively lower competition. If you are looking to gather lots of RVN in hopes of it appreciating, it could be a good choice.
While ETH and RVN are some of the better options in terms of mining, both still pose risks. For instance, if more computing power is introduced to the blockchain, then your computing power becomes less valuable. Additionally, the price of the token can go down drastically and decrease your profits.
Should You Mine Cryptocurrency?
When considering whether or not to mine cryptocurrency, it is important to take into account a couple factors, such as future changes to the token and your risk tolerance.
A prime example of a token changing is ETH. The crypto community has been making noise about the upcoming potential release of ETH 2.0, which will do away with mining. Many believe that this transformation could bring an end to mining, as there will be far more hashing power than necessary for the remaining PoW blockchains.
It is also important to consider your own risk tolerance. For example, if you are willing to take the risk and expect that RVN will go up, then it may be a good option. However, if you are more opposed to taking a long-term risk, then it may be better to just purchase the cryptocurrency directly.
Where to Buy Shiba Inu (SHIB) and Other Cryptocurrencies
It may be that buying the cryptocurrency avoids risk more than mining, which could also be true in the case of SHIB. More specifically, factors such as hashing power competition and energy costs may impact overall mining profitability for SHIB. In that case, it may be better to purchase the token.
Gemini, eToro and Webull are among the best crypto trading platforms for those looking to purchase SHIB. Creating an account is simple, and most users can begin trading within the day.
Frequently Asked Questions
What is mining BItcoin?
Mining Bitcoin is the proof of work census mechanism that verifies Bitcoin transactions on the blockchain and creates new Bitcoin.
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