Dash is one of the easiest to use cryptocurrencies in the world, and it has a particular focus to effectively making payments. However, a lot of people try to mine Dash so competition is high. In this article we will outline everything you need to know to make a solid profit mining Dash – including your choice of hardware, setting up your mining rig and how to use mining pools to get a regular income stream.
We will also explain how cloud mining works for Dash, many miners prefer using a third party service for mining because buying and setting up hardware can be complicated and technical.
The security of a cryptocurrency is absolutely central to its functionality. Dash is a great choice in this respect, because it uses the X11 algorithm alongside a Proof-of-Work mechanism. There are benefits to using X11 as the hashing algorithm – X11 uses a combination of 11 hashing algorithm which makes it very difficult to build an ASIC-based mining rig.
It is also more difficult for scammers and hackers to abuse the X11 algorithm, because it requires creating 11 different ASIC mining machines to be able to hack through all 11 hashing functions. In practice, doing so is almost impossible. What does this mean for people who mine Dash? It means that your mining earnings will be safe.
A lot of individuals and groups try to mine Dash which makes mining Dash very competitive compared to other coins. As a result, ASIC mining is currently the most effective way to mine Dash coins – mining with a CPU or a GPU is not feasible when it comes to Dash.
It took a while before a Dash ASIC miner appeared, but a company called Ibelink created the first ASIC mine that can mine coins based on the X11 algorithm. In contrast to the ASIC miners used to mine the SHA-256 algorithm used for Bitcoin, an X11 ASIC miner needs less computational brawn and therefore uses less power.
At the moment there is really one ASIC mining rig which you should consider – it’s the Antminer D3 which is made by a company called Bitmain. This company’s miners are well known for consuming relatively low levels of electricity because they are highly efficient, the company is also set to roll out new models in future. Keep in mind that Antminer usually does not include a PSU when you buy the mining rig, you need to purchase this separately.
When you mine Dash it’s mostly the hardware you need to worry about, and everything related to your mining rig – mainly because you will be using an ASIC mining rig to mine Dash. You do need a wallet as well because this is where you receive your mining proceeds. In summary:
Note that an ASIC miner can generate quite a lot of heat and noise – which brings up a maintenance issue. You need to make sure that your mining rig stays cool at all times, and need to be aware that noise can become a problem under certain conditions. So we suggest you read up on noise and ventilation issues before you start mining.
With regards to your internet connection, note that it’s not just about bandwidth – you should really get a connection with low latency. Low latency means that you can submit your mining results more quickly, which improves your chances of claiming a block reward. If you are on a high-latency connection you might find that you submit your block result after someone else already submitted the same result, and you won’t get the block reward.
Also note that mining means sending quite a lot of data over the internet, this could be about 0.5GB per day so about 15GB per month. On most connections this won’t be an issue but it is worth checking.
Three ways to mine Dash
You can mine Dash in one of three ways – as a solo miner, using a mining pool or by mining in the cloud. In theory mining solo will render the highest profits, but the problem with mining solo is that it can take a very long time to solve a complete block – you could get lucky and find one fast, or it can take an excessively long time to find a block, during which time you’d need to pay your electricity bill.
We think mining in a pool is a better idea because it means that you will get more regular rewards, even if these rewards are smaller on an individual basis. Take care however when you choose a Dash mining pool – look at how the pool distributes rewards, what the latency is to the pool and of course what the fees are.
Your last option for mining is cloud mining – in other words, a third party operates the mining hardware and you rent the capacity. We will cover this further in a later segment in this article.
Setting up a Dash wallet
You need to store your earned coins somewhere, so you need a Dash wallet. Both desktop wallets and mobile wallets will work, as long as the wallet can store Dash coins. If you don’t think you will keep large amounts of Dash stashed away at any given time you should consider a web or desktop wallet as these are easy to use. For storing large amounts of Dash we recommend something hardware-based such as the Trezor or the Ledger Nano S.
Finally, we recap what you need to think about before you start mining Dash:
It used to be possible to simply use a standard desktop computer to mine Dash but the mining difficulty of Dash has gone up – now you need a powerful ASIC rig to mine Dash. ASICs are application specific integrated circuits, ASICs designed to mine Dash are very efficient at solving the cryptography equations that lead to block rewards. ASICs can solve these equations much more quickly than normal computers. As a result, you can mine much more quickly.
Each mining rig has a different hash rate, but you should look at both hash rate and power consumption when you evaluate an ASIC miner – because power consumption will show up on your electricity bill. Our calculator below will help you work out how much you can earn using a specific rig.
It can sound difficult to get a Dash mining rig set up, but in truth it’s not hard at all – it is very simple to do. Below we list all the essential steps you need to take to get your rig ready and up and running to mine.
It’s possible to avoid buying mining equipment and to save on the expense of doing so – and the complexity of setting it all up. If that’s your preference you should consider making use of cloud mining instead.
Cloud mining is popular for a range of different cryptocurrencies and it means that you don’t need to worry about electricity consumed, keeping equipment cool and setting up configurations. It’s simply a matter of signing up for a contract with a cloud mining vendor who “rents” their hardware to you. It’s easy, but you should think about the pros and cons.
The pros of mining in the cloud include the fact that there’s no heat or noise to deal with and you don’t have to worry about your power bill. You don’t own the hardware so won’t suffer the losses when your hardware becomes obsolete. Furthermore, the cloud mining provider will do all the configuration for you – you don’t need to set anything up.
Drawbacks of mining in the cloud include the risk of a scammer or fraudster taking your cloud mining payments and not returning anything. Also keep in mind that you lose a degree of profits because the cloud mining vendor will be shaving off a profit to cover their own costs. Finally, there is a drawback in not owning the mining equipment yourself.
However, setting up with cloud mining is really easy – all you need to do is to choose a provider that you like, and to enter into a contract with them. Think about MinerGate, Nicehash.com and of course MiningRigRentals.
Of course, before you spend money on a mining rig, you need to make sure that you can generate sufficient profits through your mining activities. So, we have provided a simple calculator that can step you through it – providing you with an earning’s estimate base on the inputs provided by you alongside current mining difficulty and of course the price of Dash.
Make sure you enter accurate numbers for your rig’s hash rate, it’s power consumption and the fee charged by your mining pool. When you click calculate you’ll get an output outlining the profits you make on an annual, monthly, weekly, daily and hourly basis. For cloud mining, we only require you to enter the hash rate you purchased, and your mining contract fee.
Note that even though we provide a good indication of your profits, the volatility of Dash prices alongside the variability of mining difficulty can quickly change how much profits you earn – so check back often, and know that your profitability can change quickly.
Can my raspberry pi be used to mine Dash?
Yes, but your raspberry pi is not really powerful enough – it will take forever to mine a Dash coin with it, so we suggest you don’t even try.
Can I make a profit mining Dash?
Yes, but it really depends on a number of variables – our calculator will be able to tell you, based on your inputs.
What are the laws around mining Dash?
Most countries do not have any laws governing cryptocurrency mining, but note that you might need to pay taxes on your mining revenue.
Can I use my phone to mine Dash?
Android or iOS handsets can be used to mine dash, but it would be almost impossible to make a profit and mining Dash with your phone means it will be at risk of overheating.
What are the safety concerns around mining Dash?
Make sure your hardware is always cool, and ensure you join a mining pool you can trust. If mining using a cloud provider, make sure you choose a provider you can trust too.
When will the very last DASH be mined?
There is a limited number of Dash coins that can be mined. It looks like the last Dash coin will be mined in 2030.
Dash was developed with a strong focus on the payments industry, but Dash is nonetheless an open-source, P2P cryptocurrency just like Bitcoin. It can be spent securely both offline and online thanks to the fact that it is a money-centric cryptocurrency – in other words it is portable, easy to acquire and easy to divide into smaller units. On top of all these achievements there is also the fact that the transaction fees for Dash is relatively low.
Dash inherited all the key features of Bitcoin, but it’s added in several ways. For example, you can instantly send Dash coins thanks to its InstantSend function, while you can also choose to privately send Dash coins thanks to the PrivateSend function.
Other interesting features about Dash includes the fact that Dash is based on a model which implies self-funding, and self-governance. In essence the Dash network can pay people or companies to do work for the network – if that work contributes to the network.
You may have heard of a DAO – a decentralised autonomous organisation. The way Dash was designed has meant that Dash is one of the first DAOs.
Dash developers say that the maximum number of Dash coins that will ever come into circulation will be 18 million coins. As people mine DASH more and more coins will come into circulation, the expectation is that all 18 million DASH will be in circulation by 2030.
Dash is open source, and decentralised. The way it is governed and funded means that it makes it easy to create independent entities which can support the Dash network. Development of Dash is driven by Dash Core Group Inc., the company is in charge of managing the Dash project as well.
Dash Core Group have a range of departments which work together to ensue that Dash is supported thoroughly – including devops, management, marketing and business development and a department which supports overall strategy. Dash Core Group has an HR department too as well as a dedicated finance department. A range of senior advisors and external parties contribute too and the network has a number of close associates.
The Dash hashing algorithm has a number of advantage and disadvantages. The positive points about the algorithm driving DASH include the fact that it is secure, effective and relatively easy to mine – including low cost of power.
On the flipside, the hashing algorithm used for Dash has some disadvantages – we’re not convinced of its longevity and it is somewhat vulnerable to botnet attacks. There is little in the way of a network effects too and we don’t think the community around the hashing algorithm is all that extensive.
So, while the X11 algorithm is unique and highly effective the extent to which it is successful will depend on a couple of its essential features, and whether the Dash team can prove the ability to maintain longevity and to ensure the coin remains effective. If so it might illustrate that X11 is a good algorithm for any altcoin.
Dash uses proof-of-work consensus, but users can earn rewards on top of the proof-of-work system by opting to run a master node, users running master nodes get additional rewards for running this special server. Dash is similar to many other coins because of its proof-of-work mechanism. Each Dash block contains two parts:
Every cryptocurrency has a source code, or protocol that operates it. A fork is essentially a change to that source code – you could see it as a change to the rules that governs a cryptocurrency too. You get two different types of forks:
DASH has been forked a lot of times – think for example of Crown, SAFE or PIVX. In fact, Dash isn’t a brand new coin, it was forked from Bitcoin. Dash was forked from Bitcoin because it was intended to fix some problems with Bitcoin. As a result, some of the biggest flaws and issues of Bitcoin doesn’t exist in Dash which means, in particular, that there is a big difference in efficiency. Dash is offers greater anonymity while also performing faster compared to Bitcoin.