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How to Mine Bitcoin Cash: The Complete Guide (2022)

June 02, 2022 - 32 min read

How to Mine Bitcoin Cash, Bitcoin Cash Mining Profitability, Bitcoin Cash Mining Calculators, and More

Bitcoin Cash (BCH) is a fork of Bitcoin that was launched in 2017 in order to make payment transactions faster and cheaper. The BCH fork split the original Bitcoin blockchain in two, generating a new asset, Bitcoin Cash. Another hard fork split Bitcoin Cash into two more new currencies, Bitcoin ABC and Bitcoin SV, though these were significantly less successful than Bitcoin Cash. As of late Q2 2022, Bitcoin Cash had a market cap of $3.7 billion, placing it as the 24th largest cryptocurrency by market cap. 

Bitcoin Cash is different from regular Bitcoin (BTC) in a few ways. Particularly, the block size can be larger, allowing more transactions to be processed at once and reducing fees. Bitcoin Cash can typically confirm eight times as many transactions as Bitcoin in the same block. However, the large block size of BCH can make storage, audit operations, and node storage more challenging. Like Bitcoin, BCH works on a proof-of-work consensus method and can be mined just like traditional Bitcoin. Also, like Bitcoin transactions are confirmed every 10 minutes. And, just like Bitcoin, Bitcoin Cash is limited to 21 million coins, with block rewards being halved at specific intervals. 

Because Bitcoin Cash is less well-known than Bitcoin, it can potentially offer a more profitable mining opportunity, particularly for smaller miners. In this article, we’ll review everything you need to know before starting to mine Bitcoin cash, including the potential profits that can be made from mining Bitcoin Cash, and whether solo mining, pool mining or cloud mining will be the best option for your individual situation. We’ll also review the best mining pools, cloud mining sites, and the best mining hardware and software, as well as provide some additional advice about starting your Bitcoin Cash mining business. 

Will Mining Bitcoin Cash Be Profitable For You? Six Factors To Consider

There are a variety of factors to take into account when considering whether mining Bitcoin Cash will be a profitable venture for your individual situation. Ask these questions to determine whether mining BCH is right for you and if it could be a profitable venture. 

  1. How do users make money mining Bitcoin Cash? 

Just like in traditional Bitcoin mining, each miner competes to be the first to solve a series of increasingly difficult, randomized mathematical problems in order to earn the right to “mine” or validate the next block, and earn the block reward. Computers with higher processing power are the most likely to win the block reward. 

After certain periods, mining rewards are halved. This occurs every 210,000 blocks or about every 4 years. For example, in May 2020, the reward for mining a block was halved to 6.25 BTC from 12.5 BTC. The next block halving is expected to occur in May 2024 and will reduce the block rewards from 6.25 BTC to 3.125 BTC. In addition to block rewards, miners earn transaction fees which BTC users pay when they transfer funds from one wallet to another. 

  1. What is the value of Bitcoin Cash, its potential price direction, and its potential volatility? 

Like any cryptocurrency, Bitcoin cash is volatile, and the price and volatility of BTC will directly influence the profit a miner can earn. Unfortunately for potential miners, the price of Bitcoin Cash isn’t nearly as high as it used to be. Directly after the fork, Bitcoin Cash’s price was initially relatively high, $3,160, and has consistently fallen since then, with a few smaller spikes. For instance, in May 2021, during what many refer to as “DeFi Summer” the price spiked to $1,399.22. In May 2022, the price of Bitcoin Cash hovered around $246, representing a more than 92% reduction in price in the 12 months from May 2021 to May 2022. 

Notably, Bitcoin Cash did not experience a big spike in price during November 2021, when Bitcoin reached its all-time high of more than $69,000. A reduction in the price of Bitcoin Cash means that, for every block reward, users will gain fewer U.S. dollars. Most prediction counters are mildly bullish on a slow increase in the price of Bitcoin Cash over the near year or two but do not expect it to reach its previous highs again for several years, if ever. However, this may be good for new Bitcoin Cash miners, as a lower price may lead it to be less attractive to other miners, meaning there will be less competition, making it easier to mine blocks with less processing power. 

  1. What are the startup costs of your operation, including hardware requirements and the efficiency of the machines you may plan to buy? 

It can be very difficult to determine the minimum startup costs for a Bitcoin Cash mining operation, however, most people recommend at least $12,000 to $15,000 for your hardware alone, as a bare minimum. Of course, the more money you put towards hardware, the more likely you’ll be to win a mining reward. The more rigs you have, the higher hashrate, or computational power per second, you will be able to achieve. 

Calculations vary, but according to crypto mining website CoinWarz, 140.00 TH/s, (trillions of hashes per second) is the minimum one needs to begin mining Bitcoin Cash profitably in 2022. 

This can be achieved by one machine or multiple machines. For example, the upcoming Bitmain Antminer S19 XP, which costs between $15,000 to $25,000 per machine, can achieve 140 TH/s on its own. Alternatively, you could purchase 10 Antminer S9is, which each provide 14 TH/s, leading to a cumulative 140 TH/s. Each of these machines is currently selling on Amazon for $1,039 each. Different miners may be more or less efficient, and therefore use more or less power, so machine efficiency is another important factor to calculate into your Bitcoin Cash mining process. 

Costs, however, are not limited to hardware, since electricity costs, taxes, and other expenses must be taken into account. If you are mining outside your home, or your mining operation is especially large, there are also rental/leasing costs and the costs of business insurance, cooling equipment, and maintenance to consider. 

  1. What are the energy costs in your area? 

Taking the example of the U.S., the average energy cost in the United States is 10.42 cents per kilowatt-hour. However, this varies significantly between areas and states; for instance, average energy costs in Hawaii are more than 27 cents per kilowatt-hour (sometimes ranging up to 35 cents per kilowatt-hour, while in Utah are around 8 cents per kilowatt-hour. However, it should be noted that since crypto miners try to set up their operations in areas where energy costs are lower, they pay an average of 5 cents per kilowatt-hour. 

Bitcoin and Bitcoin Cash ASICs’ energy consumption are measured in kilowatts, not kilowatt-hours. To convert a kilowatt to a kilowatt-hour, we need to divide by 1,000. If a miner is running 24/7, we then need to multiply its kilowatt-hours by 24. For example, the AntMiner Bitmain S19 Pro 110 TH/s Bitcoin Miner, which starts at a price of $10,389 on Amazon, utilizes 3250 watts, or 3.25 kilowatt-hours. 3.25 multiplied by 24 hours equals 39 kilowatt-hours per day. At a price of 10.42 cents per kilowatt-hour, this would mean an energy expense of $4.06/day. 

  1. Taking all these factors into consideration, what will your potential profitability be as a sole Bitcoin Cash miner? 

To calculate the potential profitability of your Bitcoin Cash mining operation, you should use a calculator (we’ll mention some of the best calculators below). Let’s take the example information above to make a sample calculation. 

If a miner has a have a 140 TH/s ASIC utilizing 3250 watts at 10 cents a kilowatt-hour, and has a 1% maintenance fee, they would earn approximately $11.33 in BCH per day at BCH’s current price ($4,135 in revenue per year). 

If we drop the energy price to 5 cents per kilowatt-hour, that goes up to $15.56 ($5,679 in revenue per year). An ASIC, on average, if well maintained, will last 2.5 years before it needs to be replaced. This would mean that, in the first scenario, revenue would be $12,145 and in the second scenario, revenue would be $14,198. This would be a very small operation, and could easily be done at home, so for this example, we will not calculate any rental costs. If the mining equipment costs $12,000, we can safely say that, with today’s price of BCH, small-scale solo mining is not a profitable bet. 

However, if the Bitcoin Cash price trends upward, this could change significantly. For example, if the BCH price were to double (and remain steady), revenues from the same mining operation would spike to $35 per day (more than $12,700/year), meaning that it would take around 1 year to repay the initial mining equipment. For the remaining 1.5 years of the operation, the miner would generate around $19,000 in revenue), giving the project a 62% profit margin over 2.5 years, if divided by each year, about a 20% retroactive return per year. 

This does not take any ASIC downtime or problems into the calculations, so potential miners should consider that real revenues might be 10-15% lower than the calculations above. 

In contrast, if Bitcoin Cash trends downward, it could take significantly longer for a miner to repay their initial investment, which could make mining Bitcoin Cash a much less profitable endeavor. 

  1. Will it be more profitable to set up your own mining operation, join a mining pool, engage in cloud mining, or even create your own mining pool? 

When looking at your potential startup capital, and making various required calculations, you should attempt to determine whether it’s better to set up your own mining operation or to join a pool. Joining a pool is often better for smaller miners, who may find it more profitable, as they have a higher chance of gaining the next block reward by combining their hashing power with hundreds or thousands of other miners across the country or across the world. However, fees can sometimes be steep, so it’s essential to compare your potentially increased profits with the pool fee, which will increase your expenses. 

However, if you find that mining solo or joining a pool is simply too time intensive or expensive, you can always enter a mining contract with a cloud mining service. A cloud mining service does everything for you, so you will not need to operate any of your own hardware or software. Despite these benefits, you are investing your capital into someone else’s business, so you have no control over how they conduct their mining operation. Therefore, you’ll want to be extremely careful to only invest in cloud mining operations with a great reputation and a strong track record of delivering profits to their clients. 

On the other end of the spectrum, if you are planning to set up an especially large mining operation and have an entrepreneurial spirit, you may also want to consider creating your own mining pool. This will have its own costs, including advertising and marketing your operation to other potential Bitcoin Cash miners online, as well as potentially requiring additional software to create your mining pool. 

The Best Bitcoin Cash Mining Calculators 

Determining the profitability of mining Bitcoin Cash can be difficult on your own, so you should ideally use a calculator to run a profitability estimate. Most Bitcoin Cash mining calculators will focus on 4 major factors; mining hashrate, power consumption in watts, electricity costs in dollars per kilowatt hour (kWh), and mining/pool fees (which may or may not be relevant). Here are a few of the best Bitcoin Cash mining calculators that you may want to use: 

  1. CoinWarz: CoinWarz is a website that specializes in mining hardware, specifically in regards to mining Bitcoin, Dogecoin, Ethereum, and Litecoin. It provides a variety of free calculators and difficulty charts for users. 
  2. MinerStat: MinerStat is another site that specializes in crypto mining services, including hardware and software. Its calculator provides both daily and historical mining information via tables and helpful charts. 
  3. Whattomine: Whattomine is a crypto information website with a focus on providing up-to-date mining data. In addition to its regular calculator, it also provides information about the largest Bitcoin and Bitcoin Cash mining pools, including important data such as GPU and ASIC profitability rankings, and altcoin and ETH mining profitability data. 

Mining Bitcoin Cash vs. Bitcoin, Litecoin, Bitcoin SV, and Ethereum 

Before you commit to mining Bitcoin Cash, you should consider other crypto mining options to make sure that mining Bitcoin Cash is the best crypto mining option for your particular financial goals. Other common mining options related to Bitcoin Cash include traditional Bitcoin, Litecoin, Bitcoin SV, and ETH. 

Mining Bitcoin vs. Bitcoin Cash

Using the same calculations as the example in the paragraph above, in today’s market, mining traditional Bitcoin is actually slightly more profitable than mining Bitcoin Cash, with, all other factors held steady, a cost of 10 cents per kilowatt-hour yielding a revenue of $12.51/per day ($4,566/year) and a cost of 5 cents per kilowatt-hour yielding a revenue of $16.74/day ($6,110). 

Like the previous calculation, this calculation does not measure any ASIC downtime or repairs, so in all likelihood, Bitcoin mining is slightly less profitable than the numbers represented above. 

Mining Ethereum vs. Bitcoin Cash

Ethereum has long been a popular mining alternative to Bitcoin, Bitcoin Cash, and other cryptos in the Bitcoin family. However, in today’s market, mining Ethereum may not be a great option, since Ethereum is switching to a proof-of-stake consensus model which will make traditional mining obsolete. However, instead of mining, you can stake Ethereum in order to obtain staking rewards. To run an ETH validating node, you will need to stake at least 32 ETH, which as of early May 2022 was slightly more than $75,000. Alternatively, if you have less ETH or don’t want to run a node yourself, you can stake your ETH into a staking pool, which will take care of nearly everything for you. Lido, Stakewise, and Cream Finance are common staking pool options, though you can compare many staking pools at once on websites like StakingEther.com

The Best Bitcoin Cash Wallets 

In order to store your Bitcoin Cash from your mining operations, you will need a BCH-compatible wallet. You will need a “hot,” internet-connected wallet in order to interface with your mining software, however, you can later transfer your funds to a “cold” hardware wallet in order to provide an extra layer of security. 

Some of the best Bitcoin Cash wallets on the market today include:

  1. Coinbase Wallet: The Coinbase wallet is one of the most versatile and best-ranked wallets out there today. It provides compatibility with all Bitcoin-based cryptocurrencies, ERC-20 tokens, tokens from a variety of other Layer-1s, and NFTs. The Coinbase wallet is also well-known for its easy-to-use mobile app. 
  2. BTC.com Wallet: The BTC.com wallet is considered to be both user-friendly and secure, requiring 2-factor authentication for all users. Mult-sig transactions are also optional in order to improve safety. Unfortunately, unlike the Coinbase Wallet, the BTC.com wallet only supports Bitcoin-based cryptocurrencies and not other types of coins or tokens. Like Coinbase, the BTC.com wallet has a convenient wallet app. 
  3. Exodus Wallet: The Exodus wallet is another convenient BTC-compatible wallet, which also provides compatibility with 100+ other cryptocurrencies. It is currently only available as a desktop wallet. 
  4. Trezor: Trezor is a popular hardware wallet company that offers a wide variety of wallet choices, typically priced between $70+ and $600. Trezor wallets utilize a secure PIN code and a built-in display that allows users to quickly check transaction details before confirming a transaction action. 
  5. Ledger: Ledger is another highly popular hardware wallet for Bitcoin Cash users. Like Trezor, Ledger offers a variety of popular wallet options, including the affordable Ledger Nano S, starting at just $59, and the Ledger Nano X, priced at $159. Ledger allows users to manage over 5,500 coins and tokens, as well as NFTs. Like Trezor, Ledger wallets also have built-in displays and require users to utilize a secure PIN code for transactions. 

Setting Up Your Bitcoin Cash Mining Business 

If you want to mine a little Bitcoin Cash as a hobby, you may be able to get away without officially starting a business. In most states, you do not have to file to have a sole proprietorship, so if you are only investing a few thousand dollars or engaging in cloud mining, it may not be worth taking the time to set up a business. 

However, if you are planning to invest $10,000, $20,000, or more into a Bitcoin Cash mining business, setting up an official business is essential, both for legal and tax reasons. You will typically want to incorporate as either an S-Corporation or an LLC (limited liability company). Your choice will typically depend on your state, the size of your business, and if you plan to work with or employ other people. You will want to check with an experienced lawyer or accountant in order to determine the best course of action. 

Incorporating your business will typically allow you to take business deductions against your federal income taxes. Since cryptocurrency mining is capital intensive, and you may not make your money back until one year or more of continuous operations, if you incorporate, you will likely be able to take extremely large income tax deductions until your mining operation becomes profitable. 

In addition, if you decide to start a larger operation, such as a mining facility located in an office or warehouse, you may want to get insurance, both to protect yourself from liability (for example, in case an ASIC overheats and causes a fire), and to protect yourself from other risks, for instance, if a break-in or natural disaster damages or destroys your equipment. In general, you will need to be incorporated in order to purchase business insurance, so this is another reason why incorporation is essential for larger BCH miners. Incorporation and insurance, including workers comp insurance, will be essential if you hire any employees or contractors to help you out with your operation. 

In addition to incorporation and insurance, you will want to make, at the very least, a basic spreadsheet of all expenses and revenues that your accountant or bookkeeper can later process for tax purposes.  

Crypto Mining Loans for Bitcoin Cash Mining

It should also be noted that, if you don’t have the startup capital to set up a Bitcoin Cash mining operation yourself, you may be able to get financing via a crypto mining loan. Companies like BlockFi specialize in providing loans specifically for crypto miners. Specifically, BlockFi can provide a loan secured by your mining equipment. 

If you have crypto, but don’t want to sell it, and also want to set up a mining operation, you may also be able to get a crypto-collateralized loan from a company like Salt Lending, which allows you to use your Bitcoin or other cryptocurrencies as a downpayment for loans. 

Another company, Pipe, specifically exists to provide revenue-based loans to Bitcoin and cryptocurrency miners. It recently partnered with another firm, Compass Mining, which sells ASICs and other hardware products, in order to provide financing for new Bitcoin mining operations. 

There are, of course, more traditional types of loans, from banks or the Small Business Administration (SBA) that miners may be able to achieve, but due to the exotic nature of cryptocurrency mining, it may be very difficult to achieve financing from more traditional sources. 

Bitcoin Mining Cash GPU and Hardware Options 

Other than setting up your business plan and calculating your potential profitability, choosing the right Bitcoin Cash mining GPU/ASIC is perhaps the most important choice you can make. Larger ASICs are generally far more energy-efficient in terms of TH/s per watt or per kilowatt-hour, however, they can be expensive, so beginning miners may want to stack a few smaller ASICS together to achieve a decent amount of mining power if they cannot afford larger and more efficient hardware. 

Here are a few of the best Bitcoin Cash Mining ASICs– some are designed for larger miners, while others are better for micro-mining operations. 

  1. Antminer S19 Pro: The Antminer S19 Pro is one of the most cost-effective and powerful Bitcoin Cash Mining ASICs on the market today. Produced by Bitmain, the S19 Pro has a powerful hashrate of 110 TH/s and consumes 3250 watts or 3.25 kilowatt-hours. Prices from various sources range between $8,600 and $16,000+, starting at a price of $10,389 on Amazon. This type of miner is best for large mining operations that want to maximize energy efficiency.  
  2. Antminer S19 Pro+ Hy: The Antminer S19 Pro+ Hy is an upgraded version of the S19 Pro which provides an expanded hashrate of 198 TH/s. It’s one of the most efficient ASICs out there today, using 5445 watts or 5.445 kilowatt-hours. Prices, however, can be expensive, starting at around $15,000. 
  3. WhatsMiner M30S++: The WhatsMiner M30S++ is one of the few ASICs that are similar to the Antiminer S19 Pro when it comes to dollars per TH/s. This ASIC provides 106 TH/s and consumes 3286 watts or 3.286 kilowatt-hours. Prices on the WhatsMiner website start at $7,599, though resale prices can range as high as $36,000 on Amazon, perhaps due to high demand. 
  4. WhatsMiner MV101: The WhatsMiner MV101 is a much smaller ASIC generally designed to be used in combination with one to two other ASICs for a smaller mining operation. It has a hashrate of 33 TH/s for a manufacturer cost of only $1,990. The MV101 uses 2150 watts or 2.15 kilowatt-hours, however, which could make it a poor choice for larger mining operations. 
  5. Ebang EBIT E11+: The Ebang EBIT E11+ is another ASIC designed for smaller mining operations. It provides 44 TH/s and uses 1980 watts or 1.98 kilowatt-hours. Prices range from $1,049 to $1,899, though this ASIC is not currently for sale on Amazon. This means that if you can find one of these ASICs at the lower end of the price range, you can achieve significantly more TH/s per dollar than the WhatsMiner MV101, making this miner a price-efficient option for smaller operations. 
  6. Canaan AvalonMiner 1246: The Canaan AvalonMiner 1246 provides a combination between hashrate and affordability, with a hashrate of 87 TH/s at a price of around $7,000, giving it a higher hashrate per dollar than options like the Antminer S19 Pro. However, it does consume a fair amount of electricity, at 3420 watts of 3.42 kilowatt-hours, somewhat more than the S19 Pro. 

In addition to your ASIC, you will need the correct software, as well as other hardware, such as a power supply unit (PSU), and cooling equipment, particularly for large operations, which we will touch on later. 

Choosing a PSU for Bitcoin Cash Mining 

Almost equally important to your choice of Bitcoin Cash mining ASICs is your choice of power supply unit (PSU). Unfortunately, finding the correct PSU can be one of the most difficult parts of setting up your operation, and PSUs rated above 3000 to 4000 watts can be both expensive and difficult to find. 

Due to the heavy power requirements of ASICs, you will often need multiple PSUs if you have a large mining operation, but you can often get away with one or two for a smaller operation. You can easily purchase and use a splitter to use one PSU to power multiple ASICs. If you understand what you are doing, you can also connect multiple PSUs to one ASIC in order to save money, but this could be slightly riskier. This can often be achieved by using a 24-pin ATX PSU splitter cable. 

You will want to make sure that your PSU or PSUs are is rated for at least 20-30% more than the amount of wattage your ASICs will use. For example, if your ASIC uses 750 watts, you will likely want a PSU rated for at least 1000 watts. 

You may also want to consider getting a smart power supply, which will allow you to remotely monitor the power supply wattage and temperature levels. This will also allow you to intelligently add or upgrade components to your rig as your power supply needs change. 

Some of the best Bitcoin Cash mining PSUs on the market today include: 

  1. EVGA SuperNOVA 1000 GT: Certified at 1000 watts, and priced at $259, this is an ideal mining rig for medium-sized ASICs. This model features a fluid dynamic bearing fan and an EVGA ECO mode for extremely quiet operation and lifespan extension. 
  2. Dell 8V4DK M1000E 3000 Watt Power Supply: Priced at between $250 and $400, the Dell 8V4DK M1000E 3000 might bring the best bang for your buck when it comes to powering larger ASICs. However, as an older model, it may be more difficult to find than newer models, and you may have to find a refurbished model. 
  3. MEAN WELL RSP-3000-48 Enclosed Switching AC-to-DC Power Supply: At $892 on Amazon, the MEAN WELL RSP-3000-48 is one of the least expensive currently manufactured PSUs rated at 3000 watts, however, it is from a lesser-known brand, which is something potential buyers may want to take into account. 
  4. Dell 0RR4YT 3000-Watts Power Supply for M1000e: The Dell 0RR4YT is one of the few relatively inexpensive PSUs manufactured by a known brand that is also rated at 3000 watts. Prices start at $962, making it an excellent option for ASICs using 2400 watts or less. 
  5. APC ATX 4000 Power Supply SUA5000RMT5U: One of the few PSUs rated for 4000 watts, the APC ATX 4000 is quite pricey, but may be necessary if you have an ASIC using 3000 watts or more and do not want to connect the ASIC to multiple PSUs. 

Bitcoin Cash Mining Software 

As we just mentioned, in addition to having the correct hardware, you will also need to have mining software that integrates with your hardware to run the mining process, monitor your progress, and display your profits. No matter what software you use, you will need to make sure that it’s compatible with the hardware that you plan to use. If you plan to join a mining pool, the software will sometimes, but not always be integrated with the mining pool. 

Some of the most popular software options for solo and pool mining include: 

CGMiner: CGMiner is a free, open-source mining software option. While it’s mainly designed for Bitcoin mining pools, it can also be used for solo mining. Unlike many other mining software options, users can independently distribute their mining power to different pools to find the most profitable combination.

EasyMiner: EasyMiner is another free, open-source, and highly-secure mining software option that can be used to mine Bitcoin, Litecoin, and Bitcoin Cash. Its open-source nature means that advanced users can customize it to their own specifications. However, it’s also great for beginning users. EasyMiner is known for its strong community support. It can be used for solo or pool mining. 

BFGMiner: BFGMiner is a modular ASIC/FPGA Bitcoin and Bitcoin Cash mining software option for both solo and pool miners. While highly effective, it’s not as user-friendly as other options and is generally recommended only for advanced users. 

Setting Up Your Bitcoin Cash Mining Hardware 

Once you have purchased your BCH mining hardware (ASICs), you will need to set them up properly. As you’ve probably heard, ASICs consume significant amounts of energy and create a lot of heat. Therefore, you’ll need to make sure your setup is adequate, which gets exponentially more important as your operation grows larger. 

In particular, you will need: 

  • Proper software and a BCH compatible wallet (as mentioned earlier) 
  • Enough power capacity and power distribution to service your ASICs 
  • Cooling and ventilation for your ASICs 
  • One or more power supply units (PSU) with a capacity of at least 20-25% higher than your ASICs wattage or combined wattage (if using one unit) 
  • Noise reduction surfaces, such as padded walls, particularly if you live with roommates, family members, or have neighbors living close by  
  • A multiple LAN connector (if you have multiple ASICs) 
  • A good, 24/7 internet connection with a minimum speed of 1 MB/s (using someone else’s wireless internet is not recommended) 
  • Cooling equipment (for larger operations) 

After ensuring that you have all of these components, take the following steps to set up your BCH mining operation. 

  1. Plug your ASIC into the power supply unit: You will need to plug your ASIC into the power supply unit (PSU) by plugging in the cables from your power supply unit to the sockets/hashing board of the ASIC. 
  2. Connect your ASIC to the internet: Take the cable from your router to the LAN port of your ASIC and plug it in. 
  3. Connect the PSU to the electricity grid: Plug your PSU directly into a wall socket. It is not recommended to use a power strip, however, if you choose to use one, use a high-quality power strip specifically designed for cryptocurrency mining. 
  4. Perform a verification check: Some ASICs take between 3-8 minutes to begin operating, and many will have a “normal” light showing that the ASIC is operating correctly.
  5. Get the IP address of your router or modem: You will need the IP address of your router or modem to connect your miner to your computer, and hence, the internet. You can easily find this by going to “System Preferences” on a Mac, or by opening “Network and Internet” on a Windows. Click here for a more detailed guide. 
  6. Copy your IP address into your browser search bar: After doing this, you will be generally taken to your router’s control panel, and you will typically see a list of connected devices, which should include your ASIC miner, which will have its own IP address. If you are having trouble with this, you can download and install Advanced IP Scanner, a program that automatically searches and identifies the IP addresses of all devices in your network.
  7. Enter your ASICs IP address into your browser search bar: After doing this, you will be should see your ASICs administrative web user interface, and an option to log in. You should be able to easily find your login data in your ASIC’s manual. 
  8. Configure your miner: At this point, you will have the option to mine solo or enter the information for your mining pool. The steps vary based on the individual ASIC, so you will want to check your manual for specific steps. 

Click here for a more detailed setup guide from CryptoDefinitions.com. 

Bitcoin Cash Cooling Hardware: Air Cooling vs. Immersion Cooling

ASICs are known to run hot, so cooling may be an important factor, particularly if you plan to run a large crypto mining operation. The cooler the ASICs, the longer they will last and the lower chance they have of melting down, which will cause them to cease to function altogether. The main goal of cooling your mining operation get the most cooling at the lowest cost. For this reason, a room or building used to mine Bitcoin Cash should typically have great air conditioning, and if you are deciding upon different locations to start your business, you may wish to choose a location in an area with a cooler climate. 

There are two main ways to cool your Bitcoin Cash mining hardware; air cooling and immersion cooling. The air-cooling method is the most common method, which uses large ventilation fans to move hot air away from your ASICs. 

In contrast, immersion-cooled mining operations utilize special liquids and circulation pumps designed to cool electronics. Liquid has greater heat transfer capacity than air, making it better for cooling, with some estimating that liquid cooling systems can be up to 1,200x more efficient than air cooling systems. 

In addition to increased efficiency, immersion cooling will make your ASICs last longer and can even increase their effective hashrate, potentially leading to more profits. This type of cooling also reduces the need to constantly clean your ASICs since there will be no air pollution or dust interacting with the submerged ASICs. Plus, immersion cooling can be combined with specifically designed barriers that will significantly reduce the noise of your rigs, which is important if you are mining in an apartment, office building, or industrial park where excess noise could disturb your neighbors. A final benefit of immersion-cooling is the fact that excess heat from ASICs can be repurposed to heat a home or swimming pool (for home-based mining operations). 

However, it should be noted that immersion cooling has some downsides. The immersion-cooling setup process is much more expensive than air-cooling systems, so it’s typically ideal only for the largest and most sophisticated mining operations. There are different types of liquids that may or may not be compatible with different types of hardware, so you will need a bit of technical know-how to understand which liquids work with which ASICs. Immersion cooling also requires a delicate and exacting setup of the pumping mechanism to ensure that the ASICs are cooled sufficiently. Finally, it can be extremely difficult and tedious to move ASICs that are immersion-cooled, as this will require a delicate cleaning of all the immersion fluid from the ASIC before it can be relocated. 

Joining A Bitcoin Cash Mining Pool vs. Solo Mining 

For most smaller miners, joining a Bitcoin Cash mining pool can be more profitable than mining on your own. Specifically, a miner is much more likely to validate a block if they have the higher hashrate that can be achieved by combining the power of a group of smaller rewards. This is particularly important in today’s mining landscape, where individual miners are attempting to compete with massive mining operations with incredibly large hashrates. Despite the benefits of pooled mining, participants in a mining pool will only receive a portion of the block rewards, and must also pay a pool fee, which often varies from between 1% and 4%.

When joining a mining pool, you should consider a variety of factors, including the aforementioned pool fee, the minimum hashrate threshold, the pool’s reputation, and the exact terms of conditions of the pool.

In general, miners can earn rewards from mining pools in three different ways: 

  • Pay Per Share (PPS): The PPS method allows miners to receive a pre-set payout based on their ASICs hashrate contribution, regardless of whether a block is mined. However, the miners do not get any share of the block rewards. This means that income is more guaranteed and steady, but overall income is likely to be somewhat lower, particularly in times when the price of BCH is higher. Therefore, this may be a better option when Bitcoin Cash prices are lower. 
  • Full Pay Per Share (FPPS): Like PPS, FPPS provides miners a constant payout based on your ASICs mining hashrate contribution, but with a lower payout than PPS. To compensate for the lower payout, users get a share of the transaction fees earned by the pool. Like PPS, FPPS miners still do not get any of the block rewards. This is somewhat riskier than the PPS option but does provide a slightly higher upside.  
  • Pay Per Last N Shares (PPLNS): PPLNS is the type of mining pool payment system with the highest rewards and the highest risks. Unlike PPS and FPPS, miners do not get any guaranteed payments based on their ASICs hashrate and only receive block rewards. This is often the best often when you have a lot of mining power, are joining a large pool, and when Bitcoin Cash prices are spiking. 

The Best Bitcoin Cash Mining Sites and Pools  

The current top Bitcoin Cash mining pools by hashrate can be found on MiningPoolStats. Some of these top Bitcoin Cash mining pools today include:

  1. ViaBTC: ViaBTC is a highly popular Bitcoin Cash mining option, and currently has the largest hashrate of any Bitcoin Cash mining pool. ViaBTC is known for its high-security level, which requires minors to use two-factor authentication to create an account. Like many pools, miners can decide which system via which they receive mining rewards, with options including PPS, PPLNS, and solo mining. ViaBTC’s servers are mainly located in the United States. ViaBTC currently charges a 1% commission fee, making it relatively affordable compared to many of the other most popular Bitcoin Cash cloud mining services. 
  2. F2Pool: F2Pool is one of the most popular mining pools on the market today, and has consistently remained on the list of top BCH mining pools by volume. Founded in China as Discus Fish in 2013, it’s one of the oldest continuously operating mining pools in the world. It has an international network of servers located both in the United States and Asia. F2Pool pays a pay-per-share commission. In addition to BCH, F2Pool allows for the mining of Bitcoin and other cryptocurrencies. Fees are currently 2.5%, and users must withdraw funds within 90 days or they will be used for server development fees. The mining pool also supports something called merged mining, which allows users to get mining rewards for more than one coin simultaneously without any extra expenses or a diminishment of their original reward. For instance, Bitcoin miners can receive free Hathor (HTR) from mining Bitcoin. 
  3. BTC.com: BTC.com, also referred to as pool.btc.com, offers a somewhat novel rewards system that operates mainly under the Full Pay Per Share (FPPS) model, but provides additional miner profits due to its high transaction fees and equitable block reward PPS distribution. Rewards are paid to miners every two hours, which is significantly faster than most other mining pools. Like F2Pool, users can simultaneously mine Vcash by merge mining with BTC, BCH, or BSV. BTC.com’s servers are mainly located in Asia and the United States. Fees are 2%. 
  4. Antpool: Antpool is perhaps the largest crypto mining pool in the world today. In March 2022, the pool was estimated to have 15% of the hashrate power of all Bitcoin mining pools, and currently has the second-highest hashrate of all Bitcoin Cash mining pools. Like F2Pool, Antpool was early to the crypto mining scene (being founded in 2014), and is also Chinese in origin, having been co-founded by the Chinese firm BitMaintech, which also sells mining hardware products. Most Antpool servers are located in Asia. Antpool is considered a great option for solo miners, and issues daily payments to miners, though they must validate a new block and get 3 confirmations before withdrawing new funds. Antpool offers slightly different fee structures for each reward structure. These include:
    1. PPS: PPS commissions are 2.5% per share. Shares are calculated by taking the number of coins in each block and dividing them by the current mining difficulty. 
    2. PPLNS: Unlike most mining pools, Antpool offers a 0% commission for its PPLNS option. 
    3. Solo: Like other solo mining options, rewards are only paid when a block is validated. Commissions are 1%. 
  5. Poolin: Poolin is relatively new to the crypto mining scene, having been founded in 2018, but since then, has grown into one of the largest crypto mining pools on the planet. Unlike some pools, poolin only offers one reward option, a Full Pay Per Share (FPPS) reward system. Poolin is known for its powerful mining software, MinerBox, which is intended to help protect miners against viruses. Poolin is also known for its wallet, which allows users to interact with its lending, asset management, and DeFi services. Poolin charges a 2.5% mining fee. 

The Best Bitcoin Cash Cloud Mining Websites 

While mining Bitcoin Cash– either solo or with a pool, can be a profitable endeavor, it’s not for everyone. Some potential miners may not have the startup capital to purchase $12,000 or more in ASICs and associated hardware, or may not have the time or inclination to maintain the hardware to ensure it operates safely and effectively. However, just because you don’t want to be a traditional miner doesn’t mean that you can’t profit off of the Bitcoin Cash mining process. To do this, you can join a cloud mining website, which allows you to invest cash upfront in exchange for the rewards of someone else’s mining pool. Typically, this comes in the form of investing in a mining contract for a set period of time. 

Since you don’t own the ASICs and the hardware, this gives you the least control of the mining process, so you’ll want to be very careful about what cloud mining site you use since scams abound. If you don’t like a mining pool, you can always disconnect your ASIC and join another, however, if you pay a cloud mining site, you will probably not be able to get your money back. 

Some of the best and most popular Bitcoin Cash cloud mining sites today include: 

  1. ChickenFast: ChickenFast was founded in 2015. It supports daily payouts and allows users to cloud mine Bitcoin, Bitcoin Cash, and Ethereum. ChickenFast has an AI algorithm that helps users select the best mining contract for their individual needs. The system is designed to continuously switch between currencies depending on which is the most profitable at the current time. Until June 2022, users will receive a fixed 12% monthly payout for their contracts, however, contracts made after June 2022, will provide users with a 6% fixed monthly payment. There are additional bonuses users can earn for signing up for certain amounts, such as $5,000 or $10,000. Despite the daily payouts and high returns, users must sign a contract for one year, which some may consider a major downside. The minimum investment amount is $250, and deposit returns are guaranteed. 
  1. StormGain: StormGain, which was founded in 2019, is a crypto exchange that provides futures trading, wallets, and trading signals, along with a popular crypto cloud mining service that supports Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and other currencies. Users can choose between a variety of mining speeds, with higher speeds requiring larger minimum upfront payments. Mining rewards are denominated in UDST, and are issued every four hours. Users with at least $10 USDT in rewards can withdraw funds from their custodial wallet. 
  1. IQ Mining: IQ Mining, which was founded in 2016, is an integrated platform that combines cryptocurrency cloud mining with Forex margin trading and options, allowing users to generate various streams of income. IQ Mining offers users daily payments and withdrawals and supports a wide range of cryptos including Bitcoin, BCH, LTC, ETH, XRP, XMR, and DASH. The minimum Bitcoin Cash mining contract length is 1 year, with a minimum payment of $200, which is estimated to provide a return of $809 to $930 at current market BCH prices. The main downside to IQ Mining is its extremely limited customer service. 

What to Do With Your Bitcoin Cash 

If you’ve already started to mine Bitcoin Cash, you might already have acquired a small– or substantial, amount of BCH. You may decide to transfer your BCH to an exchange and sell it immediately to get cash, or you might want to hold it if you believe it will appreciate it. You may also want to swap it with another cryptocurrency, or multiple cryptocurrencies, that you believe will appreciate in the future, or that you want to actively trade. 

However, one of the best ways to increase your returns on your Bitcoin Cash is to lend it out for interest. It’s important to realize that if you put your Bitcoin Cash on a platform for lending, it will not be FDIC insured and you could lose your funds, therefore, you might want to consider only lending out a certain portion of your BCH and selling or swapping the rest. 

Some of the best places to earn interest on your Bitcoin Cash include: 

  1. Nexo: Nexo is a popular crypto exchange that also provides borrowing, lending, and staking services, as well as a popular debit card. BCH lenders can earn up to 8% APY on their funds and offers up to 10% APY if you’d like to receive your interest in Nexo tokens. Nexo carries $375 million in insurance for theft, hacking, loss of keys, and more. 
  2. CoinLoan: CoinLoan is a well-known crypto borrowing and lending platform. It carries $100 million in insurance for situations such as hacking and theft. BCH interest rates are currently between 5.2–7.2% APY, though, much like Nexo, users can gain a higher interest rate if they take their interest in the platform’s native token (CLT). 
  3. YouHodler: YouHodler is both a crypto exchange and borrowing and lending service. Unfortunately, it is not currently available for those living in the U.S. and is known for its strict KYC requirements. Users can earn up to a 6.3% APY by lending out their BCH. 
  4. Celsius: Celsius is one of the largest and most trusted crypto borrowing and lending platforms, with over $16 billion of assets on its platform as of May 2022. Users can earn up to 1.24% APY on their BCH, which seems small compared to other options, but is somewhat offset by the fact that Celcius is probably the least risky and best-known borrowing and lending platform in the industry. 
  5. BlockFi: BlockFi is an integrated crypto services company, which offers a popular exchange, borrowing, and lending services, a popular credit card, and a customized wallet. It also offers loans specifically for crypto miners. Users can get up to 3% APY on their BCH using the platform. 

In Conclusion: Bitcoin Cash Mining Can Be A Risky, Yet Lucrative Business

Bitcoin Cash mining can be a great business opportunity, but it isn’t for the faint of heart. High startup costs, significant financial planning, technical know-how, and a decent amount of startup capital are all required to make a Bitcoin Cash mining venture a success. With prices in the crypto market extremely volatile, it currently (as of Q2 2022) may be more lucrative to mine traditional Bitcoin or other cryptos (such as Litecoin), which is something that potential Bitcoin Cash miners should consider– however, prices are always changing, so this trend could reverse in the near future.

After doing our research, we can also confidently say that unless you are planning a large BCH mining operation, you can probably make more signing up for a cloud mining service than ever touching an ASIC yourself. This is due to the incredible hashing power of large crypto mining operations, which makes them many times as efficient as solo miners. However, if you are committed to purchasing and owning your own ASICs, you should most likely join a large mining pool, and consider a pay per share (PPS) or pay per full share (FPPS) revenue structure, which will likely increase the regularity and amount of your profits. 

References: 

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  6. AntMiner Bitmain S19 Pro 110 TH/s Bitcoin Miner. Amazon.com. 
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  9. StakingEther. StakingEther. 
  10.  Gogol, F. (2022, Apr.) Best Bitcoin Cash Wallet. Stilt. 
  11. Rhodes, L. (2021, Oct.) Retail bitcoin miners can use these services to finance their operations. Compass Mining. 
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  14.  CGMiner 3.7.2 – AMD GPU +ASIC+FPGA Miner. CGMiner. 
  15.  Welcome to Our Cryptocoin Mining Software Website. Easyminer. 
  16.  BFGMiner a modular ASIC/FPGA Bitcoin miner. BFGMiner.
  17. (2020, Aug.) Setting up Your Bitcoin Mining Hardware – The Ultimate Beginners’ Guide. CryptoDefinitions.
  18. Mauran, C. (2021, Nov.) How to find your IP address. Mashable. 
  19.  Bitcoin Cash (BCH) SHA-256. MiningPoolStats.
  20.  Rousey, M. (2020, Feb.) 5 Best Bitcoin Cash (BCH) Mining Pools in 2020. Changelly. 
  21.  Merged mining specification. Bitcoin Wiki. 
  22.  Thompson, B. (2022, May) 10 BEST Cloud Mining Sites (Bitcoin, Ethereum Mining). Guru99. 
  23. Bitcoin Cash Interest Rates: Compare Best BCH APY. Bitcompare. 

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