When it comes to making money, you can’t beat the hustling spirit of Nigerians. That’s why you’ll see Nigerians in almost every sector or business. Cryptocurrency isn’t left behind.
While crypto trading is one of the fast ways to make money in Nigeria, one unpopular way to make money in the crypto space is through Bitcoin mining. So as sophisticated as this activity can be, let’s guide you on how to make money from Bitcoin mining in Nigeria.
What You Need To Start Bitcoin Mining in Nigeria
1. Mining Hardware and Software
The first thing you need to start mining Bitcoin is hardware and software. These don’t come cheap, though. Mining hardware is the most expensive component. You need a powerful mining system, such as an ASIC miner.
An ASIC, or Application-Specific Integrated Circuit miner, is a pre-built mining rig; these miners are expensive. For instance, the Antminer S19 XP costs about N7,360,000 at the current exchange rate, but it is one of the cheapest.
The S19 XP has a hash rate of 141 terahashes per second (TH/s). Higher-performing miners are available, but their prices are considerably higher—the Antminer S21 mines at 200TH/s and costs about N11,200,000.
Miners with higher performances than the Antminer S21 cost more than N15,000,000, with the Antminer S21 Hyd selling for over N17,600,000 with an impressive hash rate of 335 TH/s.
What about mining software? Mining software isn’t as expensive as mining hardware. This software connects, allowing you to take part in the mining process.
Some of the most popular mining software are CGMiner and BFGMiner. Both are open-source programs that support a wide range of mining hardware.
2. Electricity
Bitcoin mining is not possible without power consumption, and with Nigeria’s epileptic power supply, alternative power supplies such as Solar panels and generators must be considered.
These alternative sources are neither cheap nor Nigeria’s power supply. If you’re a band A electricity user, you’ll have a more steady power supply, so you’ll have to pay more.
Electricity costs, which usually vary based on location and power source, are the biggest running costs.
On average, electricity costs N192 per kilowatt-hour (kWh). This sounds affordable, right? Sorry to burst your bubble, but it isn’t. You’ll likely need to run your miner 24/7, which eventually adds up.
If your ASIC miner uses 4,500 watts and electricity costs N192 per kWh, your daily power cost would be 4.5 kW × 24 hours × N192 = N20,736 per day. If the cost of electricity is too high, then mining might not be worth it. The higher the electricity costs, the lower your profits.
3. Bitcoin Wallet
A Bitcoin wallet allows you to store your Bitcoin rewards after mining. There are two types of wallets: hardware and software. Hardware wallets are physical storage that protect your Bitcoin from online threats.
Many software wallets are available online for free, from which you can choose. After setting up your wallet, you’ll generate an address to safely receive and store your Bitcoin.
4. Mining Pool
Although you can mine Bitcoin alone, your profit could be next to nothing because solo mining is difficult. This is why miners choose to join mining pools. A mining pool is a group of miners combining efforts and resources to earn rewards. The most popular pools in Nigeria are:
- Slush Pool: This pool offers a reliable and secure environment to fit miners and maximize their earnings. Its user-friendly interface makes navigating and managing their mining operations easy for Nigerian miners.
- F2Pool: This mining pool that offers miners competitive advantages. Their relatively low fees allow miners to keep more of their earnings. F2Pool also provides fast and reliable payouts.
- AntPool: Miners in AntPool can maximize their mining potential and earn a good income. AntPool also offers competitive payout rates, ensuring you are well-rewarded for your efforts.
How To Start Mining Bitcoin In Nigeria
After having all the above in place, the following are the steps to take to start your Bitcoin mining journey:
Step 1:
Choose a well-ventilated and dust-free space. Your miner will generate heat, so ensure plenty of air circulation.
Step 2:
Follow the manufacturer’s instructions to assemble the ASIC miner.
Step 3:
Connect your miner to a power supply to ensure a secure connection, but don’t turn it on.
Step 4:
Now, connect your miner to your router using an Ethernet cable. This will give your miner access to the Bitcoin network.
Step 5:
Turn on the Miner and power it up. You’ll probably hear a fan noise — that’s a good sign. It means your miner is working to keep itself cool.
Step 6:
Run the software to start the mining process. Monitor performance and maintain your equipment to ensure efficient operation.
Where To Sell Your Mined BTC In Nigeria – Prestmit
The best way to make money from your Bitcoin in Nigeria is to convert it to cash. Speaking of conversion, there are different places on which you can sell Bitcoin – crypto exchange, peer-to-peer (P2P) platforms, and whatnot, but one platform that leads the pack is Prestmit.
This is an over-the-counter (OTC) digital trading platform that offers innovative features to ensure profitable trading. These include a Bitcoin rate calculator that enables you to see in real time the conversion rate of your BTC in Naira. The platform also boasts advanced security features like two-factor authentication (2FA) and an encryption system to protect your funds and transactions.
In addition, Prestmit offers competitive rates for your BTC, which is one of the best in Nigeria, enabling you to make profits. Other features are responsive customer support and a sleek interface for seamless navigation.
How To Sell Bitcoin On Prestmit:
Here are the quick steps to sell your BTC:
- Download the Prestmit app on the Google Play Store or Apple Store.
- Create a Prestmit account and log in.
- Click “Crypto” and choose “Sell Bitcoin.”
- Generate your Prestmit BTC Wallet.
- Follow the prompts.
- You will receive payment immediately after your transaction is confirmed.
Frequently Asked Questions (FAQs) About Making Money From Bitcoin Mining In Nigeria
Is Bitcoin mining legal in Nigeria?
No laws prohibit Bitcoin mining, and many Nigerians are actively involved in the activity.
What is the minimum investment needed?
A basic mining setup can cost anywhere from N5,000,000 to N12,000,000.
How long does it take to mine 1 Bitcoin?
Usually, mining Bitcoin takes about 10 minutes. That’s the approximate time it takes to complete the verification of one block. However, miners succeed at different periods because they must correctly provide the hash for the block they want to verify.
What happens if the power goes out?
Your mining equipment will shut down, and you cannot mine Bitcoins until the power is restored.
How much does a miner earn?
At the time of writing this article, a miner can earn around 3.125 BTC for every block they mine.
Is Bitcoin mining profitable?
Nigeria has a relatively high cost of electricity, which can eat into a miner’s profits. But you can join mining pools to increase your chances of earning Bitcoins.
Conclusion
Bitcoin mining is a great way to make money in Nigeria. But, unlike Bitcoin trading, it requires a significant upfront investment and isn’t a get-rich-quick scheme. Despite this, many people are tapping into the potential of Bitcoin mining and making cool money. Don’t sleep on it; start your Bitcoin mining journey today.
