New Miners' Checklist: Excavation Preparations

Howdy Miner << Test Last Name >>,

We're getting close to the grand opening of Mine #1 for the Miners' Union! For those of you who have already purchased mining hardware, below is a step by step guide of things to consider and get started with in order to get up and running as seamlessly as possible once construction of themine has completed. For those looking to mine with us, as always we encourage you to reach out to us so we can discuss which options are best for you.

How do I start mining Bitcoin / Litecoin / Dash / Ethereum?

Before we can get you started, there's a few things we'll need. Here's a checklist of each of the things you'll need to do and the decisions you'll need to make:

You'll have to make a decision on which pool you want to mine with.

You may need to create an account with that pool (e.g. Antpool) if you'd like to track your production.

You'll need to create a wallet to receive your funds.

If you plan on hosting your miner at our facility, you'll need to sign a colocation agreement to get started.

You may also want to sign up for a cryptocurrency exchange if you have intentions of

Speak with your accountant or tax professional to understand the ramifications of cryptocurrency mining and trading in your particular jurisdiction.

Choosing a Pool

One piece of information that we’ll need from you is which pool you’d like to join. To learn more about pools, you can check out our write-up here.

We recommend Antpool, but if you feel strongly about joining a different pool feel free to let us know.

How do I track my production?

If you decide to use Antpool, you can create an account to track how much your machine is producing. Here is a walkthrough of this process.

What is a colocation agreement?

We're going to be physically hosting your equipment in our mine, so we need to agree on some preliminary terms. The colocation agreement outlines these terms, specifies the rent for your miner(s), and outlines these terms. If you need to sign a colocation agreement or haven't yet received one, please reach out to us and we'll get you sorted out.

How do I receive my Coin?

To receive your bitcoin, you’ll need to set up a wallet. There are two fundamental types of wallets: software wallets and hardware wallets. We like to think of software wallets sort of like a checking account, and hardware wallets as a savings account. You only need one wallet, and you’ll have to send us the address to that wallet.

Software Wallets: The quickest way to get started is to sign up for a software wallet. We recommend you use Coinbase. Software wallets are sort of like bank accounts - they simplify a lot of the workflow around sending, receiving, and exchanging money, but that simplicity comes from the fact that they manage your private keys for you.

Click here to sign up for a Coinbase account.

Hardware Wallets: Hardware wallets are physical devices that manage your private keys. Sometimes referred to as “cold storage”, hardware wallets put you in complete control of your cryptocurrency. There are few types of hardware wallets, but our preferred choice is the KeepKey.

Click here to buy a keep key.

Important note: We do not send you your crypto! You will receive your proceeds directly from the pool you chose to mine with.

How do I exchange my coin for fiat currency or other cryptocurrencies?

If you’re using a software wallet, often there is a mechanism for exchanging for transferring bitcoin for fiat (e.g. USD, CAD, GBP) for a transaction fee or % depending on the exchange.

Alternatively, you may want to trade your cryptocurrency for another cryptocurrency, or perhaps even an altcoin. Several exchanges allow you to do this including the following:

GDAX - owned by Coinbase and only supports Bitcoin, Litecoin, and Ethereum. GDAX has .25% for market orders but currently offers no-fee limit orders.

Poloniex - Which only supports other cryptocurrencies, but supports a whole bunch of them. Transaction fees are .25% for market orders, .15% for limit orders.

Kraken - Pretty all-inclusive exchange which happens to support Dash/USD, Bitcoin/USD and Litecoin/USD. Exchange fees are .26% for market orders, .16% for limit orders.

What are the tax implications?

We strongly suggest you consult your accountant to understand exactly how to recognize profits from cryptocurrency mining, currency appreciation, and trading gains. This might be different depending on what country or state you live in, as well as your personal tax situation.