Today’s buzz is all about Bitcoin reaching $1,000 with people all over the internet crying about not jumping on the opportunity when it was early enough.
A few days ago, after discussing with some friends about alternative cryptocurrencies, I decided to see if it was feasible mining them in the cloud (on Digital Ocean) and making a profit from it. The reason I chose to go with alternative cryptocurrencies instead of going with Bitcoin, is that I believe at the moment it’s possible achieve a much higher ROI. They are still in their infancy and we can see some of them doubling their value in a matter of a couple of days as people is looking to alternative coins to invest.
For my experiment I picked Primecoin, since there was a enough documentation around, it’s still profitable to mine and it seems growing pretty quick. I also decided to mine with a pool called Beeeeer.org, since mining by yourself is much harder and this pool was very small-miners friendly.
As right now I see almost a 90% ROI with this setup.
Here’s a step-by-step guide on how to easily setup your cloud miner on Digital Ocean.
- Create an account on Digital Ocean (this link has my referral code)
- Create a Droplet. Select the 512MB / 1 CPU that only costs $5/mo (obviously bigger instances will mine faster but this is good for our experiment) and select Ubuntu 13.04 x64 as Image for the server.
- Once it has been created, you’ll receive an email containing instructions on how to connect to the server. Open the Terminal app and SSH into the server following the instructions in the email.
- Type the following commands in the Terminal (of course wait for them to be fully executed before typing the next one):
sudo apt-get update
sudo apt-get install yasm -y git make g++ build-essential libminiupnpc-dev
sudo apt-get install -y libboost-all-dev libdb++-dev libgmp-dev libssl-dev dos2unix
git clone https://github.com/thbaumbach/primecoin
sudo dd if=/dev/zero of=/swapfile bs=64M count=16
sudo mkswap /swapfile
sudo swapon /swapfile
make -f makefile.unix
This last command is going to take a while to execute. Just be patient. Once done, you have the machine ready to mine.
- Before starting to mine, I decided I wanted to have my miner to automatically start in case it crashes or the server is restarted for any reason. To do that you need to follow the following steps:
apt-get install supervisor
mkdir -p /var/log/supervisor
(this will open a terminal editor)
- Paste the following text into the editor, making sure to add your actual Primecoin address (that you can get by registering on BTC-E, click on finances and click on deposit next to Primecoin) instead of XXXXXXXXXXXXXXXXXXX:
command=/root/primecoin/src/primeminer -pooluser=XXXXXXXXXXXXXXXXXXX -poolip=220.127.116.11 -poolport=1337 -genproclimit=1 -poolpassword=PASSWORD
- Press Ctrl + X to exit and save
- Congrats, your are a miner now You can see your miner in action with the command
tail -f /var/log/supervisor/primecoin.log
- You can later check your earnings with the mining pool visiting
(make sure to replace XXXXXXXXXXXXXXXXXXX with your Primecoin address)
If you enjoyed this tutorial, feel free to donate to my beer fund