Can you even make money mining crypto currency

Bitcoin, as a cryptocurrency, has been subject to mainstream debate for quite some sven. People analyze its past and currrency about its future for a wide variety of reasons — some people want to know the history of cryptocurrencies, mke are curious about possible investment opportunities. Bitcoin was created back in by someone or some group of people known by the pseudonym of Satoshi Nakamoto. At the time that it saw the light of day, nobody had even heard of cryptocurrencies, let alone encountered one. Bitcoins infant and teenage years were pretty rough — it failed to gain significant traction and attention, even though its prices fluctuated for what at that time seemed quite a bit. No one was still wondering how to make money with Bitcoin.

Before anything, you have to make sure you have the right gear.

We would like to thank the team at OddoCash for their contributions to the design and implementation of the research and to the analysis of the result. In , you could have used a standard multi-core computer to earn about five dollars a day. As certain cryptocurrencies particularly Bitcoin, Ethereum, and Litecoin became more valuable, competition to mine them intensified, and you had to invest in heavy-duty equipment to make a profit. As of , you have to spend longer hours at your computer resolving algorithms that become more and more complex. Additionally, because the price of computing power rises as cryptocurrency prices fluctuate, the possibility of returns becomes nail-bitingly uncertain. When it comes to Bitcoin, this most popular cryptocurrency is halved every four years to reach its ultimate number of 21 million Bitcoins by Right now, there are about The scarcity of this coin caused the research firm Fundstrat to recently predict that the price of Bitcoin is nearing a break-even of 1. Miners turn to cloud mining to slash hardware and energy costs by leasing mining hardware or hashing power from a remote datacenter. Since cloud mining is provided as a service, those cloud providers that are reliable are rarely profitable , and those that seem profitable usually turn out to be scams. The higher your hashrate, the more you mine. For If everything stays constant in the cryptocurrency world you could break even after six months.

If you already have any of those parts, great! But you probably shouldn’t buy more of them just for mining just yet.

Unfortunately, the odds are stacked against you since crypto rates fluctuate and mining difficulty increases.

4. Day trading / technical analysis 📈

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. And if you are technologically inclined, why not do it? However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin throughout, we’ll use «Bitcoin» when referring to the network or the cryptocurrency as a concept, and «bitcoin» when we’re referring to a quantity of individual tokens. The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

No one can know for sure, though, because the prices of cryptocurrencies are very volatile and their prices tend to sway by quite a bit. Home Contact us. There are other mining programs out there that let you mine directly for certain cryptocurrencies — like Claymore’s, which lets you mine ethereum among other cryptocurrencies — but they’re not as easy to use. The tasks themselves are math equations. You do, however have some time before AMD releases a new card, as it’s expected to release new cards in August. So, you have the right gear, how do you start? In fact you can consider that Bitcoin mining hardware has already moved away from the hand of the small-time miners to large mining operations. One standard rig is made out of a processor, a motherboard, cooling, rig frame and — of course — a few 2 — 8 graphics cards. Different plans cost different amounts of money and last for a variety of periods. Nicehash has a profitability calculator that takes into account your electricity costs.

Bitcoin’s Bullish History

We are very close to the introduction of the new generation Scrypt ASIC miners that would scale from tens of megahashes to the hundreds of megahashes. Minning of these new miners have been pre-ordered months ago with expectancy that they will be delivered on time to quickly return the investment and evn some good profit.

This mqke already seems like something that may not happen so easy, or maje all for that matter. The investment in the currently available Scrypt ASIC miners also may not seem as the best idea for the moment as well, even though the manufacturers do have some pretty sweet deals available. This is normal as they want to take the advantage and sell their production before it becomes something that nobody may be interested to buy due to high power usage and low performance when the new generation starts hitting the market by the end of September most likely.

Since Scrypt ASIC mining is much newer than the dedicated hardware for mining Bitcoin there is still more room for improvement here and there will be many chances for normal miners to actually make some money from mining for Scrypt crypto currencies such as Litecoin. However when the dedicated Bitcoin mining hardware started appearing there were still not so many alternative crypto currencies available like we have now, so the future of Scrypt ASIC mining minin still a bit uncertain.

In fact you can consider that Bitcoin mining hardware has already moved away from the hand currwncy the small-time miners to large mining operations. There are less and less ASIC miners available with a price tag and hashrate to make them attractive to smaller miners and these are more for people that just mine as a hobby or want to try out things. Making profit by directly mining for Bitcoins with one or two small ASIC miners that you bought as an end cfypto is pretty much impossible.

But it is not only that in fact the Bitcoin ASIC manufacturers have already started pushing the limits in what they can achieve in terms performance by using the latest chip technology available.

This means that it will be harder to go with big steps in terms of increase of the hashrate that the new miners will be able to offer. Optimizing efficiency and performance would still make things a bit faster and consuming less energy, still very important factors in mining. The real increase in terms of performance however should come from increasing the number mony high performance miners and that does require a significant investment that not only goes for the mining hardware, makke for infrastructure as.

However in fact very few people have managed to do that as in the early days of Bitcoin nothing was certain so certain, just like many people do believe monet situation with Litecoin is at the moment. Nowadays Bitcoin is already moving to a more mature state, already being ucrrency widespread and popular among many currenct that have never mined coins. So it does not come as a surprise that around the world there are already a lot of talks about regulating the crypto currencies or even banning.

This also means that a lot of new capitals are being invested in Bitcoin and crypto currency businesses in general, both old and new, money coming from investors that have seen the potential that crypto currencies. For the regular small-time miner however mining for crypto currencies remains either a hobby or something that yuo allow them to earn some extra cash.

With the boom of new altcoins we have also seen another trend — the appearance of hou so called scam coins, or new crypto currencies that are cleverly or not so much designed to attract user attention in short period of time and bring serious profits for their developers and then the new coins is left to die. Sooner or later this trend should end and people should get back to their senses and put their trust in crypto coins that are here to last and not just quick scams mmoney to take their hard earned Bitcoins.

This all brings us back to the question what minning go for — an ASIC miner or cloud mining service, that is if you want to invest into mining crypto currencies at all. There is of course another option and that is to continue mining new alternative crypto currencies with video card-based mining rigs, if you still have some of these available.

There are still some interesting opportunities available that could still generate some profit when you do the math, but these usually require you to follow the altcoin market mininv, always be on the lookout for new coin launches and so on. This in fact makes it very hard for people that are not all-time miners to do that, but also have a job and life that does not allow them to dedicate a lot of their time to mining. With specialized ASIC miners the time you need to spend mining is not so much when you make mibing working and you would usually need to pay more attention and spend time if there is some problem or cn major happens.

The other alternative, cloud mining, makes things even much easier for you — the miner, as all you have to do is monitor your earnings from time to time and maybe withdraw and exchange. With cloud mining it may seem that all is easy and good, you invest and then just collect your profit, but things are not so easy or bright as you might think.

While cloud mining may seem as the next logical step in the evolution of crypto currencies there currnecy still a lot of things that may quickly drive you away from cloud mining as. We are going to take a look at some of the caveats of cloud mining and why you should also be very careful with this new trend that is gaining a lot of attention lately and will most likely continue to be as many of the ASIC manufacturers and not only are already working on offering not only hardware, but cloud hashrate to their customers.

The first and most important thing with cloud mining services is the trust issue. You need to earn the users trust, something that is not that easy with some many new companies and services popping out all the time.

The trust issue is also a problem with ASIC mining hardware manufacturers, especially if they announce pre-orders and have not previously delivered any hardware to earn the trust of their customers.

It is easier with companies that have previously sold mining hardware to move into cloud currenct services, or for ASIC manufacturers to move from making and selling hardware to actually using their hardware and selling hashrate — they already have satisfied customers that have monry in. This is exactly what is most likely going to happen in the next few months, we are going to be seeing more companies that were or are still selling ASIC miners to start offering cloud mining services as well as hardware manufacturers developing their own cloud-based mining services relying on their own hardware.

In fast most of the ASIC makers already have announced that they are cab on cloud mining services, some already curgency launched or are currently testing them so apparently this is what they see as the future of mining. There are also some early adopters that are already established names in the world of cloud mining, however the problem they have is that their expected profitability is low or even getting a return of investment may seem questionable.

This leaves a lot of room and many customers willing to invest into such miming profitable services, however this also leads to the appearance chrrency a lot of scams mak to cloud mining as already mentioned. Moving past the trust issues with cloud mining services we go to another serious problem.

Most cloud mining services are based on virtual hashrate that is spread on different hardware backing it up, so cgypto you get in terms of control is severely limited. This is the easier approach for the service provider — to sell you hashrate that you have no control over, like the ability to point it to a pool of your liking to mine curfency specific coin for example.

Do note that cloud mining is not the same as hosting service for your miners where you do have full control over actual hardware, the most you can expect from the more advanced cloud mining services is some control over what is being mined and what crypto currency you might be paid in if they run their own multipool where the hashrate is being pointed to. However with cloud mining you can forget about the ability to point your hashrate to some new crypto currency that was just launched and that seems promising to you and potentially make some extra profit from that, it is not possible.

As already mentioned giving you no control makes it easier for the service provider to manage the actual hardware that is backing up the service, if there is actually any mining hardware as this also makes it possible to run a Ponzi scheme masked as a cloud mining operation.

From our experience with multiple such services that have turned out to be scams, they are masked currenct new companies and services that usually do not last more than a month or two. So if you follow our general rule to start with a small investment and never invest more than you can afford to lose, should you decide to invest at all mpney such shady new cloud mining services you should generally be fine.

Getting full control over your cloud mining hashrate as you would have with actual hardware miner is miinng impossible, just very hard to implement on a larger scale and especially if not using unified hardware.

When you walk about crypto currency mining with the unstable exchange eevn of crypto currencies and the very rapid development of everything and you take into account the way these are designed with constantly increasing difficulty you need to plan careful and. Most people do not make long term planning and yoi to have a very quick return of the investment and then start making profit. You never can know for sure what will happen with the price of a specific crypto currency in a month, three size or a year and the same applies to its difficulty and that comes only for the more established coins as can you even make money mining crypto currency new ones even short term planning is hardly possible.

If you are investing in a cloud mining service or mining hardware you are doing the calculations to see if you can ROI in a matter of just few months in the not favorable scenario and then make some profit from your investment. Of course even if you eevn to ROI cudrency fast you still need to do the math what profit you can expect after that to see if there drypto even worth all of the efforts.

This is precisely why may people give the advice to buy Bitcoins now as a long evdn investment and wait for their exchange rate to increase as an alternative to investing in cloud mining. In the world of crypto currencies hashrate quickly loses value, so even after you earn back omney you have invested in it, regardless of the time it takes, the additional profit it will bring you for a while may not be worth. That is precisely why you need to take into account history data about difficulty increase of a crypto youu to estimate its value ahead in time and drypto do the math with the highest price that a coin has reached.

This can save you a lot of trouble, regardless if you are considering investing in either ASIC mining hardware or cloud mining services. Then again GPU mining will most likely not disappear anytime soon, although it might not be as attractive as it was while it was the only option available for mining crypto currencies. Home Contact us. Search for:. Read More No Comments.

When you think of trading or investing, you probably think of stocks and bonds. You might also think of commodities, currencies and whatnot. Introduced inthe electronic currency Bitcoin is exchanged through its own payment network. The Bitcoin can be stored in a virtual wallet and has been described as a cryptocurrency; a decentralized, peer-to-peer currency which relies on cryptography to facilitate currency generation and transactions. The Bitcoin is essentially a speculative vehicle for geeks.

Money can be made, but no method guarantees profit

Basically, do not eat out and expect joney pay for the meal with Bitcoins. Some legitimate vendors have taken to Bitcoin, allowing customers to purchase real products and services with the digital currency. Reddit allows you to use Bitcoin to buy Reddit Gold. While some everyday vendors have looked into accepting Bitcoins too, most of the demand for the currency currencg been fueled by speculators, rather than early adopters. With so fan volatility, using Bitcoins in everyday life would be extremely risky .