Mining cryptocurrency: profitable or not

Olga Nagornyuk
21.07.2015

Mining cryptocurrency: profitable or not?

A new way of Internet earnings - on cryptocurrency - has appeared relatively recently and so far remains a little studied area of ​​e-commerce. His supporters promise stable incomes, amounting to thousands of dollars, with zero investment and minimal effort. However, practice shows that the attractive offers for easy and quick profits, in fact, are not so easy and not so fast. 

Bitcoins

So what is a cryptocurrency - an affordable way to put together its own capital or another fairy tale about super incomes, which has no basis?

Cryptocurrency: types

Appeared in 2009 through the efforts of a group of programmers headed by Satosi Nakamoto, cryptocurrency is a kind of digital currency that has no material support. In other words, if gold reserves of countries are behind the dollar, ruble, hryvnia and pound sterling, then cryptocurrency is nothing but supply and demand - the traditional speculative scheme.

On the one hand, this is good: digital money will exist as long as someone is interested in their sale. On the other hand, it is difficult to calculate the fluctuations of the rate tied solely to the indicators of supply and demand, and accordingly the risk is left with nothing large enough.

The very first payment system using cryptocurrency was Bitcoin (BTC), which was named after the combination of two English words - “bit” and “coin”. Russian-language programmers called btc-money chops.

Bitcoin coin

Bitcoin has many branches (forks) that are independent cryptocurrencies: Namecoin (NMC), PPcionn (PPC), LiteCoin (LTC), which along with BTC are among the most promising when it comes to the degree of reliability and profitability of investments. Cue courses are published on specialized sites, for example, CryptoNavigator.

What are the sources of obtaining cryptocurrency and how are they profitable? Read about it below.

Bitcoin mining

Calling earnings on Bitcoins passive, referrals are trying in this way to attract as many customers as possible within their partnership programs. In our opinion, none of the existing methods of accumulating cue-balls belong to the category of passive ones. Judge for yourself.

Coin mining, called the mining of cryptocurrencies, is the oldest and most profitable method of accumulating cue balls. According to experienced miners (users mining cue-balls), the BTC currency remains the most popular today, but for mining it is not the best option. What else?

Due to the high demand, the number of bit hunters is estimated at millions, that is, the competition is very high. In addition, the extraction of BTC-coins is impossible without special devices - asikov (asic), worth a lot of money. It is with their help that miners manage to ensure the production of cryptocurrency in worthwhile volumes, since they mine Bitcoins a thousand times faster than a video card.

Bitcoin blank

Acquiring ASICs with a capacity of 3 Thash / s (with lower mining figures has nothing to do) will cost $ 11,000. Keep in mind: this equipment is highly energy intensive, consuming 400-1000 kW per month, which should also be included in the expenditure item.

When choosing a site for cryptocurrency mining and deciding whether to buy asik, use the tradeblock.com/mining calculator, which will calculate the profitability / disadvantage of such a step.

We can definitely say one thing: mining bitcoins using a conventional video card is currently unprofitable.For example, practicing Litecoin cryptocurrency mining on an Intel Core i3 2800 Mgz processor around the clock in one of the most powerful pools (a community of cryptocurrency miners), miners manage to earn about $ 1.5 a month.

Then which cryptocurrency in terms of mining is more accessible? Experienced users who ate a pood of salt on the mining, are advised to work with those coins that have just appeared on the market. They do not live long - from several weeks to several months - so each month they will have to switch to a new type of cryptocurrency. But earnings will be much higher - from $ 15 to $ 600 per month.

Mining alternative cryptocurrency

Where to get information about creating currencies? Announcements of the release of new coins are regularly posted on the bitcointalk.org forum and on cryptocointalk.com. The sooner you find information about the emergence of a new cryptocurrency and start its extraction, the more chances you have to make good money on it before the arrival of major miners.

I choose bitcoins

The choice of cryptocurrency

Choosing the type of cryptocurrency on which you plan to earn, pay attention to the following parameters:

  • Encryption Algorithm (Algorithm). The most suitable is Scrypt and its derivatives. We do not recommend choosing SHA256 and its derivatives: working with them without ASICs and top-end video cards will lead to zero results.
  • The time of formation of the data block (Block Time).From this indicator directly depends on the generation of coins and the frequency of your reward. The more often blocks are created, the higher the probability of their detection.
  • The frequency of recalculation of the complexity of calculations (Block Maturity & Difficulty Re-target). This indicator sets the frequency of changes in the calculation scheme (1 day, after 600 blocks, etc.). Miner on hand recalculation, produced as little as possible.
  • Quality logo design and description of the coin, the presence of the official website and accounts in social networks. These are indicators of cryptocurrency promotion, indirectly confirming its value and duration of existence in the market.

Mining method

After selecting the type of cryptocurrency, you should start downloading the wallet. The link to it is in the announcement of the launch of a new coin, and sometimes on its website. The scheme is simple: download, unpack, install and run. After the first launch, it will take time to synchronize the wallet with the network.

At this stage, you have to decide how you will mine. There are two of them:

  • Solo. Independent mining of coins on your own computer using a wallet that serves as a server. This method is good because in the case of block detection all rewards will go to you.The downside is the low probability of finding a block alone. With poor performance, you can mine for months, but not get a single coin.
  • In the pool. A pool is a community of miners who search for data blocks within a specific cryptocurrency. The more of them, the higher the probability of a positive result. However, the reward will have to be divided into all, depending on the contribution of each participant.

Cryptocurrency miner's pool

Not everyone has special equipment, in such cases it is better to act in the pool. In practice, a pool is a site where search members are registered. Most often, the site address is in the text of the cryptocurrency launch, but sometimes the URL is placed on the cryptocurrency itself.

The choice of pool miners

Faced with the presence of several pools, mining the same cryptocurrency, you should prefer that:

  • Differs most power (hashrate). It is expressed in Khash / s or Mhash / s and is indicated in the statistics section. This indicator increases the chances of finding a data block.
  • It has a greater number of found blocks for a certain period of time, for example, per day.
  • Less removed from your location.You can determine the distance to the server using the ping command and calculating the number of milliseconds required to respond.

You need to withdraw coins to your wallet after the cryptocurrency has been registered on one of the exchangers. This usually occurs within 1–15 days of the appearance of new coins on the Internet.

The tendency of the new cryptocurrency trading is as follows: at the start, the coins have a high value, which declines over time, followed by either growth or a further decline and depreciation.

Important nuances

It is almost impossible to predict the development of events in relation to the new cryptocurrency, therefore we recommend selling coins at the first stage, when the currency has just entered the market and has a high cost. Perhaps such a move will not bring you super-profits, but it will definitely avoid losses.

Types of cryptocurrency

After making sure that the cryptocurrency has appeared on the exchange or exchanger, hurry to register there. To transfer digital money into live money, we recommend:

  • transfer your coins to BTC on the exchanger;
  • on one of the exchanges (Exmo, WMGlobus, Bestchange) exchange bitcoins for webmoney;
  • through an electronic wallet to withdraw money to a bank card and cash out.

Losses after payment of all commissions will be about 10-15%.

Earnings on the trade in bits

This way of earning implies buying up BTC-currency in order to resell it at the moment when it grows in price. Making money on races of the cue-ball course, it is not necessary to mine them yourself. It is enough to buy Bitcoins on one of the exchanges (for example, BTC-E) and start from a minimum.

Cryptocurrency cashout

Users earning this way claim that a sufficient initial investment is $ 100. We suspect that it will take a long time to build up capital with such investments, since there have been no sharp fluctuations in the rate at which one could play and hit the jackpot on the cryptocurrency exchanges.

Another source of bitcoin development is the payment of your advertising viewing services (BTCClickers.com, Coinad.com) and entering captcha (Bitcoinzebra.com, Freedoge.co.in). The work is dusty, but unprofitable. Earn mere pennies, unless you actively participate in affiliate programs, attracting users who want to make money on the Internet.

We can conclude: the most profitable way to earn money on cryptocurrency is mining. It is unlikely that it will become the main source of capital accumulation due to the unpredictability of income levels, but as a supplement to the salary it has the right to exist.

Success depends on the correct tactics. It is not profitable to get involved in mining BTC, you only need to mine coins that have appeared on the market. It is more efficient to act in the pool and regularly get rid of the extracted cryptocurrency, transferring it to BTC, and then to fiat (live) money.

If the way of making money on cryptocurrency does not suit you for some reason, try making money on Instagram photos or monetizing YouTube. There are still many ways to get money in the world without leaving home.

We show on the fingers how the cryptocurrency works:


Take it to yourself, tell your friends!
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  • Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not

    Mining cryptocurrency: profitable or not