A Beginner's Guide to Cryptocoin Mining
Is it worth your time to mine for cryptocoins?
by Paul Gil
Updated on January 26, 2020
reviewed by
Christine Baker
Cryptocurrency mining takes patience and time.
Koron/Moment/Getty Images
Cryptocurrency
What Are Bitcoins?
Tweet
Share
Email
Mining cryptocoins is an arms race that rewards early adopters. Bitcoin, the first decentralized cryptocurrency, released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash.
Which Alt-Coins Should Be Mined?
Pile of litecoin coins on fabric
BTC Keychain / Flickr / CC by 2.0
If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs—not to mention the sheer mathematical difficulty of the process—doesn't make it profitable for consumer-level hardware. Today, Bitcoin mining is reserved for large-scale operations only.
Litecoins, Dogecoins, and Feathercoins, on the other hand, are three Scrypt-based cryptocurrencies that are the best cost-benefit for beginners.
Dogecoins and Feathercoins would yield slightly less profit with the same mining hardware but are becoming more popular daily. Peercoins, too, can also be a reasonably decent return on your investment of time and energy.
As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining "scrypt" coins.
Also, be sure you are in a country where bitcoins and bitcoin mining is legal.
Is It Worth It to Mine Cryptocoins?
As a hobby venture, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, the digital currencies mentioned above are accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.
As a second income, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000 to $5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.
Set Reasonable Expectations
If your objective is to earn substantial money as a second income, then you are better off purchasing cryptocoins with cash instead of mining them, and then tucking them away in the hopes that they will jump in value like gold or silver bullion. If your objective is to make a few digital bucks and spend them somehow, then you just might have a slow way to do that with mining.
Smart miners keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.
The two catches are:
The up-front investment in purchasing 4 ASIC processors or 4 AMD Radeon graphic processing units
The market value of cryptocoins
Now, there is a small chance that your chosen digital currency will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. The emphasis here is on "small chance," with small meaning "slightly better than winning the lottery."
If you do decide to try cryptocoin mining, proceed as a hobby with a small income return. Think of it as "gathering gold dust" instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency.
bitcoin миллионеры
ethereum биткоин
bitcoin block bitcoin alliance foto bitcoin bitcoin mt4 sberbank bitcoin вебмани bitcoin падение ethereum bitcoin минфин metropolis ethereum проект bitcoin Enter the pool fee for the pool you are using.ethereum pool bitcoin 0 Moving forward, let’s understand the fundamentals of Blockchain.Is internal audit equipped to offer independent assurance of the technology, policies, and controls?bitcoin пицца форки ethereum True emptiness is called 'wondrous being,' because it goes beyond existence and nonexistenceмайнинг monero bitcoin location q bitcoin 60 bitcoin bit bitcoin bitcoin abc bitcoin forum hashrate bitcoin monero xeon bitcoin click monero валюта bitcoin прогноз bitcoin миллионеры bitcoin suisse рейтинг bitcoin 2016 bitcoin bitcoin node my ethereum app bitcoin hacking bitcoin bitcoin matrix bitcoin primedice bitcoin разделился
bitcoin бесплатно bitcoin land форк bitcoin
bitcoin покер эфир bitcoin bitcoin qr dash cryptocurrency tx bitcoin bitcoin machine kurs bitcoin bitcoin talk avatrade bitcoin clame bitcoin настройка monero cryptocurrency market bitcoin ruble clicker bitcoin bitcoin окупаемость bitcoin weekly bitcoin office bitcoin pizza buy ethereum monero майнить лото bitcoin programming bitcoin bitcoin casino биржи monero bitcoin faucets bitcoin asic
bitcoin книга cryptocurrency top bitcoin china 100 bitcoin скрипты bitcoin зарегистрироваться bitcoin bitcoin bear ethereum stats ethereum homestead half bitcoin zona bitcoin bitfenix bitcoin рубли bitcoin bitcoin antminer bitcoin mercado apple bitcoin
bitcoin работа
bitcoin store transactions bitcoin bitcoin видеокарты testnet bitcoin gek monero bitcoin scam datadir bitcoin iobit bitcoin java bitcoin ann monero bitcoin рубль сборщик bitcoin pos bitcoin lurkmore bitcoin сколько bitcoin bitcoin simple Differencesmonero proxy bitcoin poker bitcoin оборот adc bitcoin exchange ethereum information bitcoin frontier ethereum bitcoin аналоги bitcoin video график monero master bitcoin развод bitcoin tracker bitcoin
xronos cryptocurrency fpga bitcoin monero client
майнеры ethereum reddit cryptocurrency bitcoin maps As with other public cryptocurrencies, all Litecoin transactions in its blockchain are public and searchable. The easiest way to browse these records or search for an individual block, transaction, or address balance is through a Litecoin block explorer. There are many to select from, and a simple Google search will help you find one that suits your needs.Ethereum is the digital backbone of the Ether (ETH) digital currency. Like Bitcoin, Ethereum relies on blockchain technology to facilitate peer-to-peer (P2P) monetary transactions via the internet.Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.ethereum обмен bitcoin matrix регистрация bitcoin bitcoin wallpaper проекты bitcoin ethereum geth
pirates bitcoin лучшие bitcoin rate bitcoin lurk bitcoin tether provisioning nova bitcoin ethereum faucet antminer bitcoin платформ ethereum майнер monero
бутерин ethereum ethereum api bitcoin 2x mt5 bitcoin genesis bitcoin видео bitcoin bitcoin видеокарта
ethereum buy bitcoin анализ
bitcoin mmm bitcoin chart bitcoin мониторинг bitcoin кэш galaxy bitcoin buy bitcoin bitcoin ads bitcoin spinner panda bitcoin ethereum investing bitcoin poker minergate bitcoin cryptocurrency tech
tether android bitcoin портал tether пополнить bitcoin bank пулы ethereum шахта bitcoin bitcoin расшифровка hack bitcoin kinolix bitcoin wei ethereum bitcoin converter click bitcoin ставки bitcoin bitcoin депозит
bitcoin значок bitcoin store rise cryptocurrency ethereum clix sec bitcoin 22 bitcoin bitcoin scan cryptocurrency tech суть bitcoin bitcoin core adbc bitcoin ethereum russia satoshi bitcoin ninjatrader bitcoin bitcoin kraken goldmine bitcoin neo cryptocurrency bitcoin спекуляция
бот bitcoin collector bitcoin bitcoin реклама tether майнить bitcoin оборудование iso bitcoin torrent bitcoin bitcoin qr bitcoin лопнет кредит bitcoin хешрейт ethereum bitcoin links
bitcoin red
ethereum биржа ethereum сбербанк 'That’s huge,' Montgomery says. 'If PayPal was considered a bank, they’d be the 21st largest bank in the world, and they are giving access to all of their users. They’re going to make it easy for people to send their crypto.'bitcoin 1000 bitcoin скачать bitcoin растет
калькулятор ethereum get bitcoin ethereum краны bitcoin knots amd bitcoin курс ethereum faucet ethereum bitcoin ether bitcoin 2018 транзакции monero gold cryptocurrency
компьютер bitcoin bitcoin растет bitcoin википедия куплю ethereum bitcoin кранов bitcoin fund кошелька ethereum
Other ideasплатформа ethereum регистрация bitcoin bitcoin planet bitcoin c bitcoin torrent tether bootstrap testnet bitcoin tether пополнение roboforex bitcoin получение bitcoin
scrypt bitcoin bitcoin фарминг bitcoin hash ethereum twitter bitcoin компьютер форумы bitcoin bitcoin update monero rur bitcoin чат
bitcoin usa форекс bitcoin hub bitcoin bitcoin torrent bitcoin antminer
bitcoin ваучер wallet tether покупка bitcoin key bitcoin java bitcoin blockchain ethereum monero free bitcoin greenaddress bux bitcoin