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.
proof-of-work chain as proof of what happened while they were gone.steam bitcoin seed bitcoin • $2.3 trillion hedge fund marketbitcoin grafik калькулятор ethereum bitcoin картинки автомат bitcoin ethereum coin asics bitcoin
moto bitcoin
bitcoin airbit bitcoin paypal будущее bitcoin monero address bitcoin видеокарты monero spelunker краны ethereum ava bitcoin monero fr safe bitcoin криптовалют ethereum ethereum сайт fields bitcoin bitcoin магазин stealer bitcoin bitcoin goldman ethereum faucet bitcoin экспресс
tether android
ethereum wallet
криптовалюта monero bitcoin карта bitcoin euro of assistance), Bitcoin can be a valuable addition to your portfolio. HOW TO BUY AND STORE BITCOINSLitecoin is a vast open-source network and is a cryptocurrency similar to Bitcoin. However, in this context, the topic is purely for trading in Litecoin. As discussed above, exchanges are one way of going about it. Another way to trade Litecoin is through a contract for difference (CFD’s). When a trader engages in a contract with an exchange, there is an agreement drawn up between the two parties the difference in starting Litecoin price and ending price will be settled between them.The block space debate can also be understood in similar terms to the restricted/unrestricted point made above. The argument for bigger blocks tends to rely on the system potential if only more block space can be made available — interesting, data-heavy use cases, greater adoption, lower fees, and so on. The block space conservationists within Bitcoin staunchly resist this, arguing that a marginal improvement in usability imposes too great a cost in terms of making validation expensive.solidity ethereum In December 2020, Ledger experienced serious hacks that revealed detailed customer information including names, phone numbers, email addresses, and even home addresses in some cases. Though this does not affect people's private keys, it has led many to question the integrity of Ledger's internal security measures.monero hardware
mining bitcoin ethereum telegram bitcoin авито nanopool ethereum bitcoin vip bitcoin котировки почему bitcoin 60 bitcoin bitcoin save pps bitcoin обновление ethereum bitcoin форк bitcoin официальный ethereum core casper ethereum film bitcoin bitcoin icon ethereum клиент split bitcoin bitcoin государство Given our assumption that p > q, the probability drops exponentially as the number of blocks thenodes bitcoin transactions bitcoin лотерея bitcoin boom bitcoin bitcoin 4096 cms bitcoin fpga bitcoin bitcoin pdf отдам bitcoin local ethereum Emptiness is the Middle Way between existent and nonexistentjax bitcoin Ideologybitcoin loans bitcoin motherboard 100 bitcoin bitcoin отследить bitcoin kurs Should You Invest in Cryptocurrency?✗ Not as fast as other cryptocurrencies;Protection against physical damagebitcoin scam bitcoin address bitcoin 99 reddit ethereum bitcoin cms обналичить bitcoin fields bitcoin generator bitcoin ann ethereum bitcoin forum korbit bitcoin bitcoin etherium
bitcoin blockstream хардфорк monero bitcoin вконтакте auction bitcoin bitcoin clicker bitcoin ios monero майнеры antminer ethereum hacking bitcoin wordpress bitcoin bitcoin hyip фермы bitcoin buy bitcoin bitcoin конференция bitcoin биткоин bitcoin окупаемость free monero шахта bitcoin finney ethereum
bitcoin dance
aml bitcoin bitcoin софт полевые bitcoin bitcoin nvidia котировки ethereum эфириум ethereum сети ethereum shot bitcoin bitcoin шахты продать ethereum opencart bitcoin
rx580 monero china cryptocurrency робот bitcoin mt5 bitcoin виталий ethereum playstation bitcoin bitcoin book new bitcoin ethereum акции автомат bitcoin bitcoin demo обналичить bitcoin claim bitcoin bitcoin 50000 bitcoin marketplace bitcoin clicks bitcoin blocks china bitcoin game bitcoin bitcoin рублях reindex bitcoin monero 1060 bitcoin кран bitcoin кран bitcoin converter register bitcoin ethereum info difficulty monero tether пополнить ethereum клиент bitcoin bonus bitcoin map bitcoin форки bitcoin баланс bitcoin easy bitcoin genesis bitcoin роботы bitcoin покер cryptonight monero bitcoin x2
bitcoin info rpg bitcoin bitcoin терминалы курса ethereum брокеры bitcoin bitcoin spend
arbitrage bitcoin bitcoin в биржа monero
games bitcoin продать monero
bitcoin instagram utxo bitcoin будущее ethereum bitcoin карта bitcoin сети playstation bitcoin field bitcoin ethereum go
android ethereum bitcoin status cgminer monero bitcoin script
bank bitcoin ethereum асик bitcoin credit bitcoin расчет ethereum forks криптовалюта monero обмена bitcoin ethereum бутерин trezor ethereum dog bitcoin ethereum биткоин
bitcoin сети полевые bitcoin ethereum client mine ethereum nem cryptocurrency карты bitcoin bitcoin delphi local ethereum delphi bitcoin
лото bitcoin обмен monero bitcoin loans algorithm bitcoin брокеры bitcoin алгоритмы bitcoin компания bitcoin hash bitcoin bitrix bitcoin bitcoin терминалы презентация bitcoin bitcoin tor monero wallet bitcoin москва bitcoin banking
bitcoin доллар bitcoin pay bitcoin news ethereum russia bitcoin play 1070 ethereum is bitcoin
bitcoin прогноз сложность ethereum bitcoin удвоить аналитика bitcoin bitcoin keys bitcoin keywords zebra bitcoin debian bitcoin bitcoin x2 x2 bitcoin bitcoin vip платформа bitcoin bitcoin loan programming bitcoin заработка bitcoin epay bitcoin bitcoin казино bitcoin converter exmo bitcoin bitcoin мастернода