How to manage your crypto mining earnings

in #crypto7 years ago

In this page, I will tell you how to manage the best out of your mining income.

From the pool choice to the reselling strategy, there are many points to understand.

There's no magic tip, or magic software that can do all this, it needs your own point of view about every single situation.

No magic tool from youtube will tell you the futur, all people trying to find it, are just wasting time and getting closer and closer to wallet thieves.

1 . There is many kind of pool.

(Lets reming what is a pool, it's a mutualised mining process, all miners mine for the same wallet, and once some one hits a block, it's all shared to miners depending on their hashingpower, time of presence on the block, it's really a need for small miners, otherwise they wouldn't be able to mine with small rigs).

  • the first actualy all automated, autoswitching from a coin to another, from an algo to an algo, and they resell all this to send you BTC (wich is actualy some rate of the trade, I will explain later why it's not such a good solution as it seems.

  • the second typical way is single coin maning via on of the biggest pool. This way your hashing power is mining one coin at the time, and keeps the coin in the initial form, not converted to BTC like with "Autotrade mode". This is the best solution cause you can choose when you mine and when you sell, this way you can optimise your earnings from mining.

  • the third is mix of both, you choose a coin to mine, sometimes an algo and pool is switching on all currency on this algo that they host, and they also play with your coins to give you a BTC rate. You can choose to get converted or not, but it's switching/converting when mode is activated.

  • The solo mining, well if you have really like a lot of hashing power, asic farm, thousands of GPU, you are surely going for this option, it means that you don't share anything with anyone, you just mine for yourself, and all will depend on the luck of wich block you will hit.

  1. Trade part strategy

So if you want to optimise your earnings, you should probably do the trading part yourself, by mining when it's low, or even buying, then sell when it's high, that's the perfect plan, but of course, it needs lots of monitoring, lots of research, it's actualy like a marketing job. Full time monitoring because markets never sleeps.

It can be a headache setting up the miners working on the one you choose.

Transfering coins take confirmation, take time, you need to be very well organised to manage and handle all this the right way. It's not a poker table, chip are having a fluctuating value, high volatility.

Always follow all tweets and ANN for everysingle coin you are into, and like every single day (at least once) is a great basis.

Or you can just give it to auto mining hands, but be sure that they won't give you the best out of your hardware or mining contract. It's just that they know how to play on timeframe (like banks do), they can trick it all and make a lot of money out of the small time you are not having your coin creditted.

Autoswitching pools are just moving to most profitable coin, so when all the new hashpower comes on the most profitable, well it turns that it's not the most profitable anymore, as long as they are so big.

It will switch back to another one, then another one, and all hashing is just a mess.

The cercle never ends.

And it's flattening all mining to a kind of standardised pips (sat) rated value, no matter what coin you mine.

These auto switch bot are all stuck on BTC now, making the BTC value keep rising, adding the new investors seing this and thinking it's all a pump.
But it's just automated one.

If tomorrow, all auto switch move to LTC, it would do the same to LTC, even faster growth.

  1. Can we do more ? acting ?

BTC is crypto mother, ok.

Now lets give some power to other coins, otherwise the cake will never get bigger.
And kill all your autoswitching farm, and stick to pools on coins, just hold and wait till the market value is high.
And sell if you think it's the right time to sell (are you long or short therm trading it, your choice).

Just stop focusing on BTC, ok it's growing, but just look at all the altcoin charts and check the rates profit you could have done buy buying dip, selling peak, compare to BTC, you will see that fluctuation as sometimes been way bigger for altcoins.

  1. Mining what is most profitable ? it's really a abstract thing.

It mostly depend on two things, exactly what timing you choose to sell your mined units (every day, each week, each month, years ? )

  • long therm bet on value increase with time.

  • Short might just want to buy something else that is in a dip and bet on value increase with time aswell.

  • mixed therm, some you go for long, some you go for short position.

  1. The other thing is the diff surfing.

"Hey there's too much people mining here, I just can't have any chance to actualy reach the mine"

It kind of learns us how to "not" do like the others do.

When diff (difficulty) is increasing, you should move to another coin, cause your earnings are going low.
Going on a diff falling coin, mean, more units to mine.

And when it's the dip value, it's time to buy, so time to mine.

Just hold mined coins and wait until value fits your expectation, and take your profit, on a regular base, with fix rate.
Like taking out to fiat all profit every month (on a market peak) then hold the remaining units to hold position, for later even better profit.

But take some out, and never play what you can't afford to loose, cause this is time when feelings are getting mixed with the trading, and it's not good at all.
Money should be able to be stuck for month, or even lost, without affective your living expanse, otherwise you are betting with your life.

That's not good, cause nothing remains forever.

It's more like a good el nino surf session to enjoy out of these charts and mining game.

Hope it will help som people to understand more about it all.

And I reming, that this is just, my point of view.

Happy and gainfull mining to you all.

polkamasternodes