My interest in mining started about a year ago. So much has changed in the last year that sometimes it feels hard to keep up. I thought it would be a good time for those new to the crypto mining scene to have someone explain a few different options for those just getting into mining as well as some resources to check out. I will be going over three different ways I mine crypto currencies. These are passive mining operations meaning I am just mining and holding the cypto currency or using it to repurchase hashing power or equipment.
**disclaimer**
I mine with Nicehash(I sell the hashing power of my homebuilt mining rig), Genisis Mining (cloud mining) and Bitclub Network ( purchased mining equipment ). My intention is not to endorse one option over the other but to provide my insight for those that are new to mining. I have included links so that those unfamiliar with these different types of mining could educate themselves. Please do your due diligence, ask questions and research. Never invest more than you can afford to lose.
NiceHash.
By far one of the more novice-friendly ways to mine with your own equipment. How it works, you sell them the hashing power of your computer CPU/video card, ASIC machine and they pay you in Bitcoin. The more hashing power your computer, rig or equipment has the faster you can mine.
Pros
- Anyone with a computer or mining rig can easily set up their equipment with a quick download of the Nicehash software.
- Depending on where you live in the world, (Colder climates with cheap power are the best) it can be cheap to run your equipment.
- They have daily payouts of your earning paid in Bitcoin.
- NiceHash software with automatically switch to mining the most profitable cryptocurrency as the price fluctuates.
- Privacy, if you want to mine to your own BTC address you can without identifying yourself.
Cons
- Initial cost startup can be costly if you don't already own good equipment. ASIC equipment and GPU mining cards have skyrocketed in the last few years due to high demand.
- You pay for the upkeep of the equipment. i.e the electricity to power your equipment, internet and keeping the equipment at a safe operating temperature. This can be costly depending on where you live and can greatly determine your ROI( return on investment). I live in the southwest of America and it gets HOT here. It cost me about .12 cents per Kwh for my electricity.
- If something happens to your power, internet or your equipment you will have to wait until that issue is fixed before you can mine again.
- A certain knowledge level of computer equipment is needed, but nothing a youtube or reddit search can't fix.
- Mining equipment is loud, depending on what you are using it can be as loud as a vacuum cleaner.
- It has to run 24 hours a day, downtime cost you money every second it is not running.
- Space, depending on the size and amount of equipment you might need a whole room or larger to accommodate the equipment. I have watched videos of people mining in their apartments with power cords running all over the house and floor to ceiling equipment. If this doesn't bother you or you don't have small children then this may not be a Con for you
- You are paid in Bitcoin and it can be very costly to receive or send as of the time of this publication. This can affect how much bitcoin you actually receive and how often you are paid.
- ROI(return on investment) is not guaranteed, is highly speculative.
Genesis Mining
One of the more reputable cloud mining companies. Basically, you rent their equipment's hashing power from them for a pre-determined amount of time. The prices range from hundreds of dollars to 10's of thousands of dollars for the contract term.
Pro
- Free Membership
- No waiting, once you purchase the hashing power it starts mining that day.
- You chose what crypto you mine and in what crypto you are paid with. i.e. you mine Litecoin and get paid in Bitcoin. Highly customizable.
- Payouts are paid daily
- They offer affiliate incentives that will earn you more hashing power.(when other people signup with your referral they get a discount and you get a percentage of the contract they purchased in hashing power)
- The option to add more hashing power to your contract at any time.*Note* only while they have the same contract open.
Con
- Some of their contracts have a limited amount of space so they tend to sell out quickly. Once it is sold out they close that type of contract to purchase until they have more equipment. Plan ahead.
- Diminished returns. Every day of your contract there is a little less cryptocurrency awarded to you. The reason for this is because the difficulty and the overhead of mining go up as more and more people mine. Your Hashrate stays the same but what you mine may become less and less the longer the contract continues. One way miners combat this is to buy more hashing power with some of their profits. Another way is to market their affiliate link and get free hashing power when others pay for contracts.
- ROI(return on investment) is not guaranteed is highly speculative.
- Not very private. You are required to give certain identifying information in order to set up an account.
Bitclub Networking A crowd-sourced mining pool where you purchase the mining shares i.e. mining equipment. This equipment is housed and maintained at locations in Iceland, Canada, and the US using cheap and renewable energy sources, like geothermal, solar power etc.
Pro
- Lifetime contracts, once your equipment is set up you mine for life. It is even transferable to family or friends if so wished.
- Members get paid daily based on the number of shares/equipment you own.
- Bitclub Network can be tracked on mining pool databases such as BlockChain and BlockTrail. This verifies they actually have mining equipment and legitimately mine.
- Repurchasing is automatically setup if you want to increase the amount of equipment you have, or not at all if you would rather reinvest your profits elsewhere.
- Repurchasing more shares can compound your original investment
- If anytime you want your purchased mining equipment can request for it and it will be shipped directly to you.
- The ability to mine Bitcoin or several altcoins such as ZEC, XMR, ETC or ETH. You can keep those coins or convert* them to BTC or BCH at no cost.(* starting in February 2018)
- Cost per share start at 500.00 each
- You need a sponsor to become a member to join but that is easily remedied and it is good because then you can ask your sponsor any question you might have
- Privacy, Bitclub Networking respect your privacy and does not require more than a username and email to set up an account.
Con
- Once you purchase the mining equipment there is a delay of 30 days to start mining. While this can be frustrating for those of us that want to start mining right away this allows for time to set up the equipment at one of their facilities and avoid diluting the mining pool.
- Membership to start mining cost a one time fee
- ROI(return on investment) is not guaranteed and is highly speculative.
- Method of payment is in BTC or BCH only.
- Bitclub Networking has pulled out of "crypto unfriendly" markets such as the USA and a handful of countries in order to protect their member's privacy. The USA likes to collect those taxes. *(there are workarounds for this)
Other
There is a MLM (Multi-Level Marketing) aspects to Bitclub Networking, but it not required to be a member or to earn profits from mining. By being a sponsor you get a commission on purchases. You still get mining earnings even if you never sponsor anyone else.
For more information check out these links
Nicehash
Genisis mining
Bitclub Networking
Thanks for reading, if you found this post to have value please donate to my beer fund :)
BCH: 14pu9Qs27xBwqebyAEsLuy9TnSAZHK32nr
ETC: 0x46dca6c2978712176e2177072f293f48a2f42bb1
LTC: LN8ti9y469G5HbfCNuoAWyfou1JWzMUjx4
Buy the coin, cheapest entry into market
Doesn't hurt to do both :)
You might want to check into betterHash and they have a facebook page, right now when you mine you can take the coins or convert to BTC, it like nicehash
Thanks @nickeltabs I will check it out.