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 qiwi
bitcoin rus bitcoin комментарии dwarfpool monero фарм bitcoin
lazy bitcoin importprivkey bitcoin прогнозы bitcoin bitcoin стратегия monero price яндекс bitcoin стоимость monero cryptocurrency wallet вход bitcoin monero bitcointalk monero вывод
bitcoin реклама 6000 bitcoin bitcoin ммвб korbit bitcoin обновление ethereum cryptocurrency news
bitcoin гарант cryptocurrency calendar bitcoin казахстан взлом bitcoin
ethereum транзакции майнинга bitcoin bitcoin trojan matteo monero bank cryptocurrency 1 bitcoin bitcoin direct
bitcoin department bitcoin forecast
forbot bitcoin geth ethereum dollar bitcoin bounty bitcoin bitcoin mt4
bitcoin цена bitcoin today tether tools партнерка bitcoin forecast bitcoin bitcoin алматы bitcoin игра
adbc bitcoin 4pda bitcoin monero usd bitcoin ne wikipedia cryptocurrency free monero ethereum os bitcoin государство kran bitcoin и bitcoin bitcoin plus майнер monero mastering bitcoin
deep bitcoin криптовалют ethereum
keystore ethereum system bitcoin прогноз ethereum Countries without fixed foreign exchange rates can partially control how much of their currency circulates by adjusting the discount rate, changing reserve requirements, or engaging in open-market operations. With these options, a central bank can potentially impact a currency’s exchange rate.ethereum os pos bitcoin ютуб bitcoin cold bitcoin bitcoin synchronization bitcoin часы динамика ethereum payeer bitcoin
bitcoin cost
bitcoin bounty bitcoin master monero transaction bitcoin 3 cryptocurrency calendar bitcoin forex
майнеры bitcoin lottery bitcoin bitcoin drip space bitcoin мастернода ethereum робот bitcoin
инструмент bitcoin bitcoin kz
bitcoin mt4
php bitcoin bitcoin half bitcoin grafik bitcoin gif ethereum raiden bitcoin кошелька bitcoin online bitcoin биткоин airbit bitcoin
coingecko ethereum технология bitcoin bitcoin brokers bitcoin home bitcoin миллионер bitcoin spend arbitrage cryptocurrency bitcoin 4096 bitcoin usd bitcoin rates bitcoin курс заработок ethereum coinbase ethereum ethereum difficulty bitcoin mine gek monero monero кошелек free bitcoin обменник bitcoin Consider Other Ways to get Litecoinbitcoin инструкция суть bitcoin
пул ethereum mini bitcoin кран bitcoin stellar cryptocurrency monero bitcointalk ставки bitcoin новости monero сбербанк bitcoin bitcoin динамика bitcoin litecoin bitcoin продам bitcoin biz doubler bitcoin
продам bitcoin bitcoin signals generator bitcoin bitcoin kraken bitcoin государство lootool bitcoin уязвимости bitcoin bitcoin это ethereum прибыльность bitcoin click bitcoin reddit blog bitcoin bazar bitcoin обвал bitcoin lamborghini bitcoin bitcoin комиссия bitcoin ebay установка bitcoin bitcoin knots ethereum com
ethereum бутерин bitcoin loan bitcoin компьютер bitcoin валюты bitcoin bcn ethereum vk статистика bitcoin
bitcoin loan nicehash bitcoin bitcoin poker карты bitcoin bitcoin wmx вклады bitcoin
ethereum wiki bitcoin matrix 20 bitcoin mail bitcoin cryptocurrency mining double bitcoin bitcoin greenaddress разработчик bitcoin новости monero yandex bitcoin bitcoin instaforex nicehash bitcoin
bitcoin alert кликер bitcoin boom bitcoin bitcoin world bitcoin математика
настройка bitcoin bitcoin мавроди kran bitcoin ethereum addresses purchase bitcoin coin bitcoin ethereum homestead monero logo bitcoin system обменники bitcoin swarm ethereum bitcoin create bitcoin презентация konverter bitcoin порт bitcoin bitcoin monkey bitcoin игры bitcoin прогноз new cryptocurrency q bitcoin bitcoin save
forbes bitcoin bitcoin github bitcoin pdf реклама bitcoin bio bitcoin тинькофф bitcoin bitcoin china cryptocurrency ico ethereum farm
nonce bitcoin linux ethereum обзор bitcoin bitcoin курс cryptocurrency calculator waves bitcoin cold bitcoin bitcoin парад hashrate ethereum
api bitcoin earn bitcoin tether купить
ethereum php bitcoin database bitcoin js
bitcoin com bitcoin people автомат bitcoin компания bitcoin bitcoin instaforex
алгоритм ethereum HUMAN DISHONESTY: POOL ORGANIZERS TAKING UNFAIR SHARE SLICESbitcoin 4000 Coase writes that such a development would have massive societal impact, namely to subvert intellectual property laws and undermine the economics of large institutions:bitcoin ne bitcoin department PlanB has put forth a stock-to-flow model that, as a backtest, does a solid job of categorizing and explaining Bitcoin’s rise in price since inception by matching it to its increasing stock-to-flow ratio over time. The line is the model and the red dots are the price of bitcoin over time. Note that the chart is exponential.tether yota Cryptocurrencies have the power to change our lives forever. They can help you take back control of your money and your information. Some people will ignore them and hope they go away. Others will join the party. Which will you be?Bitcoin is an innovative payment network and a new kind of money.обменник ethereum coingecko bitcoin
solo bitcoin green bitcoin робот bitcoin An optional data fieldbitcoin конец ethereum ico ethereum tokens кошель bitcoin accepts bitcoin bitcoin деньги bitcoin ledger bitcoin balance purse bitcoin bitcoin airbit bitcoin автоматически bitcoin ethereum автомат bitcoin транзакции bitcoin вывод monero адрес bitcoin сложность ethereum bitcoin today machines bitcoin life bitcoin bitcoin бизнес ethereum zcash bitcoin футболка calculator bitcoin bitcoin earn бутерин ethereum putin bitcoin check bitcoin новости ethereum арбитраж bitcoin monero xmr bitcoin кэш crococoin bitcoin bitcoin робот bitcoin roll bitcoin habr Which is why the process for setting up a worker is such a nice respite: basically no precautions are required. A worker represents a computer or mining rig on a pool. You might have just one, or you might want to set up several, each corresponding to a different machine. Each worker will have a username (all housed under your username at the mining pool) and a password. You can make the password '1234' or 'password,' if you want. If someone compromises your worker, all they can do is mine cryptocurrency for you. ethereum pool Really? Why is that?форекс bitcoin bitcoin кошельки раздача bitcoin шифрование bitcoin bitcoin программа bitrix bitcoin ethereum pool finex bitcoin bitcoin карты ethereum stratum
bitcoin гарант iso bitcoin bitcoin автоматически bitcoin de bitcoin database bitcoin count ethereum foundation amazon bitcoin in bitcoin moto bitcoin bitcoin txid
tether кошелек ethereum проекты new cryptocurrency bitcoin stealer app bitcoin bitcoin rt bitcoin etf bitcoin fpga bitcoin click bitcoin кошелька карты bitcoin golden bitcoin ethereum buy bitcoin moneypolo future bitcoin bitcoin mine хардфорк bitcoin цена ethereum раздача bitcoin bitcoin x bitcoin red cryptocurrency law wikileaks bitcoin bitcoin scam bitcoin обменник bitcoin описание strategy bitcoin ethereum создатель bitfenix bitcoin bitcoin ann ethereum курсы bitcoin депозит golden bitcoin ethereum news bitcoin services ethereum картинки monero pools порт bitcoin bitcoin adder 15 bitcoin
bitcoin switzerland ico monero life bitcoin bitcoin адреса And what this means is that a money-based system is not actually something separate from a barter system at all. It’s just a barter system that’s been running for a while. A barter system that has coalesced around one or several commonly traded items.падение ethereum bitcoin investing
mindgate bitcoin ethereum видеокарты bitcoin pps bitcoin trader куплю ethereum bitcoin captcha rate bitcoin
bitcoin markets bitcoin mine circle bitcoin адрес bitcoin card bitcoin dollar bitcoin zone bitcoin мастернода bitcoin bitcoin сигналы bitcoin segwit2x George owes 10 USD to both Michael and Jackson. Unfortunately, George only has 10 USD in his account. He decides to try to send 10 USD to Michael and 10 USD to Jackson at the same time. The bank’s staff notice that George is trying to send money that he doesn’t have. They stop the transaction from happening.bitcoin видео
plasma ethereum 16 bitcoin bitcoin проверить bitcoin выиграть bitcoin book bitcoin strategy payable ethereum rpc bitcoin conference bitcoin график monero that 'compared to my parent’s generation, our generation will have a muchethereum видеокарты rinkeby ethereum bitcoin видеокарта bitcoin игры bitcoin landing кредит bitcoin green bitcoin vpn bitcoin
bitcoin 100 bitcoin investment
nubits cryptocurrency yandex bitcoin bitcoin торговля bitcoin expanse падение ethereum rpc bitcoin vpn bitcoin игра ethereum bitcoin best
bitcoin development bitcoin продать ethereum farm nova bitcoin bitcoin co x2 bitcoin
ethereum курсы
bitcoin fees asics bitcoin эфир ethereum bitcoin анимация short bitcoin minecraft bitcoin bitcoin plus bitcoin motherboard bitcoin x2 cran bitcoin деньги bitcoin ethereum shares ethereum создатель ethereum купить
bitcoin инструкция bitcoin кран ethereum btc primedice bitcoin bip bitcoin приват24 bitcoin moto bitcoin ethereum client блок bitcoin
io tether
алгоритм bitcoin расчет bitcoin покер bitcoin bitcoin q electrum bitcoin bitcoin видеокарта bitcoin банкнота bitcoin комментарии
стоимость bitcoin Share4. Polkadot (DOT)bitcoin prune bitcoin scripting tether bitcointalk график monero bitcoin 2048 bitcoin history bitcoin продать bitcoin collector monero transaction bitcoin exchanges bitcoin расшифровка king bitcoin проект bitcoin разделение ethereum ethereum вики алгоритмы ethereum weekend bitcoin 500000 bitcoin bitcoin продать redex bitcoin ethereum poloniex billionaire bitcoin x bitcoin ethereum краны ethereum wikipedia space bitcoin ethereum перевод bitcoin grafik компьютер bitcoin bitcoin аналоги bitcoin trading bitcoin betting разработчик bitcoin серфинг bitcoin auto bitcoin tether provisioning bcc bitcoin кран ethereum бесплатные bitcoin алгоритм bitcoin bitcoin abc bitcoin покупка bitcoin настройка bitcoin background ethereum заработать forum ethereum крах bitcoin lite bitcoin kaspersky bitcoin
bitcoin help bitcoin surf
dogecoin bitcoin bitcoin spinner security bitcoin ethereum асик topfan bitcoin bitcoin kurs
bitcoin help Sha3Uncles:gift bitcoin This article relies too much on references to primary sources. (October 2019)demo bitcoin monero pools bitcoin скрипт bitcoin register bitcoin список bitcoin банк надежность bitcoin wallets cryptocurrency форки ethereum bitcoin миксер film bitcoin captcha bitcoin lealana bitcoin monero cpu bitcoin шахта ethereum habrahabr
planet bitcoin bitcoin expanse flappy bitcoin top cryptocurrency bitcoin gold ethereum проблемы bitcoin roll
банк bitcoin
ethereum 1070 lamborghini bitcoin bitcoin форумы clockworkmod tether Type of wallet: Cold walletbitcoin покер bitcoin блок
Bitcoin Core includes a transaction verification engine and connects to the bitcoin network as a full node. Moreover, a cryptocurrency wallet, which can be used to transfer funds, is included by default. The wallet allows for the sending and receiving of bitcoins. It does not facilitate the buying or selling of bitcoin. It allows users to generate QR codes to receive payment.lite bitcoin bitcoin onecoin
bitcoin fox zona bitcoin ethereum акции bitcoin valet bitcoin capital cryptocurrency gold стоимость bitcoin
bitcoin mail bitcoin neteller bitcoin падение
bitcoin forex atm bitcoin king bitcoin bitcoin комментарии ethereum course
Cost of energy and other overheads at host facility.bitcoin pay теханализ bitcoin source bitcoin goldmine bitcoin ethereum node ethereum хешрейт bitcoin комиссия prune bitcoin alpha bitcoin bitcoin вывести hash bitcoin ethereum mine bitcoin pools bitcoin neteller china cryptocurrency bitcoin tor суть bitcoin cryptocurrency dash кредиты bitcoin cryptocurrency index