There is somewhat a digital gold rush sweeping the entire world with cryptoccurency mining. People invest heavily in equipment or rigs and they spend months with mining waiting for return on their investments.
For beginners, it would be cost-effective to try mining for Dogecoins, Litecoins, and Feathercoins wherein you can potentially earn from 50 cents to about 10 dollars a day with a regular mining hardware. Mining bitcoins can definitely rake in more profit but you have to invest hundreds to thousands of dollars in equipment for mining.
If you don’t have thousands to invest for hardware, you can only generate quite a small income daily. But, if you have the means to invest up to $5,000 in hardware costs then you can earn at least $50 per day with cryptocurrency mining.
If you are looking at cryptocurrency mining as a second income then it would be better to invest in purchasing cryptocoins in exhanges and then waiting for them to jump in terms of value. Mining can take months which is a slow way to earn this digital gold.
The focus of mining is geared towards accomplishing the following:
- Keeping your personal expenses to a minimum which includes hardware and electricity costs.
- Doing accounting work or verifying transactions 24/7 in a coin network or blockchains.
- Getting incentives or rewards for your accounting or bookkeeping services by receiving a percentage or cut from the coins after a few days.
You would need the following items to start with cryptocurrency mining:
- Coin wallet. This is a password-protected private database that serves as storage of your cryptocurrency earnings and also keeps a ledger of your transactions.
- Membership to a legitimate online mining pool. This will be beneficial especially if you don’t have that many resources and would need to combine computers for increased profitability.
- Free mining software made of stratum and cgminer.
- Reliable high-speed internet connection.
- Membership to a currency exchange.
- Airconditioned space or facility to accommodate hardware.
Fact is, you could earn or lose money when mining cryptocurrencies. This really depends on your appetite for risk how diverse your investments are. If you are a regular investor or a consumer-level user then you can dig into the Dogecoins, Feathercoins, and Litecoins which are also popular forms of digital tokens that are budget-friendly and affordable. Bitcoin mining is strictly for large-scale type of mining operations only.
The mathematical computations have been very difficult with bitcoin mining especially that this has started way back in 2009. The upfront investment plus the operational and maintenance costs may not be enough or worth the ROI anymore. This really depends so much on whether you are willing to spend like tens of thousands of dollars on the required labor-intensive hardware plus an air-conditioned to house your equipment. If you cannot afford this, then you will not likely profit with cryptocurrency mining. You would be better off with just buying bitcoins with money and then watch it increment in value – which is a sure win.