Numerous individuals and organizations worldwide are already using cryptocurrency mining as their main source of income, while an even greater number of enthusiasts are emerging among potential cryptocurrency miners — thanks to the stability and “firmness” of the investment. Miners are less prone to market fluctuations, while cryptocurrency mining returns often exceed returns from direct ownership of a “cryptocurrency portfolio”.
As cryptocurrency mining became popular, separate strategies for mining appeared in the investment world, and it can be confidently stated that the most stable and profitable ones prioritizes preparation before the Halving event, a separate budget for paying for electricity, and an average distance of 2-5 years. With these conditions in place, today’s decryptors receive their dozens of Xs from mining cryptocurrency.
However, many people on the planet are still unfamiliar with mining and Bitcoin basics. That’s why we’re offering a refresher on this innovative kind of passive-income business, which is expected to provide an APY of at least 30 and up to 4000% in the upcoming decades.
What is mining and why is it needed?
Mining is the process of confirming transactions and adding new blocks to the blockchain. Mining can differ from network to network, but as a rule, the reward for mining is the currency of that network.
However, mining equipment is not a cheap pleasure – moreover, it has increased in price an average of 15 times over 5 years and will continue to rise in the future, as mining and Bitcoin itself become more popular. Even the oldest mining equipment’s price is fluctuating with the market. In addition, the more miners there are, the stronger the network they support.
What is ASIC and why is it needed?
ASIC is a specialized computer created for cryptocurrency mining. It also increases in price and can break down, so it requires regular maintenance, and sometimes repair or replacement of components for normal operation.
How to start mining?
Mining can take various forms, depending on the algorithm and currency of the network. The mining market is constantly expanding, with new mining companies, influencers, and participants emerging. Information from true miners all over the world is increasingly becoming available. In this document, we summarize this information so that everyone can find their way in cryptocurrency mining.
Solo Mining
Starting mining at home by yourself is not so difficult. Start by preparing a place for the mining farm – this place should not be damp, it should meet temperature conditions, it should be protected from dust and preferably soundproofed (An ASIC is a very noisy device, comparable to a construction hairdryer. Just a few of such devices can produce noise up to several thousand decibels.)
Then you need to choose the cryptocurrency that you want to mine. The most stable investment is offered by the most stable currency with the maximum distribution of the network, and that is Bitcoin. Equipment for mining BTC rarely allows mining other currencies, and this rule applies to Altcoins.
� Remember – mining any Altcoins is increased risks!
� You also need to choose an ASIC model that suits your budget and purchase this equipment
� Make sure that the equipment is in good working condition and has a warranty from the manufacturer or retailer.
� Original ASICs have an ID number that should be trackable on the manufacturer’s website!
� Pay attention to the customs conditions in your country if you are ordering ASIC from abroad. Such equipment usually has very high customs duties!
After you receive the equipment, set it up on the pre-selected pool, place it where you planned and connect it to the network.
� Be prepared for a significant increase in electricity bills.
� Take care of the parts supplier in case of unexpected breakdowns.
Market and Leaders
Top global mining companies
Bitmain is a Chinese company engaged in the production and sale of mining equipment. It is one of the largest mining companies in the world, and its products are widely distributed. Bitmain is also one of the largest manufacturers of ASIC chips.
Riot is focused on supporting the Bitcoin ecosystem through proof-of-work mining. We are believers in Bitcoin and our efforts aimed at growing our mining operation demonstrates our commitment to the Bitcoin network. Riot is one of the largest U.S. based publicly-traded Bitcoin miners in North America and we are constantly working to improve our efficiency and production.
In 2016, BTC.com created a wallet and attracted more than 1 million users from worldwide. In the same year launched mining pool. Biggest centralised pool as for today. There is also a “BTC miners agent tool” for owners of ASIC mining facilities and provided BCH, ETH, LTC multi-currency mining services in 2019.
Bitfury is an American company that produces and sells mining equipment and software for such equipment. The company was founded in 2011.
BeMine is a company based in Seychelles with roots in the CIS. It was founded in 2018 and operates as a worldwide ASIC retailer, offering door-to-door delivery in 12 countries. Additionally, it supports the a full-cycle delivery of a personal mining infrastructure in 3 countries, preparing mining containers for ASICs with air and water cooling and many more. ASICs that are already plugged in can be purchased online and used to mine Bitcoin from any device.
Mining Pools
Mining pools are groups of miners who combine their computational resources to increase their chances of receiving a block reward. When using a mining pool, participants do not have to wait for their individual mining devices to find a block, and then share the received reward among all pool participants. Instead, miners in the pool work together to find a new block, and the reward is distributed among all pool participants according to their contribution to finding a block.
Factors to consider when choosing a mining pool
- Reputation: Choose a pool with a good reputation. Research their history and check user reviews. Generally, larger pools are more reliable as they have been around longer and have more computational power.
- Pool size: Larger pools typically have a better chance of finding a new block, but the reward will be divided among more participants. Smaller pools may have fewer chances of winning, but the reward will be distributed among fewer participants.
- Fee: Pools usually charge a fee for their services. This fee may vary depending on the pool and cryptocurrency type. Choose a pool with a reasonable fee to maximize Crypto-mining 2023-2024? BeMine it! 5 your earnings.
- Reliability: Pool reliability is crucial for miners. Choose a pool that has reliable software and provides high availability. Also, make sure the pool has data backup to avoid data loss.
- Cryptocurrency type: Some pools specialize in specific cryptocurrencies. Choose a pool that supports the cryptocurrency you want to mine.
- Support: Choose a pool that provides good user support. This will help you quickly resolve any issues
Cloud Mining
By 2023, the cloud mining market had taken shape, cloud services have distinct features, and some of them are public companies. Investments with third-party companies have their peculiarities. But even taking into account that the market conditions sometimes could be difficult — Cloud mining companies can offer investors at least 30% of annual return expressed in cryptocurrency including the possibility to skyrocket returns with the Bull run. Pretty solid especially taking in to account that “popular” Staking of crypto can hardly offer 4-8% APY.
Below we are highlighting the best and most reliable cloud mining companies.
BeMine
In addition to developing software, hardware, and ASIC retailing, BeMine offers the possibility of mining BTC and Alts online. And not just that, but in the order of shareholding – due to the high cost of equipment, the company offers to purchase ASIC shares, receive income, and incur expenses in proportion to the size of its share of existing ASICs.
The platform also has its token, which is currently undergoing ICO. The token can be used to purchase equipment, pay for ASIC expenses, or stake it with up to 15% APY. According to the project roadmap, an ASIC NFT collection with special performance and a DAO mining farm are being currently developed. The company stands out among others, primarily for the features of its services – no other organization offers the ability to purchase online ASIC-shares or invest in project tokens.
Nicehash
As they say, NiceHash is a marketplace for hash power brokers that links buyers and sellers of hash power, such as miners. The unique feature of the NiceHash service is that it only links various end-users and does not provide any cloud mining options, which means that NiceHash neither owns nor leases any mining equipment. There are no mining contracts. They also have their token, which can be mined on various algorithms and exchanged within the platform.
ECOS
ECOS was established in 2017 in the Free Economic Zone. ECOS has more than 90,000 users from all over the world. The minimum price for a mining contract is $100. True cloud mining with no extra features and mixed reviews.
There are quite a few mining companies in the market. Above are the most trustworthy, time-tested, and transparent organizations with great potential and decent experience in the crypto market.
Investments and Mining
Mining is definitely a business for the coming decades. However, it is not just using hardware to earn money. Mining blocks are first and foremost a process of maintaining the network in which they are minted, which fills mining with an ideological component.
Mining may not be an investment for everyone, as it may require attention and involvement. However, if you are willing to invest your money and time, mining can bring you significant profits in the medium term.
Undoubtedly, self-mining demonstrates the highest return on investment – you have complete control over the process, know what fees you are paying and to whom, and also have direct access to the equipment and its maintenance.
At the same time, there are enough public, trustworthy companies in the market to collaborate with. They will take a commission from you and you will have to trust them, but for novice miners and people who cannot place equipment in their own space, using intermediary services is the most reasonable and profitable choice. The intermediary market has long offered almost seamless integration into the world of mining and often complements it with other ways to invest or earn cryptocurrencies, as BeMine does.
High-quality and timely preparation for the crypto-bull run is the key to successful investment in the cryptocurrency market. Diversification towards cryptocurrency mining can become a high-yield and reliable foundation for medium-term investors of the crypto world.
Cryptocurrency mining may seem like a dynamic activity, but even deep market downturns become profitable investments over a period of 3-5 years, due to the fact that mining equipment usually increases in value along with the market.
The Bitcoinist editorial team urges you to independently study investment opportunities and approach investment strategy responsibly before making any investment decisions.