How to make money mining cryptocurrency?

Which cryptocurrency can I mine and make money with in 2017? | Bitcoin – Quora



My answer is Bitcoin, because it is still the most sort after cryptocurrency and the price keeps moving up. It is more lucrative to mine Bitcoin than any other cryptocurrency.

Yes, people are making money mining bitcoin. However, there are many challenges.

With the value of 1 bitcoin rising to nearly $6,000 in october 2017, a block reward of 25 bitcoin is a lot of money. When mining first began, there was less competition, and to complete a block required a lot less power. Mining could be done using CPUs found on standard desktop computers.

Making money mining bitcoin is much more difficult today. Some of the issues contributing to this difficult include:

  • Hardware prices. The days of mining using a standard CPU or graphic card are gone. As more people have begun mining, the difficulty of solving the puzzles has too increased. ASIC microchips were developed to process the computations faster and have become necessary to succeed at mining today. These chips can cost $3,000 or more and are guaranteed to further increase in cost with each improvement and update.
  • Rise in corporate miners. Hobby miners must now compete with for-profits — and their bigger, better machines — when mining to make a buck.
  • Power costs. Power in the United States is more expensive than it is in other parts of the world, making it further difficult to compete with big-miner money.
  • Puzzle difficulty. Bitcoin’s protocol adjusts the computational difficulty of the puzzles to finish a block every 2,016 blocks. The more computational power put toward mining, the more difficult the puzzle.

The rising costs of mining effectively and competing against large mining pools have made it harder for the hobbyist to profit on mining bitcoin. But that does not mean that you cannot profit from mining this cool currency.

Ensure to research more about cryptocurrency before mining, a professional and reliable signals provider is required to guide you through the process.

 

Here’s how you can make money mining cryptocurrency



To wrap your head around digital currency and learn how to make money without investing in premium computer hardware or laborious affiliate marketing, the Beginner’s Guide to Cryptocurrency Mining is available in our store for just $15. This succinct course features 13 lectures that will give you an overview of how it’s done, as well as some winning strategies and illuminating case studies.

You’ll get advice on how and where to rent a server to save yourself from massive electricity bills, and apply the 80/20 rule to earn up to $1,600 in a month. Once you’ve gotten your mining operation running steadily, you’ll get advice on how to further your profits and make smart investment decisions.

The Beginner’s Guide to Cryptocurrency Mining is usually $180, but you can get it here for just $15— and watch it pay for itself in no time.

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How to make upwards of $1,000 a month by mining cryptocurrency



If you’re as confused about Bitcoin and other cryptocurrencies you’re not alone.

Just to let you know, if you buy something featured here, Mashable might earn an affiliate commission.

In essence, cryptocurrencies are decentralized digital currencies that can be sent to anyone through the internet. They aren’t affiliated with any particular country so there’s no central bank that verifies these transactions. Instead, cryptocurrency miners use special software that creates a public record of each transaction and gives the miner a payment in return.

If you know what you’re doing, you can make a lot of money mining this digital currency. But how does it work and what’s the best way to do it? You can learn all of this from the Beginner’s Guide to Cryptocurrency Mining.

This course gives you access to 13 lectures so you can hit the ground running and make real money fast. You’ll learn a mining system that has low startup costs and requires no affiliate marketing or graphics card. You’ll also learn all the technical details about blockchains, general ledgers, hashes, and nonces that make up each successful transaction.

By the time you’ve finished with this course, you could be earning up to $1,000 per month from the comforts of your own home. The Beginner’s Guide to Cryptocurrency Mining normally costs $180, but you can get it for just $15 today. Plus, over Labor Day weekend you can save 15 percent by using the code BYESUMMER.

7 Legitimate Ways To Make Money Off or With Cryptocurrency



bitcoin image.jpgsource:https://pixabay.com/en/bitcoin-coin-money-electronic-money-495995/

The quest to make money off cryptocurrency is on a high. Just imagine making over 200 dollars in one hour. Making this kind of money is very much possible. In fact, I have seen people make this kind of money, and hence, this is the reason I am writing this post.

This post will share tips on how you can achieve it(make legit money) without going the scam route -the route that can make you cool your butt in prison.

In fact once you tap into this, you will smile home daily. But, before I continue this post on how to make legitimate cash via cryptocurrency, I will like to define cryptocurrency.

What is Cryptocurrency?

For the uninitiated, Cryptocurrency is (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.

Ha Ha this is the definition as seen on Wikipedia. For a simpler definition let’s turn to Cryptocurrecncy facts

Cryptocurrency is an encrypted decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining.

Like the normal mining you know of, cryptocurrency are not printed, but are discovered like gold, coal or other minerals using a computer network.

Once the currency is discovered, miners confirm the transaction through a public ledger system, and pass the information to other miners to confirm also.

The public ledger in which this transaction are recorded is called blockchain hence the name of the technology.
Because these mining and transaction is done independent of government, cryptocurrency is said to be decentralized.
Now away from a background fact on what cryptocurrency is, I will be focusing on 5 major ways you can earn cryptocurrency.

7 Ways You Can Make Money Off Cryptocurrency

1.Earn Cryptocurrency by Trading

I am sure most of you must have heard the term forex or foreign exchange.

People can also earn money through cryptocurrency trading just like trading in gold or dollars, or pound sterling. The amount of money you make depends on the difference between when you enter into the market and when you exit the market. For example, if you purchased Monero at the market price of say $23.90 and you exit the market at $79 you would have made over 300% profit in a single day.

Trading though profitable is very risky and requires patience, gut, and perseverance for you to succeed. There are different platform you can use to trade. You can use the Bittrex or Poloniex platform to trade the currency you desire.

2.Invest in a Cryptocurrency Trading Company

For those who are very scared of trading by themselves, there is good news. The good news is that you can invest in cryptocurrency investment companies.

Just like stock broking firms, these trading firms trade on your behalf. Some pay every single day while others pay every working day. There are two of these trading firms I know of. The first one is Cryp trade. Cryp trade is unique in that they pay you the dollar equivalent in Bitcoin.

The disadvantage is that if Bitcoin goes higher the profit margin reduces. They have three different portfollios but the minimum investment is 50 to $4999.

They pay you twice a month on the 15th and on the 30th. The pay for the first category is 0.57% daily and they pay you for 12 months.

The second investment is one in which I am active. The name of the company is USI-Tech, They pay you 1% of your investment 5 days a week for 140 working days. USI-Tech pays you in Bitcoin also. There might be others in the market, but these two are the ones I have seen people invest in. Note that there are lots of fake trading companies that are at most ponzi schemes. It is best you do your due diligent investigation before subscribing to any of these companies.

3.Make Money From Affiliate Marketing

There are several companies that pay in Bitcoin when you promote their services. For mining companies, they include:
Genesis mining: Genesis offers Bitcoin, ether and Zcash cloud mining affiliate program with 3% discount on hash power
HashCoins: The referral fee starts at 10% of their revenue from customers that you refer.
And Miners gate: You earn up to 0.75% from referrer’s profit.

Others include coinbase which offer $10 as referral fees. Another great site is Rocketr.net. They have lots of products you can promote especially the e-book genre.

4.Make Money from Writing

I love writing as it makes me express myself in words and also to provide value to people. Steemit is an excellent way to make money from writing. There are people on steemit who earn $300 per article in less than one week. Imagine making that amount of money and knowing that the money continues to increase as people continue to visit you.

5.Make Money Selling Bitcoin (Cryptocurrency)

Imagine buying Bitcoin for $4000 and selling it at $4200. There are people who sell cryptocurrency to people without using an official exchange. They do this by having built their integrity. So people trust them to deliver.

This is a veritable way to make money especially from people who are just getting started in cryptocurrency investment. However, understand that it is very dangerous for you buy crypto currency be it Bitcoin, Litecoin, Bitcoin cash, Ethereum, just to mention but a few from normal people as there are a lot of people who have been scammed this way. Instead, purchase from a credible exchange company like Luno, and Remitano.

6.Buy and Hold Strategy

The savvy entrepreneurs don’t just make money by trading they take it a notch higher by looking at the future. So they purchase early at the launch of the currency through ICO, or they can also enter the market at the early stage of the company’s existence.

They take out time to study the market before launching, and once they buy –they keep for a long time.

Clear examples are those who bought Bitcoin when it was less than $200. Today these guys are millionaires, that is why I advice people to grab this Bitcoin and altcoin revolution with both hands now as it takes you nothing but few cash to invest in potential billion dollar companies from anywhere in the world.

7.Make Money From Mining

I mentioned mining earlier in the article. Mining is a veritable way for you to make money off cryptocurrency. You need some good software and laptop if you want to start on a small scale though. And you should make show you have steady power supply. This advice is especially true in developing countries where you may need to purchase an alternate power source.

So I hope you now know a few ways to make money off crypto Currency. If you know other methods people can make money please share in the comment so that we can all learn and earn and so we can all smile to the bank and leave the life we want to live.

Mailbox: ‘How I earn R50k per month by mining cryptocurrency’



JOHANNESBURG — Our article this week on answering readers’ burning questions on Bitcoin attracted a lot of interest and more questions which will be posted in a future article. But one reader’s letter to me particularly caught my attention. While my ‘Dummies’ guide to Bitcoin’ article covered a lot of areas, I danced over the mining of crypto. However, this is a world where you can make money if you’re willing to invest the capital in powerful cryptocurrency mining hardware. Andrew Crawford, in the below mailbox piece, outlines how he is on course to earn R50,000 this month from mining a cryptocurrency called ‘Dash’. Among the over 900 estimated cryptocurrencies in the world today, Dash – like Bitcoin – also works on a blockchain, but it touts having advanced capabilities such as instant and private transactions and decentralised governance. As Andrew outlines below, the price of Dash has shot up from around $94 to $300, dramatically reducing the period on his expected return on investment on a $5,800 Baikal 1.2 Gh Dash mining kit much shorter. So, fast is the pace of development in this space that this particular Baikal kit is now selling for $2,200 amid upgraded models. But this gives one an idea of what’s involved. – Gareth van Zyl

By Andrew Crawford

Hi Gareth, I enjoyed your article today.

Read more: Dummies’ guide to Bitcoin: BizNews readers’ burning questions answered

I first became aware of Bitcoin at a CFA investment conference in 2015. I then learnt it’s more about decentralised blockchain technology and Bitcoin is just the oldest and most significant currency used in blockchains (open source ledgers).

You glossed over mining as a way to get a toe in the water? Mining is just providing processing capacity to blockchain networks when you strip out the crypto lingo of “mining”. After researching the topic, I thought it was the least risky approach. What am I missing?

This year I decided to initially buy a Baikal 1.2 Gh Dash mine (price is now $2 200 but it previously cost $5 800). Cryptocurrency Dash was at $94 and the Rand exchange rate $13. Dash hit $300 in the last week so my 6 month projected Return on Investment (RoI) is now considerably shorter. At 300 watts the electricity is less than R300 pm for this Baikal processor. In a world where a share with a PE of 14 and dividend yield of 4% is good this RoI seems too good to be true. However, it’s working?!? Last week I also took delivery of 5 Antminer L3+ mines. Again the projected payouts are beating projections and these should earn me $3,780 this month (R50,000). My costs are R5,250 pm. I’m earning in $ and paying costs in Rands.

Of course the price you pay to import these processors and their efficiency with regard to electricity is key. I found the guys at Browntoast.co.za to be the most cost effective and efficient suppliers, and they help pick the most efficient processors. Setting up a mine / processor is beyond the average person but I think this was the least risky way for me to get into the unstoppable blockchain technology developments.

Bitcoin has been dominating the news because of its unbelievable growth. It’s just not stopping, defying all predictions. More magic available at jerm.co.za.

Crypto currency prices are highly volatile with all the signs of a bubble. Who knows? Getting into the game by providing processing power to blockchain networks seems to be a more substantial way to earn your crypto currency rather than speculating on the price going up? It also avoids the risk of the various cloud mining pyramid schemes being sold.

How Exactly Do You Get Rich Off The Hot New Cryptocurrency?



Image: Getty

With the meteoric rise in popularity of Ethereum, cryptocurrencies and blockchains are back in the news again. Graphics card prices have soared with the promise that those who have the computers and know-how to do some serious mining can take home huge sums in a Bitcoin-like gold rush to snatch up as much virtual currency as possible. But how easy is it to make your fortune in cryptocurrency? And is it worth your while getting started?

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The basics



For the uninitiated, mining for currencies like Bitcoin and Ether means devoting a huge amount of computer processing power to doing accounting sums for the platforms behind them, helping to verify the accuracy of the public blockchain ledgers.

You’re essentially getting rewarded for keeping the books for these platforms, which we’ve explained in more detail here, and the rise of cryptocurrencies like Bitcoin and others has led to a flood of amateur enthusiasts jumping into the mining business — the idea of having your computer whirring away making you free money sounds almost too good to be true.

Image: Peter Miller/Flickr

And in reality, it almost is — you can get rich from cryptocurrencies, but you need to put in plenty of work, and have luck on your side. You’re more likely to get a windfall due to market pressures than the quality of your mining rig, which is why it’s only worth a shot for the most committed and the most adventurous.

How do you mine coin



Mining for cryptocoin requires some free software tools and a dedicated rig. Turn the clock back several years and you could get away with a powerful home PC and make a few bucks. These days you can waste a weekend and a month’s wages on building a machine with four graphics cards purring away in a row and still not make a profit.

GPUs are now established as the mining processors of choice in most situations — graphics cards are even built for and marketed towards miners now — basically because they’re better at doing lots of laborious, repetitive tasks, whereas CPUs are better suited to switching between many tasks quickly.

Image: Screenshot

You probably won’t get rich



The trouble is, the serious players have got whole farms of these computers, and unless you’ve got a warehouse and some life savings to spare, you’re going to be lagging a long way behind. You’re up against huge foreign operations running off cheap electricity and hardware bought wholesale.

Even if you do get yourself a rig set up and find a currency with a bit of a profit margin, you’re still putting yourself at the whims of the cryptocurrency markets — mining can start or stop becoming profitably depending on a currency’s current value.

There are several profit calculators on the web that will tell you how much computing power and electricity you need to make a certain amount of cash, so you can see exactly how much (or more likely, how little) you could make. Take Bitcoin, for example, which is now just about impossible to mine profitably for average users at home — you’d need thousands of GPUs running before you’d get close to getting more back in Bitcoin than you’d be paying for electricity.

Market fluctuations in cryptocurrencies. Image: Screenshot

You can fork out thousands of dollars on specialised kit, if you want to, but even then you’re only going to be raking in a handful of dollars a day with Bitcoin. That of course can go up or down as the currency value fluctuates, and what’s profitable one day might not be the next if your chosen cryptocurrency dips in value, or gets some bad media coverage — that’s where the slice of luck we mentioned earlier comes in.

Other options, like Feathercoin and Ether, have a better profit potential than Bitcoin right now, with the caveats we’ve already mentioned: If you’re serious about your mining then you need to keep a very close eye on the market trends, because the situation can change on a weekly or even daily basis. A single Litecoin, another cryptocurrency, has swung from costing you between $US10 ($13) and $US55 ($72) this year alone.

For instance, a huge $US64m Ether heist carried out last year was severe enough to cause a fork in the Ethereum platform it runs on top of, and a halving in price of Ether itself — if you’ve got a powerful, expensive, cryptocurrency mining operation going on in your basement then that’s a serious hit on your profits through factors completely out of your control. Sure, a swing the other way can make you relatively rich, but it’s a risk, and the upward trend won’t necessarily continue.

Image: The Ethereum Project

Many modern-day miners join a mining pool, combining resources with other users and getting a share of the profits, but the same risks remain. Fork out a few thousand on a mining rig, take the time to study the market trends, go through the process of setting up the programs, join up with a mining pool, and yes you can — if the prices stay buoyant and you’ve picked your cryptocurrency wisely — make a few thousand dollars a year. Whether or not it’s worth the risk and investment is up to you.

And if your investment isn’t already precarious enough, remember the scene is constantly changing: In the near future Ethereum is set to switch from its existing Proof of Work (PoW) system for extending the blockchain to a new Proof of State (PoS) system which is easier to scale and less energy intensive.

Without going too far into the technical details, it essentially makes the mining process more like earning interest on money you’ve already got: Racks of graphics cards won’t be able to generate wealth as they did in the past, which is bad news for miners looking for a profit even if it’s good news for your electricity bill. Instead, earning money will rely on staking (investing) rather than mining.

Image: Asus

In other words, if you’re already halfway through building your Ethereum mining machine you might want to pick a new cryptocurrency… at least until the ground rules change on that one too. (Remember what we said about the constant state of flux?) And that’s really the only way to squeeze any profit out of cryptocurrency mining operations — keep moving as fast as the market does, and switch up the currencies you target as conditions change.

As soon as one cryptocurrency becomes profitable to mine, as we’ve seen with Bitcoin and Ethereum, everyone wants a piece of the action and making money gradually gets harder. It’s then time to get in early on another currency. In short, if you want to get rich (or at least make a profit), you need to pick and keep picking the right cryptocurrencies, have a serious amount of graphics processing power in hand, hope that your chosen currencies stay secure and keep increasing in value, and put in a lot of time and effort.

It’s not impossible, but we can think of easier ways to make a buck. If you’re determined to jump in and get involved in cryptocurrency mining, if only for the educational and geek appeal rather than to make any money, your best bet is to immerse yourself in one of the many mining forums out there, which will give you the inside track on the latest news and market trends.

Cryptocurrency Mining: What It Is, How It Works And Who’s Making Money Off It



NVIDIA Corporation NVDA’s second-quarter earnings released earlier this month, though exceeding expectations, elicited cautionary reaction from the investor as well as analyst communities. Traders bid down the stock by over 5 percent on Aug. 11.

One of the reasons cited for the negative reaction was cryptocurrency contributing to much of the outperformance.

Start mining crypto currencies with HashFlare .

Why should it be a cause for alarm?

Analysts Blayne Curtis and Christopher Hemmelgarn of Barclays believes revenue stream from cryptocurrency is fickle. Therefore, the analysts were not in favor of assigning a multiple to it, as it has the potential to become an eventual headwind.

Rival Advanced Micro Devices, Inc. AMD also had a similar tale to tell. The company indicated that cryptocurrency demand remains strong, while also suggesting that the demand might not last forever.

What Is Cryptocurrency?

Cryptocurrency, as the name suggests, is a form of digital money designed to be secure and anonymous in most cases. It uses a technique called cryptography — a process used to convert legible information into an almost uncrackable code, to help track purchases and transfers.

Giving a simple definition, Blockgeeks says it is just limited entries in a database no one can change without fulfilling specific conditions.

Cryptography is a technique that uses elements of mathematical theory and computer science and was evolved during the World War II to securely transfer data and information. Currently, it is used to secure communications, information and money online.

Cryptocurrencies allow users to make secure payments, without having to go through banks.

Some cryptocurrencies include bitcoin, Bitcoin Cash, Ethereum, DigitalNote, LiteCoin and PotCoin.

Bitcoin has the distinction of being the first cryptocurrency, having been introduced in 2009. Since then, this class of cryptocurrencies mushroomed, with more than 900 currently active.

See also: Chips And Cryptocurrencies: A Match Made In Tech Heaven?

How Cryptocurrencies Work

A cryptocurrency runs on a blockchain, which is a shared ledger or document duplicated several times across a network of computers. The updated document is distributed and made available to all holders of the cryptocurrency.

Every single transaction made and the ownership of every single cryptocurrency in circulation is recorded in the blockchain. The blockchain is run by miners, who use powerful computers that tally the transactions. Their function is to update each time a transaction is made and also ensure the authenticity of information, thereby ascertaining that each transaction is secure and is processed properly and safely.

As payment for their services, miners are paid physically minted cryptocurrency as fees by vendors or merchants of each transaction.

The value of the cryptocurrency fluctuates based on demand and supply, although there is no fixed value for it. Buyers and sellers agree on a value, which is fair and is based on the value of the cryptocurrency trading elsewhere.

Since there is no intermediary like bank involved in the transaction, as it is a peer-to-peer transaction, the transaction fee that is associated with credit cards is eliminated. The identity of the buyer and seller are not revealed. However, each and every transaction is made public to all the people in the blockchain network.

One can acquire a cryptocurrency through exchanges found online or trade it for traditional currencies.

Assume X wants to buy an item valued at $10,000 and he realizes that the seller Y accepts cryptocurrency, say bitcoin, as a form of payment. X scouts around to find the prevailing exchange rate, say $1,000 per currency. X gets Y’s public Bitcoin address from Y’s website, although both parties remain anonymous to each other.

X can now instruct his Bitcoin client or the software installed on his computer to transfer 10 bitcoins from his wallet to Y’s address. X’s Bitcoin client will electronically sign the transaction request with his private key known only to him. X’s public key, which is a public information, can be used for verifying the information.

When X’s transaction is broadcast to the Bitcoin network, it would be verified in a few minutes by miners. The 10 bitcoins will now be transferred to Y’s address.

Mining

Cryptocurrency mining includes two functions, namely: adding transactions to the blockchain (securing and verifying) and also releasing new currency. Individual blocks added by miners should contain a proof-of-work, or PoW.

Mining needs a computer and a special program, which helps miners compete with their peers in solving complicated mathematical problems. This would need huge computer resources. In regular intervals, miners would attempt to solve a block having the transaction data using cryptographic hash functions.

Hash value is a numeric value of fixed length that uniquely identifies data. Miners use their computer to zero in on a hash value less than the target and whoever is the first to crack it would be considered as the one who mined the block and is eligible to get a rewarded.

The reward for mining a block is now 12.5 bitcoins.

Earlier, only cryptography enthusiasts served as miners. However, as cryptocurrencies gained in popularity and increased in value, mining is now considered a lucrative business. Consequently, several people and enterprises have started investing in warehouses and hardware.

As enterprises jumped into the fray, unable to compete, bitcoin miners have begun to join open pools, combining resources to effectively compete.

Bank of New York Mellon Corp BK has been running an internal blockchain platform for U.S. Treasury bond settlements since early 2016, a Marketwatch report quoting Morgan Stanley said. The private nature of the platform has kept it out of the regulatory purview. Once the bank decides to roll it out to clients and use it commercially, regulatory oversight might come into the picture.

A complete mining kit consists of graphics cards, a processor, power supply, memory, cabling and a fan, which would cost between $2,400 and $3,800 on Amazon.com, Inc. AMZN, according toBloomberg.

The top three mining hardware, according to 99bitcoins.com, are Avalon6, AntMiner S7 and AntMiner S9.

Given that existing GPUs aren’t powerful enough, now miners are flocking to application-specific integrated circuits, or ASICs. To circumvent this shortcoming, Nvidia and AMD are said to be working on GPUs, which could be used specifically for the purpose.

The two companies who are dominant in consumer-grade mining hardware are Canaan and Bitmain. Bitmain, based in Beijing, does mining as well as manufactures mining hardware.

Mining Pools And Their Share Of Mining

pools.pngSource: Block Chain

Mining pools are concentrated in China, which boasts of 81 percent of the network hash rate.

Why Mining Chips Are A Fickle Revenue Stream

For companies such as AMD and Nvidia, which have dominant positions in the gaming chip market, a focus away from their core business may not be a prudent course of action.

As seen, these companies may have to bring out new GPUs designed exclusively for this purpose to pose a real threat to the ASIC chips, which are predominantly manufactured by the Chinese, who are notorious for their low-cost market positioning. How viable is the spend on such exclusive chips is a moot point.

Additionally, national governments and exchanges are mulling over regulation of the whole realm of cryptocurrencies. Japan has recently introduced legislation to protect users after Tokyo-based Bitcoin exchange Mt Gox collapsed in 2014. Similarly, introducing taxation such as capital gains tax on Bitcoin sales may also impede the cryptocurrency industry.

 

The article uses materials from sources:

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