Is Cryptocurrency Mining Profitable?
Here at CryptoDetail we get constant questions about all manner of crypto related subjects. One of the most frequent questions we receive is whether cryptocurrency mining is profitable?
Well, profitability means a variety of different things to different people. We define profitability as a long-term gain on our investment. Many gauge profitability on a short-term scale. If you are looking for those quick gains; the short answer to crypto mining profitability is a resounding no. However, if you have the patience, there is the possibility of long-term profit in mining. If you're looking for those long-term profits; let's explore the mining possibilities.
Firstly
You need to determine the cryptocurrency you want to mine. In terms of profitability, we recently posted our Top 5 Most Profitable Crypto Mining Opportunities of 2018. On that list, you will find our picks among the cryptocurrency mining opportunities today. At the top of our list is Ethereum; followed closely by Monero, Litecoin, Dash and Bitcoin Gold. Our research into the current possibilities leads us to mine those coins for our own portfolios. As with any financial decision, we urge you to do your own research and due diligence in making your own cryptocurrency mining choice.
Mining method
Once you determine the coin you want to mine; you will need to choose a mining method. Your choices here are to purchase and configure a hardware mining rig (only recommended for the more technically skilled) or to download a software mining program (which still takes a bit of attention in configuration; but, it is much more simple to get started using software mining).
Your final decision is as to whether you will be solo mining or mining in a pool. Solo mining allows much more freedom as you are limited only by your hardware and /or software mining setup. However, a pool gives you a much better chance at seeing profits; especially if you are a beginner.
With all of that said; let's explore the possibilities.
We will assume for this exploration that you have followed our # 1 most profitable coin choice; Ethereum for your mining endeavor. Now we must decide between hardware and software mining.
HARDWARE MINING POSSIBILITIES
Mining ETH takes a bit of computing power. So, we will take a look at the most efficient GPU (Graphics Processing Unit) mining rigs available today, these are your hardware mining options.
The Radeon R9 295X2 is our top choice in ETH hardware mining at 46 MH/s. The cost of the rig itself is around $600. And, after factoring in electricity costs, you will make about $580 /year mining with this rig. So, as you can see; it will take you around 13 months (give or take depending on the utility costs in your area) to start showing a profit with the R9 295X2. However, even factoring in the long wait to show a profit; this rig will payout huge once costs are covered.
Radeon also holds the # 2 spot in our ETH hardware mining rig list with the R9 HD 7990 with a lower hash rate of 36 MH/s. The R9 HD 7990 costs around $680 and gives you a yearly profit (after utility costs) of $470 /year.
This rig will take about 15 months to get your mining endeavor out of the red (again, depending on the actual utility costs in your area). However, once costs are covered; you will have a solid, static income from the R9 HD 7990.
While there are many other hardware choices out there; our testing of various hardware at CryptoDetail shows these two Radeon hardware rigs to be the most efficient and profitable among today's offerings. As we have discovered, both of these hardware options will provide a profit in less than a year and a half.
SOFTWARE MINING POSSIBILITIES
Then we have the software options.
Top of the list for all operating systems would be Minergate. While there is a bit of FUD floating around concerning Minergate, we have found it to have profit potential; after a period of time. In fact, the only cost associated with using this self-contained mining software is the cost of electricity. ETH mining with Minergate can produce around $3.58 /week ($186.16 /year) with a basic laptop doing CPU mining. If you use a desktop with a good graphics card (in effect a GPU mining setup) this profit rises exponentially. And, the more devices you connect to your Minergate software, the more you can earn. And, although we have chosen ETH mining for our example; Minergate gives you a number of altcoins to mine; even allowing you to set up the most profitable coin at that moment.
Withdrawals (once you reach the minimum limit; which, for ETH is 0.000001 ETH) take only a few minutes. So, if you disregard a few get-rich-quick types who are dissatisfied with the speed of Minergate; this software can start making a profit for you right away. And, there is no initial cost. In fact, there is no cost except a minimal withdrawal fee.
Beyond Minergate there is a plethora of pool mining software you can find on GitHub. As with all open source software on that platform; all of those miners are free of charge. However, as with the hardware mining rigs we have already discussed; there is a certain amount of technical ability required to set up these miners on your machine in order to get connected to a pool. But, again, there is profit to be made here as well; if you have the patience.
A word of caution
.. about using any crypto mining software. Because there is money involved, there are many scams and fake software downloads that include malware of all sorts. So, if you choose to utilize software always check the source and choose downloads with lots of positive reviews. It is better to be safe than sorry when downloading any software; especially when dealing with cryptocurrencies. However, if you go to Minergate. com to download their software, as long as your browser remains on that URL, you can rest assured that your download is secure and free of those dreaded cyber parasites.
IN CONCLUSION
The answer to everyone's favorite crypto mining question "Is cryptocurrency mining profitable?" is a resounding YES; if you have the patience (and startup funding if you are choosing hardware mining) cryptocurrency mining is profitable.
Good luck with your own crypto mining adventure! Happy HODLing!!!
Danny Donahue
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