How to profit from crypto mining

asic miners,

ASIC mining,

Cryptocurrency,

Cryptocurrency Mining,

equihash miner,

Equihash mining,

ethereum mining,

GPU mining,

asic miner

Cryptocurrency mining is an extremely dynamic industry with its constant updates to hardware, software, pools, price, difficulty, and profitability, making it harder to calculate your returns and always make money mining.

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias.

But we may receive compensation when you click links on our site.

Learn more about how we make money from our partners.

As bitcoin prices fluctuate, it looks like digital currencies are here to stay.

But it’s increasingly falling under the purview of the taxman.

After years of trying to categorize bitcoin and other assets, the IRS decided in March 2014 to treat cryptocurrencies as property.

That ruling comes with good and bad.

On one hand, it gives cryptocurrencies a veneer of legality.

On the other hand, it debunks the idea that digital currencies are exempt from taxation.

As you might expect, the ruling raises many questions from consumers.

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to a quantity of individual tokens).

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

Interest in cryptocurrencies has surged since 2015 as bitcoin has seen its value rise from about $300 per coin to a peak of about $20,000 per coin in December 2017, then dropping to about $8,000 per coin as of November 2019.

 Other cryptocurrencies have seen similar surges and dips in value.

Nearly 3,000 cryptocurrencies are listed on investing.com, but two of the most popular alternatives to bitcoin include ethereum ($145 per coin, $15 billion market cap, as of Nov.

2019) and litecoin ($45, $2.9 billion).



While buying on an exchange like Coinbase is usually fairly simple and allows you to buy fractions of cryptocurrencies, there are those who prefer to mine their coins. The best option likely depends on individual circumstances.

Mining cryptocurrency seems like a no-brainer.

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to a quantity of individual tokens).

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

As Bitcoin fights back above five digits and other altcoins move into the green, many crypto enthusiasts are wondering if there are still profits in cryptocurrency mining.

If you’re not certain you can make profits from cryptocurrency mining, the answer is probably ‘no.’ Most profitable operations have enormous sunk costs, including wholesale purchases of energy, cooling, and ASIC machines.

A number of new ASIC competitors are entering the market. Most notably, Samsung is in the process of making ASICs and other companies, like BitFury and ASICminer, might give Bitmain a run for their digital money.

It’s considerably easier to mine with a GPU.

ASIC-resistant coins are more accessible to casual miners, but they are extremely vulnerable.

Savvy readers of yesterday’s article, The Eight Most Popular Cryptocurrency Transaction Types Are Not What You Expect, may have noticed an important omission: any discussion of processing cryptocurrency (crypto) transactions, what the crypto cognoscenti call mining.

Fear not: this is the second of a two-part article. In this part, I discuss the most popular crypto mining business models – that is, ways to make money mining.

Crypto like Bitcoin are intentionally set up with an automatic, decentralized mechanism that creates Bitcoin out of thin air to provide rewards to miners for processing transactions.

This cryptocurrency mining profitability calculator includes input and calculation tabs ONLY for Bitcoin and Ethereum.

Below is all the ways to earn from Bitcoin and cryptocurrency and the returns you can expect (spoiler: most thing will end up losing you money).

Before you start, the goal of this article isn’t to be another superficial piece, but something super in-depth. I reckon if we spread the word, we can save readers literally millions of dollars 💰

I’ve seen how much money has been lost because of the scams, lies, and truths of cryptocurrency so:

For literally the last 3 years, I’ve been eyeing up every option to make an income through crypto. From mining coins myself, to ICOs, to playing around with scam-coins, to even starting my own cloud mining business, I’ve attempted it all.

One reply on “How to profit from crypto mining”