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Get Involved GitHub. Open Positions. Swag Shop. A higher hashrate means better performance and a stronger chance of winning more blocks and earning more rewards. For thousands of dollars or hundreds per month in upfront costs, interested parties can dive into purchasing equipment, assembling, and maintaining their mining node. For the fastest route to mining cryptocurrency, cloud mining is the way to go. Cloud mining vendors offer farms of rigs that consumers can rent to mine cryptocurrency on their behalf.
As the crypto economy developed in the last decade, specialization enabled consumers to still participate in cryptocurrency mining without the equipment and resources. Contracts enable investors to buy into only part of the mining capacity, also known as the hashrate. A higher hashrate means stronger performance, while a lower hashrate on a contract translates to smaller rewards. The first step to mining cryptocurrency fast is selecting a cloud mining platform. We used ECOS for this how-to guide but included several popular platforms later.
Submit your personally identifiable information. Then, while still on the registration page, investors will confirm their identity via SMS phone code. Similarly, investors need to verify their email through a verification link. After registration and email verification, investors can log in to access their account dashboard. Immediately in view are four boxes with quick data like total mined, daily mined, daily gains over time, and user contracts.
On the left-hand side, investors have a general menu for account management. The three primary pages for investors are:. To emphasize, a hashrate contract is only tied to part of the mining power of a rig while adding a device enables users to buy or rent an entire rig or register their own rig. Investors have the option of purchasing a managed cryptocurrency mining rig, but the investment is orders of magnitude higher.
In this example, we consider the purchase of a contract tied to the performance of part of a mining rig. By toggling the four fields for Service Fee, Contract Duration, the expected cryptocurrency Price Forecast, and hashrate Price, the platform can offer a contract and data on expected profit. While toggling, the graphic representation in the right section shows the predicted yield relative to investment. In contrast, the bottom section shows how cost-efficient mining the cryptocoin is opposed to buying it.
With contract details selected, investors have the option of paying with their credit card of choice or from a handful of cryptocurrencies. For card payment, your transaction should be instantaneous with email confirmation.
In this example, we use Ethereum ETH for payment, requiring an additional step. With the order confirmed and intent to pay with a selected cryptocoin, an investor has a limited period to send payment to the provided address. Below, you see the contract details, including the amount owed. If paying with a card, investors will promptly land on a transaction confirmation page. For crypto transactions, confirmation usually takes no more than 10 minutes upon sending payment. For safekeeping is the payment ID located towards the bottom of the webpage.
Additionally, investors will receive a confirmation email also verifying the successful transaction. Once confirmed, the user can return to the dashboard, where a change should be visible. By clicking on the contract, investors can look into the agreement details. This data includes the hashrate, days remaining on the contract, mining pool, service fee, mine total, and total profit. With a long wait ahead, the forecasted profit is With the minimum contract lasting several months, cloud mining investors with contracts can sit back and watch their hashrate produce daily rewards.
Like long-term bonds or risk-averse stock market investors, cloud mining investors that are patient reap the greatest benefit. As rewards are collected and the cloud mining wallet grows, investors can withdraw the coins at their discretion.
Breaking even is the business idiom for when revenue meets the cost of goods sold. In mining for cryptocurrency, every method involves an initial investment. How long before the coin rewards meet or surpass expenses is influenced by factors like:. Because of the volatility of cryptocurrency, the value of mining rewards is specific to the cryptocoin and susceptible to quick changes. The breakeven point is different for all investors with differentiation between contracts in hashrate, service fee, and mining period.
In Step 4, investors see these details while using a hashrate calculator to consider contract options. For the pre-set example, contract details are:. While not available on every platform, the calculator application shows an expected profit of Because the hashrate delivers a regular daily return, one can calculate an expected breakeven point with the details provided by dividing the total expected gains by the term.
If today is Day 0 , the contract ends in 30 months on Day Important: With the hashrate and service fee locked in, the price of the cryptocoin holds the most significant influence over the accuracy of this calculation. With cryptocurrency volatility, the above analysis offers an incomplete forecast.
And like most other investments, there is no guarantee that mines will earn back their initial investment. For cloud mining, the market of vendors is still relatively young. Several popular platforms used over the years have disappeared or gone bankrupt, while others continue to struggle with availability or remain down for maintenance.
Important considerations for selecting a cloud mining vendor include:. Choose a cloud mining vendor carefully, knowing that not all platforms are created equal, nor can they promise to exist in 5 years. Depending on the cryptocoin price over the mining period, it is more than possible to lose money when mining. Some cloud mining platforms offer helpful insight into when mining cryptocurrency is optimal.
The DIY method for mining is time-exhaustive and expensive, while cloud mining reduces some of this risk by cost-sharing with other investors.
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