With the decentralization in process trading, cryptocurrency is on a peak level. Everyone from all over the world is trading different kinds of cryptocurrencies to make an extra income. But if you are thinking that I don’t have bulk capital, how can I trade crypto? Then the answer is Crypto Mining, my friend.
In the present scenario “Bitcoin” has the highest market cap and value. But there are several cryptocurrencies present in the market with lower monetary value but have a higher potential in the future. And the people who are mining those low valued cryptos can gain a huge profit in the near future. But you have to know which cryptocurrencies you have to mine in 2021. There are several factors when mining cryptocurrencies.
- The cost of the device which you are using to mine Crypto (This can be a single machine with a highest rated graphics card or can be a mining rig)
- Electricity Cost per hour
- Which platform or pool or you are using to mine
- Pool or platform fee
- Power Usage by your device
- Hash Power of the network
- Cost of the Crypto
- Other Costs (Cooling, rent of the room where you are mining etc.)
You have to calculate the overall cost of your mining by keeping all of the factors in mind. Confused? Let me elaborate on them one by one.
- The cost of the device which you are using to mine Crypto: So first of all you have to determine the overall cost for your machine. It means how much it cost you to buy the laptop or desktop, or a GPU Rig of a minimum of 2 graphics card. You have to determine the total recovery time to collect the whole amount used in the mining.
- Electricity Cost per hour: It depends upon the area where you are going to mine. It can be your home or any warehouse where you have set up the mine, and the electricity per hour.
- Which platform or pool or you are using to mine: Choosing the right miner or pool is the key. There are several kinds of mining software available in the market. Some mining software gives higher mining profitability and some will lower. Some have lower threshold values and some have higher (Threshold Value: This is the value after which you can withdraw the mined amount in your wallet)I am not gonna mention any name, but you can easily find them by searching on Google. Research the best miner and start mining!
- Pool or platform fee: The pool or mining software also charge a small amount of the total profitability of the mining. There are two types of pool fee PPLS and PPNLS. PPLS means if the total mining crosses a certain value it will add as mined bitcoin but the per cent of the fee will be higher whereas PPLNS means your mined coin will not be confirmed as mined until the block you are mine is complete despite it crosses the certain value where it will be detected as confirmed. But here the fee is much lower than PPLS.
- Power Usage by your device: The total number of wattage your machine is using to mine the crypto. If the wattage is higher your machine will consume higher power and it will charge you extra bucks.
- Hash Power of the machine: This is the most important factor while mining cryptocurrency. Hashpower is the mining power of the machine. It starts from hash up to Peta hash. Unit of this is second. So the machine which is mining in Kh/s has better profitability than the machine which is mining in h/s.
- Cost of the Crypto: It refers to the current value of the cryptocurrency you are mining. And in the near how much it can be increased.
- Other Costs: This cost is referred to as the other expenses like if the room has AC or not. If yes, the maintenance of the AC. If you are mining in a warehouse the rent of the warehouse etc.
So, these are the probable factors we should consider before mining cryptocurrency. You have to calculate the total ROI (Return of Investment) for the total setup. So, what are you waiting for? Start mining now!