People who started mining at the very beginning of the emergence of cryptocurrencies made crazy profits. Then the market overflowed with miners, and earnings began to decline. More and more people began to “hunt” for Bitcoin and other cryptocurrencies. Therefore, a logical question arises: is it still worth mining today?
Let’s figure this out!
Pros and Cons of Mining Cryptocurrency in 2021
Mining any cryptocurrency has its own pros and cons that must be considered before starting. Let’s take a look at the situation!
Positive sides of mining:
- You might get profits with minimal risks.
- You can withdraw profits at any time.
- You have complete control over your mining schedule.
Negative sides of mining:
- You must know about computer hardware and its maintenance.
- You have to buy all the necessary equipment.
- You need to constantly track the market to see if mining is profitable at the current time.
Mining Bitcoin — Is the Mission Real?
Mining is a complex process that includes several components. To understand whether it is beneficial, you should consider:
- Electricity and equipment price. If you enjoy cheap electricity, then this is brilliant for mining.
- Halving. Make sure you keep Bitcoin halving in mind. If you are going to invest in mining equipment, make sure it is profitable in the long term.
- Mining pool. Consider joining a mining pool that seems more beneficial. This might be the most profitable method of mining over time.
Now, knowing these things, it will be easier for you to decide the profitability of this business.
How to Make Bitcoin Mining More Lucrative
- Reduce Power Costs. Try to find and use cheaper electricity sources to reduce overhead costs.
- Utilize Proper Hardware. Trying to mine on subpar equipment will almost never be profitable.
- Mining Pools. Joining a pool will be better for some people.
- Sell BTC. Sell your BTC for currencies with more profit potential (e.g., XMR). Check the rate for 1 BTC to XMRhere.
After reviewing the main processes of Bitcoin mining and the possibility of improving its profitability, you should also look at Ethereum mining to compare which of the two suits your needs best.
Mining Ether — Is It Still Relevant?
Ether is quite different from Bitcoin when it comes to mining. That is why it needs to be considered separately.
- Low transaction fee. In fact, it is currently near the all-time high in terms of daily miner profits. One of the major reasons for this is its extremely low transaction fee. This causes its position to constantly rise.
- GPU. Just keep in mind that, in order to profit from Ether, you need a good GPU. Either build a high-end rig or opt for cloud mining.
- Volatile market. Remember that this situation may not always last. Just like how it is difficult to profit from Bitcoin mining nowadays, Ether could also suffer a similar fate.
Knowing the features of Ethereum mining, you also need to learn about the possibilities for improving it.
How to Make Ether Mining More Lucrative
- The Correct Equipment. Opt for either a GPU or an ASIC rig.
- Maintain Your Assets. It is not only important to have the right equipment, but also to maintain it. Keep an especially close eye on your electrical wiring, as such a high-powered rig will put excessive strain on it.
- Find Cheap Electricity. Just like mining Bitcoin, a large part of your profitability will depend on finding cheap electricity. It might be best to build your rig in a different area if costs are too high where you live.
As such, keep a close eye on the three components we have mentioned, which will help you make a higher profit from Ethereum mining.
Mining Bitcoin and Ether can still be profitable, as long as you know what you are doing. Make sure you utilize cheap electricity and purchase proper hardware.
It is possible to further increase your profits after you mine the best cryptocurrencies. For example, you can use Godex.io as a platform to exchange these coins with a lot more upside potential.