Mining cryptocurrency is the new trend about making money online by just laying down and waiting for your machines to generate profit. That sounds amazing, but it is not as easy as it seems and in a lot of cases it is not even profitable to mine cryptocurrency.
Ways Of Obtaining Cryptocurrency On Your Own
If you want to obtain your cryptocurrency through mining there are two ways of doing it: setting up your own mining rig or using cloud mining services. Let’s go through both options and decide which is the best way of obtaining cryptocurrency.
Investment safety
Before you invest money in buying mining rigs or cloud mining services you should scout out what is happening in the world of cryptocurrency. You probably should not invest money in mining when during the period of the bull market, but instead wait for it to go back to the bear market before investing any money in mining.
Should You Invest or Mine For Cryptocurrency?
Either of these options comes with its own risks for example mining rigs demand maintenance and you could invest money at a really bad time for investing and actually lose money not gain profit from it.
The negative side of investing is that a value of a cryptocurrency can fluctuate a lot and does not stay at a stable price for a long time. Also at this point in time, the market is really saturated with many different types of cryptocurrency at different prices and for a person that wants to start investing in cryptocurrencies and blockchain, it can be really confusing on finding the right type they should invest in.
Mining also has its own risks and issues like maintenance of mining rigs and electricity costs. It will also take some time until the mining rig will start generating profit because you will need to be able to cover the costs of setting up the mining rig before you can start generating a profit these mining rigs can be really pricey and this price depends on the GPU market.
Overall both types can succumb to a market crash like the one Bitcoin experienced in 2018 and might lead to only losing money.
Benefits Of Cloud Mining
A recent trend has become to obtain cryptocurrency through companies that offer cloud mining services. They will obtain the rigs for you and they usually be able to mine in locations where the cost of electricity is the lowest. This will allow the user to avoid the problems of setting up mining rigs and worrying about how much money they will make after paying the electricity bill because the company will do all of that in your place.
How To Start Cloud Mining?
Firstly, you should probably decide on what company you would like to use for your investment in buying cloud mining services. The concept is that you invest money in these companies and gradually you will start to make a profit from your investment.
To avoid getting scammed anyone should do their research before they invest any amount of money in service. Luckily to avoid the hassle of checking every possible website there is a website called CryptoCompare which maintains a list of companies that offer cloud mining services and will guide you through choosing the right company for you.
Choosing The Right Plan
Once you have found the right company you will have to register and choose the best mining package. Usually, these companies will provide you with all the information needed like: the cost of the plan and the amount of profit generated. However, it is important to remember that cryptocurrency market values can change often so before investing money make sure that you will be able to make a profit from analyzing past trends and predicting the future.
I Have Mined My First Cryptocurrency What Now?
So you have finally obtained some reasonable amount of cryptocurrency and you might want to find a use for it. A good choice is to set up a cryptocurrency wallet and transfer the mined coins to the wall to keep them safe. In some cases, the company could provide you with the possibility to reinvest the amount you have mined to increase the hashing power to boost the speeds of mining cryptocurrency.
From a wallet, you can trade for other cryptocurrencies that you perhaps see a future in or cash out to real money, or just keep it just in case at some point the coin experiences growth in value.
I Do Not Trust Others With My Money. I Want To Mine With My Own Hardware!
Unless you have access to a cheap electricity plan and fast network connection. A smart thing to do before investing money in buying mining rigs is to check out a thing called a mining calculator to see if you will be able to make a profit with your circumstances.
If you have access to those things stated above you should select the right cryptocurrency miner for you. To do that you should consult with people that are involved in mining cryptocurrency successfully or look into internet sources for information about choosing the right mining rig. A valuable mention is that most profitable mining rigs generate from $10 to $30 a day.
