Cryptocurrency mining is a very technical but potentially very lucrative endeavor. If you know what you're doing, it's fine, but if you're new to mining Bitcoin and cryptocurrencies, you need learn fast.
For the noob or novice miner, however, there might just be an answer. NiceHash is a cryptocurrency mining marketplace that simplifies the game, and makes it possible to learn all the technicalities while you're earning a passive income.
Mining Has Been A Thing Since Satoshi Launched Bitcoin
Mining cryptocurrencies has been a thing since the minute Satoshi Nakamoto launched Bitcoin back on January 3rd 2009. He was the sole miner back then, but today there are hundreds of thousands of miners, and millions of mining machines.
After Bitcoin mining started stretching out beyond Satoshi in the early 2010s, the miners then would make huge profits validating Bitcoin transactions at a time when the mining difficulty and hashrate were low.
Due to a number of factors, mining profitability has declined and although mining is not as cheap and profitable as it once was, for those willing to invest time and effort, it still remains a legitimate way of earning a decent passive income.
Mining cryptocurrencies today involves investing in expensive and specialized mining equipment, such as, ASICs and GPUs which require a considerable amount of technical knowledge to set up and maintain. Or you can join a mining marketplace such as NiceHash.
What is NiceHash?
NiceHash was founded in 2014 and has grown into one of the world's largest online marketplaces. It links sellers and buyers of computer hashing power for the purpose of mining Bitcoin and a range of other cryptocurrencies.
Sellers can earn bitcoin by renting out their potential hashing power to buyers who use it to mine certain cryptocurrencies. The exchange of hashpower is then achieved by way of mining contracts.
Buyers can choose the cryptocurrency they wish to mine and set the price they are willing to pay for the seller's hashpower and then place an order. Sellers can fulfill the buyer's orders by either running the NiceHash Miner software or by connecting their PCs or ASICS to NiceHash stratum servers.
In terms of payment, the entire NiceHash economy is powered by Bitcoin. Buyers will receive the bitcoin equivalent of the cryptocurrency mined and the sellers will be compensated in bitcoin for each valid contribution he made in the mining process.
An important consideration when renting out hardware is the profits you can expect in return. You’ll be glad to hear that NiceHash has a built-in profitability calculator that checks your potential earnings once hardware and electricity costs have been taken into account.
Getting Started with NiceHash
Getting started with NiceHash is an easy and straightforward process that requires little or no technical skills. The first step is to create an account on the NiceHash website by inputting your email address and desired password.
Once your account has been confirmed, NiceHash will provide an internal Bitcoin wallet for receiving and making payments. The internal wallet has a minimum withdrawal amount of 0.001 BTC.
Buying and Selling on NiceHash
To buy hashpower an initial investment of 0.005 BTC is required. Buyers can then create contracts of less than or longer than a day. Contract prices vary and are dependent upon the mining difficulty of the relevant algorithm and market price of the coin.
Buyers have the choice of two types of contracts:
Standard Bidding Contracts allow buyers to adjust the price to the value they wish to pay.
Fixed Price Contracts are set higher but are fixed for the duration of the contract.
Deposits and withdrawals to and from the internal wallet are charged a fixed 0.35% fee. NiceHash has two different fee structures for buyers and sellers.
For buyers, the fee structure is straightforward: a charge of 0.0001 BTC for any new orders and a further 3% fee on what they spend on hashpower.
Seller's fees vary depending on amounts. Payouts of less than 0.1 BTC to the external wallet are charged 5%, whereas, payouts equal to or greater than 0.1 BTC to the external wallet are charged 3%.
Finally, payments to the NiceHash wallet equal to or greater than 0.001 BTC are charged 2%.
Is MindHash Profitable?
First of all, due to mining difficulty and price variations, not all hardware will be profitable. Luckily MindHash has a built-in profitability calculator that allows users to estimate profits by entering electricity rates, types of hardware and length of contracts.
NiceHash is very beginner friendly and doesn’t require a lot of technical knowledge to setup.
Less risky than investing large sums of money in expensive mining equipment.
NichHash reviews your hardware and picks the most profitable algorithm to mine.
Profits are minimal when compared to mining pools.
Bitcoin only payouts which can result in a high transaction fee.
NiceHash is a good option for those who want to either sell or buy hashpower to produce more profitable mining rates. The mining profitability calculator lets you know how much you will earn before each venture and if you are comfortable with the fees.
While NiceHash may not be for the hardcore miner, because of its simplicity those looking to get started in the cryptocurrency mining game, it may offer the perfect solution.
You will learn how mining works, you'll learn about the different nuances of mining different cryptocurrencies, and depending on a few factors, you should earn some Bitcoin.
Author: Ronan Mullaney
Disclaimer: If you sign up fora NiceHash account using ad link, MinedHash may receive compensation.