This year can be considered a success in the crypto world because it managed to attract more attention compared to past years. There were many situations like with Elon Musk whose tweets influenced the market. This news was all over the world and people started to consider cryptocurrency as something that actually can be used in the future.
The more people talk about it the stronger the industry gets because it’s more competitive and innovative than before. This doesn’t mean growth brings only great news because it’s harder to mine and trade especially with so many currencies available. So, following the trends as we have with the cloud can be a good starting point for those that don’t want to invest their time.
Investor or Miner
To see if this type of mining is profitable, you need to look at it from two perspectives, as an investor or miner. In some sense, both types are investors so you can look at it as having your own platform and providing services or just spending money on services that will work for you. Both ways can benefit you if you use them correctly. Find a great resource here.
If you follow some simple steps, it can be worth it but every year is different for this market so staying updated matters a lot. As an investor, your only task would be to find a reputable service provider and spend a certain amount. On the other hand, you can have your own rig and provide your own service but bigger companies have an advantage.
Profits as an Investor
You can earn more than having your own rig if you know where to invest and in which coin. These platforms are very competitive and will provide some special deals that you won’t have when mining on your own. The profits depend on the hash rate you rented and how big the fees are.
Hash rate is important when you look at individual earning but you would want to hire someone that has great computing power. For example, OXBTC has decided to create its own hardware that has greater power and is meant for this type of service. You can either buy it or use it through cloud mining. For example, they will offer 15 MH/s for $500 for a certain period of time. But, the amount you can earn depends on the current and future value of the coin.
So, if you want to get Bitcoin which is around $46,000 and you start using their service now, you won’t make a profit if it goes to $40,000 because you had to make that initial investment. On the other hand, if it goes to $100,000 you can expect great profits depending on your purchase.
You can get this information by using a profit calculator which you can find by searching on Google. You will need to get more detailed when researching a coin and if any changes will be made in the future. For example, we might get Ethereum 2.0 which has the ability to crush the dominance of Bitcoin. But, no one can say for sure if this is going to happen.
Profits as a Miner
You should stop right away if you think that Bitcoin is the safest way to go because it has become very hard to main it. The prices of hardware have increased drastically but the process hasn’t become any easier. But, there are other options that can make you a profit.
A great tip is to calculate the costs of owning a rig including maintenance, electricity, manpower, and storage. You don’t only need GPUs and a processor you’ll need something to cool them down. When you calculate this, you can have an estimate of the earnings.
Another thing you can try is to mine multiple coins at once. This can put a lot of stress on the machine but you can get lucky with Chia while getting Ethereum. Some can operate only on a CPU and others on GPUs. You should download a few applications that will help you manage them and check if it is worth it.
Don’t expect to make over $20 in profits for a small rig with Nvidia RTX 3090 which is a top-tier product. It’s become more popular to rent computing power than to manage everything on your own. Either way, there are chances to make some money but in the long run.
Why People Still Main Bitcoin?
In 2022 we saw the highest point of Bitcoin ever at $69,000. It is for sure still the best investment when it comes to cryptocurrency but there is only one reason why people still mine it considering how difficult it is nowadays. They are looking for the long-term benefits it can have.
It’s hard to say which coin is stable when you can’t compare them to a real-world currency. But, if we look only at the crypto world, Bitcoin is considered a stable coin.
Looking at the long-term benefits you can expect to earn more than other options because the market cap is much higher. It’s around $1.17 trillion and in the second place is Ethereum with $520 billion.
Should You Start With Altcoins?
Altcoins can be considered as a better version of Bitcoin because they want to stop the shortcomings. They can differ a lot but they also have a huge potential like Ethereum’s ether which is among the best options to get. They can be used for all kinds of functions in the economy and that’s why one great idea can bring you a lot of money if you find it on time.
But, as the potential rise the risk rises also so you need to be careful what you mine or buy. The market cap for these coins is lower and some of them even disappeared from the market because of the sellout. This is less likely to happen to cryptos that aren’t meme coins but they can also make a boom like what happened with Dogecoin.