Interest in cryptocurrencies has jumped since 2015 as bitcoin started rising from 300 dollars per coin to a peak of 20,000 dollars in 2017 but then dropped to 3,500 dollars per coin in January of 2019. Other cryptocurrencies were survivors of the same surges and dips in value. More than 3,000 cryptocurrencies are listed on different websites, but the two most popular alternatives to bitcoin are Litecoin which is currently at 35 dollars per coin with a market cap of 1.88 billion dollars and Ethereum with $120 per coin and $11.4 billion market cap.
There are a bunch of different crypto exchange platforms that allow you to easily buy fractions of cryptocurrencies, but there is also the option to mine the coins. If you are thinking about mining your own cryptocurrencies, then we suggest you keep reading if you want to inform yourself about the profitability of bitcoin or crypto mining.
Mining cryptocurrency may seem like a simple task. Set up any computer to solve millions of complex math puzzle, and you are rewarded with a fraction of a coin or even a whole coin (depends on the coin’s value). The first miners of bitcoin were able to ear coins pretty quickly by using their computing power in their homes. By 2019, crypto mining has become a bit more complicated than previously.
With Bitcoin, the mining reward is halved every four years. You also have to consider that serious miners have built whole warehouses dedicated to just mining which makes mining for smaller miners much harder to compete. You also have the option to join a bitcoin mining pool which has proved to be more effective but comes with a fee, reducing from your profits.
Some cryptocurrency miners go for other currencies instead of Bitcoin. Some other crypto coins are worth almost nothing in US dollars, but it is possible the coins you have mined increase in value over time or even exchange them into a fraction of a Bitcoin and wait for it to gain in value. If you are looking for other ways to make a quick profit like cryptocurrencies but with less risk then we recommend you check out the 1kdailyprofit website.
No matter what you will be mining, you have to calculate the setup costs, including, graphics cards that can cost around 600$. It is possible to set up a more basic computer for some of the smaller cryptocurrencies for about $2,500. However, in 2019 some miners spend even more than $15,000 on their PCs. After you built your computer, you need to realize that it will be running 24/7, which means that it will be using quite a lot of power.
Make sure you check your electricity rates in your country and calculate what your electricity bill will look like. The bitcoin currently is about 10,000 dollars, so if you spend three to four thousand dollars on your electricity bill, you will still have a good profit. A less powerful computer mining alternative cryptocurrency could be a much better option since it will be spending a lot less power than one mining a Bitcoin. This alternative coin could even prove as a much more profitable coin than the coin since you could be farming more dollars per day.