Last week I had a work collegue ask me for information on how to start mining for either Rig or Cloud Mining and since I now have a blog (!!!) I thought it would be good to add that dialogue here! So, the following post is what I supplied to him as a means to give him a little more information in how the whole mining thing works. This post attempts to give the reader a direction in which to begin this fun process and to help them start their own research.
I hope it helps you too!
Rig Mining Versus Cloud Mining
There is so much to read up on in this area, and when starting the mining process it will take a bit to get everything planned out properly. As is the case for most things worth doing, having a plan before jumping into the mining game is really important. That plan will depend greatly upon the type of mining you choose to do, and how you can expect to earn your return on your investment.
Full-disclosure, I chose to go the route of Rig Mining, so if things seem bent that direction it is because I am bais ;-)
None-the-less, I wanted to share a few of the Pros/Cons I used to help me make my choice between Rig and Cloud.
- If the whole crypto market goes belly up (Not likely), I would not be out that much money. I can still sell all of the parts of my rig, and at least get some return on the money I spent.
- I have the freedom to change my rig. I can mine what I want, how I want, when I want.
- Lower bar to enter the game. Don't need to spend thousands, just use your own system right now, and start to build it up! It just takes one Graphics Card to truly be efficient! Research your cards before you buy!!!
- If the coin you mine takes hold in the market, you will have a lot of coins that you got for practically nothing, which now are worth a pretty decent amount. If you pick the right coin, you can make more $$!
- The coins that are mined are name brand coins. Meaning, they are guaranteed to be popular when you want to sell.
- Guaranteed stable fixed rate of return. Low risk return on production
- You don't pay for hardware breakage, patching, maintenance, or electricity
- Hardware, electricity costs. You are on hook for system maintenance and such. (Granted my electricity is only about $1 a day. I can handle that, and patching/maintenance isn’t hard ;)
- You are gambling on the future market of the coin you mine. If the coin you select fails, sadly so does the time you spent mining. Do your research!
- You are betting on the technology acceptance within the market. Super hard to do! Do your research!
- If the industry fails, you are out all the money you put into it. Unless the company pays you back... likely not happening. (Also unlikely the market will crash ;)
- If the company you open a contract with fails. You are out that money. (Like Greg, use more than one cloud mining service)
- Higher bar to enter the game. Contracts start at a higher price for a decent rate of return.
I think the cost to entry versus the rate return is relatively level between both rig and cloud mining. Using todays coin values and mining difficulties, If you invest around $3k, you can expect close to $30 a day return. One can estimate for every $1k in mining value, you can make almost $10 per day. $2k = $20, $3k = $30. If you have found something different I would be interested to know the numbers you have put together.
It is mine, and others belief, that re-investing back into the mining rig is the right move to make. And once the initial investment is made, all the remaining value is total profit. Just put it back in the system! Add a new GPU, and start the planning process for the next bigger, badder, more productive rig of the Future!
Rig Mining Resources:
The following are some of the sites that I used to do some research. There are a few sites out there... A Lot of sites out there. But I just read them all and found common practices that seemed to work and be best for the whole of the group. I did not put any forums in here, but reading forums (reddit) was a good way for me gain some insight as well.
Just a nice guides to how the whole thing works:
Which GPU to buy?:
Rig building guides:
Quick way to order any of the parts you will want to buy:
Solo mining VS pool mining:
Once you have a rig built (If that is your route) Here is a list of sites that use with rig mining.
A list of what coin is more profitable now- https://whattomine.com/
What the background details are on each coin - https://www.coingecko.com/en
The predicted estimates of each coin - https://coincheckup.com/predictions
Cryptopia is the exchange of choice for Alt Coins. They hold a means to exchange the newest coins for other currency, better then many other exchanges.
There is also:
AND MANY MANY MORE!!!
Hope that helps!
#Crypto #Mining #RigMining #CloudMining