Although mining cryptocurrencies isn’t as profitable as it was in the earlier years, there is still the chance of making a profit, and with some less technical mining solutions, it can be a great way to earn a passive income, even for the beginner.
Many people say Bitcoin is the best to mine, and although it’s the best coin by far, it is getting ultra competitive and very expensive just to be able to compete, so mining altcoins can be a great option.
Whenever you think about starting mining altcoins, the first thing you want to be sure about is whether mining is profitable. And although this varies greatly, you can make serious money mining altcoins when their value is up.
Estimate Your Profits Before Starting
Before starting mining altcoins, make sure you can work out whether it’s profitable. Do as much research as possible to find out whether everything you’re going to get into is the best for you in your region. But here are some factors to take into account before you start:
Firstly, you want to know the price of the altcoin. The higher it is, the more profit you will make. Be warned, altcoins had a pretty bad 2018 and 2019 pricewise, and although they have been bullish this year, they are still pretty low. This could be a good thing, as well as they have a long way to go just to reach their all time high prices.
The cost of electricity cost in your region is arguably the important factor, when calculating the profitability of mining any cryptocurrency. That said it is profitable in many parts of the world, but always take your electricity cost into consideration.
Although if you can afford to mine at a loss, and keep hold of your altcoin, you can wait for it to gain value and sell when the price pumps. There’s no guarantees that altcoins will rise in value of course, but personally I have faith in the ones I list below. Read More...