How much can you earn from mining, and what coins are more profitable to mine?

Everyone began to learn more about cryptocurrencies precisely because they believe that it is easy money that does not require any special professional skills or intellectual effort. To some extent this is true, but do not forget that free cheese only comes in mousetraps. It’s the same with bitcoins - no one will give them away for a “thank you.” To get funds you will need to work, investing your own money, and only after a certain period will real earnings begin.

First, you need to find out how many bitcoins you can earn in a day, and then in a month, and only after that decide whether you can invest money in developing your own business using crypto coins, or choose other types of activities. In principle, if making money on bitcoins seems too difficult, then you can use any other cryptocurrency. But in this case, the amount of money will also depend on which financial unit you choose and how much it costs in terms of real money.

What is cryptocurrency mining

Mining is the process of mining an entire block in a specific digital chain - the blockchain. Each block is responsible for a coin, and having found the desired cryptographic code, you can receive it to your wallet. In order to profitably mine coins, you need to consider the following aspects:

• electricity and its cost (remember the negative examples of farm closures in China and Iran - the state simply decided to prohibit the supply of energy to such companies);
• software, taking into account what equipment is used and what is mined;
• the equipment itself and its location.

Even taking into account the price correction of BTC on the market, its hashrate does not fall, which means that the prospects for investors to receive coins are not so dubious.

Where can you mine cryptocurrency?

In order to figure out which cryptocurrency is profitable to mine in the short and long term, and which coins are good to get now, it is worth understanding the difference between searching for a new block depending on the type of equipment used. Various devices provide good profitability, but as soon as a wave of information rises regarding the exchange rate or a new altcoin, the cost of them rises, and sometimes manufacturers simply do not have time to release new gadgets.

Video cards

Not all coins that can be obtained on video cards are profitable, because the energy spent “kills” profitability. In the period 2016-2017, video cards remained one of the most popular methods of making a profit, even at home. Looking for an answer to the question - how much can you earn from mining BTC and altcoins in 2022, the amount will not be very large. As a rule, they mine with the help of NVIDIA and AMD - ETH and altcoins on the ERC-20 protocol, but in order to get about 20-30 dollars of net profit per day, the core frequency should not be less than 1970 MHz, their number is 3584, and the memory frequency is 11 ,1 MHz.

SSD drives

In Hong Kong, just a month and a half ago, there was a shortage of hard drives on the market, which is associated with the growing popularity of cryptocurrency, which is mined using such a device. For those who are interested in how much you can earn by mining Chia, I can say that in a week of constant operation of a storage drive with a capacity of 4 TB or more, you can actually get almost 0.5 coins, the cost of which is a little more than $970. But at the same time, in order for users to receive 64 coins for a mined block, they need, in addition to the disk, a processor, a storage device, a fan, and software equipment. A 4 TB disk wears out within six months.

Processors

These devices are similar to video cards, but have different purposes: CPU - central or GPU - graphics processor. The effectiveness of the method is only high when there is a separate farm, with at least 20–30 processors, in order to recoup the expended electricity, equipment and software itself. Suitable for receiving BTC and its forks, which Changpeng Zhao always speaks positively about, speaking about their importance for the international market.

Asic miners

These are one-piece, ready-made devices that are often used in production facilities. They consume a lot of energy, are noisy, and require constant cooling, so single miners cannot afford them. They are often used to mine BTC and coins with the highest current exchange rate at the moment on an industrial scale. The plus is automatic operation, the minus is the price, payback period and enormous noise.

How much can you earn from mining and how to earn it?

The cost is floating, since it directly depends on the network load, the cost on the market and whether you mine it yourself or through cloud or physical pools. If it says on average how much you can earn from mining bitcoins on new and used devices per day, then of course it is worth taking into account the type of equipment and its brand.

Average income and payback of ASIC

Earning money using trading bots

To make money on crypto exchanges more efficiently and with less risk, use trading bots - software that automatically buys and sells cryptocurrency in accordance with specified settings. Connection to the exchange is carried out using API keys.

An example of an effective trading bot is Bitsgap. In addition to the basic options, it has the ability to instantly monitor market changes, rate arbitrage, and manage an investment portfolio.

Features of working with Bitsgap:

• You can connect more than 25 popular trading platforms.
• The portfolio provides information about all available assets and changes in their value.
• Professional trading signals are a useful option for experienced traders.
• The ability to create a trading strategy that the bot will follow.
• "Smart orders", testing based on historical data, Trailing Bot.
• Grid system to ensure the greatest profit. A grid of orders is created; this cannot be done manually or is too labor-intensive.
• 100+ popular trading indicators.
• Customizable interface display modes - dark or light theme, trade visualization. Full Trading View support.

Bitsgap is a paid tool. You can try its functionality for free within fourteen days from the date of registration, after which you will need to purchase a tariff plan. The cheapest plan costs $19 per month. It imposes a limit of $25,000 on monthly trading turnover, and it also does not allow arbitrage options or setting take profit. The professional tariff plan costs $110 per month and removes all restrictions, you can use priority technical support.

When connecting to the API, the Bitsgap platform instantly monitors all balance changes on connected exchanges and can create the necessary orders itself. Every action of the bot and its effectiveness is tracked in the interface. The service works entirely in the browser; nothing needs to be downloaded or installed.

Official website of the platform https://bitsgap.com/

Types of mining

Today, mining has ceased to be perceived as a “soap bubble”, because after a couple of years of active existence it has confirmed that it is quite possible to mine coins, both with personal participation and by transferring your funds or equipment for trusted use. Depending on who exactly and how exactly the coins are mined, the following types are distinguished:

• independent;
• cloudy;
• mining pools.

I will introduce you to each of them in more detail, but at the same time I would also like to draw your attention to the fact that there are coins that are mined based on a consensus algorithm - without searching for a block, like the PolkaDot cryptocurrency, and even if you have invested in a cloud farm, completely abandon altcoins with Such nature is not worth it in your portfolio.

Self-mining

Today, this type of mining is considered the most unprofitable, and even if you have certain equipment, it is wise to sell it to farms or rent it out on favorable terms. When calculating how much you can earn from mining with one video card, even of fairly high throughput per day, subtract the cost of electricity and depreciation costs of equipment from the amount received. Efficiency and profitability of production occurs when at least 20 devices are used.

In addition to the expenses described above, you need to take care of the availability of premises, the air conditioning system, the salaries of specialists, and who will service the system. 24-hour independent mining will get boring within 24 hours due to the high noise level.

Cloud mining

This method is one of the most profitable, and even if you are looking for an answer to the question: is it possible to mine in Russia, then this solution comes in handy, since you can become an investor in such a farm remotely, regardless of where exactly it is located. Cloud pools are “installed” in countries with low energy costs and are hosted on cloud resources. You can monitor their work remotely via video connection, and invest through a proprietary application or website. Plus, this category of profit is not taxed yet, so you need to make the most of it. Cloud pools offer income that directly depends on the amount invested. As a rule, this is 1-3% per day.

Mining pools

Participants gather in groups, invest their funds and make a profit. I can say that for potential investors who are just learning how to make money on cryptocurrency from scratch, how much money and what is needed for this, this method is perfect. The principle of operation is identical - the more you invested, the more you received. Pools can be focused on receiving one coin, or several at once.

Taxes

Russia adopted the first laws that regulate the cryptocurrency sector in 2019-2020. They do not mention mining. There is no mechanism at the legal level according to which such activities are taxed in a certain way and they must be paid according to the established procedure.

However, the Ministry of Finance sends out letters where it is logically proven, with references to articles of the Tax Code of the Russian Federation, that income is supposed to be transferred to the treasury for both legal entities and individuals. This cannot be refused if the entrepreneur has declared such a line of activity. Which involves reporting and paying profits to the budget. The tax rate for companies is 20%. Individuals pay personal income tax - 13%.

How an entrepreneur could choose a line of activity during registration that is not provided for by law is beyond my understanding.

It is worth waiting for the State Duma to adopt new laws, the rules of which will regulate the taxation of mining.

Is it profitable to mine cryptocurrency now?

As much as I have been filling the blog, investing in coins myself, selling and receiving them as profit, this issue has never lost its importance and relevance. I’ll say right away that the final amount of how much a mining farm brings per month largely depends on different situations: the price of the coin, the current hashrate, the country where the capacity is installed, the number and type of gadgets. I can say for sure: independent mining has long become obsolete. If in 2009, although BTC cost 1 dollar, a PC cost 20-25 thousand. Plus, it is worth taking into account the following nuances in the loss of profitability of individual mining:

• increasing the market share of large mining farms, which made mining via video cards at home a failure;
• increased demand and prices for equipment;
• shortage in the market for certain goods.

But the USDT cryptocurrency, which is not mined but exchanged for fiat or altcoins, becomes more promising, because the stablecoin is tied to the dollar exchange rate and is a universal means of payment on many exchanges.

Bitcoin mining

The price is in the red trend, but at the same time, mining military-technical cooperation remains profitable in the future. To do this, it is better to choose cloud mining or physical pools. The load on the blockchain is growing, and if 3 years ago, the answer to the question: “How long can it take to mine 1 bitcoin” was 10 minutes, now after the halving in 2020 and the hashrate indicator, it will take at least an hour, and this is provided that a large number of farms. When choosing the state where the power is located, I would recommend finding out in advance the cost of 1 kW of energy and what the average salary for staff is. On average, you can get from 2% of the invested amount per day.

Mining Ethereum

It is most profitable to mine ETH on video cards, but, as in the case of BTC, the profitability is high when it comes to a large number of video cards. This spring there was a rush for equipment, both in the expensive and cheap segments. The Ethereum rate also fluctuates, but experts clarify that income from 2.5% per day on cloud resources or mining pools is a good offer. Speaking about the independent approach, analysts calculated the “minimum” investments that are needed: 9 video cards on average will cost 220 thousand, and the monthly profitability will be from 18 thousand rubles. In a year, at a rate of up to $2000 per coin, the investment should pay for itself.

Mining other cryptocurrencies

Profitability depends on the initial investment, wear life of the devices, current price and hashrate. Today there are special calculators on the Internet, like whattomine.com. Enter the data in the appropriate fields and the system automatically calculates how much you can get and what kind of hardware is suitable for mining. Speaking about currencies that are promising at the time of writing this article and can be mined, I will focus on the following:

1. Litecoin due to higher speed in transactions.
2. Dogecoin due to the rapid rise in price (Elon Musk, thank you) and minimal costs to start making a profit.
3. Ravencoin - mining on budget equipment with a processor profit of up to $4 per day.
4. Monero - GPU mining with average performance.
5. Zcash is low-cost mining with high profitability.

And about another bright new cryptocurrency, Matic, with an interesting protocol, and its current exchange rate, you can learn from the latest material on www.gq-blog.com, where the history of the appearance and changes in value is collected. The spring of 2022, against the backdrop of a shortage of mining equipment, rising prices for military-technical cooperation and altcoins, became a “new season of digital fever.”

At the same time, the current situation confirms: it is not always profitable to buy expensive equipment or invest in the production of military-technical cooperation and coins with a high rate. Analysts predict an increase in the price of coins that are in the second ten in terms of capitalization, and I advise you to take a closer look at them. In the meantime, I wish everyone profitable cryptocurrency mining with high profitability and security.

Author Ganesa K.

A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.

Referral programs

A business with minimal risks, based on the recommendation of services and goods of the blockchain platform to third parties. To start, you usually need to connect a business account, then get a referral link and get started. Rewards are awarded to the partner regularly and are calculated based on the amount of spending of all users invited by him. Registration through an affiliate link is mandatory for beginners, otherwise you won’t be able to build your network and earn money.

Income depends on activity. Let's look at the example of a cryptocurrency exchange to which you managed to invite 10 active traders - the service is excellent and the trading conditions suit them. According to the results of the month, traders concluded 200 transactions and earned money, but spent $2,000 on paying trading commissions to the exchange. Your income in this case with a 10% reward in the program will be $200, which will be credited automatically to your account.

The example, of course, is simplified, because advanced affiliate programs allow you to receive several bonuses at the same time. For some projects, the number of partner levels is not limited, that is, theoretically, you can build an endless structure.