29.10.2017 Mining for amateurs

Mining for amateurs – how to earn and not to lose.

Let’s say you do not know what mining is, but you really want to do it. After all, it is fashionable and they say it is profitable. However, there is one trouble – you are not a millionaire who is ready to invest in a tempting business a lot of money. And you know the price of every single earned penny.
What to do?

There are several options. You have got the right to choose.
The easiest way is home mining
To enter the market, you will need to buy an ASIC-miner or a farm on video cards. By the way, if you have got the appropriate skills and knowledge, you can try to make a farm yourself.
And then you place ASIC-miner in your apartment. Yes, this will lead to a constant noise and a large consumption of electricity. However, don`t count on a big electricity power because after all the household electrical wirings are not intended for a continuous load.
From a technical point of view, the ASIC-miner consumes about 1 kW. Continuous work of five devices like that at your home threatens to turn into burned wiring or even a fire. And instead of an expected profit it will have to be content with serious repair.

Let`s say that the state of internal wiring in an apartment allows you to earn crypto currency with the help of several ASIC-miners. This does not exclude their possible breakdown, since ASIC-miners are rather capricious. And if you build a farm on video cards, then the risks of unsuccessful assembly, complexity of tuning, instability of work are great. By the way, although the manufacturers of video cards give a three-year warranty, are not really ready to change the video cards that were used for mining.

The payback period of the most affordable miners for domestic use is rather small. This is about 10, at the peak – 15% per month. However, expecting maximum profit constantly is reckless, as there are more miners, and the complexity of extraction regulates the profitability.

For example, the cost of any coin is increasing, the profitability of its extraction is increasing. This will lead to an increase in complexity that will compensate the process of obtaining a crypto currency. It is more reasonable to expect a monthly return of 10%. Then it is necessary to deduct the cost of electricity, which will reduce the financial indicator by a quarter. As a result, it will be approximately 7.5%.
The minimum amount of investments for home mining starts USD 2000. It is easy to verify that the payback period of such a miner will be at least a year. A year is a lot. And technical breakdowns? And the collapse of specific currencies on the market?

In addition, such mining requires a constant attention. It is necessary to monitor constantly which currencies are more interesting for mining at the moment, and then sell them on the market, transfer them to other crypto-currencies or to fiat currencies (ordinary money). It’s troublesome.

We admit that home mining is not a business. It is useful to understand the fundamentals of blockchain technologies, to enter the market from the very beginning, starting with a generation. It is not an accident that home mining is considered to be just a smooth entrance to trading. It is possible that you will not even be able to pay off the material investments, but you will be able to get a large amount of knowledge.
And to achieve financial success, the beginner will need more serious investments – starting with USD 10000.
One of the alternatives to this is a cloud mining.

And here you are – on the cloud …
Cloud mining is much more attractive than a home one. This is an online service that provides an opportunity to buy some of the computing power. Mostly they sell you a certain amount of services. It is measured by a number of decisions per a second, in mHash or kHash, depending on crypto currency. It is not excluded that you will be asked to buy one or more of the miners entirely. But let’s digress from maths.
The advantage of cloud mining is that you quickly enter the market. A working minor starts to earn crypto currency virtually right after its payment. However, there are nuances. There is no certainty that your money is really invested in an existing computing power. Absolute opacity of the Internet service makes you wonder if you have become a hostage of a financial pyramid?
And really – who are they, the owners of the company? Where are the processing power? How are they served?

Representatives of the Internet service are virtual, as well as the cloud mining. You deposit money on your account from your credit card, and in return you receive a proportional amount of computing power. Or you do not…
At first you can risk a small amount. For example, you can get a computing power at USD 150. In a couple of months if you do not receive a notification that due to an increased complexity of mining, the purchased capacity is unprofitable and is closing, then consider you are lucky.

However, there are really favorable offers on the market. Let`s say there are projects which offer participants a 10-15% and higher profit per month. Alas, this is a clear scam and no one is going to fulfill your financial obligations.

But we are not going to think badly about everyone. After all, there are long-running cloud-hosting companies that are known to many market participants. Here a payback period of your investments in the purchase of computing capacities is 10-15 months.
Nevertheless, cloud mining is interesting. It has got an easy entry on the market and a low level of investment. The main thing is not to get on a scam-project or not to get bogged down in a financial pyramid.
You can get even more crypto currency if you are engaged in industrial mining…
Is it time to become an industrialist?
If home mining is for amateurs, then this is for professionals. A big amount of miners requires a production area which is provided with a large electrical power, since it is needed to install some expensive computer equipment and an appropriate cooling system.

Cooling is one of the most fundamental principles of such mining. All the power of computers is allocated to heat. Using air conditioners is too expensive, because they also consume electricity, comparable to the power of the mining equipment.
The minimum entrance to this level of business is 50 kW and about the same number of different types of miners. Plus, there is a cost of renting production facilities, maintenance staff and physical security.
The cost of consumed electricity can be reduced by replacing air conditioners with a flow-through ventilation system. If you understand how to do it.
Being engaged in industrial mining makes sense if you invest in it USD 100.000-120.000. However, this is no longer a domestic production of the crypto currency, but a real business. It maintains its authenticity.

At home level, you can use the Internet exchanger, withdrawing money to your bank card. In industrial mining, it is required to ensure a good sale of a produced currency at the exchange and to develop a mechanism for transferring these funds to fiat currencies. And serious problems can arise here.
Financial monitoring is almost certainly going to become interested in the origins of the appearance of money from the sale of crypto currency. Moreover, in some countries this concept is not clearly defined by the current legislation.

Industrial mining will require you to have some deep theoretical knowledge and practical skills. You can`t ensure proper diversification of business without them. You will not be able to pay back multidirectional equipment and ensure the generation of different currencies. It is necessary to receive information about possible fluctuations on the market timely based on technological innovations and legislative initiatives. And still, it is impossible to insure yourself from failures on crypto market, both in terms of the depreciation of a particular currency, and with the increasing complexity of its extraction.
Some time ago, for example, market participants actively purchased equipment for generating currency Dash. The payback period of such projects was only one month. But a sharp increase in the number of miners soon led to the fact that Dash mining became hundreds of times more difficult.

Today the payback of industrial mining of this crypto currency has already amounted to 4-5 months, without taking into account the cost of electricity. The profitability of Dash mining is still very high – about 25-30% per month, however, it decreases every day.
You shouldn`t wait for miracles from industrial mining. The yield that you can get will be no more than 15% per month. This is certainly a very good indicator. And high risks …
You can still become a millionaire, albeit not so fast. If you stop on industrial mining through ICO.

Tokens game is more profitable than a risky business
Strangely enough but participation in one of the under construction industrial mining projects through the ICO is the best option for those who want to mine successfully.
The main thing is not to get on any scam-project, which does not involve any implementation, but only collects your money. Or a very real project that is not able to meet financial obligations because of a weak legal or organizational component.
Therefore, when choosing a particular project, it is important to pay attention to a reliability of information about it. Where is the company registered on behalf of which ICO is conducted? How exactly is it supposed to make a profit – in a crypto currency or a fiat? Is it possible to convert them? Are miners described in a proper way in this project? Is a profit distribution model the same as it is declared? What taxes do you have to pay if the payments are made in a fiat currency?

For example, on a web – site What to Mine you can find out how profitable it is to obtain this or that crypto currency. It is also important to know whether the withdrawal of your funds from the project, if it is necessary, is provided through the sale of tokens.
The construction of a farm, even from scratch, doesn`t take longer than three months. And if the receipt of profits is provided once a year, then it makes sense to think how reasonable it is to participate in such a project.
The principal indicator for you is the increase in a cost of tokens that you get to participate in the business. After all, after deduction of costs, industrial mining through ICO brings only 5% of monthly income or 60% per annum. And that’s all.

A greater profitability can be obtained by increasing a value of assets – tokens. It is regarded as an important financial tool in our Mining Now community! In addition to the guaranteed monthly income, which is targeted at 3%, each investor receives a profit from investing in development of computing power. This increase leads to an avalanche effect and, accordingly, to the increase in a cost of the tokens that you own.
Even the most modest forecasts show that this figure reaches an average of 100-140% per year. Totally you will definitely be able to earn 36% per annum from mining and 100% from the growth of tokens.
But most importantly, what will you stay with if you decide to leave the business?
You will have real money because you will sell your tokens on the exchange to another user or to the Mining Now community!

Finally, to enter the market through participation in industrial mining through ICO is possible starting with USD 20-50. This is much cheaper than a domestic production of crypto currency. As for the expected benefits, it has already been mentioned above.
Welcome to our Mining Now community!