Of course, this varies depending on electric costs, hardware device types, and cryptocurrency prices. The NiceHash Profitability Calculator gives estimates for which hardware options should be the most profitable, not including electric costs. One of the most important aspects to consider when mining Ethereum , or any other cryptocurrency, with NiceHash is the form of payout. This is not the case with this specific platform. BTC is the only form of payment on NiceHash, regardless of which crypto you decide to mine.
The minimum amount you need to begin mining Ethereum is 0. However, you can also create a contract for greater than or less than one day. The site offers two options for bidding on hash rate purchases: standard bidding and fixed price. Essentially, the fixed price option will likely cost more than standard bidding but simplifies the process of finding a match. By choosing standard bidding, there is the possibility that you might be outbid by another user.
The NiceHash marketplace page provides live stats for hashing power orders. This includes Dagger-Hashimoto and other algorithms. Buyers: There is a non-refundable order submission fee of 0. The amount spent on orders for buying hashing power unspent amount on canceled orders is not subjected to this fee is 3 percent. Sellers: Payouts fees for balances less than 0. Balances greater than or equal to 0. Payouts for balances greater than or equal to 0.
For withdrawals from 0. If the withdrawal is greater than 0. Those looking to exchange funds via Coinbase can do this quite easily. Most importantly, there is no fee for any amount sent over 0. NiceHash allows you to sell the power of your mining farm. The site recommends connecting your rigs to the closest location This map shows six locations available across the globe.
When it comes to mining Ethereum, there are other options besides NiceHash. For example, you could decide not to join a mining pool altogether. E ven though NiceHash is the most popular choice, a few other major competitors exist. Nanopool , for example, has over , active miners. Fees are only 1 percent. Plus, Nanopool pays out for uncle blocks. This means that if your rig s were at least close to solving the algorithm, you can expect to receive some reward. The cookies is used to store the user consent for the cookies in the category "Necessary".
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The easiest way to get started at mining is with NiceHash. Prior to NiceHash, getting started with coin mining was more complicated — as we'll detail below. NiceHash has greatly lowered the barrier to entry, and it gets rid of some of the worries about what coin s to mine.
You effectively lease your PC's hashing power to other users, who get to choose what to mine, and you get paid in Bitcoin. NiceHash takes a small cut of the potential profits, and your PC can be up and mining in minutes. Note: There are some alternatives to NiceHash, but generally speaking they function on similar principles. Some just mine the "most profitable" coin at any given time, and you keep those coins or fractions of a coin. If a coin ends up becoming popular and shoots up in value, you could score big, but it can also go the other way and you end up with a bunch of worthless crypto.
We're not going to walk through every step of the process, as NiceHash already has multiple tutorials. The short summary is that you need to register with the service, and you should have your own Bitcoin wallet somewhere e. Your BTC will accumulate on NiceHash, and you can transfer it out whenever you like — which is a good idea since you never know if or when another successful hack might occur.
NiceHash has several options, ranging in degree of complexity. The easiest is to use the new QuickMiner , which is a web interface to a basic mining solution. You download the QuickMiner software, run that, and the webpage allows you to start and stop mining — you don't even need to put in your BTC address. It's dead simple, though the numbers can fluctuate quite a bit. Except, after letting both versions run for a bit, QuickMiner seemed to stabilize at the same performance level as NiceHashMiner.
Next up is NiceHash Miner , which is what most people will want to use. It's more complex in some ways than QuickMiner, but it has more options that can improve overall profitability. By default, it will ask you to log in using your NiceHash account details. Once launched, the first time it runs, NiceHash Miner will benchmark your hardware using various common mining hashing algorithms.
Which algorithms and software get tested varies a bit by your GPU, and you can customize things quite a bit. Right now, DaggerHashimoto aka, Ethash, what Ethereum uses — a modified variant of DaggerHashimoto tends to be the most profitable, though sometimes Octopus, Kawpow, or some other algorithm might climb to the top. The idea is that NiceHash Miner will choose whatever is currently the most profitable coin to mine, based on what people are willing to pay to rent your hardware.
Sometimes a new coin will launch, or someone will want to dedicate a lot of mining power at a specific coin, and they'll pay more to do so. The initial benchmarks on NiceHash Miner can be a bit prone to error, unfortunately. That's because the tests are only run for a minute each, and as your GPU heats up it may also slow down.
That means the first algorithm benchmarked often ends up with an inflated result. You can get a better estimate of performance by using the Precise mode on the benchmark tab , which takes twice as long to benchmark. You can also schedule an algorithm for retesting if you think the result is off, and by default it can be turned off NiceHashMiner will periodically download new versions of the miners and automatically retest.
This is a custom Linux installation that would run in place of Windows, and it's recommended for larger scale mining farms that use NiceHash. As with all things Linux, getting it up and running may require a bit more knowledge and patience, but because it's an OS tuned specifically for mining, hash rates can be higher.
We didn't do any of our testing with NiceHash OS, due to time constraints. There are two big downsides to mining via NiceHash. One is that you're not actually getting Ethereum — not directly, at least. You'll get paid in Bitcoin, which you can then trade for Ethereum if you want. That's not necessarily a bad thing, considering BTC is the largest of cryptocoins, but if you want ETH you'll need to take some extra steps. The other downside is that NiceHash takes a cut of the amount paid, and the net result is generally lower payouts than mining Ethereum yourself.
How big is the difference? That's a pretty big mining fee, though again the ease of use with NiceHash is hard to overstate. Transitioning over to a mining pool instead of NiceHash opens up more opportunities, to both software and method of payment. The first choice is what mining pool to use.
Generally speaking, you'll get more stable income by going with the largest pool, but there are various reasons for not doing that. Most of those reasons are altruistic, like not wanting any one pool to control too much of the total network hash rate, so our advice is to go with a larger pool.
Google is your friend. After choosing a pool, you'll need to set up your account, choose which mining software you want to run, and then configure your launch settings. That's simplifying several steps, all of which can vary quite a bit depending on which pool you use. Free pools tend to be less reliable, since it costs money to run the servers and infrastructure for a pool, so it's often better to pay a small fee rather than deal with the potential downtimes.
Also pay attention to the payout scheme and payout requirements for the pool. Most pay out your Ethereum daily, provided you've hit minimum quotas, but some of those quotas are pretty high. For example, Ethermine. It also pays out weekly if you hit at least 0. The payout schemes meanwhile are designed to discourage pool hopping i.
One big difference between NiceHash and your typical mining pool is that you need a separate Ethereum wallet to store your coins — you really don't want to just leave the coins with the pool indefinitely. While it's technically possible to have your coins transferred to somewhere like Coinbase, it's generally best not to have mining pool payouts go directly to a trading platform.
We recommend setting up an online wallet, through a service like MyEtherWallet , and use that address for your pool payouts. PSA: Don't use the same password on any sites related to cryptocurrency mining. Create a unique password on each one consider using LastPass or a similar product , and if you're planning to hold onto the coins for the long haul, get them into your own wallet.
Once everything is in place, you can finally launch your miner. A lot of the miners have sample configurations for popular pools that you can edit, and the pool itself will have configuration details on how to connect. So as an example, launching T-rex mining with Ethermine looks like this: t-rex.
Most modern miners accept a similar syntax, so tweaking the mining command isn't too complicated. Here's the catch: NiceHashMiner has a bunch of extra features to allow remote monitoring, notifications if a miner goes offline, ability to run a script if something appears wrong, etc. Doing all of that with pool mining requires more time and effort, which is why a lot of people are willing to take a bit less in the way of coins.
No, seriously, it's not worth the hassle and you almost certainly won't actually get any coins — at least not with Ethereum or Bitcoin. Statistically, your chances of solving a block are equal to your percentage of the total hash rate of the network. The proof of stake transition makes any such talk completely irrelevant. In practice, the mining pools have a much higher chance of solving and getting credited with a block. How much is a single block worth? There's a static block reward of 2 ETH right now, plus transaction fees that currently average around 2 ETH, plus some 'uncle' rewards that are relatively small by comparison.
Basically, 3. For all but the most dedicated of mining operations, the steady payouts that come from joining a mining pool are a far safer approach. But let's say you still want to try solo mining. What do you need to do?
First, you have to set up an Ethereum wallet and download the Ethereum blockchain. Even after pruning a bunch of extra data that you don't need, it's still typically around GB in size, and downloading can take quite a while. Once your wallet is synced up, you can point your own mining rigs at your local node, which is mostly the same as configuring miners for a mining pool except now you're using your own pool.
You're now flying solo. Even with a lot of high-end GPUs, you likely won't mine any Ethereum before proof of work mining ends. The theoretical benefit to solo mining is that you get the whole block reward plus fees, with no percentage going to the pool. The downside is that without a massive farm, you'll very likely end up getting nothing.
There are however mining pools that operate on a 'solo' mining approach. Basically, the whole pool works together to find a block solution, which means it's more likely to get incorporated as the 'winning' block, but only the participant mining address with the highest contributions to date since the last credited block gets the reward. This is much easier to use than pure solo mining, but without a decent amount of hashing power it will take quite some time to reach the point where you get the rewards from mining a block.
That covers how to get started, but we're far from done. With the above information, you can now fire up your PC and begin mining. That's the good news. The bad news is that actual long-term profitability is far less clear cut. The real difficulty is predicting where cryptocurrency will go next.
Both Bitcoin and Ethereum are down significantly from their highest ever valuations, but there's still a lot of up and down movement. Maybe it will bounce back, maybe it was a bubble. Who's right? Depending on when you look, you'll find ample data-driven support for just about any opinion.
The most important thing to keep in mind is that cryptocurrencies are volatile. It doesn't matter if you're treating them like a commodity and day trading, or mining, or running a mining pool. Things are in a constant state of flux.
Just look at the price of Ethereum since it launched back in Note: The following charts were last updated in March, but the patterns outlined here have continued. We've got the linear chart, which includes an amazing spike at the right edge early That spike looks very similar to the one that occurred in , naturally, and we should maybe just ignore the equally dramatic crash in — or that's what the optimistic miners seem to think. The logarithmic chart doesn't look nearly as impressive, and it's clear the real winners with Ethereum are the people who got in back in , or even Incidentally, about two thirds of all Ethereum was actually part of a 'pre-mine' that went to 'investors' before mining was even possible.
Everyone joining the bandwagon now clearly missed the best part of the ride. Alternatively, there's plenty of room left for future growth and spikes, but that's just speculation. We've passed peak profitability for mining Ethereum, at least for the time being. That's where the HODL hold mentality comes into play. There's another way to look at Ethereum mining. In , you would have accrued an additional Ether — twice the time mined, a bit more than half the rewards.
From up until today, mining has been far less compelling, and it's becoming increasingly so. The point is that you either got in early and made big gains, or you're hoping that things will continue to go up. And if that's your belief, why not just invest in Ethereum directly rather than trying to build a mining farm? Do a quick search for the optimal mining settings on a particular GPU and you're sure to find a bunch of diverging opinions. Some will throw caution to the wind and look to maximize hash rates in pursuit of short-term gains.
Let's be clear: These people are very likely to end up with failed hardware. However, as is with many things in life, there is a cost for this level of convenience. Whether or not the cost is worth it depends on several factors that vary between individuals. In this article, I will discuss the pros and cons of using NiceHash to mine Ethereum. While it may not be the first choice of veteran crypto miners, NiceHash absolutely is a good option for many people. It is actually a marketplace for buying and selling computing power that is used for mining.
Sellers can sell their computing power by running the NiceHash application, and buyers can purchase mining power to mine specific algorithms for profit. The whole marketplace uses Bitcoin, which means that regardless of what algorithm you see is being run you will be paid out in Bitcoin. You are really being paid to rent your hardware and electricity rather than mining any coins directly.
For someone purely interested in earning money from mining cryptocurrency, NiceHash is probably the easiest way to get started. Everything is done using a graphical application and there is basically zero need to understand cryptocurrencies to participate. NiceHash can help you here as well with some built-in options for optimizing your performance and power draw, which can improve mining revenue significantly depending on the card.
The same effect — or better — can be achieved on your own, but this is great for those looking for an easy experience. This is either a pro or a con depending on your personal desire for Ethereum versus Bitcoin. If you would prefer to hold Bitcoin then this is an easy way to avoid having to exchange for it later on. In some cases, the increased fees associated with NiceHash can be worth it if you intend to convert mined currencies to Bitcoin anyway.
NiceHash has been around for over six years with a lot of users around the world making use of it. They had one notable hack years ago, however, it seems that they were able to refund all of the emptied wallets. It is definitely not a scam, which is a nice reassurance in the crypto space. The primary reason to avoid NiceHash is the increased cost of using it, which leads to lower profits. This is essentially the fee for using the miner application and cannot be avoided.
The second fee is charged when you withdraw the Bitcoin that has accumulated in your NiceHash wallet into your own personal wallet. In general, this can be more expensive than mining with a pool directly, however, since Ethereum has changed its fee structure many pools no longer offer free withdrawals.
There is one effective method for avoiding withdrawal fees with NiceHash that I will discuss below. Aside from what many consider to be higher fees, the raw profitability of using NiceHash is generally lower than mining Ethereum directly. The difference between the two fluctuates, however, there is some amount of inefficiency of adding the NiceHash marketplace layer rather than simply mining Ethereum yourself.
The whole concept of NiceHash is to sell your computing power in order for a buyer to still make some profit mining a coin. This inherently means that you could potentially be making that profit yourself by removing the middle man. Even small differences can add up to significant reductions in profit over several months. As mentioned above, being paid out exclusively in Bitcoin can have pros and cons depending on the situation.
I know many small miners keep their Ethereum as an investment. If you are interested in holding onto your mined Ethereum then you should consider using a normal miner and pool, which I will cover below. The standard minimum withdrawal is 0.
The minimum withdrawal amount can temporarily increase if many people have made a transfer in the last hour, however, this should rarely happen after Coinbase improved their API earlier this year. I have written a post about cryptocurrency wallets where I explain in depth why I do not recommend storing any coins in an exchange wallet; that being said, if you intend to sell your BTC payouts from NiceHash this is without a doubt the best way to do it.
This relatively new feature makes NiceHash considerably more attractive. While I would still expect better revenue from mining with an independent pool and miner, avoiding the withdrawal fee makes NiceHash pretty competitive for someone who intends to sell their earnings anyway. The most profitable cryptocurrency to mine is generally Ethereum.
The exception is owners of low hash rate LHR graphics cards, which is most effective when dual mining. In order to mine Ethereum, you need a pool, mining software, and an Ethereum wallet address. Following the changes to the fee structure with EIP most pools also require you to pay the gas fee to receive a payout.