Scope of cryptocurrency mining as a career

Passive income is a decent amount of money you can earn without putting in any extra effort, and it works like a pipeline model. If you want to trade bitcoin with proper algorithm technology in a costless manner, you may use Immediate Edge. Cryptocurrency mining is currently the most sizzling passive income source in many countries. However, cryptocurrency mining has become a strange phenomenon in the world today. Just like mining, trading is also popular in the digital space, so if you like to start your bitcoin trading journey trust only legit platforms like Immediate Edge .

People are leaving their past jobs and are venturing into cryptocurrency mining as a full-time career. There are various types of cryptocurrencies you can mine depending on your budget, including Ethereum, XRP, Litecoin, Dash, etc., which cannot be mined by a CPU and requires specialized hardware for mining like graphic cards & ASICs.

How is bitcoin mining profitable?

Bitcoin mining is profitable as Bitcoin’s price continues to rise. For example, if you bought a bitcoin miner for $1,000 and are making $500 in one year, you are earning 50% profit. Bitcoin mining is rewarding compared to other passive income sources and carries several other benefits.

 By rigorously using the money you earned in excess of your expenditure and saving it for future use, you can earn far more than what cryptocurrency mining rewards above. In addition, it provides a steady flow of income every month. Finally, it prevents your money from losing its value compared to investment opportunities that yield higher returns than cryptocurrency mining.

What factors decide the profitability of bitcoin mining?

There is no definite answer for profitability as the supply of bitcoin mining also keeps decreasing. It depends mainly on Bitcoin’s price, your hardware’s performance, and you. The current price of Bitcoin is $35,000, which has trickled down to a 6x return in just four years. However, many factors affect the profitability of bitcoin mining, including Miners attaching a value to their hardware based on its usability and value. 

Electricity Cost: Electricity cost is the most significant factor which decides your profit. The higher the electricity cost, the lesser profit you are likely to make. It is advisable to calculate your ROI (Return on Investment) before starting a bitcoin mining venture.

 A rough estimate of your ROI should be there by comparing the cost of production, including hardware and electricity costs, to its selling price in the future. You may have to cut down on other expenditures to balance out losses and get a steady flow of income for your household.

How to mine Bitcoin?

There are various ways that miners can mine bitcoins depending upon their hardware and requirements.

(i) If you have a powerful computer with GPU (Graphics Processing Unit), you can mine bitcoins using the application called NiceHash. It is a popular service that lets people mine bitcoins for their use at a profit. In addition, it uses cloud mining, meaning you don’t need to buy expensive hardware. 

(ii) If you want to mine Bitcoins using Genesis Mining, Hash Btc, Hashflare, or Cex.io, you will need to buy mining contracts from them. You can purchase one-year or one-month packages of Bitcoin Mining Software in hashflare and cex.io.

(iii) If you are looking to mine with your CPU, then there is a high chance that you could mine cryptocurrencies without even opening your wallet as software is available online that allows you to mine bitcoin using a Bitcoin generator but the incentives are meagre. 

Bitcoins are mined every ten minutes by default, and according to the current difficulty level of mining bitcoins, the difficulty of mining bitcoins will increase exponentially in the coming months. 

Components of bitcoin mining:

There are many components present in mining bitcoins that have a direct proportional influence on the profitability of the said operation. These components include:

Hardware 

The main component which drives the profit of mining bitcoins is the hardware. Therefore, the more powerful your hardware, the higher your potential profit. 

You could cherry-pick from several types of hardware for bitcoin mining. Among them are: Graphics cards, ASIC (application-specific integrated circuit), CPU, GPU, and FPGA (Field-Programmable Gate Array).

 Electricity Cost 

It is impossible to mine bitcoins without an expensive hardware rig and powerful electricity supply. In the past, mining bitcoins required the owner to spend thousands of dollars on his hardware to turn it into a guerilla bitcoin miner. But now, you can mine other cryptocurrencies using your regular desktop computer or laptop without spending a penny on hardware. 

Software 

The software for mining bitcoins is available online for free at any time and does not need any installation process, saving you time and money. However, if you are planning to purchase existing software, check the features and compatibility before choosing one that works best with your cryptocurrency mining rig (hardware).