Before buying equipment for mining, it is important to calculate the crypto miner profitability. This will avoid losses, take into account equipment wear and energy costs. Profitability is always calculated for a specific coin – Bitcoin, Ethereum, Ethereum Classic or others.
The main factor determining the mining revenue is the Hashrate. It displays the productivity of equipment – the higher it is, the higher the hashrate. It shows how efficiently the video card or processor work, and displays mining speed.
Typically, hardware manufacturers indicate the hashrate in the description of the device. New equipment has a higher hashrate, because it is faster to solve mathematical algorithms. Hashrate is measured in hashes per second (H/S), kH/S and MH/S. In addition to the hashrate, miners profitability depends on the current coin value.
Mining costs consist of:
- equipment cost;
- equipment power consumption;
- electricity cost in your region;
- equipment maintenance costs;
- pool participation payment.
It is important to understand that mining requires investments. Starting without investments is possible, only if you have a gaming computer with a 4 Gb video card, no less. Equipment power determines electricity consumption. High-power equipment gives a high hashrate, but requires more electricity, at the same time. Some miners prefer to mine only at night to reduce electricity costs.
Hardware service includes noise reduction, cooling, purchase of power stabilizers and repairing, if something will get wrong. In addition, participation in mining pool is also paid. Participation costs 1-3% of the profit and provides pool administrator salary. If you choose Hiveon pool, the costs will be minimal.
To approximately calculate the profitability of mining, you need a crypto profitability calculator. It can be used in two ways: automatic detection or manual input. In the first method the user downloads a small application, that automatically detects mining equipment. According to the second method, the type of equipment, its capacity and electricity cost must be entered manually.
The manual method is more accurate, but all measurements are approximate. Measurements on some calculators can be various. It is best to calculate profitability on different calculators and then find average value. It’s also necessary to consider 10-20% error, because cryptocurrencies are volatile.
Profitability also depends on the coin complexity. Bitcoin as the oldest currency is the most difficult for mining. With the increase in the number of miners, the complexity of the currency is constantly growing. You can get to know BTC profitability, using bitcoin mining profitability calculator.
Before assembling a mining farm, count the various types of equipment (video cards, ASIKs) for different currencies. Then choose the most profitable result. Remember, that after covering all costs mining should bring a net profit.
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