By now most people have heard about the evolution of cryptocurrency, including bitcoin, ethereum, dash, litecoin, just to name a few. A lot of people are making good profits trading and mining these coins as their popularity increases.
I want to show you what I’m currently doing with Hashflare cloud mining that is helping me generate over $4000 USD a year on an initial $1080 USD investment mining bitcoin.
There’s 2 ways to mine cryptocurrency coins:
- Purchase your own hardware and run the system at home
- This includes motherboard, power supply, graphics cards (which do the bulk of processing and are always in short supply or you pay a big premium), cpu, memory and hard drive
- If you are a techie, it’s definitely fun to build and watch your creation generate you income over time
- however you need to take into consideration, time, initial hardware costs, cooling, and the biggest factor – electricity costs
- Buy hashing power from a mining company such as Hashflare
- Start mining either bitcoin, dash, ethereum or zec as soon as you purchase hashing power
- Saves you a lot of time compared to purchasing your own hardware
- There are small fee’s for maintenance and withdrawal of coins which can be expected however I find these do not cut into your profits that bad and you are still making excellent profits.
Being a techie I went through the first option, which I learned a lot from. But now I just concentrate on buying hashing power from Hashflare
Here is a great example of why I purchase hashing power as opposed to increasing gpu compute power on the hardware rig running at home. If I want to increase my hashing rate on my hardware I need to purchase another graphics cards which includes: purchase, delivery, install and tuning (tuning involves re-flashing the bios). This could take anywhere from a few days to multiple weeks, depending on delivery.
However with Hashflare, if I decide I want more hash power, I simply login, purchase the additional hash power, and it is immediately in effect. I’m not wasting any time in mining bitcoin and generating more revenue.
I’m not saying that running your own hardware is wrong, many people do run their own hardware and make a great amount of money doing so. I’ve had experience in both and I much prefer cloud mining.
Let’s move onto Hashflare, how it works and how to get you going with your first bitcoin hashing.
Purchasing your first hashing power with Hashflare
Firstly browse to Hashflare by clicking here – Hashflare. This is my referral link and will tell Hashflare that I have referred you to them. The registration page will be displayed where you can create your account.
After you have created your account and logged in, you will be presented with your dashboard. At this stage, all the hashrates will be at 0 and it is now time to purchase your first hashing power.
On the left-hand side menu at the top, click on Buy Hashrate. You will be presented with 4 options:
- SHA-256 is for mining bitcoin (SHA-256 is an open-ended contract, meaning that as long as your hashrate is profitable minus maintenance fee’s, it will continue to mine. Otherwise the hash rate is removed)
- Scrypt is for mining litecoin which then gets converted to bitcoin (Scrypt is an open-ended contract, meaning that as long as your hashrate is profitable minus maintenance fee’s, it will continue to mine. Otherwise the hash rate is removed)
- ETHASH is for mining Ethereum (ETHASH is a 1 year contract, meaning after 1 year your hash rate will be removed)
- X11 is for mining Dash (X11 is a 1 year contract, meaning after 1 year your hash rate will be removed)
In our example we will click on SHA-256 for bitcoin mining and move the slider up to 9TH/s (please note you do not need to start on 9TH/s you can start with what you can afford at the time). Remember this example is showing you how I turned my $1080 USD investment into over $4000 USD a year return based on today’s prices (Bitcoin currently at $4100 USD 13th August 2017)
If you want to start off smaller, here are some example prices:
- 500GH/s = $60 USD
- 1TH/s = $120 USD (if you want to purchase 2TH/s it will be $240 USD and so on)
Once you decide on your hashing power and click proceed, you will be presented with a select payment option:
I usually do all my purchases with credit card, however you can also purchase by transferring bitcoin.
One thing to note if you are a new user and adding a credit card to the system for the first time, Hashflare will not allow you to withdraw your coins earning for 2 weeks. They say due to security reasons and checks.
Next thing we’ll want to do is setup our wallet addresses. It’s important to do this right away as a new user because each time you change a wallet address there is another 2 week wait on withdrawals. Your wallet is where you can send your bitcoin to outside of Hashflare.
If you don’t already have a bitcoin wallet you can use the following sites to create your own address:
- Exodus – https://www.exodus.io/ (I personally use this one as I can keep multiple coins in the one place and it also gives me the ability to exchange coins, i.e. bitcoin to ethereum. This is a software application that runs on your computer)
- Coinpayments – https://www.coinpayments.net (An online wallet that supports a huge range of cryptocurrency)
- BTC.com – https://wallet.btc.com (A simple online wallet that supports bitcoin)
Once you have your wallet, you will want to get your bitcoin wallet address which looks something like this 32qQntBaLgjveFeraqyqyjLviPXqSX52UW and paste it into your Hashflare wallet settings and press save.
Now that we have everything setup, you are already mining your first bitcoins. Payouts happen every 24 hours.
If we click on Dashboard on the left-hand side menu, the day after purchasing your hashpower, you will see a Revenue Forecast based on the amount of hashpower you currently have and on what the bitcoin price is on the day.
I worked my way up to 9TH/s by purchasing 1 to 3TH/s when I had some spare cash, and as of today 13th August 2017 this is my projected revenue forecast with a bitcoin price of $4100
[Please be sure to read the 18th September 2017 Update below for updated pricing]
Over time cryptocurrency can increase in mining difficulty, which means that you need more hashing power to mine. So keep in mind that over time you will probably want to increase your mining power to keep up with mining difficulty.
The best way to determine if you need to increase your hashing power is by keep a watch on the bitcoin mining difficulty charts like this one on www.coinwarz.com
In summary my initial investment of $1080 USD will take about 3 months to get my return on investment back and everything after that will be profit. Additionally, each time the bitcoin price rises, so does my Revenue Forecast.
Below is the latest BTC graph from the beginning of 2017 till today 13th August 2017 showing the increase in BTC price. As you can see it is definitely on the way up and many have predicted that it could reach $5000 by the end of the year
[UPDATE – 18th September 2017]
Hashflare has made some changes to their contracts, whereby now SHA-256 contracts are 1 year. Meaning that after 1 year from the date of purchase, your hash rate will be reset. However, I want to share with you this update and show you that it only takes 4 months now to recover your initial investment. Even with the recent price increase.
Currently I have 33TH/s of SHA-256, luckily I purchased this before the price increase though taking into consideration what bitcoin is worth today (and it is increasing), an initial investment of 33TH/s cost $4950USD and if we look at the Revenue forecast in the screenshot below, we can see that 1 month will earn us $1,193.72 USD.
If we divide the cost $4950 by the payout $1,193.72 it equals 4.1 months. After 4.1 months everything is profit. If we calculate 8 months of profit that equals $9,549 USD
Now you don’t need to purchase 33TH/s but any amount of hashing power you buy, it will take 4 months to recover your initial investment.
New Pricing Examples:
500GH/s – $75USD
1TH/s – $150USD
Some cautions in regards to Crypto Currency
Cryptocurrency can be quite volatile, it’s not uncommon to see such coins as bitcoin move plus or minus a few hundred dollars a day and in some cases even hours. However the outlook for bitcoin looks very promising from all the articles floating around, so I have decided to take this path and invest some money into cloud mining, which is basically on autopilot while I continue working my day job.
Disclaimer: This article is not financial advice or a guarantee