#Passive income crypto how to#
#Passive income crypto pro#

We used the average for all our rigs’ statistics and inputted them in the calculator (e.g., one miner costs $2,500 on average).Īs you can see, we only made $16.95 in 365 days without even deducting the mining pool’s fees, which will provide us with a $-280.5 ($14,571.2 – $14851.70) result.įurthermore, we didn’t take our mining rig’s costs into account. We will use a 2% fee here, which we will deduct from our total revenue.įor our example, we will use BTC.com’s mining calculator.Īs a side note, we will utilize the current Bitcoin price to calculate our projected earnings and a difficulty increase of 2% every two weeks. Mining pool fees: The fees mining pools charge for their service.We will use the world average of $0.14/kWh for our example. Electricity costs: The costs of the electricity the mining equipment uses when running.In addition to our rig, we also have to take the following expenses into account: Since that would cost $10,736, which exceeds our budget, we will adjust the hashrate and the power consumption to reflect the $10,000 investment (the last rig will have a hashrate of 80 TH/s while consuming 2,360 W for $1,948).

#Passive income crypto pro#

For our example, we will use Bitmain’s Antminer S19 Pro ASIC miner, which has a 110 TH/s hashrate, consumes 3,250 W, and costs $2,684 at the current market price.īased on our budget of $10,000, we could buy nearly four S19 Pro miners. To start out, we need to cover some upfront costs to purchase mining hardware. With that said, let’s see how much you can earn from mining Bitcoin in a year.

#Passive income crypto how to#

The mining space has been dominated by large farms that have access to cheap electricity and loans to bulk-order new generation hardware.įurthermore, the BTC hashrate has been hitting record-high levels lately (which indicates an intense competition between miners), while May’s halving decreased the rewards from each newly mined block from 12.5 BTC to 6.25 BTC.įor that reason, Bitcoin mining has moderate risks while it can be difficult to get started for new users (as they have to learn how to set up and operate their equipment). In exchange for verifying transactions and adding new blocks to the chain, Bitcoin miners receive block rewards and a share of transfer fees.īitcoin mining has been a lucrative business model to earn crypto in the past, but its profitability has decreased significantly in recent years.

Bitcoin Miningīitcoin mining is one of the oldest ways to earn crypto.Ĭryptocurrencies based on the Proof-of-Work (PoW) consensus mechanism use decentralized blockchain networks in which miners leverage their computing power to maintain the ecosystem. In the meantime, we recommend taking a look at Nominex to get started with cryptocurrency trading, holding NMX coins, and digital asset staking. On the other hand, due to the negative and very limited potential for profits as well as the high difficulty to get started, cryptocurrency mining won’t be so popular as before in 2021 and beyond. While staking will remain a favorable option to earn cryptocurrency among users, we expect it to become less popular in the future. On the other hand, Bitcoin mining is only worth considering for those with access to cheap electricity or the necessary capital to set up a mining farm.īased on our results, we believe that holding coins, lending on DeFi platforms, as well as digital asset trading – with a shift to social- and copy-trading, and simplification – will experience increased popularity in 2021. As it’s easy to get started, both staking and crypto hodling are beginner-friendly ways to earn digital assets.įor those looking for decreased risks, cryptocurrency trading – without risking too much capital and using stop orders to protect their positions (like in our example) – and lending are excellent strategies. If you are willing to take some risks, holding cryptocurrency for longer periods is an excellent choice, along with staking.

Mining: -11.11% ROI with moderate risks and high difficulty.

Lending: 6.98% ROI with low risks and easy difficulty.

Trading: 16.19% ROI with low risks and moderate difficulty.

Staking: 124.79% ROI with moderate risks and easy difficulty.

Hodling: 1900% ROI with moderate risks and easy difficulty.