Key Factors To Make Bitcoin, Litecoin and Ethereum Cloud Mining Profitable

Although many short-term investors already abandoned the crypto marketplace, there are people who understand the fundamentals and see the enormous potential of blockchain and cryptocurrencies in future. And here comes the desire to mine Bitcoin, Litecoin or Ethereum yourself. However, before diving into cloud mining, you need to do some maths.

Many factors affect the profitability of cryptocurrency mining. We need to go through all of them step by step to do the calculations.

Hash rate

HashToro Product Director
Alexander Petersons, product director of cloud mining service Hashtoro.com.

The first step of your mining journey is to assess your hash rate. To put it simply – your miner’s performance measured in hashes per second. Today, in order to get some profit you need to have power, and it should be measured not in mega hashes, but in terra hashes, or at least giga hashes. And if you are not ready to buy super hardware, there is another option to rent it with the help of cloud mining service.

You pay for GH/s or TH/s to get the computing power to be able to mine cryptocurrency. Usually, such providers place the hardware in different data centers in countries loyal to the crypto industry. For example, Hashtoro.com cloud mining service set its equipment in several European data centers to diversify the risks.

The entry price for cloud mining with Hashtoro.com is 400 Euros for 10 TH/s, while

Genesis Mining price for 10 TH/s is 2,800 Euros. In case of Hashtoro, you can purchase an annual contract of 100TH for $6000.

Block Reward

Currently, you get 12.5 Bitcoins per block as a reward. However, the environment is constantly changing. The last block-halving of Bitcoin was performed in July 2016, and the next one will be in 2020.

Ethereum developers suggest reducing block reward from 3 ETH to 2 ETH simultaneously with the difficulty increase.

Litecoin’s block mining reward halves every 840,000 blocks. On August 6, 2019, the coin reward will decrease from 25 to 12.5 coins.

Mining Difficulty

This is an indicator of the efforts you need to put to mine cryptocurrency at the current moment taking into account the current mining power available in the system.

Electricity Expenses

This is a significant and massive part of the breakeven analysis of your mining strategy. If the power costs are very high in your country, it is going to eat away all your profit. You’ll need to find out how many dollars are you paying per kilowatt.

If the price is above 5 cents per kWh, it’ better to look for power renting from a cloud mining website. This way you save money on expensive hardware and on rent of someplace to store that equipment. Besides, you avoid all the electricity expenses and problems with cooling the device.

Cryptoсurrency Price

This is probably the most volatile factor having the most substantial impact on the level of mining profitability. The market has already seen huge jump higher last December, and then massive sell-off after the bubble burst.

During the recent month, the price of most cryptocurrencies has gone up with TOP-5 appreciating in the range of 30%-50%. Most experts say the bearish trend is over, and now we will see more gradual but also more stable price growth. This gives a miner an additional potential to earn more and to significantly reduce the payback period, especially if it decreases electricity costs either with lower local rates or with cloud mining.

For example, the price of Litecoin has reached the bottom just recently and managed to add almost 7% during July. The same picture we see with Ethereum that is trying to find the bottom, and already recovered by 4% during the last month. Meanwhile, Bitcoin during the same period appreciated by 30% and is ready to go further. And this gives us a good point to enter mining environment.

ABOUT THE AUTHOR

Alexander Petersons, product director of cloud mining service Hashtoro.com. IT specialist, serial entrepreneur. Started his professional career in small IT companies in Europe, then moved to America for several years. Worked on the development of mobile processors in Telecommunications equipment company Qualcomm (USA).

Since 2012, with a team of like-minded people been working towards creating their own cryptocurrency. Crypto-enthusiast, author of articles on IT and blockchain. Education:

Riga Technical University and Cass business school (The UK), MSc in Corporate Finance.

hashtoro cloud mining
Start cryptocurrency mining right now with HashToro.com

ABOUT HASHTORO

The company was founded in May 2018. Hashtoro.com is a cloud mining cryptocurrency service. It offers a safe and simple way to get computing power to start cloud mining bitcoin, litecoin and ethereum. The company provides cryptocurrency solutions for both everyday users and business entities. Hashtoro is suitable whether you want to get into mining on a low budget or diversify your current portfolio.

The company’s data centers are set up in Finland and Norway. Countries, favorable to the crypto industry.

Primary competitor’s advantage is that the company offers low budget cloud mining opportunities. The cheapest cloud-mining contract will cost just 20 €.

Moreover, Hashtoro’s infrastructure is powered exclusively by renewable energy. The hot air generated by mining is directed into heat pumps, while the hot water is pumped into the adjacent heating systems. This is why hashtoro.com has become one of the most profitable and ecologically safe cloud mining services.

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