Altcoin mining strategy

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. This image comes from our bitcoin infographic, but litecoin miners follow the same process. The mining equipment will continuously generate revenue unlike coin investments. For more on this, see our guide. The easiest way to keep track of profits is to deposit a set amount of Bitcoins for leasing rigs, after mining the altcoins and selling them on the exchange see what the total Bitcoin amount adds up to. In this guide I will be explaining how to setup your strategy before you buy your equipment, and what the different mining strategies are once you start mining.

How Is Litecoin Different?

The cryptocurrency litecoin made national news headlines this year, mostly for its rapid growth. The litecoin community, however, activated a technology upgrade this year, which sparked additional. Litecoin is often compared to the digital currency bitcoin, and for good reason. Litecoin aaltcoin heavily influenced by bitcoin when Charlie Altcoin mining strategy developed it in The theory and the setup are similar to that of bitcoin; however, there are a few major differences that set the two cryptocurrencies apart. The lifetime cap of the currencies is different. Litecoin has a lifetime cap of 84 million coins, which is about four times more than alhcoin.

Cryptocurrency Mining Guide: Speculative Mining & Other Strategies

If you have been following my articles the past few months, you have seen we have covered a lot of different coins, using a lot of different mining algorithms. One thing that I feel a lot of mining youtube channels or mining publications do not cover is, how do you know what coin to mine? It is actually more complicated than that, because you need to have a mining strategy before you buy your equipment and begin mining different coins. In this guide I will be explaining how to setup your strategy before you buy your equipment, and what the different mining strategies are once you start mining. Before you decide what card and from what brand you want to buy, you need to do some research and develop a long term plan.

How To: Calculate Mining Profits 2017/18

If you have been following my articles the past few months, you have seen we have covered a lot of different coins, using a lot of different mining algorithms. One thing that I feel a lot of mining youtube channels or mining publications do not cover is, how do you know what coin to mine?

It is actually more complicated than that, because you need to have a mining strategy before you buy your equipment and begin mining different coins. In this guide I will be explaining how to setup your strategy before you buy your equipment, and what the different mining strategies are once you start mining. Before you decide what card and from what brand you want to buy, you need to do some research and develop a long term plan.

Right now their is mainly two different path you can start your mining journey on. That is the first question you need to ask. Etheruem also has plans to switch to POS soon, so we will not focus on them for this article. So to figure this out you need to do some light research on a few of the coins from each algorithm. You can use whattomine to do this by search for only Equihash coins. For Cryptonight coins I use cryptunit because they list just about all of them, and many more than whattomine list.

This is not a complete list but it will get you the main coins in those categories. If you want more coins you will need to research at forums as well as mining pools, and exchanges. You should base the decision not only on profitability, but also what coins you think in the future will have the most value.

We will cover this in more detail in the next section. So after you decided what general mining algorithm you would like to mine and you get your equipment, we now have to have another strategy in place.

Note you can change your strategy at any time, and I usually jump between different ones month to month. Personally I have used all four of these at some point while mining. I have also had times where the most profitable coin to mine, was the coin I thought was the best investment. Well there really is not a good answer to. Since I have tried all of them, I would have to say in my opinion the best way to mine is a mix of.

Here is what I. I usually mine the most profitable coin for my machine. I do this because I do not get why you would mine a different coin. A lot of times the most profitable coin is not what you believe is the best investment, so you can mine it and then weekly sell it on the exchanges to purchase the coin you think is the best investment. Now you also need to take into account the fees from exchanges.

A lot of times you also will have to sell on one exchange and then send the money to another exchange, buy your coin and then withdraw. This means you will be paying a withdraw fee two times, so make sure you add that in when figuring out your path of how to mine X coin and convert it into Y coin. If Y coin is mineable, sometimes it may be better just to straight mine it. Another thing to keep in mind is that a lot of times, the most profitable coins are coins with low market caps. This means that you will need to sell them on the exchanges every few days, otherwise they could lose a lot of their percentage value quickly.

Currently my setup is to mine the most profitable coin for my machines, sell to the exchanges weekly, and then buy coins that I believe are good investments.

The reason for this is because I calculated it would take a long time over 1 year to do. Also I believe there are better altcoins that will do better than bitcoin. If you decide to do this, make sure you keep track of how much your selling on the exchanges, this way you know in BTC value did you ever pay off your mining computers.

I like buying altcoins that I believe in this way as well, because it forces you to buy them slowly every week and average out your buys, instead of buying a large BTC amount of them at. Bitcoin Mining — Is it Worth it?

Now, every once in a while it makes sense to hold your mining money. For example if the coin your mining is having a fork, it may be a good idea to hold the coin to get the free forked coin. However it may not be, if you think the price of your coin will diminish by more than the price of the free forked coin you will receive. Their are also times when you may want to hold onto you BTC mining rewards and not trade them for alt coins. For example if you have been buying an altcoin for a while, and you feel the price is too high, and you do not want to buy other altcoins, then it may be worth it to hold onto the BTC until you feel the price is not to expensive.

Another thing is most of the times in a bear market it is a better strategy to hold your bitcoin, because the alt coin price tends to be cheaper in a bear market. By mining the most profitable coin and selling it for BTC or another altcoin, you will still take a long time to usually pay off your rigs.

Because of this it is a good idea to take a set amount of time maybe a few days per month, and try to mine coins that have just come out and have a low hashrate. By doing this you will get a bigger amount of coins compared to if you mine that coin when it has a higher hashrate. Usually these are coins that have are not listed on an exchange yet, so you have no idea what the price will be, or if it will even get on an exchange. These are usually not forks of coins, since most people already know about them before they come it.

These would be like Ravencoin a few altcoin mining strategy ago when only a few people knew about it, or any coin that is not well known and has a low hashrate, and has recently been released. How to Mine Ravencoin. The next step is to know how to find new mineable coins. One of the best, but most time consuming is the Bitcointalk announcements thread this is where you can find out about coins the day they come. You also want to use mining pools and small exchanges as well to look for new coins they list.

The basics would be that first you will want to start out on the coins website. You want to look for their whitepaper, and read it, or at least skim through it. Next you want to look at the team members, and see if they are qualified or experts in their field.

I have seen teams where their is marketing, advisors, leaders, but very few developers on the team. You will also want to make sure they have some type of working product, or plan on having one soon.

You also need to ask yourself, is this a type of product that needs to be on the blockchain, or could it be a website or app. If it does not need to be on the blockchain you may want to look at other coins.

The altcoin mining strategy big question would be is this a utility token? A utility token is basically a tokenized money coin, that can only be used inside of a particular. For example this would be a coin where people buy it just to use a dapp, and outside of that dapp it has no value. This means that the token does great when their is a constant flow of buyers and sellers, but there is no long term reason except price speculation to hold onto the token.

I personally like cryptocurrencies that provide a reason to hold like POSunderlining platforms that other coins can build on top of, or something that you may use that has value. Sometimes you can find coins that have all three of these and that is always exciting when you find a coin like. Proof of Stake Coins. If the coin you pick is a token NEP-5 or ERC20 etc you may want to check if they have plans on becoming a coin anytime soon.

Also make sure you research the competition of your coin. Do they have any competition, and if so how do they compare? We also want to look at the coins metrics because this can tell us if It is a good time to buy a good coin.

You usually want to see that the circulating supply is at least half of what the total supply is. The more that is already circulating, the better. I will not list any coins here that fall into these categories, since this is not an investment advice article, and it is better if you do your own research and find coins that you personally like. You can find coins right now though that fall into most of these categories, and they are in the topso make sure you do research on.

I hope you enjoyed a quick strategy guide on what to do after you start mining, and how to pick coins that you may want to slowly buy with your mining money!

No Spam. I am a developer who programs websites, games, software and is knowledgeable about cyber security. I have been a cryptocurrency investor, sinceand have been interested in cryptocurrency mining, trading and writing since All content on Blockonomi. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.

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Getting Started: Selecting the Right Mining Hardware

What miners are doing with those huge computers and dozens of cooling fans is guessing at the target hash. I will not list any coins here that fall into these categories, since this is not an investment advice article, and it is better if you do your own research and find coins that you personally like. Install it now! Bitcoin, for instance, began with a total of 21 million. Bitcoin Basics. Sarah Wurfel December 16, altcoin mining strategy. That is correct. I repeat: You do not need to calculate the total value of a hash. Plenty of ways to do this, either by locking yourself out by forgetting your login data or by having your hard drive damaged. Login Newsletters. Your Practice. Leave a reply Cancel reply. In this guide I will be explaining how to setup your strategy before you buy your equipment, and what the different mining strategies are once you start mining. By verifying transactions, miners are helping to prevent the » double-spending problem. TechRadar pro The hallmarks of a good mining pool.