How do you actually profit from mining?

[wilmaballsdrop]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

[1714109919]

1714109919

[1714109919]

1714109919

[mocacinno]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

Sure, if you find a block, you get the block reward (currently 12.5 BTC) + the miner fees of the transactions you included in the block. At the moment, the suggested fee is ~70 satoshi's per byte... You can fit 1 Mb of transaction data in a block, averaging around 0.7BTC in fees IF you fill the block with transactions paying the suggested fee... In reality, you'll probably be happy if you have 0.35BTC in fees, since a lot of people don't pay the suggested fee, and your block won't allways be 100% full...

You can sell those coins at many places, like localbitcoins, for FIAT...

That being said, because you ask such a basic question, i'd suggest reading up on how everything works before attempting to setup a mining farm (no offence intended, i just want to shield you from making a huge mistake by jumping in in the deep end )... most mining operations have a very thin profit margin nowadays, and you need a really cheap electricity rate, a good technical skillset, a suitable environment and a big bankroll to pull it off.

[wilmaballsdrop]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

Sure, if you find a block, you get the block reward (currently 12.5 BTC) + the miner fees of the transactions you included in the block.

You can sell those coins at many places, like localbitcoins, for FIAT...

That being said, because you ask such a basic question, i'd suggest reading up on how everything works before attempting to setup a mining farm (no offence intended, i just want to shield you from making a huge mistake by jumping in in the deep end )... most mining operations have a very thin profit margin nowadays, and you need a really cheap electricity rate, a good technical skillset, a suitable environment and a big bankroll to pull it off.

Thank you. I have one small rig now and plan on another one. I will not invest very much at all into this. I figure that I will make enough to cover my small time operation in about a year lol.

[jonnybravo0311]

I assume by profit you mean to convert any BTC you mine into whatever local currency you use.  Ultimately then, you must ensure the coin you sell nets you more currency than what it cost you to mine that coin in the first place.  Two big factors here: hardware cost and electricity cost.

The more you pay up front for hardware, the bigger the hole you need to dig yourself out of to make a profit.  The cost of the electricity plays a large role in how fast you are able to get out of that hole.

Other factors include the network difficulty changes and the value of the coins when you sell them.  As the network difficulty increases, the less coin you will earn with the miner.  You have to hope the value of the coins rises correspondingly, or your profits decrease because you're getting less coin from mining.

[beerlover]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

No other ways will be possible other than selling block rewards (plus some transactions fees). Mining is just a business and the source of income generation must be from what are getting in it.

[Goms]

To get a return on investment within a year, please ensure your electricity cost is less than $0.10/Kwh.
Chinese miners operate at $0.03/Kwh, that's why bitcoin mining is profitable for them, else you can mine a profitable altcoin and exchange for bitcoins.

[mocacinno]

To get a return on investment within a year, please ensure your electricity cost is less than $0.10/Kwh.
Chinese miners operate at $0.03/Kwh, that's why bitcoin mining is profitable for them, else you can mine a profitable altcoin and exchange for bitcoins.

http://www.coinwarz.com/calculators/bitcoin-mining-calculator/?h=14000&p=1375&pc=0.10&pf=1.00&d=258522748404.51500000&r=12.50000000&er=634.61000000&hc=2400

At current diff, and current block reward, it'll take about a year and 3 months to pay back an S9 (if you bought it brand new, not counting the custom's import duty nor postage costs, at current diff and block reward, IF you keep on mining 24/7)... Even with 10 cents/Kwu, i'd defenately think twice before i started mining for profit...

[Docnaster]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

If you're genuinely curious when we are getting our bitcoin simple by doing our job in sig campaign where we can get bitcoin per week it depends on the signature campaign if they going to pay you per week but in mining i do it but a cloud mining , Then i sell it to my bitcoin wallet based on my country. And they deposited into my bank account directly within 10 hours.

[leowonderful]

To get a return on investment within a year, please ensure your electricity cost is less than $0.10/Kwh.
Chinese miners operate at $0.03/Kwh, that's why bitcoin mining is profitable for them, else you can mine a profitable altcoin and exchange for bitcoins.

http://www.coinwarz.com/calculators/bitcoin-mining-calculator/?h=14000&p=1375&pc=0.10&pf=1.00&d=258522748404.51500000&r=12.50000000&er=634.61000000&hc=2400

At current diff, and current block reward, it'll take about a year and 3 months to pay back an S9 (if you bought it brand new, not counting the custom's import duty nor postage costs, at current diff and block reward, IF you keep on mining 24/7)... Even with 10 cents/Kwu, i'd defenately think twice before i started mining for profit...

That's with current difficulty, which probably won't hold very steady t all. Hashrate is bound to go up, and ROI is getting further and further away. The fact of the matter is that mining simply isn't profitable for most people in the world, and it won't be in the future. Another factor that most people don't look at is cooling, which can actually cost quite a bit. You'll want a nice, cool room- a hot environment isn't going to do you much good for your miner's lifetime.

[EnacDomains]

i dont think u can right now..it's just a bad environment

[veleten]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

there are many different ways to sell mined bitcoins nowadays,it is not a problem
the main problem with mining is increased difficulty when miners have to up the speed of their rigs to make profit which,in its turn,results in increased difficulty
to start mining one has to attain mining equipment and try to reach ROI as fast as possible
the expenditures are:the miner cost+electricity cost,your mined coins is your profit
you should read this forum,there are many discussions about it,try talking to people who are mining they could give you some insight

[paradoxum]

I mine simply to help recoup the cost of my rent which covers my electricity.  Normally I live miserly but I see my neighbors running an oven and using the AC at the same time and I'm subsidizing that, so might as well help the world's digital currency take off.

[J Gambler]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

There are lot's of thing if you are thinking about mining because there are hardware mining and then software mining and if you really do software mining like cloud mining then good luck it is not profitable you will not get your ROI there sometimes and it will run off your money.

[Tupsu]

There are lot's of thing if you are thinking about mining because there are hardware mining and then software mining and if you really do software mining like cloud mining then good luck it is not profitable you will not get your ROI there sometimes and it will run off your money.

Please do not write more such B.S.      Software mining

[The_prodigy]

Do you mine the coin then sell on something like coinbase? Genuinely curious as I'm getting into mining recently. Thank you.

When you are in mining or before you start mining you should calculate all you will spend if you are planning to build mine ant miner is cost you bit dollars and yes you can really earn profit from mining just depends on your electricity cost you and we sell coins in every profit we made.

[Searing]

you have to have an angle (this is BTC related bear with me)

either

1) cheap ASIC (or other) Equipment in some manner. (way below normal cost used or new to have a shot)

2) and/or cheap Electric way below normal cost in some manner...


Myself I lucked out in the above number (1) from 2014 thru Spring 2016 ROI'd on equivalent  hash of KNC Titan Scrypt Miners (1/2 new 1/2 used) was pretty modest setup.
Did ROI however did take like 1.5 years thou

AS to how this relates to BTC the LTC difficulty is less than 25% from Nov 2014 to Spring (or now) of 2016 ..thus long life to these units
and I convert 90% or more of LTC to BTC when I move coin and hold.

So (1) this year I found 7 NEW knc Titan Scrypt miners .....1 corporate default new in box and 6 from knc liquidation sale this summer  at 1900 ave price per all 7 in total, each.

on (2) however I do not have an angle Summer electric rates are 14c kwh and winter rates are 11c kwh..so my electric sucks I make up for it by dumb luck in equipment.

So my point is you have to have one of the 2 listed above 1) luck and cheap equipment somehow (unicorn hunting) or 2) cheap electric say 4-8c in Oregon or Texas
or even better in China 2c kwh there I heard. Best of course is if you could pull off both at one time (maybe somebody has done that ..I'd prefer to hoard that kinda
luck so use it to become Natalie Portman's love puppet......just saying)

Sucks.both options or even one are long odds...but the only game around..it is one big friggin unicorn hunt at this point in time...add to this the massive desire the day after the equipment lands at your door a hope in your kool aid drinking heart for a massive price spike in your crypto of choice ..and it all makes for an 'interesting crypto life/drama as they say)

So right now with a month to go to pay off the summer stuff to be back at full ROI..I'm pulling in 2450 a month at 3100mh and 11c kwh elec rate at 3.83 usd LTC

I guess the third way is to be from China...be next door to a Hydro damn at 2c kwh electric and have some kinda Communist party clout to wrangle some permits for a wharehouse
and miners....damn hard for me to pull off at my age however