Mining low difficulty coins to hold instead of mining most profitable coins

[portreathbeach]

Hi,

I'm new to mining and am currently using NiceHash miner. NiceHash picks the most profitable coin to mine at the time and your GPUs run that algorithm. This is all well and good, but I've seen a couple of videos on youTube where people are picking the lowest difficulty coins to mine so they are getting lots of these coins on a daily basis. They are then holding them in the hope they rise in price and then either cash out or convert to BitCoin.

I quite like the idea of getting more involved in this idea and want to know if anyone has any experience doing this.

I would also like to know of any websites that list the difficulty of each coin and if there are any online multi coin wallets and multi coin pools. If I did venture down this route, I don't mind having to change the algorithm daily, but I don't like the idea of having wallets all over the place and being signed up to loads of different pools.


Any help and info on this would be gratefully received.

[Patuba]

I mined Verge for a few weeks because I was able to get a decent amount of coin per day. The value has plumited so I’ve been holding it.

Check out www.whattomine.com to see coin difficulty and get a estimate on how many coins you can earn mining.

[maxmeme]

Depending on the type of card you have. You can mine the coins which suits your cards the best. This way is a bet on the future for the coins to rises. Choose wisely which coins that has potential to go up. I divided my cards into 2 parts, one is to mine low difficulty coins and another half to mine on Nicehash to get BTC directly as a backup.

[Za1n]

If I did venture down this route, I don't mind having to change the algorithm daily, but I don't like the idea of having wallets all over the place and being signed up to loads of different pools.

Then this isn't the road you are looking for, as that is exactly the way it will need to be. It isn't so bad if you organize yourself properly. While there are multi-coin pools, none of them carry all coins, especially the new unknown ones.  So you will indeed need to use multiple pools, just start recording your pool details somewhere, maybe in a spreadsheet or something so you can keep better track of them. You also might think about setting up a dedicated machine for to host all your alt coin wallets.

You can pick up an used machine on ebay for this purpose, as the main requirement will be the hard-drive capacity, which I recommend you only use a new drive as any used drives could be filled with viruses and malware, even if you do wipe it. You can also use an external USB drive, as you can get capacities of 4 TB for just $150 or so dollars.

Also, I wouldn't share any main coin wallets on that machine for extra security, and keep Bitcoin, Eth or other really valuable coins somewhere else; hardware wallet, paper wallet, or another dedicate machine.

Again, if this sounds like too much hassle, it probably isn't for you. The nice thing is you have incredible multiplier power if any of the coins you mien become popular and skyrocket in price. Think if you had 1,000 eth stashed away back when it was only trading for 20-30 cents. It didn't take much mining power back then to mine the 1,000 eth, so your costs would be minimal. Even if you mined 10 other coins during the same period that went totally bust, your profits from that single winner would have more than offset the losses from the others. This is the strategy of picking and holding the new or relatively unknown coins.

It is a speculative bet, but then again so is all mining. The coins you are minign right now could crash and never recover, so no matter what it is a risk. However, the less risky coins, in terms of immediate profits, also are the least likely to return 1000x gains. Ethereum did one from $14 to $1,400, but the chances are now much slimmer for it to go to $500,000 from $500, than it is an unknown coin to go from 3 cents to $30.00.

[mbdmbn]

If you want to speculate, why do it with your own money?

I mine the most profitable coin and I speculate with my profits from mining. If I wanted to mine a less profitable coin, I would be wasting electric/profit/time to get x amount of coins, whereas mining the most profitable coin, my electric is paid, I don't have to spend all my profits on speculating and it takes me less time to acquire the less profitable coins.

Example: You mine coins that are valued at $30 per day, I mine coins valued at $50 a day. We both use the same amount and pay the same amount for electricity @ $10 a day. Out of my $40 profits I spend $20 on the coins you've mined.

$20 is a lot when you don't have it.

[WalterWhack]

If you want to speculate, why do it with your own money?

I mine the most profitable coin and I speculate with my profits from mining. If I wanted to mine a less profitable coin, I would be wasting electric/profit/time to get x amount of coins, whereas mining the most profitable coin, my electric is paid, I don't have to spend all my profits on speculating and it takes me less time to acquire the less profitable coins.

Example: You mine coins that are valued at $30 per day, I mine coins valued at $50 a day. We both use the same amount and pay the same amount for electricity @ $10 a day. Out of my $40 profits I spend $20 on the coins you've mined.

$20 is a lot when you don't have it.

This is absolutely correct.  I don't understand why so many miners struggle with this concept.  The only exception to this rule is if the coin you wish to speculate on is not listed on any exchanges.

[shibob]

I ever used this strategy with 10% of my hashrate, sometime it works but most of low difficulty coins I mined have no value, at least until now.
So I think it's the same if you keep mining top coin, then use it to buy these altcoins because low difficulty coin also mean its value is almost 0, you could buy a bunch with just a small amount of top coin.

[melpheos]

If you think a coin will rise, it's more profitable to mine a profitable coin, sell what you mined and buy the less profitable coin.
You will always get more of the "less" profitable coin this was than mining it.

[manji]

You must try to switch coins manually. That depends on series your cards and algorithm a coin. For the management a coin you can hold a coin until the price is a rise or price returns normally. And don't forget after calculated your electricity bill.

[The Demon Slick]

As noted, there's no way around the multiple wallets, most coins have their own. Some stuff you can keep together, like music coin that you can put in your mew, but mostly they each need their own. I like to mine the cheap new coins and hold them. I know most will never be worth much, but I just need one to go big. If you have 3 of something and it goes up a dollar, you make 3 dollars. But if you have a thousand of something, and it goes up 5 cents, you make 50 dollars. And it's a lot easier for a coin to go up 5 cents than it is for a coin to go up a dollar. And I don't calculate my profit based on what the coin is worth when I mine it, I calculate based on what I sell it for. It may be a year or more before I can calculate my $ per day for February 2018. I spent the whole month stacking zclassic for the btc private hard fork. Right now it looks like I should have tagged out right before the fork when zclassic was sky high. But what about later? I can still win. Not going to know until I get there. I'm just using that as an example, I have no idea what my btc will be worth when I cash out either. But I'm not going to cry about 20 bucks a day that might be 100 later on. It's the same as your 401k. Sure it's up right now, but you aren't getting it right now, so who cares?

[rdluffy]

In my opinion you should mine a coin with a project that you believe
You are receiving coins and supporting the coin

I don't understand the idea of having a lot of coins, what matters is the value, not quantity

[portreathbeach]

Thanks people. I think I'll continue to mine with Nicehash for a month or two and do some research on other coins. 

[The Demon Slick]

Nicehash will only give you btc, but btc is awesome.

[Riptide_NVN]

This is absolutely correct.  I don't understand why so many miners struggle with this concept.  The only exception to this rule is if the coin you wish to speculate on is not listed on any exchanges.

If the idea is to mine the most profitable coin then turn around and sell it for something else that you want to speculate on that makes a certain amount of sense.  Since you can buy more that way.

The spanner that gets thrown into that is the short term capital gains tax you're paying on all of that selling and buying.  Can put a nasty little dent in that.  Of course if you don't mind tax evasion then ignore what i just said.  Good luck.