How Much Money Will You Make Mining Cryptocurrency

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Should You Start Mining

How much money can you make mining cryptocurrency? Is it worth it?
Cryptocurrency mining is a really fun thing to get into, whether you have a passion to technology or not it is still going to be one of the fun investments that will teach you a lot about hardware and as long as you have good electric pricing in your area then it will be promising returns.

This guide will be mostly covering only GPU mining, we will go over the most asked questions including:

  • What impacts your mining profit?
  • How much do you need to start?
  • Electricity pricing and what KWH is where it becomes most of the time profitable.
  • What maintenance does it require
  • How much money will you make mining cryptocurrency?
  • How to calculate your return on investment duration [ROI]

This is not a financial advice, it is merely but an approximation to give you an idea of what to expect and how much money will make mining cryptocurrency.

What Impacts Your Mining Profits

Your mining profits can be impacted with 3 things:

  • Electricity rates
  • Difficulty of the network
  • Market prices for the coin you are mining

Hardware and Electricity Costs

Hardware will be your only upfront investment that is needed. Afterward, paying the electric bill for the miners will be the only repetitive cost. All the costs will be looked at in terms of USD.

We will look into two different paths for starting your cryptocurrency mining journey, one will be with AMD and then NVIDIA.

AMD - High Budget - 6 GPU Build

We will be using our favorite GPU the Radeon Vega VII for the AMD build to give you an upfront cost example.

This build will consist of:

  • GPU: 6x Radeon Vega VIIs – 6×550 – $3300
  • PSU: 2x 1200W Platinum EVGA P2 – 2×220 – $440
  • MOBO: Asus B250 Mining Expert – $65
  • CPU: Intel Celeron G3900 – $40
  • RAM: 4GB Memory Sticks – $22
  • Storage: 120GB Kingston SSD – $22
  • Network Adapter: Using Ethernet – $5
  • Rig Frame: Veddha 8x GPU frame. – $42

| 8x GPU frame would be better for more space which will reduce the heat condensation since the Vegas produce lots of heat.

The total of this build will be $3936 and tax which we will hypothetically say it will total up to $4200. We will be mining Ethereum on this rig, since the AMD cards perform really well in the Ethash algorithm.

This rig will give us these numbers if we mine Ethereum:

  • Initial Cost: $4200
  • Hashrate: 540MH/s
  • Power Usage: 1600 Watts

NVIDIA - Mid Budget - 6 GPU Build

We will be using some really efficient cards, the GTX 1660 TI for the NVIDIA build to give you an upfront cost example.

This build will consist of:

  • GPU: 6x GTX 1660 TI – 6×270 – $1620
  • PSU: 1000W Platinum EVGA PQ – $180
  • MOBO: Asus B250 Mining Expert – $65
  • CPU: Intel Celeron G3900 – $40
  • RAM: 4GB Memory Sticks – $22
  • Storage: 120GB Kingston SSD – $22
  • Network Adapter: Using Ethernet – $5
  • Rig Frame: Veddha 6x GPU frame. – $37

The total of this build will be $1991 and tax which we will hypothetically say it will total up to $2100. We will be mining Zcoin on the NVIDIA cards, they are very diverse and can do really well in lots of algorithms.

This rig will give us these numbers if we mine Zcoin:

  • Initial Cost: $2100
  • Hashrate: 12.4MH/s
  • Power Usage: 620 Watts

Electricity Rates

The first thing you want to do before getting into mining for profits is to check your electric rates. Rates vary between different regions and countrys, just make sure that you don’t have a high rate that then you end up not being able to sustain the electric bill.

If your rates are below 10 cents / KWH then you will have better odds to produce more income than the electricity cost.

Cheap electricity rates are more common in regions that contain great amounts of oil, or Hydro generated electricity.

Maximizing Your Mining Profits

We wrote about maximizing your mining profits where we help you decide weather you should buy your GPUs used or new, and how to reduce your utility bill, feel free to check it out here!

Required Maintenance

Cryptocurrency mining can be considered a “Plug-And-Play” type of investment, but it does require maintenance to make sure that it runs in the most optimal conditions that can aid the longevity of the hardware. 

The maintenance that is required is:

  • Maintaining a stable internet connection.
  • Changing thermal paste and thermal pads 2 times a year. 
  • Dusting the GPUs 2 to 6 times a year based on your mining environment.
  • Setting up proper airflow for your mining rig and avoiding temperatures above 75c.
  • Keeping an eye on any errors from the miner software or pool that can disconnect your miner.

We will eventually have a full guide on how to clean up your mining rigs thoroughly and managing the cables properly. 

Change Thermal Pads

Hiring a person to manage your farm

If you are planning on building out more than just a mini home-farm then the best option would be either hosting it with credible places like Nerdgearz.com and you will be covering the rate of electricity they give you and whatever extra charge for managing. or building out your mining facility, then hiring a team to manage it for a fixed pay.

Evaluation and ROI

So how much money will you make mining cryptocurrency? Let’s evaluate both of the paths mentioned above using electric rates of 5 cents KWH after building out the rigs. To build your mining rig and set it up for mining you can check our beginner guide.

Most of the numbers will be taken from whattomine.com and it will only be as accurate on the day this article was published.

Please make sure to do your research before deciding on taking the leap.

AMD

We started with an initial investment of $4200 and on the day this article was published, Ethereum price was $190, Network hashrate is at 178.3TH/s [ETH stats] and the electric pricing will be 0.05/kwh.

 

Cost
Hashrate
Power Draw
Electricity Rate
Power Cost (30 Days)
$4200
540MH/s
1600W
$0.05
$57.60

We will be paying $57.60 on electricity per month to sustain the 540MH/s in the Ethash algorithm.

Mining the Ethereum on the Ethash algorithm with 6 Radeon VIIs will give you returns of ~$8.4 per day. Which means per month you will receive around $252 and after the electricity bill you will be making $194.4

Initial Cost
Monthly Profit
Return On Investment ETA
$4200
$194.4
~ 21 Months

NVIDIA

We started with an initial investment of $2100 and on the day this article was published, Zcoin price was $7.70, Network hashrate is at 126.4GH/s [XZC stats] and the electric pricing will be 0.05/kwh.

Cost
Hashrate
Power Draw
Electricity Rate
Power Cost (30 Days)
$2100
12.4MH/s
620W
$0.05
$22.32

Now as we can see we will be paying $22.32 on electricity per month to sustain the 12.4MH/s

Mining the Zcoin on the MTP algorithm with 6 GTX 1660 TIs will give you returns of ~$3.0 per day. Which means per month you will receive around $90 and after the electricity bill you will be making $67.68

Initial Cost
Monthly Profit
Return On Investment ETA
$2100
$67.68
~ 31 Months

Network Hashrate is what increases the difficulty of mining the coin.

To calculate your total power cost you will need to use this equation.

[Power Draw * Hours Mining (24 if always on) * Days (30 if always on) * 0.00005] < That is if your rate is 5 cents. If it is 10 cents then do 0.00010, etc.

Conclusion

Now that we see the numbers, just keep in mind that everything can change and profits can go up or down. If ETH doubles the price, then your profits will almost double, although it will be lower since more miners will go online which in return increases difficulty

Complete

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