Using a Cryptocurrency Mining Calculator (DETAILED GUIDE)
Mining cryptocurrency requires careful consideration to determine its profitability, with several variables impacting profits including Bitcoin’s price and daily block awards. A mining calculator can assist in keeping track of these details so you can assess its ongoing performance and predict its future viability.
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Bitcoin mining calculators take into account four primary variables that impact its profitability: hash rate, power consumption, hardware cost and Bitcoin price. They also take into account block rewards, difficulty and mining fees (or pool mining percentage) when providing an estimate of total daily mining earnings; some calculators may show these estimates on an hourly, 12-hour, daily week and annual basis.
After mining difficulty and hardware costs, Bitcoin price is the single most crucial element of profit calculation. When more people want to own it, its price increases; when new Bitcoins are cut by half every four years according to the Bitcoin Halving Schedule, its price decreases. Therefore, it is vital to monitor Bitcoin prices carefully as their performance will have direct implications on mining profits.
Mining profitability calculators provide the ideal way to monitor the profitability of your mining hardware. They allow you to determine which equipment should be purchased or sold, how much money can be made through mining activities, how long it will take before reaching certain goals, as well as recommend suitable Bitcoin mining pools for your hardware.
To use a mining profitability calculator, enter your hash rate and power consumption of your miner into separate fields, as well as Bitcoin’s current price into a box marked “Bitcoin Price.” Once these four parameters have been inputted, your calculator will estimate how much profit can be gained by mining using these parameters.
There are various mining profitability calculators online. While some offer more comprehensive information than others, CoinWarz mining calculator stands out by providing you with estimates for hourly, 12 hour, day, week and year profits and filtering by multiple currencies and algorithms.
WhatToMine is another extremely helpful tool, enabling users to compare profitability/revenue across algorithms and rigs. As one of the most comprehensive calculators for GPU mining, WhatToMine accounts for power consumption as well as hardware costs as well as supports ASIC mining with filters by hash rate, coin exchange and more.
WhatToMine and CoinWarz calculators both feature an average mining difficulty feature that displays each cryptocurrency you are interested in mining, which is an invaluable piece of data which can have a dramatic effect on your mining efforts if using large pools. Therefore, you should regularly check this aspect and adapt your miner settings as necessary for each top cryptocurrency you have an eye on.
