As time goes by, it has become more and more difficult to participate in cryptocurrency mining. Not only does it take more mining equipment to stay competent in the ever-expanding industry, but it’s also increasingly difficult to get a foot in the door.
However, there is an alternative method that does not require the high initial cost to get started and is available to everyone. Because you can buy hash power from other miners and participate with speculative mining coins that not many people are aware of.
That’s right, you can rent hash power and earn a pretty steady extra income.
Note: Investments (including spec mining) involve risks and profits are not guaranteed!
What is speculative crypto mining?
Speculative mining or simply (spec mining) is a concept where cryptocurrency users participate in mining newly launched coins to take advantage of future price increases.
Unlike the usual mining behavior where users mine the most profitable coins, Spec mining means users participate in mining newly launched unknown coins with zero or very little ROI that they expect to create value over time.
In other words, speculative mining is nothing but investing hash rate in projects that are very low difficulty and not many people are aware of. Projects like this are less commonly seen in common places like Coinmarketcap or other major websites. And often these coins are in early stages meaning there may or may not be mining pools available, the code may have bugs and it’s just a mess to start with.
Anyway, this is also where most of the cryptocurrency profits are generated, for example, imagine Ethereum being mined at an early stage of $1 per coin, and if you stick with the modern age, you would be rolling in cash and you never have to worry about making money again.
Can you make money with speculative mining?
The obvious answer is: of course you can, but it can also be difficult to get started, not only do you have to find precious coins that not many people know about, but you also have to accept that there is no profit without any risks involved.
Successful speculative cryptocurrency mining depends on several factors. First of all, you need to calculate your initial investment capital, the mining difficulty and the current outlook for the future of the coin.
And of course you also have to keep an eye on the profitability in the medium, long and short term. As more miners discover the newly launched coin you participate in, the difficulty can also increase exponentially.
This is why it is important to establish your risk factors and whether you are mining for fun or for profit, as each scenario may require you to trade differently.
How do you start renting hash power?
You can start mining any coin you want by following these four easy steps:
- Register a new account on NiceHash or MiningRigRentals.
- Find the coin you want to mine and register with the pool you want to mine that coin in.
- Place a new order on the hash power marketplace using the correct algorithm.
- Sit back and relax, check your income at the chosen pool.
And that’s about it after you set up your hired miner, he will keep mining until you run out of money. Now let’s take a closer look at what both platforms have to offer.
NiceHash is the largest crypto mining hash power marketplace connecting cryptocurrency miners to buy or sell hash power. The platform provides an intuitive interface that allows users to easily sell hash power by pointing their miners to NiceHash, while at the same time giving buyers the option to target this hash rate to their chosen cryptocurrency.
For miners interested in selling hash power, the platform automatically chooses the most profitable algorithms to mine (based on buyers’ orders) and automatically converts the profits into Bitcoin.
NiceHash hash power marketplace also runs entirely on Bitcoin meaning it is the currency used for both buying and selling hash power. And while buyers can deposit many other cryptocurrencies, to complete the hash power order, one still has to exchange those other cryptocurrencies for Bitcoin.
All in all, Nicehash has supported a total of 34 mining algorithms, including the original Bitcoins Sha-256, Scrypt, DaggerHashimoto, CryptoNight, Blake, Equihash, and many others.
And because Nicehash prioritizes the most popular stratum mining pool protocol, the number of mining pools that can be used is also quite large.
To start renting hash power from Nicehash is actually quite easy, all you need to do is register an account with the platform with your email address. From where you can deposit Bitcoin or other cryptocurrencies and make an order for the hash power.
Note that NiceHash also works as an exchange and no KYC documents of any kind are required as long as you don’t want to use fiat currencies.
Start renting hash power on NiceHash marketplace!
MiningRigRentals or simply MRR is one of the largest and most powerful cryptocurrency mining hash rate marketplaces.
The platform provides a host of advanced tools for miners interested in leasing their mining rigs. This includes the ability to lease your mining rig at the competitive price you want, meaning tenants are forced to rent, and the price you set.
In addition, leasing has very little risk as you can also set up failover pools to mine directly on the pool while waiting for someone to rent from you.
Both buyers and sellers can pay and get paid on multiple cryptocurrencies such as Bitcoin, Litecoin, Bcash, Ethereum or Dash.
MiningRigRentals also absolutely dominates when it comes to the number of mining algorithms they support, with over 120+ algorithms in total that users are sure to find that suit them.
To get started with MiningRigRentals nothing but an account is required, simply register with your email address and deposit some cryptocurrencies to get started.
Please note that the MRR platform does not operate any form of exchange services, therefore you cannot change the currency of your choice within the platform and must do so before the deposit.
Register now on MiningRigRentals to rent hash power!
How to buy hash power from the market?
This is a simplified step-by-step section to walk you through the process of buying hash power on Nicehash or MiningRigRentals hash power marketplaces.
- To get started, you need to register on NiceHash or MiningRigRentals and deposit some cryptocurrencies. Although MiningRigRentals does not have a minimum order size, the minimum order size for NiceHash is 0.005 BTC. Make sure you have at least this amount on your account, otherwise you won’t be able to place an order to begin with!
- Before creating orders, you need to figure out which coin you want to mine and in which pool you want to mine that coin. Good research needs to be done at this point to get everything correct. We recommend checking both WhatToMine and CoinWarz for coin profitability and pool examples.
- Register with your chosen pool provider and create a worker. Each pool usually has a detailed help section on how to do this, as it may be slightly different for each pool, but the concept is always the same. (Employee needs both username and password.)
- Start the hash flow order process by choosing your algorithm, note that both platforms have a slightly different approach to this, as in NiceHash buyers set the price while in MiningRigRentals sellers set the price.
- Add the required pool information to the hash power market order. This means that you have the stratum server of your miner to point to the correct pool, like: “stratum + tcp://stratum.slushpool.com: 3333 don’t forget to include the employee’s username and password. (Please check your pool details before placing an order.)
- If everything is right with the algorithm you chose and the pool you want to mine, just place a new order on the hash power marketplace.
- And that’s it, you can now check your income at a chosen pool. Note that the pool itself is responsible for your mining rewards. And the hash power marketplaces only guarantee the delivery of hash power that you have purchased.
Additional tips and tricks for renting hash
Here are some additional tips and tricks that you should be aware of.
- When buying hash power it is better to specify the time limit for a longer period (minimum 24 hours) unless you want to push an absurd amount of hash power at some point. (This is a surefire way to lose money unless you know what you’re doing.)
- NiceHash low-priced orders. If you have the patience, you don’t have to start mining right away, instead you can choose to wait for miners to pick up your order for a long enough period of time. (You can also place the order higher at no extra cost.)
- If, for whatever reason, a particular cryptocurrency has a rapid decline with its mining difficulty, then there is also an even greater chance that a large mining hash rate in turn can yield some real profits quite quickly as well.
- Whenever the Ethereum network is clocked in, there is a chance to make some easy profits by simply mining on a pool, which pays both transaction fees and a block reward.
it comes down to
Hash power marketplaces are quite interesting concepts from many perspectives, not only can they allow 51% attacks on smaller coins, money laundering and countless other activities including huge benefits when it comes to trading illiquid markets.
Since new coins can be picked for pennies, if you make the right choice, it won’t take more than one home run to change your life forever. And not only that with good research and the right market conditions you can mine even the regular coins and make some profit.
So if you’re interested in mining or trading cryptocurrencies in general, we definitely recommend that you take a look at what speculative mining entails and what is feasible. Since both platforms, NiceHash and MiningRigRentals come with years of experience in the mining industry for renting cryptocurrency hash rates, making it super easy to get started.
That said, now is the time to hear what you think: Have you ever thought of trying speculative mining?
Here are also some other articles you may find interesting: