Miners are usually encouraged to do mining on a specific cryptocurrency because the reward when finding a block. The mining reward should be bigger than the money you invest (like the hardware and the electricity). However, mining the most profitable coin at that very moment could be seen as the fast and right answer, however, if you give a second thought, this could not be the right answer. Usually, when you mine, you don't sell the coin right away. It is wise to wait until the right moment (when the selling price is the best). And because of that, you should have another approach.
If you like me have some spare hardware and you have the option to choose what currencies to mine, this article will show you how I came with a decisión.
My Hashing Situation
So, I am into CryptoNight currencies. Why? Because they are still CPU minable (kind of) and since I have enough computer resources, this is the best option for me. At this very moment, I will decide between mining Monero (XMR) or Webchain (WEB).
Mining Monero is hard, the difficulty is one of the highest and the network fee is not the best I have seen. However, what it does XMR attractive to me is that it is very easy to cash it out.
On the other hand, Webchain mining is totally different. Difficult is one of the lowest I have seen (so far, it has been creasing lately but it is still one of the lowest), but cashing out it is not as easy as you may think. First, there are only two exchanges I have seen they trade the coin (only with BTC). So, you should trade enough volume to cover exchange rates and minimum trade volume.
So, I decided to play safe. For me, playing safe means to put a certain percentage of my hashing power for Webchain and the other for Monero and still having the same income (in terms of a common currency).
The Analytical Solution
So, this is a simple equation system as follows:
r1 [ h / s ] * T [ s ] * V1 * 10-6 [ $ / h ] * E1 [ BTC / $ ] = r2 [ h / s ] * T [ s ] * V2 * 10-6 [ $ / h ] * E2 [ BTC / $ ]
r1 + r2 = 100
- r is what we are looking for, the rate of power we are going to assign. In order to find a percentage, I will assume the total of our power equals to 100.
- T time spent, a constant that can be eliminated from the system. I am just showing to make sense.
- V the value per hash paid. As usual, the 10-6 can be eliminated.
- E the exchange buy price of the given cryptocurrency in the Bitcoin market.
I will not explain how to solve it. But when you do, you will get a number between 0 and 100 for each r that will tell you how to balance your hashing power. The idea is playing safe, so both will create the same BTC value. Remember this strategy is not to cash it out right away but to wait for the right moment.
You can grow this system to N cryptocurrencies, however, I really do not recommend because usually, you do not have enough hashing power for everything.
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