Crypto is not as easy as some may make it seem. There are a lot of components involved to ensure your crypto operation is lucrative and seamless. Those in the business understand the frustrations of losing more money than expected. Here are some tips on how to know if you are profiting off crypto to help.
Do You Keep Up With Market Trends?
Cryptocurrencies are the most recent digital commodity. Like stocks and bonds, they are tradable. Also, like stocks, crypto values change consistently. That means you must do extensive research to understand the market values of your portfolio. Whether you mine one cryptocurrency or multiple, each one has its own respective market prices to understand. Do your due diligence and monitor any changes to your crypto values.
Do You Account for Other Factors?
Simply stated: many factors contribute to crypto value. Like any commodity, competition, supply, and media attention are some of the main drivers of each crypto’s market price. The basic law of supply and demand stipulates that when supply increases, demand decreases. More importantly, when supply increases, demand and market value decrease. When there are more crypto tokens and blockchain hashes, the digital currency loses value. Further, competing cryptocurrencies and media attention both influence crypto value and therefore your net profits.
Is Your Rig Optimized for High Returns?
The last consideration to determine whether you are profiting off crypto is your rig. There are several types of crypto miners to choose from. ASIC miners are optimized for one type of crypto within a mining pool. This means you share rewards but also have less energy output and those associated expenses. GPU miners allow you to diversify your portfolio and mine independently. Still, they may not be as advanced as ASIC miners, which could lead to power outages, slow processing power, and buggy software operations. Make sure to optimize your crypto mining setup for high returns and profitability.
