Although it may sound contradictory, there is a fast way to mine Bitcoin and other cryptocurrencies without owning mining equipment or resorting to dubious “cloud mining”. We’re talking about NiceHash, a long-standing platform that lets you rent or sell computing/hash power between users.
Let’s imagine that we want to mine, but we don’t have any specialized equipment for this task. This is where NiceHash comes as an option. If we own BTC, we will be able to rent hash power generated by other users and we mine the cryptocurrency of our choice, in the pool of our choice, but with someone else’s equipment. We will get mining profit and users who rent from us will get payment in bitcoins for rent.
Likewise, if we own the equipment, we have the option of renting its processing power to whoever needs it. For this, it is not necessary to know what type of algorithm we can mine, or which will be the most profitable: nicehash makes available the software that is responsible for analyzing our devices and offers us recommendations on what is the best option, in terms of profitability, for mining.
So Is NiceHash Cloud Mining? No, as we will be digging with physical third-party equipment, not the company’s alleged equipment.
In this guide, we will teach you how to buy and sell mining power in NiceHash.
Buying mining power on NiceHash
The first thing we will teach you will be how to buy mining power through this platform. So let’s go step by step.
Let’s start by going to the main NiceHash portal.
NiceHash home page. Source: NiceHash.
Since we want to buy, we will need to register. To do this, click on the Registration option in the top menu.
Nicehash registration form. Source: NiceHash.
What we see here is a very short registration form, so this is all we’ll need to register. We will then need to verify our email address using a code that will be sent to us. After verification, our account will be ready.
Always remember to look for the confirmation email in your spam or spam folder.
What we see in the previous image is our Dashboard or main panel. From here we will be able to control our active miners, the balance within the portfolio NiceHash, as well as the public address system. In addition, we will be able to see open purchase orders and incoming and outgoing transactions in the portfolio.
Before we start buying, we’ll need to configure a mining pool to connect to. But what is this? A mining pool is a server that connects different mining equipment from multiple users, which results in high processing power, which increases the probability that you will be able to mine a block and get a reward.
Generally, when a pool receives a mining reward, it is distributed among all participating miners, but not equally. The size of the reward will depend on how much processing power the user has contributed.
In short, By connecting to a pool, we increase the chances of being able to mine a block and make a profit. Sure, we can mine individually, but we’ll have to compete with large mining pools and that would make it practically impossible to get a block.
Once we understand the concept, we move on to the configuration. To do this, in the top menu we will select the option For customers, where we will select My pools.
This is the section that allows us to manage configurations on different pools. As you can see, it’s empty, so we’ll need to add our first pool via the +Add New Pool option.
Here we have the form which will allow adding a new connection to the pool. If you are new to this world of cryptocurrency mining, this might scare you a bit, but don’t worry, we will explain step by step how you can set up a pool, along with a recommendation on how to choose a good one.
The first thing will be to identify the currency we want to mine. This is because each coin has a different mining algorithm and the profitability we will generate in the future will also depend on it.
To know which algorithm to use, we can consult sites like Whattomine.
Whattomine is a portal specialized in collecting information about the field of cryptocurrency mining. Source: Whattomine.
This portal offers us information about mining, where we can also search what algorithm each cryptocurrency has. To do this, we will select the Coins option in the top menu, which will take us to the search engine. Here we will place a crypto asset of our choice, such as Ethereum.
Under the cryptocurrency symbol you will find the Algorithm section. There we will find the mining algorithm, in this case Ethash. So let’s go back to NiceHash again.
The next thing will be to display the Algorithm section list and select the appropriate algorithm, in our case Ethash. This must be taken into account Ethash is an update for Dagger Hashimotoso we have to search by this name.
With the algorithm ready, it’s time to give this pool a name, and we’ll do it from the box Custom pool name. It’s important to note that this is completely personal, so we can enter any name that identifies this pool.
Select a mining pool
Next comes the part that can be a bit complicated, which is finding a good pool. That’s because there isn’t just one to connect, which makes the process a bit complicated.
There is something we need to understand in order to decide which one to choose. I previously mentioned that the profit made by the pool is distributed among all the miners who participated in the mining of that block, depending on the mining power that each miner contributed. So, based on the above, The higher the number of miners, the lower the reward amount..
But this is not all that matters. If the number of miners is more, the mining power can be higher, it guarantees a higher probability when mining a block, then small rewards can be received quite often.
Unlike the above, If the pool has fewer miners, the probability of a block being discovered is lower.. This results in us making a large profit per block, but rarely.
To see it better, let’s visit the site btc.comthis website provides us with a number of statistics on how bitcoin mining power is distributed between different groups.
This chart reflects the split regarding the current mining power of the Bitcoin network. Source: BTC.com.
As you can see, the mining power is not centralized in one pool. This is beneficial to the network as it preserves the concept of a decentralized network.
After all this comes the complicated part, search for the pool we will connect to. It is recommended to know what is the general mining power of the cryptocurrency (we can see this in Whattomine) and then look for the pool that has the highest percentage in relation to the general hashrate.
Each pool has its own connection information. Source: Ethermine.
On the Ethermine home page we will find the How to Connect section. This section will provide us with the data we need to connect, so let’s go back to NiceHash again.
Let’s go step by step:
- The first thing will be the setup Stratum hostname or IP. This will be the address or IP of the pool we will connect to. We will get this information on the Etherminer name page Server.
- The next thing will be the Port, we will find this under the name Stratum port.
- U User name, we will post our address where we will receive benefits for mining this cryptocurrency. Since we will be mining Ethereum, we need to set up an address compatible with this crypto asset.
- Finally, we will enter the password or Passwordthis value should generally be left blank, in this case we will put an “x”.
Finally, we need to test that the connection is correct. To do this, by selecting Test pool. When we click, we will see a pop-up window with connection information to verify. To take the test just select Verify pool.
Always check if the pool is compatible, otherwise we won’t be able to mine. Source: NiceHash.
At the bottom we see a message that this pool is compatible. We just need to go back to the previous screen and select Add pool.
We’re done for now. The shopping service should be enabled, which is disabled by default.
Enable the shopping service
First of all, we need to switch to the option again For customers from the menu and select Marketplace.
The mining power purchase service is disabled by default. Source: NiceHash.
This is the part where we will come to buy mining power, but first we need to enable the purchase option. Let’s go ahead and choose Enable shopping.
Here we have to enter the code that will be sent to our email. To send it, press Enable. When we receive the code, enter it and press Activate. Now we are ready to buy.
Buy mining power
At this point we must already have a pool configured and an active purchase service. After that, we will again go back to the Marketplace from the option For customers.
We’ll go step-by-step to set up an offer:
The first thing will be to choose an algorithm that matches the offer. We’ll find this next to it Live marketplace. We have to remember that we have to choose the algorithm in relation to the set we are configuring.
Another thing will be choosing which server to work on, either in Europe or the United States.
The next thing is to choose the order type. For that we will have two options: Standard orders and Fixed orders. Fixed orders are recommended when prices are rising since if we have a fixed order, we will get both a fixed price and a fixed mining power.
the opposite case, With Standard Orders you get more competitive prices. This is because when creating an order of this type, we are competing with other bidders in mining energy lease and we have to wait for someone to accept the price we pay. Instead, when opening fixed orders, we start mining immediately.
This can be reflected in the fact that in fixed orders we cannot change the price of the daily terahash and we have to set a minimum purchase limit in order to open an order immediately. On the other hand, in standard orders we can modify the price (which is not what we will pay, be careful with that) as well as the mining power we will rent.
What follows is choosing a group that fits this market. After that, we will enter the following information:
- Price: This price is the value we are willing to pay, expressed in BTC, to rent 1 terahas of mining power per day. This does not mean that it will be the amount to be paid, because what we will pay will be put in the Amount. On the other hand, if it is a Standard Order, Nicehash will set a minimum suggested price to get mining power. This price can be changed, but if we set the value too low and uncompetitive, we probably won’t get any miners. In the case of a fixed order, the price cannot be changed, because the price required for the lease of mining energy is determined.
- Limit: It is the maximum mining power from which we want revenue. As with Price, this may vary depending on whether the order is fixed or standard. The difference will be that if we create a fixed order, we have to set a fixed value between the proposed minimum and maximum at the bottom. This is so you can buy mining power right away. On the other hand, there is no need to set a limit for the Standard Orders type, we only set 0 and the mining power we get depends on the price to be paid.
- Amount: This is the amount we will pay for this order. In other words, it is part of the price we will pay, since we only rent a small part of 1 terahas. Like when we buy BTC decimals, suppose 1 whole BTC is worth $10,000 and we want to pay only $1,000 of this value, that is, we will get 0.1 BTC.
At the bottom we find the approximate duration, this refers to how long our lease will last depending on the price to be paid, the mining power leased and the total amount we will pay. Obviously, if we want the duration to reach one day, or 24 hours, we need to set the amount to the amount that appears in Price.
To place an order, all we have to do is select Place Order and the order will be placed on the list below. Depending on whether the account is Fixed or Standard, the account will be closed immediately or not.
On the other hand, we have a mining fee, which will be paid only when the account is closed.
With an order already submitted, this little dashboard will appear. Here we can edit, delete or create a new order. We will also have the remaining amount of our order as well as the approximate duration.
To track each order in more detail, we can go to Dashboard main, using the option in the top menu.
So this way we bought mining power through Nicehash.
Sell mining power with NiceHash
Indeed, through You can sell your computing or mining power to NiceHash and profit directly in bitcoins. You don’t have to bother with setting up any pools because the Nicehash software does all the work. Also no registration required.
It must be taken into account that since we will rent or lease our mining power, The benefits we will realize will be exclusively in BTCsince the one who rents it decides what he wants to mine and that person will be the one who will get the benefit in that cryptocurrency.
Through NiceHash, we can mine from our CPU to specialized ASIC mining equipment. In this guide you will learn how to set up a mining rig using your CPU or GPU.
To get started, first go to the Nicehash main page and in the SALE field select Learn more.
This platform allows mining through different devices, which is shown in the previous image.
To continue, we will select the CPU or GPU option.
The software we will download below, apart from mining, allows our team to perform analysis to find out which is the most profitable algorithm.
If we want to establish a direct connection, we can look for the necessary data at the bottom.
The next step is to press Download.
These are the types of cards we can use for mining. Source: NiceHash.
Here we have two types of graphics cards or GPUs used for mining which are AMD or NVIDIA.
Regarding the file we will download later, there are a few things to consider: The software for each type of card is different. The latest version is for NVIDIA cards in version 2.0, but still in beta. It has a modern interface, but basically with the same functionality. In the case of AMD cards, the installation is a little more rudimentary, but nothing complicated.
If we want to download software for NVIDIA cards, we just need to press the corresponding button and the download will start automatically.
Downloading software for AMD is a little different. Clicking the button takes us to the Github repository where the program is stored. What we will download will be a ZIP compressed file. Within this we will look for a file called nicehashmineregacy.exe. This will automatically launch the program without any installation.
For the purposes of this tutorial, we will use software for NVIDIA cards.
When we install, it will surely ask us to install some additional packages. So don’t worry, complete the installation without any problems.
NicheHash is not responsible for any damage caused to our equipment. Source: NiceHash.
Before we start, we need to read the terms and conditions. This document states that NiceHash is not responsible for equipment damage, since mining involves a large consumption of resources. So be careful with this one.
We press accept and continue. The next thing will be to confirm the captcha which helps prevent bots from using the software.
After booting, a series of updates will be downloaded. We just wait a bit for the download to finish and our program will be ready.
What we see is the program we will use to mine. In the Available Devices section, we will have devices compatible with this software. In our case we only have 1 CPU. Remember, if it does not recognize our video card, you need to download other software that is compatible with both types of cards.
Before we start mining we need to configure a few things.
Let’s start with our BTC wallet, since that’s where we’ll be receiving payments. For this we will go to the Wallet option.
What we see is a box where we will put our bitcoin wallet, but not just any wallet, but to a bitcoin wallet via Nicehash. It seems curious, but you have to be careful with this. When we registered on the platform, we received a BTC address. If we use this address in the program, the transfer fees will be lower. If we want to use a different address, we have to select Use BTC address (advanced).
In this field we can put addresses outside of NiceHash. But, as I mentioned before, and as you can see in the red letters, we will have higher commissions. In this one relationship You can view more detailed information about these commissions.
Then, all we have to do is enter the address and press Save.
Besides configuring our wallet, we can give our miner a name. This is completely optional, we just have to click on Worker and give it a name.
Before we start, we need to do an analysis with our team to know what is the best algorithm that can mine. For this we will select the option Benchmark your devices.
Here we see the devices recognized for mining, in this case only the CPU is recognized. Remember that we are using beta software, so if it doesn’t recognize your devices, use the Legacy version.
To start the scan, click on Benchmark All.
Before we start, we will be asked how deep we want the analysis to be. If we decide to do a very deep or precise analysis, the duration will be quite long. So take this into consideration before choosing any option.
Now we just have to wait for the analysis to finish.
Finally, we will see the different algorithms we can mine, along with their daily profitability in BTC.
Now that the analysis is ready, it’s time to start mining. Let’s go back to the beginning.
Now that everything is ready, it’s time to press Start.
When the window that we see to the right of the previous picture appears, it means that we have started mining. It is important not to close this window, as this will cause the mining process to stop.
The amounts we see in the Daily Estimated Earnings are the daily estimates we will produce. Below we will see the balance, that is, the amount that has already been paid.
So this is all we will need to mine Nicehash.