I’d like to share a method of mining has been working very well for me. It works for crypto coins that are based on both SHA-256 and Scrypt algorithms. I’ll break this mining method down in the steps below. Essentially I mine the most profitable alternative coins (Altcoins) at the time then trade them for Bitcoins and sell them for fiat currency / cash.
1) Find the most profitable crypto coin to mine – Go to coinwarz and enter the details of your mining equipment. Before immediately going after the alt coin at the top of the list, do a little research. Start by visiting the coins main website to verify that it looks professional, is listed on exchanges, has mining pools and is going somewhere. You should also take into account who the creator(s) of the coin are, current team and any internal ties it may have. For instance the creator of Litecoin works at Coinbase and his brother is at BTCChina.
(note to self, invest in LTC!)
2) Find and join a mining pool – Don’t waste your time mining a coin when you could be making more money mining another! Find and join a mining pool for the coin you believe is most profitable to mine at the time by searching google, i.e. “dogecoin mining pool”. Sign up for an account and add a worker. Click here for detailed instructions on how to join a mining pool. You will then enter these details into your mining application. I’m running BAMT, a Linux distribution made specifically for mining Scrypt crypto coins. If your using windows you can try cgminer or bfgminer.
3) Move from Pool to Wallet - Transfer your coins from your mining pool to your Wallet. There are many different ones that work out there from phone apps to windows and apple downloads as well as secure online wallets. Be sure to secure your wallet. Most mining pools have a auto withdraw feature. This feature allows you to enter your wallet address and specify at what amount the pool should automatically transfer your coins. To be safe you should keep this number to a few times a day. Keep in mind that pools
3) Trade your Alt Coins for Bitcoins or LiteCoins – Now that you have a ton of alt coins and are ready to convert some of your hard earned mining work to cash, it’s time to trade them up for BTC or LTC. You may consider holding some or even all of your alt coins for the long haul in hopes that the value will drastically increase.
You will need an account on a Bitcoin / Altcoin Exchange such as Cryptsy. Sign up and transfer your altcoins into your new account. Instead of immediately selling your altcoin for bitcoin, consider placing your sell orders around the weekly or monthly high, further increasing your profits
4) Use or Sell your Bitcoins for Fiat (Cash) – Now that you have bitcoin(s) in your exchange trading account you can either hold them for investment or sell / trade them for fiat currency aka cash money. If your in the USA you can use Coinbase, which is an online bitcoin wallet. Coinbase is a great, easy to use website that allows you to buy, sell and accept bitcoins in the USA and many other countries. You will need to sign up for an account and transfer your BTC from the exchange to your wallet. After you have added your bank account to coinbase you will be able to withdraw funds directly into your checking account at current market prices. Verification can take a few days or longer so I recommend knocking this step out first. Until you fully verify your account you will be subject to deposit delays and purchase quantity limitations.
You may of course also consider holding your coins for investment as the value is going up!
Please let me know what you think. If you are using this method please let us know how it’s working for you here. Have any improvements, ideas or updates? Leave them in the comment section and if we agree you will see your words everywhere.
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To your success,