Cloud Mining SCRYPT (LTC)

Posted on by miroku000

Mining LTC which (uses the scrypt hashing algorithm) in the cloud is a great way to get started with mining cryptocurrency! You can get started for as little as $10 on a site like Hashiny.

Here are the top 3 cryptocurrency cloud mining services which I have personally used and worked for me.:

(Use this code 72812B3-cryptoclou when buying hashpower on Hashflare for a discount!)

Due to Hashflare not having more hashpower available right not to sell you, and Genisis mining only having limited options which are not currently profitable (at least by my calculations), I would recommend signing up with Hashshiny and mining ETH or LTC.

What is cloud mining?

Cloud Mining is the process of mining concurrency utilizing a remote datacenter with shared processing power. This type of cloud mining enables users to mine bitcoins or altcoins without managing the hardware.

Why mine in the cloud instead of buying and managing my own hardware?

The following are the advantages of cloud mining over buying your own hardware:

  • The remote datacenters are built in places with the cheapest power. So, it might cost you less in the long term to cloud mine than to pay for the electricity where you live
  • Cloud mining is silent, but mining ASICs are very noisy! Because they generate a lot of heat, they typically have a lot of fans running and sound a lot like vacuum cleaners
  • With cloud mining, you don’t have to deal with the heat. When you run physical hardware, managing the heat is troublesome. Typically you will need to buy duct fans and blow the heat out the window. These fans also add to the noise and require additional power.
  • Cloud mining does not require rewiring your house. To run your own ASIC, you might not have the right kind of power outlet. Many mining ASICs require 220V power outlets. In the United States, we typically have 110V outlets.
  • With cloud mining contracts, you can typically buy hashpower in small increments. This allows you to more easily manage your risk. You can invest a very small amount of money and reinvest some of the profits in additional hashpower. Being able to buy say $10 to $100 more in hash power is a small risk compared to spending $4000 on an ASIC that may or may not be profitable.

How much money can I make?

To get an idea of how much money you can make, sign up for a free account on
Hashshiny

 

Click on the calculator icon circled above

This will bring up Hashiny’s mining calculator:

You should try clicking on each tab (BTC, ETH, ZEC, DCR, DASH, LTC) and typing in some dollar value in the top. This will give you some idea of the mining revenue forecast over the next two years if you bought that much hash power of that type.

You might have noticed the fine print where they say that their calculator “doesn’t include maintenance”. So, for my own use, I went ahead and calculated what the profits would be including maintenance for each cryptocurrency:

As you can see, LTC is currently projected to be the most profitable. For an investment of $987.81 we are projected to be able to withdraw $1600.03 over the course of two years for a total profit of $612.22. On the other hand, BTC is currently not a great buy because we are projected to lose $431.25 over the two year period.

Testing our Prediction in the Real World

To test this out, I spent $253.65 of Scrypt hashing power on Hashshiny.

This bought me 475 MH/s of Litecoin hashing power.

Here is how things look after 7 days of mining:

This gives me a balance of 0.07620146 LTC.

If this rate of income held up over the life of the contract, and litecoin stayed at today’s price, I would get about $400.40 over two years on a contract that cost $253.65. This would bring me a total profit of $146.75 over two years, which is pretty good for an initial investment of $253.65! This works out to about a 28.9% annual ROI.

Conclusion

I added in the maintenance costs to Hashshiny’s calculator results to predict the performance of each of the available mining contracts. Base on this, I determined that Litecoin mining is currently the most profitable. I purchased a 2 year mining contract and measured the performance for a week and it is very close to the expected result. At the current rate, it looks like I may be able to achieve a annual 28.9% ROI using LTC mining on Hashshiny.io