I just recently got into crypto mining, cryptonight currencies specifically, and have had the… opportunity… to learn a few lessons along the way. The one I learned today was to not jump between currencies. At least not unless you have way more hashing power than I do.
A couple of days ago I found a site called WhatToMine. On this site you can enter how many hashes you’re getting from different crypto algorithms as well as how much power you are consuming at that hashrate. Once you submit that information it determines what will be the most profitably cryto coin to mine in relation to Ethereum. Having done some testing with my rig when I first got it, I had the numbers for the different algorithms and their power consumption ready to go. After entering them in it told me a coin I hadn’t heard of before was the most profitable to be mining at that moment.
Doing some quick research, checking the only exchange it is being traded on, looking over it’s site, documentation and doing some quick calculations on how much I could mine and how much that would net me a day, I hopped into it. Sure enough, the balance in the pool I was using started to rise at a rate to where I would have a payout from them in less than 24 hours. Proud of myself for pivoting and moving to mining something that, at least in the short term, would make me more cash, I went to bed.
Waking up this morning I saw something. I wasn’t alone in switching over to mine this coin. Worse, it wasn’t that I just wasn’t alone, those that had switched over had significantly more hashing power than me. While I had slept they accrued multiples on multiples more of this coin than I did and were starting to sell it off causing the price of this coin to plummet to a fraction of what it had been the day before.
Worse, my payout still hadn’t occurred, it had met the pool’s limit but they hadn’t issued the payout yet. When it finally did, the exchange I had it sending it to required 20 confirmations before making it available for me to trade. Two hours later, it was finally available to me and I could go on and sell it… only to find out that I couldn’t even sell it for the lowest price currently being offered as the exchange rate was too low for them to process.
So I won’t be doing that again. For now I’ll just continue mining monero and maybe if I get another rig I’ll look into flopping between currencies again.