NiceHash: Making it possible to mine without equipment

If you are involved in crypto mining, you may have heard of NiceHash. In this article, we cover what NiceHash actually is and how it works

NiceHash is a mining platform that offers cloud mining and hash rental services. It claims to be the world’s largest crypto-mining marketplace and is based on the concept of connecting sellers and buyers of computing power across the globe.

It currently has over 170,000 miners and more than 3 million orders served. Users are able to buy and sell computer processing power, known as hashing power. Anyone can buy and sell their hashing power, especially if they want to mine without paying the hefty price for mining hardware.

How does NiceHash work?

NiceHash allows users to both buy and sell hashing power, which increases their potential user base massively. After completing registration, users are able to begin ordering hash power immediately. However, if a user decides to remain anonymous, they do not need to register before buying and selling. For every buy or sell transaction on NiceHash, they charge a small transaction fee. However, this is backed by the advantage of not being tied into a contract, something which many miners appreciate due to the volatility of the cryptocurrency market.

Users have a choice of which cryptocurrency they would like to mine. After making this decision, they will then choose which mining pool to use. The minimum deposit to mine Bitcoin is 0.01 BTC. After this process, users need to go to the NiceHash marketplace and place an order for hashing power.

When looking to sell hashing power, the platform makes it very easy to do so. Users are able to choose which rig to sell the power from, such as a GPU rig or an entire rig. However, NiceHash only operates servers in Amsterdam, Hong Kong, Tokyo, Sao Paulo, San Jose, and Chennai. This means users should choose a location nearest to them for the best service.

Advantages

NiceHash has gained the trust of many cryptocurrency miners around the globe. One of the reasons for this is that it’s a reliable, safe, and cheap way of mining cryptocurrencies. Its platform offers low fees and is relatively easy to set up, making it a good choice for first-time miners. Due to this easy service, users do not need in-depth technical knowledge – all they have to do is log on, make a few clicks, and they are good to go.

The mining platform is also known to be less risky than hardware mining. NiceHash takes care of all the hassles of mining and automatically switches a user’s profile to the most profitable coin, making it one of the safest ways to enter the market. For example, if a user’s miner breaks, the platform will automatically support the user and be there to help, which is not the case with hardware mining.

NiceHash has proven to have very decent profitability. Users get to earn the largest possible rewards for the least amount of effort needed. However, these profits would be less than in pool mining due to the transaction fees, but NiceHash has higher payouts than most of its competitors, which makes it a top contender in the market.

If a miner wants to get a large amount of hash power, they often go to NiceHash. This is due to the platform having a feature that allows the highest bidder to use all the hash power on the site. However, this then leaves other miners with less hash power, meaning the platform isn’t always fair.

Disadvantages

The decision to use NiceHash daily depends on the user and what they would like to gain. Some deem the platform very profitable, but others don’t see it as profitable enough. For example, if a user wants to mine a popular coin, then they are best doing it through pool mining as this way will make more money.

NiceHash is also unsuitable for long-term investors, especially if a user is a contract buyer as the platform will not provide them with worthwhile investments. The platform is best used for short-term purchases of high amounts of hash power. If a user wants to make long-term investments, then cloud mining may be a better avenue to go down. This is because NiceHash works in real time, meaning prices fluctuate daily.

When mining with NiceHash, Bitcoin transfers can be slow and have higher fees than coins such as Litecoin and Zcash. NiceHash can be seen as a limited service as users can only get paid in Bitcoin, meaning they are unable to use altcoins.

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