The profitability of mining depends on the reward for the block and the amount of transaction fees. The economy of mining depends on how much you have to invest in equipment and spend on electricity.
There are many services for calculating the effectiveness of mining - these are the so-called mining calculators, which allow us to estimate the income, profits, equipment payback periods and the dependence of income on such factors as the cost of electricity, maintenance and the rate of cryptocurrency mined.
How do mining calculators work?
One of these mining simulators is https://whattomine.com/, the service menu allows you to calculate the mining payback for various equipment. Also in the setting, you can change the number of miners and maintenance costs. As a result, you get all the necessary information for analyzing the feasibility of investments - the amount of investment required for mining, hash rate, power consumption, potential monthly mining income and revenue. But it should be borne in mind that today’s calculated rates of return may change in just a few days - the current mining settings are correct for current data on the rate of cryptocurrency, equipment costs and miner remuneration. Since the cryptocurrency market is highly volatile, these parameters may change at any time. And both for mining Bitcoin and Ethereum, and for lesser-known altcoins.
Mining or trading
If in the case of trading, to predict how the rate of cryptocurrency will change with the help of technical analysis of the market, the calculation of mining of cryptocurrency is much more complicated and depends on an even greater number of factors. In addition, earning a mining will be profitable only for the owners of mining farms, and their equipment will need investments in the amount of several thousand dollars. For trading, the amount to start is much lower, and you can start earning profits immediately by trading within a day.