Cryptocurrency trading through exchange platforms is one of the most common ways to earn profits from digital currencies. However, many crypto enthusiasts also consider crypto mining as a viable option for making money.
Bitcoin (BTC) mining is by far the most popular type of mining, mainly because of BTC’s high value compared to other coins or tokens. Despite this, there are also many altcoins that can be mined using GPUs connected to mining rigs or more advanced ASIC mining machines.
One of the leading cryptocurrency mining platforms is NiceHash.com. It offers a wide range of mining services, including renting out hashing power, providing hashing power for rent, cloud mining, mining pool services, and even a built-in cryptocurrency exchange.
In this guide, we’ll take a closer look at how the NiceHash platform works, what services it offers, the cryptocurrencies available on the platform, and how often it pays out to its users.
The NiceHash Platform
To summarize NiceHash in just a few words, it is a hash power brokerage platform. This means the platform connects buyers and sellers of hash rate, allowing them to profit while NiceHash earns through platform fees.
A lot of people want to get involved in crypto mining, particularly BTC mining, given that a single Bitcoin can be worth over $50,000 USD. However, setting up a personal mining operation can be expensive. The days when you could mine Bitcoin efficiently with a standard PC are long gone. Today, profitable mining requires high-powered mining rigs equipped with multiple top-tier GPUs.
To set up a mining rig, you need to invest a substantial amount of money. High-quality GPUs are very expensive, and you’ll need at least two to run a profitable mining operation. On top of that, you have to consider the electricity costs, as mining rigs consume a lot of power.
NiceHash offers a more convenient and affordable solution. With NiceHash, you don’t need to own a mining rig. Instead, you can simply open an account, connect a payment method and crypto wallet, and rent hashing power. This way, you can earn freshly mined cryptocurrency, which is paid out in Bitcoin on a regular basis. Additionally, if you own a powerful mining rig but prefer not to manage it yourself, you can rent out your hashing power to others and earn income from the rent fees.
Company Background
NiceHash is based in Slovenia, with headquarters in Maribor. The company is officially registered as NICEHASH Ltd. in Tortola, British Virgin Islands. It was founded in 2014 by two crypto enthusiasts, Marko Kobal and Matjaž Škorjanc, and was among the first platforms to offer hash power brokerage services globally.
According to NiceHash’s website, the platform operates in more than 190 countries, serving over 1 million daily workers and 650,000 active mining users daily. With over 9 million orders completed, NiceHash has grown into a popular choice for people interested in crypto mining who don’t want to manage their own equipment.
Although NiceHash provides top-notch services, it hasn’t been without controversy. One of the founders, Matjaž Škorjanc, was convicted in 2010 for his role in creating the Mariposa botnet, which hacked over 12 million computers. After serving his sentence, he co-founded NiceHash. Unfortunately, the platform suffered a major cyberattack in 2017, losing $60 million in Bitcoin. Despite this, NiceHash regained users’ trust by reimbursing all affected accounts.
NiceHash’s Legal Regulation
Users are often concerned about the legal standing of crypto platforms due to the prevalence of scams. It’s important to ensure that the platforms you use are regulated by official authorities.
NiceHash is regulated by the European Union Commission and complies with EU crypto regulations. The company is registered in Slovenia as H-BIT d.o.o., a limited liability company required to submit regular business and tax reports. The fact that NiceHash operates under EU laws adds legitimacy to the platform and reassures users of its reliability.
How Does NiceHash Work?
If you’re selling hash power, you don’t need to register on the platform. Sellers can remain anonymous while lending their computing power. However, buyers must complete a registration process, which takes only a few minutes, before they can start purchasing.
NiceHash supports 34 different hashing algorithms and is connected to 23 mining pools. The platform automatically assigns mining rigs to the most profitable pools to maximize efficiency. Users can also check the profitability of different mining options using tools like Whattomine.com.
To start buying hash power, you need to deposit 0.01 BTC. Transactions are made using BTC, regardless of which coin you are mining.
Available Cryptocurrencies
Although Bitcoin is the most popular choice for mining, NiceHash supports a range of cryptocurrencies. Thanks to its support for numerous hashing algorithms, users can mine Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), Zcash (ZEC), Decred (DCR), and more.
However, NiceHash only pays out in Bitcoin, even if you are mining other cryptocurrencies.
Profitability Calculator
Profitability is key when mining cryptocurrencies. NiceHash provides a profitability calculator that helps you estimate your earnings based on your hardware’s power consumption and electricity costs.
Service Pricing
NiceHash operates on a flexible pricing system, which fluctuates based on market demand and supply. Prices are updated every 10 seconds. Buyers have two options: they can either place a standard bidding order to compete for hashing power or select a fixed price order, where the price remains stable regardless of market changes.
Platform Fees
Selling hash power on NiceHash incurs a 2% platform fee. Buying orders come with a non-refundable fee of 0.00001 BTC, plus a 3% fee deducted from the total Bitcoin spent.
NiceHash Payout Policy
NiceHash offers daily payouts in Bitcoin for users. For those who keep their funds in NiceHash wallets, payouts are made daily for unpaid balances of 0.001 BTC or more. For external wallets, the minimum payout threshold is 0.1 BTC.
If your mining balance reaches the required amount each day, you will receive daily payments. If it takes longer to reach the threshold, payouts will be made as soon as the balance is met. Additionally, if you have at least 0.001 BTC in a third-party wallet, payouts will be made weekly.
NiceHash Crypto Exchange Platform
NiceHash also features a crypto exchange platform where users can trade their Bitcoin for other cryptocurrencies. The platform has two versions: the Simple View for beginners and the Trade View for more experienced traders.
With over 50 popular digital currencies available, users can buy, sell, or exchange cryptos directly with fiat currencies like USD or EUR.
NiceHash Mobile App
NiceHash has a mobile app available for both Android and iOS devices. While you can’t mine with the app, it allows you to manage your account, view your mining operations, and access your wallet.
Final Thoughts
NiceHash offers a practical and user-friendly platform for cryptocurrency mining without the need for personal mining rigs. Whether you’re renting hashing power or providing it, NiceHash makes the process straightforward. Its built-in crypto exchange and regular payout schedule make it a solid choice for both miners and traders looking to maximize their crypto profits.
