FAQ: Frequently asked questions.

FAQ: Questions & answers on crypto-mining

A cryptocurrency is a form of digital currency that can be used to make online purchases and payments quickly and easily. The unique aspect of cryptocurrencies are their decentralised nature - there are no banks or middlemen. This means that the only person or entity managing the cryptocurrency is its owner.

The ability to own cryptocurrency at all depends on the fact that the majority of network participants (known as ‘miners’) verifies the ownership. This occurs through a search of a list of all transactions (blockchain) after a transaction in which the user (client) in question was transferred the cryptocurrency. All the transactions are collected in a ‘block’ to do this. The miners now need to solve a cryptographic problem that is specific to this block. By solving the problem, the block is closed and all transactions in the block are verified. In this way, the miners decide which transactions are valid. The idea behind it is that the majority of miners only add valid transactions to a block, meaning only valid blocks can be closed. A given block is always based on its predecessor and ‘honest’ miners also only validate blocks that build on valid blocks. This means that honest miners always validate blocks faster than dishonest ones.

To use cryptocurrencies, you need a wallet in which you can save the coins. If you want to send coins to someone, you need the address (public key) of the recipient. Enter this along with the amount of coins to be transferred to send the money. If you want to receive coins, share your address with the sender. The sender can then use this address to send the desired amount of coins to you.

There are trading platforms for selling and purchasing cryptocurrencies. These are places where you can easily open what is known as an exchange account with the provider of your choice and immediately buy, sell and if required, exchange cryptocurrencies. Although it is possible to buy and sell on conventional trading platforms, many of the most common ones do not offer e-wallets.

An e-wallet is a digital wallet in which you can save cryptocurrencies (but also conventional money such as euros or U.S. dollars). An e-wallet always has a public address (key), which is equivalent to a bank account number. This address is shared with the intended recipient of the cryptocurrency. There are many e-wallet providers. In choosing one, makes sure that it can also process the cryptocurrency which you intend to mine or trade. For protection from hacks, we recommend creating an additional hardware e-wallet and transferring your cryptocurrencies to this e-wallet on a regular basis.

Setting up an e-wallet is generally quite easy and no problem at all for the average internet users. On a basic level, it is exactly like making a purchase in an online shop. The only difference is that you need to legitimise yourself. To do this, you need a passport or personal ID. Nowadays, it’s common to legitimise yourself through a video chat with a smartphone. You will be taken through the process step-by-step by a professional.

That depends. Not every e-wallet provider works with (or is capable of processing) all cryptocurrencies at the same time. You should decide in advance which cryptocurrencies you would like to mine and/or buy or trade before choosing your e-wallet provider. Of course, you can also own several e-wallets.

At first glance, it would be easy to think that buying a miner and running it yourself would be cheaper than hosted mining. But you need to take the following into account:

  • Tolls:
    In cases of international delivery, you will most likely need to pay both duties and the (import) value added tax on top. You need to take these additional costs into account in your mining rig.
  • Delivery times:
    Frequent supply bottlenecks on the hardware market result in delivery delays of several weeks or even months. And customs processing can sometimes take weeks. This will result in downtime costs when you are not able to mine.
  • Costs for additional equipment:
    If you purchase from major dealers, you often need to buy additional hardware such as an extra power supply that complies with the country’s regulations. This also applies to racks and controlling units. All of these factors increase the total price for your computing power.
  • Setting up the system:
    Once the hardware arrives, you need to assemble and configure it accordingly. Beginners often underestimate the time investment and the expertise required to bring the devices online and optimise them. Miners who purchased the first ASICS needed days if not weeks to do so. You absolutely need to consider the costs resulting from the time taken from you and those that arise during the time you’re not mining when appraising cost-effectiveness.
  • Maintenance costs:
    Hardware outages, interruptions or other instances of unavailability lead to downtime that can last seconds - or weeks. If a unit fails, it needs to be sent back to the manufacturer (please check the manufacturer’s warranty, which is often for less than a year). This check alone usually takes several weeks. Crypto-mining guarantees 100% of the purchased computing power.
  • Power supply:
    If you have rigs running at home, you can of course expect increased electricity costs on top of the heat and noise generated by the machines. You shouldn’t underestimate this.

Our strong focus on consulting allows you to gain initial knowledge of crypto-mining without needing to get a more extensive grasp of the subject and its many details than needed. World Mining Consulting offers a comprehensive global network of consultants that provide advice for the entire project from start to finish. We pass on our knowledge by utilising our amazing consulting skills and many years of experience - our clients can turn a profit from digital currencies while simply letting World Mining Consulting take care of all the details. What’s more, you purchase hardware with a defined processing capacity ETH in Mega Hash per second (MH /s) or BTC in Tera Hash per second (TH /s), meaning you don’t need to worry about operation, outages, software updates, etc. Just lean back, relax and receive the cryptocurrency (or cryptocurrencies) you’ve earned each day.

There definitely are! For Ethereum, the bottom limit for payout is 0.01 ETH. The reason behind this is the fact that many e-wallet providers charge very high fees below this threshold, or else the coins earned would simply disappear. BTC has a bottomlimit of 0.005 and ETH has a bottomlimit limit of 0.05

Yes. With receipt of the hardware and the associated costs we recommend a public mining calculator: http://whattomine.com/calculators. Select ‘Ethereum’ and enter the following values for a 150 MH/s package:

  • Hashrate: MH/s (% hardware efficiency)
  • Power: W
  • Cost: $/kWh
  • Pool fee: %

Click ‘Calculate’ and you will be shown the ‘Estimated Rewards’ below. Take a percentvalue in the ‘Profit’ category and you'll get your current mining profit. Please keep in mind that this calculation is a snapshot of a moment in time and you first get your correct values at the moment of buying the hardware.


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