NiceHash service overview – capacity pool and service
NiceHash is a cryptocurrency mining power exchange. In fact, Nayshash is an intermediary between sellers of excess hashrate and buyers of the missing.
It has been working since 2014. It is registered in Slovenia, but it has servers in many countries of the world (Japan, USA, India, Brazil, etc.). In 2017, he underwent a hacker attack, the result of which was the theft of a large amount in BTC and service outages. However, NiceHash recovered from this unpleasant incident, launched a program to return funds to affected customers, and until today has a stable and trouble-free operation.
Nayshash’s work is organized in the form of a real-time open market, where buyers create orders indicating the pool, speed and algorithm of production, as well as the price that they are willing to pay for it. In turn, owners of mining equipment that are connected to the system through NiceHash software execute such orders, directing their computing power to the indicated pool for mining, for which they receive payment in bitcoins. At the same time, the cryptocurrency mined under the transaction becomes the property of the buyer.
For both types of users, NiceHash is convenient in its own way:
- Those who want to do mining do not need to study the technical component of this process, buy equipment and configure it;
- Owners of computing power get the opportunity to earn money without having to delve into working with pools and setting up various mining software – NiceHash Miner automatically reconfigures to the most profitable options.
Register and configure on NiceHash
To start working with NiceHash , you need to register a new account on the service website, indicating the email address, password and country of location.
Then, confirmation of the reliability of the specified mailbox will be required by entering the code from the letter sent to it. After this action, you can enter the site using the login (email) and password.
Getting started with NiceHash
The first thing a user sees when entering an account is an office with sections:
- Mining status – this displays a list of equipment added to NiceHash to provide computing power;
- My active orders – shows open positions for the purchase of a hashrate through the site’s capacity market;
- My Wallets – a list of user wallets with a positive balance (supported by BTC, ETH, XRP, BCH, LTC and ZEC);
- Recent Activity – A history of recent funds deposit / withdrawal operations.
For a new account, they, of course, will initially be empty.
Extra NiceHash Tools
In addition to the functionality that is directly related to mining, there is a “Exchange” section on Nayshash, in which there are two financial and trading instruments:
- Currency exchange – allows you to mutually convert the cryptocurrencies on the balance sheet with an initial commission of 0.5% (decreases with increasing trading volumes).
- Bidding – opens the interface of the cryptocurrency exchange exchange, where you can trade altcoins from the wallets of your user account in pairs to BTC.
True, if you can exchange any volumes with the first instrument, since the service is provided directly by NiceHash, you won’t work on the exchange with large orders.
The daily volumes in the ETH / BTC trading pair do not go beyond $ 2-3 thousand, which indicates a clear lack of liquidity and low popularity of this functionality among users of the service.
How to buy power on NiceHash
To purchase a hashrate, you need to go to the “Power Market” tab from the User’s Account. Already existing orders of other users for the selected hash algorithm and the total value of the mining speed available on the market are displayed here.
To get the opportunity to create your orders, you need to use the “Enable purchase” button and confirm this intention by entering the code from the letter sent by the service.
Creating a purchase order is available in two market directions – USA (USA) and EU (Europe). You can choose both options, although it is recommended to use the one that is more suitable for the current location of the user.
In the form of the created order, you need to specify: the mining pool (register the host name, access data and the hashing algorithm), the price of purchased capacities (BTC / TH / day), the hash limit and the total amount that will ultimately be debited from the user when the transaction is executed.
The duration of mining, which is immediately approximately estimated and displayed by the system at the time of its registration, will depend on the price and amount specified in the order (minimum 0.005 BTC).
To add a request to the queue, you need to ensure the availability of the right amount of BTC on the balance. To do this, you need to make a deposit to the address that is available in the ‘Wallets’ menu.
A capacity purchase order can be standard or fixed. In the first case, it will take a place in the list of market offers, depending on the price specified by the user and will be processed only if all the more expensive orders are completed. Moreover, if the order begins to be executed and after that a more profitable order appears in the tape, it will be suspended, and in order to continue mining cryptocurrencies, you will have to increase the prices.
In fixed orders, the price is calculated by the system. At the same time, it will be slightly higher than the average for the market, but on the other hand, the application is fixed at the top of the tape and cannot be suspended after the start of processing due to the appearance of a better order.
When NiceHash connects miners to the application, the acquired capacities are redirected to the pool selected by the buyer and the mining process starts.
Commissions at NiceHash
For all services provided to users, Nayshash charges a fee, the amount of which varies depending on the type of operation.
So, for the creation of each order, 0.0001 BTC is removed from the buyer’s balance, which guarantees protection against spam in the order ribbon. + 3% of the amount that will be spent by the user as part of the execution of the order is also added to this non-refundable commission.
As for sellers, they are charged a commission of 2% of profit, regardless of the type of hardware and software used.
The withdrawal of funds from the site is subject to deductions, the size of which varies for different currencies and payment channels. If we are talking about bitcoin, then when requesting a withdrawal to any wallet, 0.07% of the amount or higher is charged (depending on the current state of the network); To Coinbase account – for free; Through Payeer – 0.95%.
For Ethereum, the withdrawal fee will be 0.48% of the amount, Litecoin – 0.22%, Ripple – 0.1%, Zcash – 0.03%, Bitcoin Cash – 0.1%.
In general, commission deductions on NiceHash are not very high. However, it is disappointing that fees for depositing cryptocurrencies into the service wallets are also charged, which depend on the size of the deposit.
Advantages and disadvantages of NiceHash
Studying all the tools available at NiceHash and the nuances of their work allows us to highlight a number of the following advantages of the service:
- Ease of use for both buyers and sellers;
- Due to the presence of a “live” capacity market, the cost of buying a hashrate can change, while cloud mining services offer a fixed fee;
- There are no restrictions on the size of the acquired Nayshash hashrate (within the limits of the total available market power);
- Support for dozens of popular hashing algorithms;
- The ability to cancel created orders for the purchase of Nayshash capacity even if they are partially executed;
- Automatic configuration of NiceHash Miner and switching between hashing algorithms depending on changes in their profitability;
- The presence of an internal exchange of funds between wallets;
- No prepayment;
- Low commission fees;
- Stable payments;
- A long life (5 years) suggests that NiceHash is clearly not a scam.
As for the shortcomings, NiceHash, of course, has them, but in much smaller quantities:
- Profitability when using NiceHash is significantly lower than when mining on your own equipment;
- Hacking Nayshash in 2017 indicates a weak security system at that time (not the fact that it was improved);
- The service limits the freedom of users in choosing a payment method – the purchase of capacities is available only for BTC, which, as you know, is a rather slow means of payment with high commissions;
- This type of remote mining is not suitable for long-term investment, as Transaction execution time rarely exceeds 10 days.
NiceHash Miner Reviews
Present on the network reviews about working with the NiceHash service mainly relate to the points already voiced above. First of all, it is praised for the simplicity and automation of many processes, recommending for use to beginners who do not want to delve into the technical details of cryptocurrency mining.