Updated · Mar 24, 2022
Best for: New hash power sellers
What Is NiceHash?
NiceHash is a marketplace for crypto hash power, based in Slovenia. The company launched in 2004 and is one of the few services of its kind. Unlike typical cloud mining operations, which are run by private enterprises with restrictive contracts, the NiceHash marketplace is an open shop.
It lets buyers purchase hash power from pools of individuals. Likewise, anyone can use the NiceHash software to turn their computer into a mining rig for profit. Miners get paid in BTC and are not subject to identity checks.
It also operates a robust cryptocurrency exchange. The NiceHash exchange supports over 50 of the most popular cryptocurrencies, allowing trading between coins and FIAT to crypto. Due to legal reasons, the exchange is not accessible from the United States, Pakistan, and China. It is no more restrictive than most options in the current climate, though.
How Does NiceHash Work?
If you’re wondering, how does NiceHash work? It’s best to separate the NiceHash power marketplace from the crypto exchange. Let’s take a closer look at power buyers and sellers.
Hash Power Buyers
Hash power buying is commonly viewed as renting computer power or commissioning mining. The buyer chooses the cryptocurrency to mine, the mining pool, and the price they’re willing to pay in BTC.
Subsequently, miners accept the order and use software to provide computing power to the pool. Once mined, the pool pays out the cryptocurrency to the buyer through the NiceHash platform.
This might seem like a long-winded approach to get crypto, but the buyer’s real aim is to play the market. It’s a case of purchasing the power at one price and selling their mined crypto for more. It is also a good way to further anonymize crypto activities and obscure the origins of funds.
Hash Power Sellers
Sellers use NiceHash mining software to lend their computing power to a mining pool. Furthermore, it lets you know how profitable your setup can be from the beginning. For example, my simple home Nvidia RTX 2070 Super GPU, gets a NiceHash profit of approximately 2.39 EUR a day.
Sellers or ‘miners’ aim to make enough profit from mining to offset the cost of electricity. True profit is what’s left.
It is typically not worth it to use the average home computer for crypto mining. Specialized mining rigs, however, can make reasonable daily profits, especially if you use a network (farm) of multiple machines.
NiceHash pays miners in BTC for computing power, while the mined coins go to the buyer. Moreover, you do not need much technical know-how. The software does all the hard work connecting miners with buyers and pools via NiceHash stratum servers.
The cryptocurrency exchange is similar to most standalone exchanges. Users from permitted countries open an account and verify their identity. They can then fund their account with crypto from outside wallets or with Euros. See below for fees and limits.
The basic trading interface lets you purchase or trade at the current market value. The advanced one displays important graphs and data. It supports the following trades:
- Take Profit Market
- Take Profit Limit
After testing it myself and reading lots of NiceHash user reviews, these features stood out:
No Cloud Mining Restrictions
NiceHash may seem like any other cloud mining platform on the surface. Both facilitate the trade of remote hash power. The difference, however, is that NiceHash doesn’t maintain its own hardware or have a closed partnership with mining pools.
Instead, it’s a marketplace that brings buyers, sellers, and pools together, while overseeing transactions. It’s eBay rather than a single online store.
It doesn’t require fixed long-term contracts, due to the versatile nature of the platform. This reduces the risk for all parties. Market forces determine the hash power price, not the service provider, while users trade in real-time.
Note: NiceHash status can be checked here. The page displays which NiceHash server and marketplace features are currently online.
The closer miners and pools are to the servers, the faster the process.
NiceHash’s infrastructure is in the North and West of Europe and the East and West of the United States. This provides good coverage across both continents, reducing latency.
NiceHash Mining Profitability Calculator
The appeal is in making mining easy for anybody. Before you even sign-up you can download the NiceHash profitability calculator. This scans your system for relevant hardware and calculates average profitability based on its power. It also estimates daily, weekly, and monthly profits based on similar hardware usage.
Its mining software also deserves praise, as all options come with a full GUI. Anyone can handle NiceHash setup without needing technical skills.
This is the in-house software and the easiest to use. It excels with Nvidia GPUs while supporting Intel and AMD processor mining, too. It has the ability to overclock and is particularly good at increasing performance on 1000 Series GPUs.
You can get a demo of QuickMiner without registering at NiceHash. It detects your hardware and allows for basic mining. You can even claim valid payouts simply by using the registration link at the bottom of the window.
OCTune by NiceHash
OCTune is an additional web interface for configuring graphics card settings. It requires a little bit of tech knowledge, but when used correctly can increase mining performance. It does this by altering the memory timings, fans, clock speeds, TDP, and voltages.
You access the tool directly from the system tray when using QuickMiner.
This is a combination of third-party mining tools with a NiceHash interface. Firstly, download the executable to add a new rig. Secondly, manage things remotely via the NiceHash dashboard. It features automatic algorithm switching, the ability to manage multiple rigs, and one-click mining.
When using this or other third-party mining software it is important to check the accepted speed NiceHash charts. This is your rig’s actual performance, which can be incorrectly projected on the software-end.
Both core NiceHash programs are known to trigger antivirus software, but it is safe to add them as exceptions.
The NiceHash USB miner is great for those that aren’t using their rigs for anything else. It boots straight from a flash drive on Windows systems. This makes it ideal for quickly adding new rigs to large mining farms. Furthermore, it doesn’t limit the number of rigs, which can all be controlled remotely via the Rig Manager web dashboard.
Automatic updates keep everything running smoothly without the need for intervention.
Benchmarking and NiceHash Algorithms
In crypto mining, algorithms are complex puzzles you must solve with computing power to mine coins. Each crypto blockchain supports multiple ones, some of which are better for certain hardware.
What hash power sellers need to figure out is the most profitable algorithms for them. Therefore, software like NiceHash Miner can run benchmarks and automatically switch to the most suitable option.
Users should always choose an ‘extensive’ benchmark, even though it can take time. It improves accuracy. After all, NiceHash only pays for the actual work, not forecasts.
NiceHash publishes historic data for all the algorithms it supports, giving the average profitability over days, weeks, and months.
What does NiceHash mine?
- Scrypt: Commonly used for Litecoin, Dogecoin, and Verge
- SHA-256: The original Bitcoin algorithm
- X11: Provides good profitability for the likes of Dash, Hatch, Pura, and SmartCoin
- X13: For Bitcoin Diamond, DeepOnion, Stealthcoin, and more
- Keccak: An older algorithm with affinity for MaxCoin, Slothcoin, and Cryptometh
In total, users can choose from over 30 algorithms.
Private EndPoint Solution
NiceHash is excellent for beginners, but that doesn’t mean it overlooks the needs of veteran miners. Those with growing mining farms can purchase a private endpoint solution for 200 EUR per month. Mining with NiceHash this way is faster because it bypasses DDOS protection. Your private IP address connects directly to the NiceHash servers.
NiceHash System Requirements
To successfully mine with NiceHash, systems must meet the following requirements:
- GPU Mining: An AMD GPU with OpenCL support, or an Nvidia GPU with Compute capability (SM) 3.0 or newer.
- A paging file size of 60% of total GPU VRAM memory.
- CPU Mining: A modern processor with AES support.
A NiceHash ASIC Miner is a special rig solely for mining crypto on the platform.
NiceHash supports more than 50 cryptocurrencies. Moreover, users can deposit fiat Euros to purchase crypto directly. Some of the most common options include:
Bitcoin (BTC), Tether (USDT), and USD Coin (USDC) are the trading partners. In other words, to trade between any of the other coins, they first must be exchanged with one of those three.
The NiceHash mining platform is open to anyone and is anonymous. The main restriction is trading cryptocurrencies, which has become a legal issue in many countries. That’s why it blocks the exchange in places like the United States.
Supported countries on the exchange include:
- United Kingdom
- South Africa
- Saudi Arabia
- Hong Kong
NiceHash still pays power sellers based in restricted countries like the US or China in BTC. They must withdraw to an external wallet, however, and complete any trading with another exchange. Coinbase is a popular choice because of its low fees.
Users generally consider it a secure platform. But, it’s been vulnerable in the past. In 2017, criminals made off with more than $64 million worth of Bitcoin after a hacking.
The company eventually returned all the stolen funds out of its own pocket, proving it to be a good faith service. Nonetheless, it’s wise not to maintain large balances in your NiceHash wallets in case a similar situation arises.
To add extra security, two-factor authentication can be turned on from your account settings. This requires additional email or SMS confirmation when logging in, placing orders, or withdrawing your balance. You may also make use of a Yubico OTP key, which is a physical USB encryption drive.
While hash buying and mining is anonymous, opting to go through the Know Your Customer (KYC) process adds a paper trail of ownership and legal recourse. NiceHash KYC is also a requirement if you want to trade crypto on the exchange.
NiceHash Mobile App
You can download the NiceHash app for free on iOS and Android devices. It will help you manage your wallets, including deposits and withdrawals, but you cannot make crypto trades. It also gives access to Rig Manager. Machines containing the mining software itself can only do the mining, however. I.e., you can’t mine using your smartphone’s hardware.
Hash power buyers can place orders, cancel orders, and view their history. All users can configure push notifications to keep them up to date.
Users on Google Play give an average of 3.5 stars out of five. It has a higher rating on the Apple App store, but only a handful of reviews.
NiceHash mobile browser support is seamless. You get a fully responsive version of the website on all devices.
Miners receive NiceHash payouts in Bitcoin. But don’t confuse this with the mining algorithm or coin. The buyer sets the price and pays you for the power through the site.
Miners earn BTC for every valid share as defined by the algorithm. If you’ve earned at least 1,000 Satoshis (0.00001 BTC), NiceHash payout on a 4-hour schedule. You can stop mining at any time and all valid payouts will be made.
There are no long-term contracts. I.e., there’s no contract to fulfil an entire order. You simply agree to take part in the process.
At the same time, buyers only pay for valid work. They are free to cancel an order and accept what is already completed.
Bitcoin balances earned from mining are subject to the standard withdrawal and trading conditions.
NiceHash charges different types of fees depending on your usage. There are also minimums and other limits associated with deposits, withdrawals, and trades. Fortunately, these are not much different from other platforms and shouldn’t discourage you from signing up.
NiceHash Mining Fees
- Buyer’s Order Creation Fee: 0.00001 BTC
- Buyer’s Order Completion Fee: 3% of spend
- Mining Fee/Service Charge: 2%
There isn’t a NiceHash mining pool, as the service is a broker and doesn’t run its own mining hardware. That means NiceHash doesn’t have a pool fee. Instead, it charges 2% for every mining payout.
Mining software developers also usually charge a fee. However, if you use the NiceHash Excavator within the QuickMiner interface, it’s not the case.
For creating a new order, the company charges buyers of hash power 0.00001 BTC, plus 3% of their total spend when it completes or cancels.
NiceHash Wallet Fees
- External Wallet Payout: 3%
You won’t incur extra fees for maintaining an internet wallet. Meanwhile, NiceHash external wallet payouts aren’t worth it.
You must earn at least 0.001 BTC to trigger an external payout once per week, on Wednesday. This is subject to the standard service fee of 2% and an added 3% for using the external method.
NiceHash pays out on the same day at 2% + 1%, if your balance reaches 0.1 BTC.
NiceHash Withdrawal Fees
Withdrawal fees are dependent on the currency you’re withdrawing. You must also meet a minimum amount. It is free to withdraw Euro balances at a minimum of 10 EUR.
It charges 0.00000369 BTC or more for Bitcoin withdrawals, based on Blockchain conditions. This is at a minimum of 0.001 BTC.
Meanwhile, withdrawing to Coinbase is free at a minimum of just 0.0005 BTC.
It is also free if you have a NiceHash Lightning Network connection. In that case, the minimum is just 0.0001 BTC.
Most other cryptocurrencies have reasonable fees and minimums. Moreover, NiceHash dynamically adjusts these based on network conditions.
You can see the full list of withdrawal fees for every currency on the company's website.
NiceHash Deposit Fees
Similarly, it charges a deposit fee for each currency if you don’t meet the minimum for a free deposit.
It charges 0.00001 BTC for Bitcoin deposits between 0.00001 and 0.0005 BTC. Don’t make the mistake of depositing less than this because it will be accepted and then completely swallowed by the fee.
Euros are free but you must deposit at least 1 EUR.
You can see the full list of deposit fees for every currency on the company's website.
NiceHash Exchange Fees
NiceHash has a straightforward structure for exchange fees, based on lifetime activity:
|Lifetime Trade Value||MAKER FEE||TAKER FEE|
One of the few hurdles I had was contacting the support team. Before you can reach the ticketing system you must wade through a series of questions and help pages. Although on the face of it this appears helpful (you could have an easy to answer question), a lot of people will assume there’s no direct support channel at the end of the tunnel.
Nonetheless, once you do end up opening a ticket, you will eventually stumble across a direct email address for future contact: [email protected]. You can’t openly find this on the site, though.
The next best option is to try one of the NiceHash social media accounts, linked at the bottom of the site pages. Discord is particularly beneficial, as you can instant message with other users and staff 24/7.
If your query doesn’t need direct NiceHash support, the knowledge base features an extensive collection of guides and tutorials. These are certainly worth exploring if you are new to the platform or crypto, more generally. The search bar helps you find a relevant page.
There are a handful of alternatives to NiceHash that you might consider. Furthermore, you may be wondering about the differences between mining applications and the types of mining you can carry out.
QuickMiner vs NiceHash
QuickMiner is NiceHash’s newest mining software, aiming to replace the regular NiceHash Miner. The main difference is the original system relies on third-party developers, whereas NiceHash pays fees to use this third-party code within its own application.
The company claims not to know the true identity of these programmers and that this could pose a risk to NiceHash security. That’s why power sellers must sign an agreement discharging NiceHash of any liability if the worst happens.
Yet, how serious the risk is, and whether NiceHash is leveraging it to get you on their proprietary software isn’t clear.
Nonetheless, QuickMiner is similar to NiceHash Miner in function. It lets you easily begin mining on the platform without worrying about the technical side of things. It includes combined GPU and CPU mining, as well as dedicated ASIC rigs.
QuickMiner can be more profitable than the original NiceHash Miner and other third parties, because it doesn’t involve developer fees. NiceHash is also legally safer, because it releases the software through an EU-regulated company based in Slovenia.
NiceHash vs UnMineable
UnMineable is the closest alternative to NiceHash. It has only been open since early 2021, so it’ll take some time to see if it has staying power.
Both tick the box when it comes to ease of use, though NiceHash currently has the more versatile software. It can be installed across operating systems, while UnMineable is only available on Windows. Third-party applications are just starting to accommodate other OSs.
NiceHash also supports many more algorithms – 30 in total, compared to the four supported by UnMineable.
UnMineable does have a slight convenience edge because it pays out in the crypto of your choice. Meanwhile, NiceHash only pays in Bitcoins. This, however, appeals more to beginners or those that dislike BTC for whatever reason.
In terms of raw profits, UnMineable loses some in its conversions. So, it makes more sense to mine for the asset directly, using an exchange to trade for another coin yourself.
On paper, UnMineable’s 1% fee is better than NiceHash’s 2%, but there are other variables that determine profitability. Right now, NiceHash is the more reliable platform.
NiceHash vs Pool Mining
Pool mining is when miners agree to come together to share resources and rewards. It is true that NiceHash facilitates mining ones, but it’s not a pool itself.
It doesn’t favor any particular pool, algorithm, or crypto. Rather, it forwards a seller’s hash power to a pool chosen by the buyer.
Wondering whether to use NiceHash or pool mining? The answer depends on whether the convenience of a broker trumps the potential profit of joining individual pools. These can have fewer fees and direct access to the mined crypto but are harder to set up. The software connects you to NiceHash pools automatically.
NiceHash Review – Verdict
The platform provides an easy way to enter the world of crypto mining without dedicating lots of time. Experienced miners with farms can make the most money, but they have enough knowledge to earn higher profits elsewhere.
Therefore, the system mostly appeals to beginners who are still learning about mining and those that just want some extra income. Definitely not full-time enterprises, though.
Nonetheless, NiceHash has defined the hash power marketplace, becoming the most complete service of its kind. It’s the oldest, with the best software, and doesn’t have any serious contenders.
More payout currencies and improved customer support would go a long way, though.
Is NiceHash Free?
NiceHash is free in the sense that it doesn’t charge upfront to use the platform. Its mining software is also free.
However, it charges fees for trades, mining orders, and other transactions, like any crypto exchange or mining platform. See above for a more detailed breakdown of fees.
Is NiceHash any good?
Yes, there are few platforms that provide a comparable service to NiceHash. It stands out because of its open marketplace approach, ease of use for buyers and sellers, and its accompanying cryptocurrency exchange. By volume, it is the largest hash power marketplace in the world.
Is NiceHash safe and legit?
Yes, NiceHash is a legitimate Slovenian company. It first launched in 2014 and has grown to be a trusted service in the crypto community.
NiceHash was still unable to avoid controversy after a hacking in 2017. But then, few crypto services have escaped similar threats. Adapting to security risks is a necessary part of the technology’s evolution.
There is also an inherent fear that mining platforms could be underreporting users' computing power to pay out less. However, NiceHash’s built-in profit margins and transaction volume means it earns millions anyway. It puts itself in a senseless position if skimming from the top.
NiceHash security features include 2FA and KYC.
Is NiceHash the most profitable?
Beginners find NiceHash to be the most profitable way to mine crypto. If you factor in ease of use, its benefits are even more apparent. You can read all about them in the NiceHash review above.
NiceHash software accomplishes in a few hours what might take days to research and set up, manually. Auto-switching to the best algorithm is a game changer because it vastly reduces the need to closely monitor the markets and alter your mining setup.
On the other hand, some NiceHash user reviews give examples where pools have been more efficient.
A qualified journalist and longtime web content writer, Keelan has a passion for exploring information and learning new things. If he's not writing or pushing his own brands, you'll find him watching pro wrestling or trying not to rant about politics online.
Your email address will not be published.