FAQ - Frequently asked questions
Around the topic:
Crypto Mining & Crypto Mining Farms
Banks & finance
Yes, absolutely. There are more and more banks that offer financing for a mining farm. Provided that the applicant is in a financially healthy starting position. It becomes easier to finance the next expansion steps once the first farm has been set up from your own funds.
A quick and good comparison can be obtained via smava.
You don’t need a lot of documents for the financing and the approval is quick.
Yes, that is also possible and a popular tool for tax constructs.
However, no blanket leasing bank can be recommended and the applicant’s rating must also be sufficiently good.
Blockchain & Coins
- Earned by mining
- Payment for Services or Goods
- Buying bitcoins on a bitcoin exchange
Bitcoin is controlled by all Bitcoin miners/users around the world, but not by a single user/miner.
It is a decentralized network and depends on users and miners.
- Worldwide usable
- Fast transactions
- Decentralized
- Transparent
- No control by institutions possible
- Blockchain is oneConcatenation of blocks (chronic juxtaposition), these are linked to each other via a cryptographic signature.Anything that can be represented digitallycan be the content of a block.
Hosting
The Smart IT Alliance GmbH offers the hosting of Asic Miner. The prerequisite is that the miners were purchased from Smart IT Alliance GmbH. Minimum order 5 miners. The hosting includes, among other things, the parking space, support, firewall and technicians on site.
Yes. The fee depends on the location and is usually 2 months of average consumption.
If you wish, we can set up our own VPN access for 100 or more devices.
- Lower electricity costs.
- Delivery of the miners via Smart IT Alliance GmbH.
- Free installation of your miners.
- Management and maintenance by experts.
- Redundant internet connection.
- Active monitoring of your miners.
- Optimization of the miners possible on request.
- Favorable location rent.
Mining & Miner
At that time, Bitcoin Mining could still be operated with the house PC. Unfortunately, this has not been lucrative for a long time. In order to mine Bitcoin meaningfully, you need high-performance miners – called ASIC miners – and a cheap power source. There are now various manufacturers specializing in this and there is a good selection of different devices and performance classes. You then set up all miners in a dust-free and cool environment as possible, connect them to the Internet via a LAN connection and then earn money immediately.
Here you have to differentiate. Pure Bitcoin mining with the current electricity prices without an alternative power source: No. However, there are various other coins that are absolutely interesting and suitable for mining and also make a decent profit.
You can switch both the rigs with the graphics cards and most of Ethereum Asic miners, such as the Yami Tech YM-100, to Ethereum Classic and continue to use the hardware.
A simple DSL connection or via LTE is enough to get you started. To be on the safe side, a second backup line should always be connected if the first provider fails.
Mining can be illegal for a number of reasons.
1. Laws There are countries that prohibit the operation of mining servers and facilities (e.g. China). Any operation there, even if it is just a test operation, is prohibited and therefore illegal.
2. Obtain electricity but do not pay This also refers to illegal mining, whereby mining is not illegal here, but non-payment of electricity.
3. Mining software is run on third-party computers/servers – without the knowledge and consent of the owners
More than USD 1 billion in BTC mining fees are currently paid per month.
More than USD 570 million in ETH mining fees are currently paid per month.
You will receive the corresponding instructions on request. In addition, our free support is always available to you.
Mining Farm
Each farm customer automatically receives several sets of hearing protectors… After about 10-20 minutes, depending on how noise-resistant you are, you get a headache from the noise of all the fans and ventilators.
In short: very loud
The bulk purchase gives you a slight advantage in electricity prices. But there are 2 other measures that can be taken and thus reduce electricity prices.
1. She should be safe.
2. A large power connector
3. As dust-free as possible
4. Good ventilation options
5. No problem with volume
6. Sufficient space
7. As dry as possible
Can you – yes. However, it does not make sense everywhere. If the outside temperature is too high, you have to counter-cool more and thus have higher electricity costs. The power connection and transformer must also be large enough.
We offer different variants. For example, you can only get a finished farm package, which has to be connected to the electricity and internet on site and then you can start digging right away. Or you can only get the miners. Or we deliver the mining farm turnkey without the customer having to shake hands.
As soon as mining is no longer operated as a hobby but to generate income, we speak of a Crypto Mining Farm. This can also be from 3 or 5 devices. There are many aspects to consider, especially with regard to further expansion. Just talk to us directly and we will show you what to look out for.
Mining Pool
The fees vary depending on the pool and are usually 1-3% of the mining proceeds.
Shop
How long varies by miner. We usually deliver within 1-3 weeks (except for pre-orders – these can sometimes take months) What are the delivery times?
Yes, this is possible with prior appointment. Payment is made when the order is placed. On request, we can configure the miners in advance, since we check each miner before delivery.
No, definitely not.
You will receive the corresponding instructions on request. In addition, our free support is always available to you.
Taxes & depreciation
Unfortunately, this is not easy and must be applied for and carried out by a tax expert. We would be happy to arrange our specialized corporate and tax consulting firm here.
To put it simply: As a German company, you always buy from us plus VAT and have to pay it. If you buy as an entrepreneur from abroad and have a valid VAT number, you can buy and pay without VAT.
Here we are happy to arrange our partner, a specialized corporate and tax consultancy firm. This develops individual concepts on how to get the VAT back. However, this is only recommended for a Crypto Mining Farm size of at least 100 kw / 0.1 mw.
No, this is not possible for several reasons.
- Customs evasion is a punishable offense and is NOT a trivial offence. There are fines of up to €50,000
- What do you want to deduct from the tax if the invoice only has a fictitious value of e.g. €300?
- What do you do in the event of transport damage? The transport insurance depends on the export invoice.
Wallets & Exchanges
Of course and gladly. Especially in relation to cooperation with the tax office, we discuss the most important wallets at each institution.
A wallet is a digital purse in which all kinds of cryptocurrencies can be received, sent and stored.
A conversion into euros (FIAT currencies) is not possible. An exchange is required for this.
However, the exchange stock exchanges often have an integrated wallet and some also have permanent wallet addresses. This is important if you want to use them for mining.
