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Saving money is the first step toward achieving your financial goals. But not all savings goals are created equal. Some goals are short-term, like setting aside money for holiday gifts, while others may stretch years into the future, such as buying a home, paying for a wedding, or preparing for retirement. When your savings goals extend beyond a year or two, you may want to consider a long-term savings account.

But what exactly makes a savings account “long-term”? And with so many options — high-yield savings, certificates of deposit, money market accounts, or retirement-specific vehicles — which type is best for your situation?

Below, we’ll explore the essentials of long-term savings accounts, when to use them, and how they can help you reach your biggest financial milestones.

What Makes a Savings Account “Long-Term”?

In simple terms, a savings account becomes “long-term” when the money is meant to stay untouched for several years, and often much longer. Short-term savings, like an emergency fund or paying for an upcoming vacation, are designed for relatively quick use. Long-term savings, on the other hand, are earmarked for goals that might be a few years — or even decades — away.

While long-term savings accounts generally offer lower returns than investment accounts, they provide security, predictability, and liquidity. These three factors are especially important when you know you’ll need the money at a specific point in the future.

4 Best Types of Long-Term Savings Accounts

There is no single savings account that works for every saver. Instead, the best long-term savings option will depend on your timeline, your need for access to the funds, and how much you want to prioritize growth. Here are four types of accounts (including one investment account) that can help you reach your long-term savings goals.

1. High-Yield Savings Accounts (HYSAs)

A high-yield savings account is a type of savings account that offers a significantly higher interest rate, or annual percentage yield (APY), than a traditional savings account. These accounts are typically offered by online banks, which tend to have lower overhead costs than brick-and-mortar institutions and can pass that savings on to customers in the form of higher rates and lower (or no) fees.

HYSAs are usually insured by the Federal Deposit Insurance Corporation (FDIC), which means your deposits are covered up to $250,000 per depositor, per insured bank, for each account ownership category, even if the bank were to fail.

In addition to safety, HYSAs also offer easy access to your funds via debit card or transferring money online. That accessibility can make them a good fit for people who want to earn meaningful interest but still keep the option of withdrawing their money if a goal comes up sooner than expected.

If you’re saving for a home purchase, a new car, or a major renovation within the next few years, you may find an HYSA particularly useful. An HYSA is also a good place to stash your emergency fund (more on that below).

Recommended: Savings Goal Calculator

2. Certificates of Deposit (CDs)

Available at banks, credit unions, and brokerage firms, certificates of deposit are time-locked accounts where you agree to keep your money deposited for a set term — often ranging from six months to five years — in exchange for a fixed interest rate.

Rates on CDs are not only guaranteed but are generally higher than what you could earn in a traditional savings account. CDs are also typically insured by the FDIC or National Credit Union Administration (NCUA), which insures deposits at credit unions.

This type of long-term savings account can be ideal for savers with a clear timeline. For example, if you know you’ll need the money in three years for a down payment, a CD of the same length can help you protect your funds while also ensuring steady growth.

3. Money Market Accounts

A money market account (MMA) is an interest-bearing deposit account offered by banks and credit unions that blends features of both savings and checking accounts. MMAs typically offer higher rates than standard savings accounts, along with some of the conveniences of a checking account, such as checks and a debit card.

Similar to other types of savings accounts, MMAs are usually FDIC- or NCUA-insured. However, they often require higher minimum balances and may charge fees if you don’t meet monthly balance requirements.

An MMA can be a flexible option for long-term savers who want to earn more than the average savings rate but still want to access their funds occasionally. You might consider an MMA for an emergency fund, saving for a large purchase (like a car or wedding), or holding funds for future investments.

4. Retirement Accounts

Retirement-specific accounts — such as 401(k)s, Individual Retirement Accounts (IRAs), or Roth IRAs — are technically investment vehicles but are crucial for long-term savings. These accounts are designed specifically for retirement and offer unique tax advantages.

These accounts also allow savers with decades-long time horizons to benefit from compounding returns (which is when your returns start earning returns of their own) and, in some cases, employer contributions.

Because they are tied to investments like stocks and bonds, retirement accounts do carry risk, meaning balances can fluctuate in the short term. However, the long time frame can help smooth out those fluctuations. Plus, the tax benefits can make them hard to beat for anyone focused on retirement. Their tradeoff is limited liquidity, since withdrawing money early often results in penalties.

When to Use a Savings Account for Long-Term Goals vs an Investment Account

One of the biggest questions savers face is whether to use a savings account or an investment account for long-term goals. The answer largely depends on your exact timeline and tolerance for risk

Generally speaking, you want to use a savings account when:

•  You’ll need the money within the next one to five years.

•  You can’t afford to risk losing your principal.

•  Your goal has a fixed date, such as a wedding or tuition payment.

Consider using an investment account when:

•  Your goal is more than five years away.

•  You’re comfortable with short-term market fluctuations in exchange for the chance for higher long-term growth.

•  You’re saving for retirement or other distant financial milestones.

In short, savings accounts are about security and liquidity, while investment accounts are about growth and long-term wealth building.

Examples of Long-Term Savings Goals

What might you use a long-term savings account for? Here are three common examples.

Saving for a Down Payment on a House

Buying a home is one of the largest financial milestones most people will face. If you plan to buy in the next few years, keeping your down payment in a HYSA, CD, or MMA ensures your money is safe and growing without the risk of market downturns derailing your purchase plans.

Building a Fund for a Future Large Purchase (Like a Car or Wedding)

Whether you’re planning a dream wedding or upgrading your vehicle, large expenses require careful planning. By using a dedicated savings account — such as a money market or HYSA — you can separate these funds from your everyday spending while earning competitive interest.

Creating a Sabbatical or “Freedom Fund”

More people are saving for lifestyle choices, such as taking time off work to travel, study, or recharge. A sabbatical or “freedom fund” can provide peace of mind and flexibility. Keeping these funds in a long-term savings account like a HYSA, CD, or MMA, ensures they’ll be available when the time is right.

When to Consider an Emergency Savings Account

While long-term savings is essential for reaching your future goals, it’s equally important to have a separate emergency savings account.

This account provides a cushion for unexpected events, such as losing a job, facing a sudden illness, or needing to pay for urgent car or home repairs. Knowing you have funds available for emergencies can ease financial anxiety during a crisis. It also prevents the need to rely on high-interest credit cards or loans to cover surprise costs.

Experts generally advise setting aside at least three to six months’ worth of living expenses in a separate savings account earmarked for emergencies.

Emergency funds are generally best stored in HYSAs or money market accounts, where the money is accessible but still earning above-average interest. Having this safety net allows your long-term savings to stay intact, even when life throws an expensive curveball.

How to Use a Savings Account to Organize Your Long-Term Savings

Managing multiple goals can get tricky, but today’s digital banking tools make it easier. Many banks and credit unions allow you to:

•  Open multiple accounts or create customized sub-accounts and label each fund (e.g., “House Fund,” “Wedding Fund”).

•  Automate transfers so savings happen consistently without effort.

•  Track your progress toward each goal with visual dashboards.

By assigning each goal its own dedicated account or sub-account, you reduce the temptation to borrow from one savings pot to pay for a different goal or expense. It also makes it easy to track your progress, since you can see exactly how close you are to reaching each milestone.

The Takeaway

Long-term savings accounts are powerful tools for turning your future plans into reality. Whether you choose a high-yield savings account for flexibility, a CD for guaranteed returns, a money market account for occasional access, or a retirement account for decades-long growth, the right choice depends on your goals and time frame.

The best long-term savings account is ultimately the one that supports your unique plans, provides the right balance of safety and growth, and makes it easy for you to stay disciplined until you achieve the milestones that matter the most.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What type of account is best for long-term savings?

The best account for long-term savings depends on your goals and risk tolerance. For safe, predictable growth, high-yield savings accounts, certificates of deposit (CDs), or money market accounts are good options. If you want higher returns and can tolerate risk, retirement accounts like IRAs or 401(k)s and investment accounts may be better. Many people use a mix: savings accounts for stability and investment accounts for growth. Diversifying helps ensure your money grows while remaining accessible for future needs.

What is a long-term savings account called?

A long-term savings account doesn’t have a single universal name — it depends on the purpose and institution. Common options include certificates of deposit (CDs), individual retirement accounts (IRAs), 401(k)s, or investment accounts. These accounts are designed for goals like retirement, buying a home, or funding education. High-yield savings accounts and money market accounts can also serve mid- to long-term goals, especially if you want to maintain access to your funds.

What is considered long-term savings?

Long-term savings generally refers to money set aside for goals that are several years or even decades away, such as buying a house, funding a child’s education, or retirement. Unlike emergency funds or short-term savings, which cover immediate or near-future needs, long-term savings are designed to grow over time through interest, dividends, or investment returns. These savings often benefit from compound growth, which is when the returns you earn also earn returns, which can help your money grow faster.

How much should I have in my long-term savings account?

The amount you should have in long-term savings depends on your financial goals, age, and income. A common benchmark for retirement savings is to aim to save at least 15% of your pre-tax income each year, including any employer match. By age 30, some experts suggest having one year’s salary saved, increasing to three times by age 40, and six times by age 50. However, smaller long-term saving goals, like a down payment on a house, will require less.

What kind of savings account makes the most money?

If you’re strictly looking at savings accounts, high-yield savings accounts and certificates of deposit (CDs) typically earn the most interest. However, if your goal is maximizing long-term growth, investment-based accounts — such as brokerage accounts, individual retirement accounts (IRAs), or 401(k)s — generally offer much higher returns over time, though with more risk. Money market accounts can also pay higher rates than standard savings. The best choice depends on your timeframe, risk tolerance, and need for liquidity.

Photo credit: iStock/AndreyPopov

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Your car insurance is designed to cover the cost of repairs to your vehicle in case of accident or damage in events like theft, vandalism, or natural disasters. As a result, car insurance likely covers the replacement of a broken windshield, but it will depend on how the windshield was broken and what type of coverage you carry.

Understanding how different types of coverage work is key to knowing when you’ll pay out of pocket and when insurance will pick up the tab.

Does Car Insurance Cover Windshield Damage?

There are different types of car insurance coverage. Windshield damage is typically covered through collision or comprehensive insurance. How your windshield is damaged will determine which of these kicks in to pay the cost.

Types of Coverage That Apply to Windshield Damage

Here’s a closer look at the two types of auto insurance coverage that will typically apply to windshield damage.

•   Collision coverage covers the cost of repairs after your car has been in an accident with another vehicle or a stationary object, such as a lamp post or tree, regardless of who’s at fault. It’s typically optional and not required by state law, though some lenders may require it if you finance the purchase of your vehicle.

•   Comprehensive coverage protects your car from non-collision damage. This includes theft, vandalism, fire, falling objects, hitting an animal,and natural disasters like flooding or hail storms. Like collision insurance, comprehensive coverage is an optional add-on.

Both collision and comprehensive coverage usually have a car insurance deductible. This is an amount that you have to pay out-of-pocket before your insurance kicks in. For example, if you have a $500 deductible and a fallen branch causes $1,000 worth of damage to your car, you’ll have to pay $500 toward the cost of repair first before you comprehensive insurance steps in to pay the rest.

Differences Between Comprehensive and Collision Coverage for Glass

To be clear, your collision coverage pays for the cost of windshield replacement when it has been damaged in a collision with another vehicle or object. Your comprehensive coverage will pay in most other scenarios, like if a tree branch falls on your car, for example.

State-Specific Regulations and “Full Glass Coverage”

One important thing to know is that the cost of windshield replacement may be less than your insurance deductible. On average, replacement can cost between $200 and $500. But where you live could impact how much you’ll pay.

In Florida, Kentucky, and South Carolina, no deductible is charged for a windshield replacement if you carry comprehensive insurance and meet coverage requirements. A handful of states allow you to purchase separate glass coverage with no- or low-deductible options for windshield replacement. These states usually require that you carry comprehensive coverage as well. States that require insurers to offer separate glass coverage include Arizona, Connecticut, Massachusetts, Minnesota, and New York.

Drivers in other states may need to pay for the cost of windshield replacement out of pocket.

Recommended: Auto Insurance Guide

When to Repair vs. Replace Your Windshield

You don’t always have to replace a damaged windshield — chips and short cracks can be repaired. That’s a good option for chips that are less than an inch across and for cracks that are shorter than the length of a dollar bill.

Signs That Indicate a Windshield Needs Replacement

Sometimes, the damage to your windshield requires a full replacement. You’ll want to go this route if a crack is longer than a dollar bill or if it’s near the edge of your windshield, as this could affect the structural integrity of the glass.

Cracks or chips that are directly in your line of sight may signal that your windshield needs to be replaced. Even if they can be repaired, the resin used to fix them will still leave a mark that could impair your vision.

Cost Comparison Between Repair and Replacement

The cost of small repairs to a windshield can be relatively low, around $60 to $90. By comparison, the cost of replacing your windshield could be significantly more.

Replacing windshields on older vehicles tends to be the cheapest scenario. This is where you can expect to pay the above-mentioned $200 to $500. There are several factors that can increase costs from here. If your car has a larger-than-standard windshield, is a luxury vehicle, has a special design, or includes technology built into the windshield, be prepared for costs to be higher.

For instance, if your windshield includes advanced driver assistance systems, such as automatic braking and adaptive cruise control, plan on paying $1,000 or more to replace it.

Recommended: How to Lower Car Insurance

How a Windshield Claim Works

In general, a windshield claim is relatively simple to file. First, be sure the repair or replacement is covered by your comprehensive insurance or additional glass coverage. You can do this by calling your insurance provider or looking at your auto insurance terms and policy details.

Filing a Claim and Your Deductible

To file a claim, contact your insurer’s claims center and provide your personal information and policy number. Describe the damage and be prepared to provide documentation, such as pictures or a video. Your insurance company can help you determine the cost of repair or replacement. If cost is less than your deductible, you may need to foot the bill yourself.

When your car is serviced, you might need to pay the deductible amount first, and your insurance company will pay the remaining amount directly to the shop.

How Insurance Companies Handle Repair vs. Replacement Costs

Based on the severity of the damage, you may be able to repair your windshield or you may need to replace it entirely. In the case of a minor repair, your insurance company might waive your deductible. However, your deductible may apply to a full replacement.

Choosing a Glass Repair Shop

Your insurance company may provide a list of recommended repair shops to repair or replace your windshield. But in general, you have the final say over where to take your car.

The Takeaway

Does car insurance cover a cracked windshield? When it comes to a damaged windshield, covered repairs or replacements are not necessarily a given. It depends on your policy, how the damage occurred, and the cost of repairs. Understanding what your auto insurance covers and knowing your options ahead of time can help save you from surprises when repairs are needed.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Will filing a windshield claim raise my insurance rates?

Unfortunately, filing a windshield claim could raise your insurance rates when you renew. However, this will depend on your coverage and other factors, such as state law.

Do I have to pay a deductible for a small chip repair?

Many insurance companies will waive the deductible for repairs to small chips, so you likely won’t have to pay for these fixes.

What is “full glass coverage” and how do I know if I have it?

Full glass coverage is an insurance add-on with low or no deductible for windshield and other auto glass repairs. This is coverage that you have to choose. If you can’t remember whether you have chosen it in the past, you can review your auto insurance policy.

Can I choose my own glass repair shop?

You can choose your own glass repair show, though your insurance company may provide a list of preferred shops.

What if the windshield was damaged in a car accident?

If your windshield is damaged in a car accident, the cost of repair may be covered by your collision insurance.

Photo credit: iStock/4kodiak

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
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SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Crypto mining can still be profitable, but it’s potentially not as profitable for some as it was in years past. That’s true for a number of reasons. Cryptocurrencies by and large still have value, but calculating the potential for miner profitability can be a bit trickier than before, given the expense of computer hardware and software needed today, as well as the rising cost of energy it takes to keep that mining equipment running. Crypto miners must simultaneously contend with increased competition, along with potentially diminishing rewards.

That said, knowing the factors and expenses involved can help you determine if crypto mining may be a good option for you. Before deciding whether mining Bitcoin, Litecoin, Ethereum Classic, or other cryptocurrencies is worth it, it’s important to know how it works, and what the pros and cons are.

The State of Crypto Mining in 2025

Crypto mining is, as of 2025, still very much an active part of the overall crypto ecosystem. But given how popular cryptocurrency and blockchain technology has become in recent years, it’s more competitive than ever, and the rewards for mining certain cryptocurrencies have dwindled.

What Is Crypto Mining?

Crypto mining is the system used by some blockchain networks to validate and secure transactions or data, while simultaneously producing rewards and new cryptocurrencies for miners, or participants on the network. As such, it simultaneously validates the network and expands it.

Crypto mining isn’t just the creation of new cryptocurrencies, like Bitcoin (BTC), which is the first, largest, and most well-known cryptocurrency that utilizes a proof-of-work validation system. It’s also a decentralized global system by which miners validate and secure cryptocurrency transactions, and earn coins themselves. But note that there are many others, such as Litecoin, Ethereum Classic, Dogecoin, and more.

It goes back to the blockchain technology that cryptocurrencies are built on. To run these networks, miners rely on powerful computer systems, or in some cases cloud-based technology, to solve complex mathematical puzzles and validate blocks of digital transactions.

This system is known as proof-of-work (PoW). Under PoW systems, every transaction gets recorded in a transparent, immutable, public ledger known as the blockchain. The miners who solved it get rewarded with new coins being mined.

Overall, mining serves the purpose of validating a crypto network, and generating rewards for network participants, sometimes called validators or miners.

How Major Events Have Reshaped the Industry

Regulatory changes, and potential technology changes, have spurred the industry to some extent. While there are still a lot of things up in the air, legislative changes in 2025 appear to be more crypto-friendly than in previous years.

At the same time, rewards for some cryptos, particularly Bitcoin, have diminished. That’s largely due to a phenomenon introduced with Bitcoin known as the “halving,” which cuts the number of coins rewarded for mining a new block by half.

Bitcoin mining is intensely competitive, especially because the reward is halved every 210,000 blocks and now stands at 3.125 BTC, down from 6.25 BTC. At Bitcoin’s first halving event in 2012, its reward was reduced from 50 to 25 BTC. As more Bitcoins are mined and the supply of new Bitcoins drops, the amount of Bitcoins released with every new block diminishes over time. The supply will purportedly be exhausted by around 2140^[1].

While Bitcoin’s halving event is likely the most significant in the crypto sector, given its relative (though volatile) value and reach, a few other cryptocurrencies use halving as well. Litecoin rewards are currently 6.25 coins per block, having last been reduced in August 2023. Litecoin gets halved every 840,000 blocks and is scheduled to produce 84 million coins, compared to Bitcoin’s 21 million.^[2]

Ethereum Classic, established as the original Ethereum blockchain code following a 2016 fork that split the blockchain into Ethereum (ETH) and Ethereum Classic (ETC), uses an event called the “fifthening,” which lowers the block rewards by one-fifth, or 20%, every five million blocks.^[3]

What Real Miners Are Saying

In a general sense, overall sentiment around the crypto industry is that it may still worth it to mine crypto, assuming you have the correct equipment, know what you’re getting into, and have access to relatively inexpensive electricity.

Again, it’s more competitive, and rewards are diminishing, so it’s not quite as simple, easy, or necessarily as profitable as it once was.

Is Crypto Mining Profitable?

As noted, crypto mining can still be profitable. But it isn’t for everyone. There are a lot of things to take into consideration.

The Unavoidable Costs

If you plan to try crypto mining on your own, here are some things to consider:

•   Equipment cost

•   Electricity cost

•   The time it will take to recoup equipment costs

•   How BTC price fluctuations (or that of other crypto) might impact profitability

•   The frequency with which you will need to buy newer, more powerful machines and sell old ones

There may be additional things to consider, too, but this is an initial list to consider.

How to Calculate Your Potential ROI

To determine your potential returns from crypto mining, you’ll need to first assess how much income you may be able to generate from mining a specific cryptocurrency.

The rewards you could potentially earn from mining different cryptocurrencies can vary dramatically. Bitcoin miners that successfully validate a new block on Bitcoin’s blockchain will earn 3.125 BTC, currently. As mentioned above, that reward will be reduced during the next halving, and be aware that it is very unlikely for an individual to mine a single Bitcoin on their own, given the vast computational power required.

Rewards for other proof-of-work cryptocurrencies may also change over time, as with Litecoin and Ethereum Classic. Similar to Bitcoin mining, altcoin miners may be most successful when working in teams or mining pools — groups that combine their computer power to mine collaboratively — though keep in mind that rewards are split up between parties.

For every PoW cryptocurrency you may be interested in mining, you’ll also need to know how much you’ll spend on mining equipment, and how much you’re paying for electricity to get a sense of a potential return on your money. That will vary depending on many factors. But with those figures in-hand, you can make an educated guess as to how much crypto rewards you could actually mine for a given cryptocurrency, and then calculate a potential return.

Best Cryptocurrencies to Mine in 2025

For those who choose to undertake the potentially costly task of mining crypto, the best cryptocurrency to mine might be the one with the lowest difficulty and highest price. But it’s critical to remember that these dynamics are in a constant state of flux, so the best cryptocurrency to mine today might not be the best one to mine tomorrow.

Mining Bitcoin: A Game for Giants

While Bitcoin mining may seem lucrative given its popularity and relative value to other cryptocurrencies, there are some caveats. For instance, to mine crypto effectively and efficiently, specialized machines built and tuned specifically to mine cryptocurrencies are often required. It also requires space, and a great deal of energy, to house and cool these powerful machines that operate around the clock.

There’s also competition to consider: The mining market is dominated by large companies who secure large warehouse facilities to house their army of mining rigs. Some of these companies might run mining pools that smaller miners can contribute to in order to get a piece of some block rewards in exchange for a small fee.

This is all to say that, today, mining Bitcoin, as an individual, is rarely profitable unless someone has access to extra low-cost electricity and affordable equipment. Industrial crypto mining exists, and it’s hard to compete with their large-scale mining operations.

Top Altcoins for GPU Mining

As noted, aside from Bitcoin, there are numerous altcoins and other cryptocurrencies that can potentially be mined. GPU mining, which stands for “graphics processing units,” involves using GPUs, rather than CPUs, to process mining calculations, and they’re generally more efficient at it.

With that in mind, there are many altcoins that users can consider mining with their GPU-equipped mining rigs:

Ethereum Classic (ETC): Unlike Ethereum, which moved to a proof-of-stake consensus mechanism, Ethereum Classic still uses proof-of-work, and may be mined using GPU or ASICs hardware.

Litecoin (LTC): Initially launched in 2011 as a decentralized global payment network and “a lite version of Bitcoin,” it was designed to be faster as well as more lightweight, but its adoption has been slower than Bitcoins’. Litecoin may be mined using high-end GPUs as well as ASICs, though working in a pool may be most viable.

Dogecoin (DOGE): While mining of the popular memecoin may be most effective using an ASICs system, it’s still possible to mine Dogecoin using a powerful GPU system.

Ravencoin (RVN): Ravencoin, a fork of the Bitcoin code used to issue and exchange tokens, is actually designed so that mining is most efficient on consumer GPU systems — and resistant to ASICs systems — thanks to an algorithm it uses called KAWPOW.

In addition to GPU options, there are also still CPU-mineable coins on the market, too, which means they can be mined using a CPU, rather than a GPU or a more advanced rig. Some coins are designed primarily for CPU mining, though these are less common. GPUs generally have more processing power than CPUs, which is why more miners may want to use GPU-equipped rigs to mine. And many cryptos can be mined with either.

Risks and Alternatives for the Crypto Miner

While there are risks associated with mining, an alternative for some people may be to join a crypto mining pool. These also have costs and risks, but may be a less-risky option for some.

As for a primer: Due to the high cost and rising difficulty of mining crypto, most miners today use something called a mining pool, as mentioned previously. Participating in mining pools is considered by many to be the only way for individual miners to make any profit today, and even then it can be difficult to recoup the costs of equipment and electricity.

Within a mining pool, individual miners pool their resources together with other miners, improving their chances of mining a block and earning the rewards. When a block gets mined, the rewards are then split up among the different miners in proportion to the amount of computing power (known as hashing power) they contributed.

Mining pool owners typically charge mining fees for maintaining and participating in the pool. There are several different pools to choose from, each with their own structure.

Further, there are also cloud mining opportunities out there, which effectively allow miners to use computing resources over the internet. Miners using this strategy are renting others’ equipment, which incurs more costs. However, it’s important to vet a cloud mining platform to ensure they’re legitimate and well-reputed, as scams in this sector are an unfortunate reality.

The Major Risks Beyond Profitability

While crypto mining can be profitable in some instances, it does have its risks and downsides. Here’s a brief rundown.

•   Environmental Risks: As mentioned, crypto mining is resource-intensive. Running mining rigs eats up a lot of electricity, which, in turn, generates environmental pollution.

•   Security Risks: Malware and other security risks exist in the mining sphere, too. For instance, it’s possible that bad actors could use techniques (like phishing) to access someone’s computer, and then load mining codes and programs onto it without them knowing. As such, the victim could be sharing their computing resources and electricity mining with a hacker without even realizing it.

•   Regulatory Risks: There are new regulations affecting the crypto space (such as the Genius Act and rules around the national Bitcoin Reserve). There are likely to be more in the future. The point is that the rules and regulations surrounding crypto are in flux, and those new rules and regulations will likely affect miners.

•   Financial Risk: Crypto mining requires upfront costs, which can be substantial. You’ll need to buy a “rig,” first and foremost, and stocking up on the necessary computer power can be expensive. As with any financial plan, there are no guarantees the money you put in will pay off. Mining may not be as profitable in the future, meaning you may not see the types of returns you were hoping for longer-term.

Is Mining a Better Option Than Buying Crypto?

Whether or not mining or buying crypto is a better financial option depends on a number of factors, such as your resources, technical skills, tolerance for risk, and timeframe.

To a large extent, it comes down to how much you plan to spend on mining equipment. And it’s important to remember that the hardware needs of crypto mining is constantly evolving as older machines become obsolete, meaning that you need more processing power over time to produce the same potential results. When this happens, miners must acquire new, more advanced hardware.

In that sense, it may make sense for those without the capital and time to devote to mining to simply buy crypto directly. Keep in mind that another alternative individuals could consider is staking vs. mining crypto in order to pursue rewards.

The Takeaway

Crypto mining is still profitable in 2025 however, it may not be as profitable as it once was, and that mining operations have become more expensive to run and maintain. That’s not to say that prospective miners won’t make a profit, but there are more things to consider than in years past.

With that in mind, mining is a complex operation that carries considerable costs and risks.

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FAQ

Can I make a profit mining with just one GPU?

Possibly, but you should take into account the fact that you may spend more on a mining rig than you could see as a result of your mining efforts.

How long would it take to mine 1 Bitcoin?

There’s no single, correct answer as to how long it takes to mine a single Bitcoin in 2025. It all depends on the amount of hashing power a miner contributes, and a bit of luck. Bitcoin’s blockchain does produce one Bitcoin around every ten minutes, but for an individual miner, there’s no telling when they could receive the reward (since not all miners are rewarded when a block is validated).

How do I find out my exact electricity cost for mining?

To figure out how much you’re spending on electricity for crypto mining, you’ll need to know how much you’re paying for electricity in your specific area, and how much electricity you’re consuming specifically for mining. From there, you can calculate your exact costs, but it could still prove to be tricky.

Is cloud mining a legitimate alternative?

Cloud mining is a viable alternative to putting your money into a crypto mining rig, but know that any potential rewards will likewise be diluted. However, cloud mining scams are not uncommon, unfortunately. It’s important to thoroughly vet any service you’re considering.

Will my mining hardware become worthless in a year?

It’s possible that your mining hardware will lose value over the course of a year, and perhaps even likely.

About the author

Brian Nibley

Brian Nibley is a freelance writer, author, and investor who has been covering the cryptocurrency space since 2017. His work has appeared in publications such as MSN Money, Blockworks, Business Insider, Cointelegraph, Finance Magnates, and Newsweek. Read full bio.

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