Crypto mines can be an expensive operation. What is the blockchain? You need to be able to track all of your trades and have the up-to-the-minute fiat conversion value, as well as the crypto amount. Thank you for your feedback! There are a number of companies specializing in crypto taxes that make this whole process simple, and affordable. In the rare cases where a cloud mining contract turns out to be profitable, it will have been more profitable to simply buy cryptocurrency instead of cloud mining. Bitcoin mining difficulty will usually only drop if Bitcoin prices do, but if that happens then your Bitcoin is worth less, which also pushes back the breakeven point.