Investing in cryptocurrency mining can be a costly decision. How do you know whether or not your venture will be profitable? And if so, how profitable will it be? In this post, I’ll break down how to calculate the revenues and costs of mining, and how to assess whether or not investing in miners is the right choice for you.

Let’s start by learning how to calculate total revenues and total costs, while utilizing a real-world example.

Revenue

When mining, your main (and only) revenue stream is the value of the cryptocurrency you mine. To start, you need to consider which…


Sentiment analysis is one of the most important tools available to a technical trader. However, it seems that some traders, especially newer ones, have trouble understanding how to properly utilize sentiment analysis.

There are three primary ways an investor can use interpret sentiment:

1: To reveal what positions investors have already taken

2: To determine what positions undecided investors might take

3: To indicate a possible expansion of the investor pool

Method 1

One common mistake new traders make is they assume that an asset with very positive sentiment is likely to rise. The mistake is understandable; it would make sense that…


One defining feature of the altcoin market is the high directional correlation between different altcoins. However, I hadn’t seen anyone actually run calculations to see just how inter-correlated altcoins truly were.

I decided to compare the inter-correlation of a basket of traditional assets with a basket of cryptocurrencies. I used the 30 composite stocks of the Dow Jones Industrial Average as a proxy for traditional assets, and I used the selection of coins listed on coinmetrics.io¹ as a sample of the broader cryptocurrency market. …


(Note: This article includes several technical terms. If you are confused about any words or phrases used in this article, I strongly advise looking them up on Investopedia or a similar service. If you are still confused, feel free to reach out and ask me, ideally through Twitter.)

One of the hardest aspects of trading is determining what to buy and when to buy it. There are several different approaches an investor can take when making trading decisions. …


Recently, there has been some debate over whether altcoin traders should measure their returns in terms of USD or BTC. While most alts are traded against BTC, the end goal of most traders is to increase their USD balance. In this post, I intend to provide my reasoning for why altcoin traders should strive solely to increase their BTC balance.

One of the primary goals of investing is to maximize your risk-adjusted rate of return. In essence, that means you should be seeking to achieve the highest return possible, while accounting for risk. …


Note: Before reading this post, please read Minneapolis Fed President Neel Kashkari’s blog post published on June 16, regarding his dissenting vote on the FOMC’s most recent decision to raise the federal funds target range by 25 basis points: https://medium.com/@neelkashkari/why-i-dissented-again-b8579ab664b7

Neel Kashkari has cast the lone dissenting vote for both of the Fed’s rate hikes in 2017. His post-meeting blog posts on Medium have been helpful in understanding the reasoning behind his dissents. While he makes some good points, there are some key flaws in his analysis. In this post, I attempt to break down his analysis and interpretation of…

Ethan

Ex-cryptocurrency trader fascinated with financial markets and the future of money.

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