Crypto Mining 101. Back To Basics.
Everything You Need To Know About Crypto Mining
What Are Crypto Miners?
“Crypto mining” is an investment strategy which is built off new inflow of money. It has nothing to do with traditional methods of Proof-Of-Work mining (E.g Bitcoin) where hash powers are involved to mine transaction blocks.
Putting it simply, “crypto miners” (in this context) refers to the deposit of money which are 100% burned into smart contracts. In return, we will gain an expected % daily return, indefinitely. Keep in mind that these returns may fluctuate in accordance to the The Total Value Locked (TVL) in a smart contract. That is, the TVL is our source of income which increases in a bullish scenario. If that happens, we can expect the crypto miner to give its expected daily returns. One example was BNBMiner where I have previously gotten 40 days of stable returns from it.
How Many Miners Are There?
An absurdly large amount. Many of the miners we glance upon may often be of rug-pulls. This is why I always only invest in verified or audited smart contracts. Since smart contracts are immutable, if the code does not contain any suspicion of rug-pulls to begin with, the developer will benefit more from the deposit/withdrawal taxes rather than shutting down the website and ending up with nothing.
One example of an audited Crypto Mining project is SolarFarmV2.
KYC Report
Audit Report here.
The Best Strategy
The best strategy is one that we are comfortable with. Most crypto mining projects encourages us to re-invest(compound). However, this carries more risk as we do not know when will the decrease in TVL outpace the effect of compounding. For myself, I like to withdraw constantly while only compounding to keep my daily % returns constant. Be comfortable with the risk we are exposed to.
To understand more and see how I choose my miners wisely, click here.
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Disclaimer!!! The articles that I write are merely a journal of my investments and by no means financial advice(s). In my first article, I openly talk about the truth of such projects. Only Invest only what you can afford to lose and never put all your eggs into one basket.
