Mining cryptocurrency investment — 30% to 50% ROI
Here to share my experience and ROI with mining cryptocurrencies
At this point we all know (hopefully) about the crazy market regarding cryptocurrencies.
The standard, easiest and fastest way to participate is by buying and selling these “crypto” assets. This works the same as stocks, and your profit will basically be related on how much you paid and how much you sold it for.
I wrote this blog post to help with buying cryptocurrency.
Now, to make these “crypto” assets even more interesting is that there is a second way on how to acquire them. This process is called mining; metaphorically similar to mining gold, you can mine Bitcoins, and when you find one it’s yours. The great aspect of this is the mathematic base, meaning that there is a direct relation between your mining power and how many coins you will be able to get. With that in place you can easily calculate the return of your investment.
One last factor to consider is that there is a limited number of coins, so this process will end at some point in the future. Also, the complexity of the mining increases along with time it takes.
Bitcoins:
- Total number of coins: 21 million
- Total coins discovered so far: 15 million
- Final year for mining: 2033
How to mine?
Approach A — Do it yourself
You can definitely do it on your own. Basically using your current hardware or buying specific hardware, installing the application, connecting it to the internet, and waiting.
This (depending on the set-up) will look similar to this:
Can I do this with my own laptop?
Advantages
- If you are into computers and hardware this could be a lot of fun
- You get 100% of the profit
- You have full control
Disadvantages
- You have to take care of it, ensuring that is always running and replacing the malfunctioning pieces
- It’s very noisy
- You have to buy the hardware, and specially pay for the electricity
- Takes a lot of space
- Difficult if you don’t know exactly how to set it up
Approach B — Use a mining service
This is the approach that I decided to follow and will be discussing in-depth having more knowledge based around it.
There are several companies offering this service. One of the biggest one, and the one that I currently use is Genesis Mining www.genesis-mining.com
They basically take care of all the trouble (hardware space and noise) for you. All you have to do is buy mining power from them and they deposit the coins into your account at the end of every day (awesome, right?).
They have their mining facilities in Iceland, where the electricity and the conditions are ideal.
Are they legitimate? I would like to think so, and in their website you can connect to a live stream to see their hardware at work (which is cool at a quick glance but will get boring).
This is my current dashboard:
As of today I own:
- 27.7 TH/s of Bitcoin
- 120.000 MH/s of Ether
- 30.000 MH/s of Dash
And my numbers so far are:
- I invested 6.822 USD
- I made 720 USD (in 1.5 months)
- Bitcoin seems to have the higher ROI for now
- My strategy is to hold the assets for now. Meaning that if ETH goes from 200 USD to 400USD the ROI will also grow.
- Most of my contracts are for 2 years. I am calculating the ROI tacking in account the investment in the first year, so actually the second one will be all profit (a big difference).
How to calculate you ROI
- Step 1: Decide the asset that you will mine and the power that you will buy
- Enter that mining power into a profit calculator
Let’s do the example with 1950 USD that gets us 15,000 GH/s for Bitcoins.
So based on this info you will be making 4,152 USD in the first year, minus the 1950 USD of the contract that will give you a ROI of 100% in the first year.
Now, this could sound too good to be true, but in reality you have to take in account the complexity increase and the maintenance fee that they charge. That is why I would advise you to look at all the numbers in the sites contract at the start. In mycase I am getting a 50% return for BTC on the first year, and the second one should be way better since I already deducted to the total cost of the contract.
IMPORTANT: all of these calculations are based on the current price of each asset, as we know those prices change every day. So it’s almost impossible to calculate what the final ROI will be in two years, and will mainly depend on the asset price (assuming that you hold that asset and don’t sell it right away). Similar to the stock market.
Conclusion
This is a high risk investment (like everything related with crypto), but also is a lot of fun. I personally love the idea of having these machines in Iceland working for me 24x7 and is great to get the payments coming in every single day. I expect to make some very good returns with this, but for sure won’t be anything too crazy.
If you are into cryptocurrencies, definitely utilize them as part of your portfolio.
Genesis
If you are going to buy any contract please use my code and we both will get a 3% off. Code: mPUxMv
