Tuesday 10 October 2017

Cryptocurrency corner

As i was mentioning in some past posts, there are many opportunities with bitcoin and his alt-coins. Any other digital coin except bitcoin it is called an alt-coin. The ones worth trading right now are bitcoin, ethereum and litecoin.

The main option to make a profit are:

1. Day trading, as they are very volatile. If you plan to become a day trader, be vary of the fees charged by your exchange. I am using Coinbase to store the biggest amount of the digital currency, because i can send money from and into it using my bank account, and also because they have the vault option, where you can protect your coins from a hacking attack. But there are other options too, even if they lack some of the choices offered by the exchange mentioned before.

2. Mining - can be solo-mining, using your computer (which it is not efficient anymore because of the increased difficulty of the block-chain) or dedicated equipment (such as Ant-Miner S9). The second option is pool-mining, where more individuals join together and share the benefits and the risks. The last option is the cloud-mining, where you buy mining power from somebody else, in exchange of an amount of money (which can include the rent, the daily maintenance fee or the transaction fee). Most of the contracts offered today are slightly over or under the money paid for mining, and they can be for life (meaning they run as long as the company is getting some profit) or for 1-2 years. You can find online calculators to check their return on investment. But there are always alternatives, and you can make your own mining farm if you have a room available, and some solar panels or a eolian windmill to get free electricity, just to give an example.

3. Faucets - but this is only to experiment with the cryptocurrencies, as we are talking about a small amount. I was talking about this here.

My idea is to redirect the profit obtained from cryptocurrency to classical ways as shares, Ratesetter P2P lending and TheHouseCrowd real estate crowd-funding, to name a few options.

No comments:

Post a Comment