I'm still 16 and got about 2k saved up and was thinking about my future so I stumbled upon some youtube videos claiming they made 1500% profit from investing in cryptocurrency primarly ethereum and bitcoin and I got excited. I'm just wonding if my small pool of money is even enough to invest in any coins and if it's worth the risk. I've got a 1070 rig rn maybe mine? I just want to jump on this craze before it's too late in the future and I have regrets but I need ozbargain expertise on these cryptocurencies. I heard they're value is very volatile but if we're talking about 1500% increases I'm all for it baby.
Info on Ethereum, Bitcoin Mining and Investing
chinanumberone on 13/06/2017 - 23:00
Comments
Essentially, it's an extremely secure method of logging transactions.
The benefit? Secure transfer of tokens from one owner to another.
It's just like cash (sheets of plastic have practically no intrinsic value), except if your cash had a password and no-one could just take it out of your hand without your permission.
The whole mining thing is complex maths, but you can think of it as if you help run the transaction logging system, you get a reward.
You don't have to hold these altcoins/shitcoin that you mine though.
With a little ruby scripting, you can have your mining profits sold automatically, and sent to your bank account.
Have a look at the sort of ratios we're talking about:https://whattomine.com/coins/151-eth-ethash?utf8=✓&hr=75&p=350&fee=0.0&cost=0.18&hcost=1000&commit=Calculate
As you can see, Spend $11 / week on power; and profit $94 with a small rig of 3 x RX470's
But as that link I posted below says, investing in mining equipment and investing in an altcoin/bitcoin are 2 investments.
Perhaps you are right. And perhaps fiat currency is a bigger scam. I suppose it depends on what economic school of thought you follow. https://www.youtube.com/watch?v=iFDe5kUUyT0
Maybe do some research on Zcash if you're using a 1070 for mining. Relatively profitable for the moment (especially since you already have the hardware).
ZClassic is more profitable right now.
Thanks, might give it a try! Can't find much information on it though.
I made a few $1000 by investing in bitcoin, but I invested a lot into it too.
Rather than value, you need to find a percentage gain you're happy with. For me that was 50%.
Don't invest now, it'll end in tears. Wait until it's the same price for 3 months in a row. It'll look like it's down and out and never going to happen again. That's the best time to buy it!
@blasterbot999: I don't know if these have been said, but here are some important notes from a fellow altcoin miner:
Fact: Ethereum and Zcash are the biggest coins people are mining right now. Soon, Ethereum will switch off mining for "proof of stake", where you get rewarded for holding.
Prediction: This will force all the Ethereum miners onto other coins, skyrocketing their difficulty. It will also reduce their prices a little, as people will be auto-dumping these coins to buy eth.
Might not be a good time to get onboard with mining.
http://www.coindesk.com/ethereums-big-switch-the-new-roadmap…If you want to invest in a coin because you think it'll give you 1500%, you should buy the coin. Mining is a separate investment where you get paid in AUD. Always mine what's most profitable and sell for AUD. Choosing to hold the coin you mine is equivilent to choosing to purchase a small amount of that coin, for the market rate, a few times per day.
https://steemit.com/mining/@rejoys/crypto-mining-as-an-inves… (more on that concept)
https://whattomine.com (a calculator to tell you what to mine, and when to expect ROI on your hardware. Inaccurate though because the difficulty and price are variable)
https://www.livingroomofsatoshi.com (a simple way to cash out your mining for AUD. They told me recently that they're going to add Zcash soon)Do NOT store your crypto in exchanges or 'web wallets'. If you want to trade, put your coin in, trade, get out. I've lost thousands on various exchanges either getting 'hacked' or disappearing entirely.
Don't invest anything you're not willing to lose entirely. Cryptos are very volatile, and full of amateur investors who panic.
Other notes:
- Don't trust people in exchange tollboxes or slack telling you to buy or sell. If they say "SELL", they're trying to buy. If they say "BUY", they're trying to sell.
- If I'm unsure about selling, I'll sometimes sell half. Limits regrets either way the market goes.
- Jaxx is an easy to use wallet which does BTC, ETH, ZEC and a few others.
- Short-term, I think a correction is coming for crypto, but I'm holding long-term.
Threads like this are always an indication that it's time to sell. OP, please don't drink the cool-aid that's being pushed in this thread. If you want to gamble, go ahead, but you should note that crypto-currencies barely have any functional use-cases at the moment. They are based on distributed ledger technologies (which some individuals call the "blockchain"), and that concept has existed since the 1970's - it is nothing new. There's an enormous raft of issues with this technology that have yet to be resolved (if possible at all) since it was first introduced.
It's too complicated to go into detail, but I'd recommend listening to this lecture on governance issues surrounding the "block chain". I don't agree with everything in that, but it's a good place to start for a nuanced discussion. Regardless of that, history tells us that the cipher block chain is inherently insecure. Eth is currently attempting to solve that issue by allowing its chain to change the hash, but that idea isn't looking practical.
Only invest in such a speculative investment if you can afford to loose the money. In my opinion, there are too many new crypto currencies that the market will have a choice which one to use. What happens when there are too many choices in the market, the companies drop their prices to capture market share. What is the end result, prices will fall.
Another thing is, research shows that most people that have invested in Bitcoins don't actually use them to buy things, it is a specualtive investment. So questions is, is there a current demand to actually use the bitcoins (and others) as a currency when buying things?
Latest thing in the us is potcoins and dopecoins ;—) Where does it end? Ozbargain Coins ha ha ha…
You said it. When I see the range of crazily optimistic players on this site who have little knowledge, no history and less judgement: but they can all talk the BS talk.
I reckon they wouldn't be worth 20 between them btw.These are the type of people who form the basis of the current value of cryptos.
When it all falls apart they will be scattered to the winds with zero capital.
Seen it all before.
They'll panic and run for the exits but it will be too late.
Easy come easy go.
Looks like OP is hell bent on losing his too so why bother giving advice.
Yep. Seriously OP, put your 2k on black seeing that's what you're planning to do with Crypto anyway.
Did I say black? I meant red. Nah go black.
Right now I've got 25 ripple in gatehub. How safe do you think that is? Whats the best way to store it?
It's not. And when it's worth nothing it won't matter where you keep it.
I got it for free so I don't mind but if I was to deposit it as cash into my bank from gatehub how would I do that?
Whats the best way to store it?
Sell it for a decentralized crypto such as zcash via bittrex, then store it in a wallet on your computer (and back it up).If you really want to cash out to old-world-money, just sell to bitcoin on bittrex, then send it to your bank account via: https://www.livingroomofsatoshi.com
Good luck to you. I've invested about $800 into crypto for fun about 1.5 months ago and bought some DGB when it was 117 satoshi. I saw it rise all the way up to ~2600 satoshi only to plummet back down to ~950 satoshi all within a couple of weeks. Haters will hate, hypers will hype and I'll continue to #hodl.
Cryptocurrency Mining vs. Bitcoin Mining Profitability
https://www.coinwarz.com/cryptocurrency/?sha256hr=9460.00&sh…
You will probably make money at first and then eventually lose it. At least it will be a relatively cheap early life lesson. The most important thing I can suggest is that you commit to coming back and reading all this again after your speculative adventure.
Commited :)
When Crypto is getting this much attention on Ozb you know you are nearing the top, time to scale out of my longs. Enjoy being the next gen of bag holders for 2+ years, if you last.
Do not keep coins in any sort of exchange, lots of people have lost a lot of money through cryptos and exchanges, just look at MtGox, Ethereum is very vulnerable at the moment and is experiencing a lot of what BTC went through in the early stages.
Keep your coins to your self!
What are your suggestions for storage? I've purchased coins through CoinJar previously for purchases - is it not safe to store in something like this if I wanted to invest?
wth is going on with LTC?
I am waiting for ETC surge.Just a another question if one is holding ETC in its BTC account is it secure or better of transferring them to your wallet?
What wallet should I use and is it fee free?Ive been curious about mining a few years ago but it looked like burn through more power then earning back then.
Our house runs on solar in the day I think 7KW worth of panels and obviously switches at night.
Signed up for a NiceHash wallet and NiceHash Miner this morning running my old main computer - i7 2600K with Ati Radeon R9 390. Its scoring 29.035Mh/s average and according to the program numbers will make 7.07AU/Day.
Not knowing much about these things - how are those stats looking? Is it worth keeping it running?Your R9 will consume around 323 watts of power, according to this page: https://www.techpowerup.com/reviews/Powercolor/R9_390_PCS_Pl…
Add another 100w or so for the rest of the system (i7 isn't power efficient for mining, the cheapest/slowest CPU is best). So about 10kWh power consumption per day, or maybe $3 in power, minus whatever power production is offset by solar during the day.
So $4 per day. Not bad. The downsides are you're going to be consuming more than 11kWh per day on average, so any power use after that is bumped up in price by most energy providers. Since the gfx card is being run 24/7 at 100% it's also more likely to fail. It's up to you to weigh up whether it's worth it.
The big unknown is what the price of ETH will be when you go to sell them. It's $4 profit at current prices, but if ETH booms in price you could effectively be making much more than that per day. Or much less, if ETH tanks.
Thanks Cluster
Running the numbers and and what my systems earned it makes me want to play even more in the mining game and build myself a 6-7 GPU dedicated system both for fun and profit. Building the system is the easy part (Looks about $3000-3500AU for parts and OS)then moving beyond NiceHash Miner maybe the learning curve.
But quick numbers scaling up from what I currently have and can see.-$3500 (6 x ATI 580 GPU Rig 160-175Mh/s - Estimated 1-2year lifespan)
+$16000/Year ($7.5AU/card based on average stats on NiceHash Miner after 24hrs)
-$2256/Year Power at $0.24kW on 1100w Rig without counting solar
$10244 Earned on the first year + 178% gain on Investment before tax.
Do these numbers seem realistic or should I expect much more or less return?You also need to factor in the rising difficulty in mining.
https://www.coinwarz.com/difficulty-charts/ethereum-difficul…
The number of hashes being generated is doubling every month, and the rate appears to be getting faster. That means after a month you will be producing half the Eth you were making a month ago, and in another month's time half again. I doubt anyone in Australia is going to be mining in 6 months time as we're paying far more for electricity than anyone in China and the USA.
The counter point to that is Eth value may keep going up, compensating for the dwindling amount of Eth you're generating. But if Bitcoin mining is anything to go by, miners in China will be happy to eek out a dollar per day per miner while paying 5 cents for power. Many miners continue to run at a loss in the hopes of future price appreciation making their mining today profitable.
Eth is also designed to switch from a mining to proof of stake system early next year. Nobody will be mining Eth in a year's time.
You may earn $100k in mining, or $1k, or run at a loss. No one really knows.
On solar with equipment you already own, absolutely why not. I'm doing it without solar and just eating the electricity cost because I want some skin in the crypto game, I will be investing a small disposable amount across a few projects I've researched shortly, not sure which yet there is a LOT of reading to be done in this space to make any kind of informed decisions.
I still don't get this bitcoin stuff. Where is the money value coming from?
From Huffington post - now remember they gave Hilary Clinton a 98.9% chance of winning……..so not always right - but interesting reading
http://www.huffingtonpost.com/ameer-rosic-/7-incredible-bene…
http://www.huffingtonpost.com/ameer-rosic-/why-bitcoin-could…The value is from people buying it. It's like purchasing a stock when lots of people buy it it's called a pump and it's due to people believing in its future value. Many people believe the banking system is flawed and that bitcoin will change how we send and receive money plus instant access to funding for poor countries and disaster relief
What about the "mine life"? Definitely pre-determined if someone coded it. Who made the mine?
The guy who invented bitcoin is unknown. It probably wasn't predetermined to make people millionaires but it was a reward for the people who contributed their pc power into their system and who would've guessed that the price would increase 5000% in less than 10 years
Are you sure you're 16 mate? Your english, grammar, sentence structure is on point!
Pretty switched on. Hope you kill the crypto currency.
Thanks!! I hope it will pay off one day and help my parents pay off the house. My english is pretty bad actually…I only get around average for my essays hahaha just being on ozbargain and seeing how the educated people talk just somehow improves my sentence structure, don't want to be the odd one who's using slang and sounding stupid
As some have pointed out if you want to invest and make money the sensible way go into more tradittional investments. It seems at your age you want the quick money, and hey you said it yourself : " I just want to jump on this craze before it's too late in the future and I have regrets but I need ozbargain expertise on these cryptocurencies."
Key emphasis on "this craze". And that's what it is. You might make more money not being out the door, but in the end when this pops or goes to shit, if you dont' get it right you'll lose your hard earned cash. And sadly, the only way a young person like yourself is ever going to learn a lesson is getting burned by these 'easy cash' rewards. Hey, like some said some people socked away a few dimes on this years ago and are millionaires now. Could it happen to some - it has - does it happen to most: no it wont, and it never will. Because that's just how the world is. If not we'd all be millionaires - and that is not theoretically possible all else constant.
So two words of advice: with that little money (<$2k) keep your hard earned and invest in aw hle book case of investing books, educate yourself and learn about investing if you are that keen to make money. If you have no interest in this or the 'boring' whole market etf funds , direct shares , or other properties, then basically your just looking for a punt, aka. gamble and easy money. Just make up your mind which one you are - and keep in mind if you go with the latter you are fully responsible IF you lose a whole chunk of money. If you don't - hey great, but these schemes are few and far between in going in your favour all the time. When you get burnt you'll finally know why there is no such thing as free/easy money for the average joe.
10 days back I spent 10k on these currencies , mainly on ether via btcmarkets, one of the best site with lower fees. I already some gain but prepared to hold this for 2 years time. This will determine if my kid will go to private or public school :)
Could you point me to some of the currencies you invested in mate? Were they cheap or expensive ones like bitcoin or ethereum, Cheers
Don't do it. You will need that money later on. I have worked a lot when I was in your situation and I can tell you that money will be used later for good use. Invest the time and money in your future and education. When you have 50k spare then you can invest 2k on this or shares.
I don't think 2k is going to be much and one of the comments pointed out that I'll be making money for the rest of my life so why not experiment right now and maybe I might get lucky? I know there's a possibility that I might lose it all but what if in the future bitcoin or ethereum becomes mainstream and they are going for 50k each. The ones that didn't jump in will be the losers
I see where you are coming from. Just be aware of the risks and educate yourself if you are going to be investing. If you start losing just pull out. This is a double edged sword, if you start losing money and you keep on investing then you will be going towards bankruptcy and this is commonly known as gambling or online gambling in this case. You never know some investments do turn out great. All the best.
Fully aware of the risks. Ive taken "dont chase your loses" to the heart and live by it. The chances is greater than gambling because if you educate yourself right here it could be more than a 50% chance of return. Made my first 5 bucks today haha
I bought in just before the huge upswing, so I was able to get a few 580s. I've topped up since with some used 290s and 390s I've gotten off Gumtree for under $250.
All up I've spent about $2500 to get around $300 per week returns. Since the returns are actually in Bitcoin (using Nicehash, so selling hashpower instead of mining directly), many weeks of what was originally $300 return is now a $400 return.
Electricity is included in my rent, but even then the returns would more than cover it anyway. At current rates, power costs are about 10% of returns.
Now here are the bad bits:
* I live in a studio unit, so it's like being in a server room 24/7. The heat and noise output is considerable
* It's 17c outside and I have to run my AC whenever I'm home to make it livable
* Difficulty is increasing. Selling hashpower instead of mining direct keeps returns slightly more consistent, but they're still decreasing over time
* The Ethereum Foundation is working on a timeline to move ETH from Proof of Work to Proof of Stake. This will kill Ethereum mining, which is generally the most profitable
* Maintenance and monitoring will take up more time than you expectedMy recommendations are:
* Do not consider it, or factor it in as a source of income. There is no stability
* Try not to pay above RRP for hardware
* Keep your hardware as cool as possible, as well as your fan RPM low as possible. It is essential to your earnings that the hardware not fail, and if things were to collapse you have the option of selling the hardware on to recover losses"Electricity is included in my rent, but even then the returns would more than cover it anyway."
Just a quick note about that. Many people on bitcoin forums boasted about having 'free' power because it was included in the rent. Problem was when the contract was renewed they were either booted out of the accomodation, told to pay for unfair and unreasonable use, or found their rent rocketed upwards.
Also a warning about running miners in small rooms, especially where you sleep:
http://www.belial.pt/permanent-brain-damage-from-bitcoin-min…
This guy got heatstroke and sustained some brain injury because of inadequate cooling. What happens if your AC stops working while you're asleep?
Interesting article. Thanks.
hey guys,
I hope everyone is making a killing at the current market conditions.blasterbot999 I thought I would check in to see how you're going - still wearing your shirt?
Hey man what shirt are you referring to? Haha it's been over a month I forgot. Well I couldn't get my debit card to deposit any crypto since I got denied every time. I started mining for a 4 days then quit. left the 10 bucks then decided to deposit it in an exchange and try out trading. Managed to trade from 400k satoshis to 1.5mil then cashed out into pillar ico tokens. That's where my crypto profile lies now, hope its headed to the moon.
I just wanted to add a comment and say that this is the thread that got me in to Cryptocurrency. I've known about BTC for several years, but never realised Cryptos had evolved beyond just currencies.
I put in 7k total over a month, and since then, I've had over 10X returns (just hit 70k - in less than 3 months!), thanks to investing in OMG, Antshares (now NEO), ZRX, DNT, and a few others. I've already cashed out my initial investment, so I'm now just trading profits. I'm looking forward to this eventually paying for a house. So thank you to the OP, cause you've made a huge difference in my life.
What service do you use to buy/ sell crypto?
I use Coinbase (starts with $200 per week cap, then moves to $2000 per week after a month), but there are good Australian alternatives with no limits such as BTCMarkets. I think the $200 cap was good for the first month since it allowed me to ease in, and not lose large amounts of money on noob investments. After buying BTC or ETH on Coinbase, I then send it to an exchange (Bittrex, Binance, Liqui, etc.) to trade the BTC/ETH for the altcoins I want.
I then use Living Room of Satoshi to cash out directly to my bank account.
Great success to you! Wish I had that much to invest, too bad I'm only 16 and can't get anything verified, sad to say I was there when neo was less than a dollar.
You can use Local Bitcoins.com to purchase if you don't think you'd be able to get verified by other places (I think?). Even if you start with 10 dollars, you could potentially increase it to 100 in a few months, then to a 1000, and so on.
I got 10 bucks off mining and turned it into 50 in one day hahaha crypto is the best
With ethereum now down almost 90% from its all time highs, I hope people have seen (as I have warned) that extrapolating future profits from mining is almost impossible. Difficulty goes up while price can plummet. That's exactly what has happened. I hope the OP didn't sink too much money into mining hardware.
^
Mind that, to bad OP was into it at a peak. Tmk it fluctuates heavily, you'd want to jump in when it's down.
Only commenting because why not
Also, if OP sees this. Any chance of an update? Admittedly curious.
Profit check?
Did you even read the suggested material on speculative bubbles? eg the Dutch Tulip craze. You need to.