Passive Income from Crypto

Lbluehalk on 30/11/2017 - 12:35
Last edited 01/12/2017 - 18:04 by 1 other user

Hi Guys,

I am new to this cryptocurrency business and would like to get your opinions on how to earn passive income from booming crypto market.

Things that I have tried so far.

Mining (I have only one AMD R9 280x GPU in my gaming PC).

  1. Attempted to solo mine few coins (Unsuccessful)
  2. Selling my hashing power to nicehash.com (I was only making $1-$2 worth of BTC a day).

Buy/Sale crypto:

  1. Bought few coins for short term gains. Turns out, I was buying them when they were on highs and was selling low after getting fear of loss.
  2. Bought few more coins (NEO, GAS, OMG, GOLEM, POWR, SC, NEM, MaidSafeCoin) for long term, but from the looks of it. I will end up in loss as they don't seem to be moving much.
  3. Everyone advised me to only put in the amount which I am ready to lose, as such I have invested about $3000 on BTC at $10000 AUD price, and only have invested about $500 worth on above altcoins.

So far, I have made a loss.

Any suggestion or advise on how I can turn this in profit or low passive income.

Financial

Comments

      • darkmattersunB6c0MV on 03/12/2017 - 12:56

        Yes, will talk to an accountant. Thanks.

        • idonotknowwhy on 04/12/2017 - 09:36
          +1

          Be careful, I've had 3 paid accountants tell me different things.

          I think it's easier to just hold for another 10 years, wait for the traditional currency / tax system to collapse, and then never have to pay tax on it ;)

    • mit on 03/12/2017 - 22:39
      +1

      Not an accountant either but have spoken to mine about this. As soon as you said 'trading' that generally implies moving goods for profit (ie. investment) so it's generally taxable similar to stocks. Profit is 100% taxable within 12 months of buying or 50% therafter.

      That personal use scenario seems to be applicable only to the minority in Australia anyway. I would interpret that as buying your groceries or paying bills with cryptocurrency. I don't know of any stores that do that yet.

      You only pay tax on the profit so you're plan to avoid tax makes sense. The chance that all this may be the same when you retire is another story.

  • freakatronic on 03/12/2017 - 13:18
    -5

    People mistake cryptos for money and even worse, mistake cryptos for investments. Crypto currency is made for one reason - to make an easy job of fleecing the unwary. They sell the lack of regulatory oversight as your freedom, when all it means is there will be no help for you if/when you're scammed.
    There is no current use case for a crypto that isn't better fulfilled by actual money, outside of scamming, piracy, paying people on government watchlists, and purchasing narcotics. Cryptos are unwieldy, awkward to use, and have transaction fees that would make EA blush. The transaction fee is only if your transaction makes it onto the block, which is no sure thing. So it's like you try to pay for something, but you don't know how much extra to pay for what you're trying to pay for. You need to pay to even pay! Not to mention price volatility; while you pay you may find you the price has changed already.
    As for investing, the market capitalisation of cryptos is so small that they are extremely vulnerable to manipulation by large players. Silly little plebs like me think that BTC at $10k is too expensive, but Goldman Sachs can move the GDP of a small European nation into BTC one afternoon and send it vertical. And again, thanks to all the "freedom" from regulation that cryptos enjoy, there's no one who can stop such manipulation.

    I do think though, the future will be in virtual currency, but it will be one made by a government and forced onto the populace when all of their paper currencies have collapsed. End rant.

    • h0mbre on 03/12/2017 - 16:26
      +1

      Ignorant ramblings….
      An intelligent person treats crypto for what it is, a speculative investment.
      I have made many speculative investments, some pay off and some don't.

      Crypto is fine and can be quite lucrative for those who do their research, are patient and never invest more than they can afford to lose.

      • freakatronic on 03/12/2017 - 18:35

        What part of what I wrote is ignorant? Care to rebut any of my point properly?

  • Kozhutki on 03/12/2017 - 14:34
    +1

    Whatever you do, get an offline wallet. Do not store your coins on the exchange. If possible buy a physical wallet (ledger nano)

  • dangerdanger on 03/12/2017 - 21:24
    +1

    Yeah I'm all for it too. Can you tell me how to make bucket loads of money, with no effort, for the rest of my life?

    All that, while eating my smashed avocado sandwich.

  • [Deactivated] on 04/12/2017 - 00:05
    +5

    I don't think OP knows what passive income means.

  • navegante88 on 04/12/2017 - 12:49

    What are people using to purchase their BTC / Eth ? I am using coinbase but not sure if there are better alternatives out there? (currently no ability to sell bitcoins yet in AUS with coinbase)

    • SnakeCasablanca on 04/12/2017 - 14:20
      +1

      Im using Independent Reserve. I bought a small amount of Eth a few months ago on Coinbase and sent it to BTCMarkets because I couldnt cash out using Coinbase.

      But I don't believe that you can sell / buy Eth on BTCMarkets (Happy to be wrong on that) atm.

      I transferred my Eth to Independent Reserve who a friend had done a cash in / buy / sell / cash out test transactions to an Aussie bank account so felt comfortable with that knowledge.

      • navegante88 on 04/12/2017 - 15:35

        Thanks for letting me know, I'll look into it

      • dust on 04/12/2017 - 16:24
        +1

        You can definitely buy/sell ETH on BTCMarkets.

        • SnakeCasablanca on 04/12/2017 - 17:23

          Fair enough. Id go with that.

          Maybe I just didnt work it out. :)

  • malouphix on 04/12/2017 - 17:14

    Has anyone reading this made any decent money on cryptocurrency?

    • dust on 05/12/2017 - 09:38
      +2

      Honestly in this current bull market a monkey executing random trades could be in the black!

  • [Deactivated] on 04/12/2017 - 17:36
    -5

    I wouldn't recommend playing with Crypto anymore unless you are buying drugs, in which case you should probably use a currency that is less volatile so you don't end up buying at a higher price than when you are buying your drug.

    It's not worth it in terms of future % gains.

    It needs a lot more injection from investor capital in terms of $m because of the market cap.

    You cannot become a billionaire or even millionaire from $1000 because the gains would have to be several factors. Bitcoin would have to go to $10 million for you to get millionaire status. lol… It is actually better to play some emerging market economy stock's, one of the larger economies ran up a 50% gain this year to date with what I would have regarded as little to no risk compared to bitcoin because the news basically told everyone what was going to happen.

    Now I think bitcoin might go up to $20k if people are crazy enough, but it sure isn't going to get to $10 million to turn that $1k into $1m like everyone keeps talking about. You need to buy it when it is in the cents or dollars to get a large percentage gain. It's simple math.

    The only reason to buy bitcoin is if you like the idea of holding the Purest of the Fiat currencies. Literally backed by nothing.

    The blockchain technology only works because it uses cryptography. If you try and apply those same principles to land titles or another asset, it fails because you need consensus. How many miners or verification people do we need to ensure enough consensus to allow blockchain technology to be used in. It's not going to change anything. In fact, it won't work at all because a few scammers and collude together with their keys and you are screwed. Furthermore, new players (ordinary people who decide to become part of the real life blockchain system) aren't going to go down to the road in Haymarket and check if the owner has sold or not, any bank transfers because that is "Private information"; or any transactional information which would most likely be concealed in normal transfer situations.

    Blockchain technology only works because there is a solution in the crypto that can be verified by anyone. In real life can normal people confirm transactions if there is no known solution, but only a format of potential solutions (which may include fake transactions). e.g. There is no quick method to actually confirm if any transaction was legitimate or not. It takes time and you would need at least 50% of participants to confirm the transaction. If enough people decide to participate, e.g. several hundreds of thousands. That would lead to a lot of redundancy, but I guess it would fix fraud (but unless the participants converge to 100% of the world population there is still an issue).

    The problem is the technology doesn't really help us at all. It duplicates what can already be done. We could require 100 more people to confirm a land title transfer and it still might not be fraud free. That's the problem with our society and the inherent problem of the technology.

    There is so much fraud in this world, it sucks. Blockchain technology doesn't even solve it sadly.

    I've done a lot of research into how blockchain technology could improve things but the whole issue still comes down to how much redundancy is required to prevent a bad actor/bad actors . We would also lose a lot of privacy if we needed to blockchain confirmation a lot of material in our lives to provide enough evidence of certain actions.

    • educalifa on 04/12/2017 - 21:48

      There's so much wrong with just about everything you mentioned that is almost like you just made it all up without ever researching it…

      • A fish on 05/12/2017 - 00:27
        -1

        It was a good lol at least

      • [Deactivated] on 05/12/2017 - 13:27
        -1

        You do realise blockchain technology doesn't really work in other situations.

        The only reason it works is because of the verifiable solution of crypto. It allows others to verify. If you cannot verify then it really isn't a blockchain because it requires some sort of proof.

        You cannot apply the same principles to other areas of transactions.

        You need to do more research into the topic…

        sigh

        Can you give any examples of where blockchain can work? There aren't any, because there aren't going to be any in the future.

        Sadly your rebuttal seems to have no examples. Basically confirming what I have written above.

        Bitcoin no offence is like the Banners Brokers ponzi push. I think you guys have already seen how their marketing looks good and glossy but underneath it, there are no advertising contracts that are being taken out. It's all just fraud.

        Take a look at Banners Broker's marketing material before it collapsed. There are so many similarities it is funny. So much misinformation.

        Think about what is blockchain technology. You'll soon find out that it isn't all what they market it as.

        Why do you think it works without any verifying entity sitting at the top of the hierarchy? Because there is a known mathematical solution that is literally brute forced and can be confirmed by other participants. How you do transfer these principles to other contracts?

        I'm writing this in laymans terms, but you should get the gist. There is actually a paper written about this by a famous cryptologist. I'll try to find it. I didn't come up with this myself. I'm merely reiterating the same material but in everyday language. It goes into explaining why it works unlike the bitcoin white paper which is too streamlined to the point where it is misleading.

        The only thing new is apparently the ledger, but we already have transactional ledgers like the land titles registry, bank accounts. Anonymity might be something new, but it is only anonymous up to a certain point, it is like a criminal drug drop, it is only anonymous up to the point where you make contact with another person. The exchanges are another weak point. Even Monero has it's flaws.

        So all the talk that enthusiasts put up as arguments is debunked easily.

        I'm not saying don't speculate with bitcoin, but know it isn't the golden goose of technology that it is being framed as. It's a good gambling tool. Just know, the technology is not what people are talking it up to be. It's not the next artificial intelligence, that can be improved and has a clear pathway to success through mathematical modelling and doesn't need to be perfect, but can work with imprecise models. Blockchain technology is doomed to fail due to the lack of applicability to real life as it needs to guarantee the transactional information is correct, otherwise by definition the transactions shouldn't be irreversible. (By the way, they aren't if the developers decide to take control, but that is irrelevant when talking about the technology itself).

        So, you create this ledger where you allow fraud to happen but not allow any recourse. That's what the technology would be if you have people incorrectly verifying information (not deliberately, but because they don't have enough time or expertise) because of the sheer amount of processing that needs to be done, by real life actors.

        Otherwise the transaction confirmation time will approach time-> infinity. Do you understand that? It can work, but time to process is going to converge to infinity to get enough consensus in the blockchain's participants. In which case it is guaranteed but very inefficient.

  • dankl on 04/12/2017 - 18:17

    Look into coins that provide passive income for holding. NEO gives you GAS for holding, and its around 6% PA returns. ARK gives you ARK for delegate voting, and you get around 10% PA returns.

    • [Deactivated] on 05/12/2017 - 13:50
      -2

      That ponzi scheme assumes new people investing all the time.

      Have you taken a look at any of the coins that have unlimited supply? One is primecoin, that has basically failed. Supply increases, but the price ultimately falls due to more coins being introduced.

      There is no reason for the 5% return of coins will to lead to a 5% increase your net worth, wrt to the coin of interest.

      If the market cap is remaining constant at $100m for example (purely fictional), then the amount of coins increasing should only in effect lead to a decrease in the amount paid for a coin.

      The returns you get from staking are different from the returns you get from new players deciding to speculate into the currency. Without new participants, the ponzi scheme collapses.

      Basically TLDR;

      Staking Returns
      Speculative Returns

      Both are different. Just like POW mining returns and current speculative returns.

      You also need something like a rpi to optimise your electricity usage.

      Again. Do your own research.

      Remember you are holding the Purest of Fiat Currencies. Not even backed by a government which can throw you in jail and other nasty shit that a government can do. It isn't backed by the technology; that's just an illusion. (BTW the technology has very few if any applicable real life applications).

      If you are anti-government, cryptocurrency isn't the saviour… Sadly.

      • dankl on 07/12/2017 - 10:42
        -1

        I think you need to do some more research…. NEO has a fixed supply, the returns you get from staking come from transaction fees. You don't even need to have a computer running, so there's no electricity usage.

        • [Deactivated] on 07/12/2017 - 13:55
          -1

          Yeah, exactly, that's why I referenced Primecoin.

          The supply just increases to infinity; thus I would like you to explain why the price would go up.

          They all have a pseudo-coin cap. If you actually do the math behind it.

          Fixed supply or not, it doesn't really matter.

          It's a direct comparison.

          Never have I stated anything has a fixed supply. Only a reference to the market cap.

          Definition from Daddy Google.

          Market cap, also known as market capitalization is the total market value of all of a company's outstanding shares. It is also incorrectly known to some as what the company is really worth, or in other words the value of the business.

          In other words, wrt to crypto, the total value of the currency pool.

        • [Deactivated] on 07/12/2017 - 14:04
          +1

          TLDR;
          Irrelevant

  • [Deactivated] on 07/12/2017 - 14:00

    So many people that don't understand cryptocurrency thinking it is some magical bullet for a passive income stream…

    Quite remarkable, but then again people have been investing in ponzi schemes for ages.

    Deliberately investing in ponzi schemes with a goal to get out before it blows up.

  • ELH05 on 07/12/2017 - 18:08

    It worries me the amount of people on my facebook feed that are so selling these so called Bitcoin packages telling their friends (including me) to buy Bitcoin in their group. They post pictures/sayings/quotes bordering on financial advice (when have not an ounce of financial background) to their friends list to get them on their team - basically like a pyramid scheme. The packages are $85 and then the more people you get in your team, they automatically rebuy more - something like this anyway from what I read and have gathered.

    • idonotknowwhy on 20/12/2017 - 13:10

      What is this? I hadn't heard of it. It certainly sounds like a scam, but I'm curious about how this particular scam works.

      There's no reason to, or need to group-buy a crypto currency* as they break down into really tiny amounts. You could; for example, buy $85 worth of bitcoin.
      With an amount that small, you could even leave it on the exchange (avoiding transfer fees) with relatively low impact if the exchange loses it.

      • The only legitimate reason I can think of to do this, would be to get like 100 people to each chip-in $10,000 to buy a dash masternode or similar, and split the profits. But even that is a terrible idea.
      • ELH05 on 20/12/2017 - 13:58
        +1

        Look into USI-Tech - these are the accounts my friend is flogging to all her friends on FB. She has people under her - MLM

        • GregMonarch on 23/12/2017 - 17:58

          They're supposed to be posting various info that proves their legitimacy in Feb. Guess we'll see.

Login or Join to leave a comment
Login Join