My Adventure in Crypto Currency Bitcoin
So I have been looking at adding another income stream to my portfolio and decided to look at mining and trading in cryptocurrency.
For those who are not familiar with cryptocurrency, its a form of digital currency that is not governed by anyone. Completely decentralized. This means income, transactions etc are not tracked.
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According to CNBC, that means if you were to buy $100 worth of bitcoin on May 22nd 2010 – at a bargain price of $0.003 each – it would now be worth a whopping $75 million.
Read more at https://finance.nine.com.au/20...
its crazy! I actually had bitcoin wayyyyy back in the day but never thought it would get to the level it is now! I would have been an instant millionaire. UGH!!!!!
So as an early adopter of the system, I was stupified and now I'm getting back into it as there are many other coins on the market and there are some people absolutely killing it in the market.
The reason for this post is because I noticed another member talking about bitcoin and spotted a post promoting a Facebook page which evidently lead to a website that was promoting a bitcoin MLM called ICOINPRO.
AVOID ICOINPRO AT ALL COSTS
These MLM cryptocurrency businesses are terrible and they are ripping you off. Why would you bother referring people to the scheme, make a small % when the best money is made trading cryptocurrency.
Yes there is a steep learning curve but all you need is for someone to show you how to get started and you are away.
THINK LONG TERM
You dont even have to buy and sell currency. All you need to do is research the coins / companies that align themselves with your values. Look at whether the technology the coins are funding can actually solve a real world problem like decentralized cloud storage, cyber security etc, look at the reputation of the developers and then buy at the lowest price and hold for 1 - 5 years.
This is how I have built my first portfolio. Just by buying and holding I have close to tripled my initial investment!
I wont touch this portfolio until much later and reap the rewards then.
PLAY WITH WHAT YOU ARE WILLING TO LOSE
I only play with money I am willing to lose. In total I have dedicated $1000 to build my long term portfolio. I consider this as money spent.. Not lost..
IF YOU WANT TO PLAY THE SHORT GAME
If you want to become a day trader. the next wolf of wall street (without the cocaine and prison sentence of course), then you can look at day trading.
Essentially you are looking at the timeline of coins, buying when they are low and selling when they are higher than the buy in price.
Yes you can make a lot of money quickly doing this but you also run the most risk.
I am going to do this but I'm going to give myself a $200 budget to day trade. If I lose that money I'm done with day trading and will just hold my long term portfolio.
I'm hoping I figure things out and get on a good streak so I can increase my holdings in my long term portfolio!
NEXT MOVE
I am looking at building a mining computer to mine more cryptocurrency for me to invest with.
I am also considering buying some cloud mining contracts so I can diversify my portfolio.
SUMMARY
Please stay away from MLM based crypto currency schemes.. there really is no need.
If you have any questions please feel free to ask here or send me a PM. I would be more than happy to share what I have learned so far.
I'm not trying to promote any of the websites I've listed nor do I get anything by recommending them, they're just websites I've found useful.
ReplyDo your research first. There's tons of crap and scam coins. Shoot, you can make your own crypto coin for free in less than an hour. How about a Nik coin?
I'd stay away from cloud mining though (unless you're talking about pointing your miner towards a mining pool). The cloud mining realm is chocked full of ponzies and the real ones like Genesis Mining, well, let's just say you will get much better returns just buying and holding.
As far as trading, I don't have the emotional control to be successful. Oh well.
Want to see the top coins? Try out coingecko.com
My goal is to wait a little longer and then cash out for some mining equipment. Make sure you do your homework first. Your return diminishes quickly over time and the power costs can make it not worth while. Might be better to mine scrypt coins than bitcoin.
Good luck
I'm a HODL type guy for the most part. A small part of me wants the rush of day trading lol.
Genesis mining, hashing24 and hashflare are the only cloud mining sites i'm considering. I know cloud mining is not the best but I see it as a way I can diversify my resources.
I am currently considering going for funding to lease an industrial warehouse and filling it with mining rigs. Mining BTC and a few other alt coins.
As far as you buying mining rigs, I think it is good to also diversify with the coins you mine. I have no actual experience here but looked into different rigs. Remember that the amount of bitcoin you mine will probably drop in half or more by the end of the year because of difficulty increases. If bitcoin doubles in price you are fine. If not, you will have trouble breaking even. Lot of variables here.
Most profitable at this moment seems to be the antminer L3+ mining Litecoin, though that one could mine any script coin. If you are mining bitcoin, do merged mining which should give you a 10% extra profit.
Just an idea at this point since I'm just starting to look into it. But may give you more options rather than rent industrial building. Also looking at buying some land and building hydro....
Lots of ideas I've been looking at but won't be implementing till next year when my holdings are enough to use to set up large scale (shooting for 150 industrial rigs) without using all my coins up to get started.
Really interested in sharing knowledge and experience. Keep me informed of how it goes :)
The easiest place to start is what tons of people are doing, signing up at coinbase to be able to turn fiat into crypto. You only have 3 options to buy there though and the fees are high which is why some people end up at coinbase's exchange - gdax. You could start by spreading your money between those three.
Another option is an exchange like Bittrex where you could buy other coins. Stay away from the small ones and only get the bigger ones (like the top coins on coingecko.com) unless you really know what you're doing.
Now is a decent time to start because it just had a huge runup and its pulling back.
It's generally believed that it isn't safe to store your crypto on an exchange since so many of them have been hacked or even failed (heard of Mt Gox?) A hardware wallet is best if you plan to hold them long term and not worry about trading. Hardware wallets like ledger or trezor, but only buy those from trezor and ledger themselves. Those can't be hacked and cleaned out. Just remember to write down your pass phrase somewhere where it won't be compromised or lost. Otherwise you could lose all your coins. Educate yourself.
Would love to know more about trading crpyto currencies and what's involved ... and also the mining part you speak of
Now that I have finished building my long term portfolio I am now looking at day trading and investing in ICO's
In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
I also need to learn some Technical Analysis so I can chart coins more accurately.
I have wondered about penny stocks! Let me get my head around this and i'm sure I'll take a look lol.
I am considering creating a YT channel about my crypto journey. reviewing these opportunities and showing normal people like you and I, how to get started.
Penny stocks are something I'm considering for the future as well. I need to do a lot more research on them though. Here's wishing you much success!
I stumbled on WA by trying to look up information on Bitcoin. I don't know much about it but do want to look into investing about 20$ a week into it. My RRSP with my bank seems to be doing not much for me and I hear this is a good side thing to invest in.
I would love to learn more about it and the best route I can go to get started. You seem to be the right person to ask!
I would be more than happy to help you get started. I have been through a lot of exchanges and different programs etc to begin this journey.
Yes this is an amazing thing to invest in as a side project and if you just buy and hold like I advise then it can be very passive!
Feel free to pm me any time
