My Adventure in Crypto Currency Bitcoin
Last Update: Jun 11, 2017
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.
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!
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.
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.
Appreciate this post and your perspective.
I am currently on a research mission in crypto and have found out all sorts of interesting things.
There are really good trading schemes in place like you say but they involve risk.
I have taken the low risk approach by not investing anything but collecting (not mining) free bitcoins and altcoins like Litecoin, Ethereum, Dogecoin etc. from faucets.
I then auction Satoshi on BidorBuy here in South Africa and just transfer via e-wallet. So I get cash for crypto.
I'm checking out the faucets because if you have a thousand active referrals the Satoshi starts to roll in at a decent pace I presume... not there yet but that is my goal, 1000 referrals for at least one of the faucets I'm involved in. This is also nice because it's a passive income stream.
If I wanted to buy Bitcoin from you, would this be possible?
If yes please give me details via PM.
I have bought Satoshi on eBay before and there is a Russian guy who is selling but he pays $10 per advert to list Bitcoin! So eBay charges a lot for crypto trading.
My nex step is to possibly join Galaxy Mining corp previously known as Dragon Coin, not sure if you heard of this company? and I want to buy a mining contract, see how that goes.
Lol, I see you despise MLM's of any form :p
Paul De Sousa is actually legit and iCoinPro is not a scam, they just learning like everyone else I guess and they know a bit more than the average Joe so they promoting what they know, how to earn FAST with Bitcoin and there are some good lessons on their site but if you already know this then paying $40 a month is not worth the info, sure.
Please keep in touch about BTC and altcoins Beau and thanks again! ;)
Sorry for the essay! haha
This is interesting. I was in Bitcoins but the company was hacked and I lost my money. It wasn't a lot. But I will keep watching and see which way it is going. Have another friend who is doing quite well with it. I do know you have to find the right source.
I appreciate the essay 100% Long live the huge replies!
Faucets have their time and place. TBH, the return just isnt enough for me. Yes it takes very little time to make coins but I value every second of my day and the ROI doesn't fit the bill... But thats just me..
You would make far more money with less work by just purchasing and holding coins directly. Hands down this is less work and a higher opportunity of return.
The risk is lowered by not attempting to trade if you arent experienced. You do good research on the company you're investing in, finding one you believe in. Spreading your investment over 10 or so of the top 20 coins that have a lower marketcap and only cost cents to purchase (these have more room for growth).
Cloud mining operations will not be profitable right now. i highly doubt it... prior to coins like ETH hitting their ATH of over $300 USD, the mining contracts were looking to be unprofitable.. At least this was the case for Genesis Mining.
Cryptos havent corrected enough to make the cloud mining viable. A lot of these cloud mining ops will cancel your 24 month contract the moment it no long makes money. That means you lose your contract money (no prorata).
LOL I don't despise all MLM's. I just dont care for them or the mindset of people who participate in them.. Too cult-ish, marching in numbers with a blind faith that makes me want to puke. But that's just me because I don' fit inside that model... For some people its good.. If its good for you, thats all that matters.
I dissected icoinpro and yes its not a scam. most mlm's arent.. what it is doing is preying on the naive and misinformed.. Taking advantages of those who have a fear of missing out and dont really understand the industry at all.
MLM'rs are all about building a downline. This is how they will make the majority of their money in a crypto MLM which is a joke... Whereas, if they focused less time on recruitment and more time on fundamental research (to improve their long term investment strategy) and Technical analysis (to gain the ability to read charts and trade) they would make more money...
I was added to another crypto mlm group called max mining. They were selling mining contracts (GPU miners) for around $3500 and you owned the computer for 2 years.. You would only receive 60% of the output generated.. 30 % went to the company and 10% to a bonus pool..
They claimed that their machines were capable of generating 4 ETH per month which at the time ETH was worth $300.. The claim was impressive and who wouldnt want to be making $1200 per month? That would mean your initial investment would be paid in 3 months, then profit for the remaining 21 months right?
I look at their machines, calculated the average output of each GPU and matched that with the highest ETH price I could find.
Turns out you would be lucky to earn 2 ETH per month. Now with the price of ETH so low, the ROI has been extended. With the new rise in difficulty that can potentially see ETH being much harder to obtain via mining (more computing power required), the total ETH you can get is much much lower, pushing it to not being a viable option.
I expressed these numbers to the group and I got the standard MLM nutter replies:
"if you focus on the small things you will miss the bigger opportunity"
"We get our numbers from the company and they have our best interests in mind"
"Even if your numbers are right, it becomes more powerful when you have a team that will earn for you!"
blah blah blah...
They even called in their uplines to answer my Q's because clearly I was dealing with peons who are blindly following the "plan" and didnt have a clue on how to work out the actual profitability..
Its at this point I got the above answers again, but from the leaders... None of them were actually confident in their knowledge of how the tech actually works so once they were overwhelmed with my technical analysis, they resorted to general answers about me not being made for success, not having the mind for it and being a typical case of procrastination, they eventually booted me out LOL...
Add it to the list of the many groups i've been booted out from because i have a differing opinion or appear to be smarter than the leaders. (same hilarious situation happened in pajama affiliates).
Anyway, this is what you call an essay hahahaha.. Adding to that, now is the time to buy BTC.. now is the time to buy ALTs.... its a bloodbath and everything is at an all time low... fill your bags now and wait for the sweet ride that should be due here Dec :)
BEAU you are awesome! ;)
B - BOLD
E - EXCEPTIONAL
A - AUTHENTIC
U - UNABATED
Love your approach man because too many people play nice and don't tell the truth! In most cases like you said it's due to being misinformed and desperate not to miss out!
Was in Amway when I was 19 till the age of 21, they GOT me! haha, you know I learned some great things from those "cult-like" people and it is like a cult, you 100% right!
That's why I left, they don't like free thinkers and guys who disrupt the brainwashing wave and question the system.
Nice people and nice products but deluded!
I really like exploring my options so this information is very valuable as everything else I have been learning, even from the so called "experts". It does amaze me that someone will actually call themselves an expert since the industry is so YOUNG! Not even a teen yet! lol :p
but already so many "experts" running around!
Surely I am not paying any monthly fees for any programs but have learned a lot about crypto and Bitcoin just doing research and talking to people. One gets a sense pretty quickly who knows good info and who is just shooting at stars and hoping to hit! At the moment I am like that... bouncing off the walls! :D
Beau, have you heard of Qoin Pro? You receive free altcoins daily by doing nothing, sure the amount is super low but like you say, we don't know what the coins will be worth one day.
and last but not least, are you currently selling BTC?
Thanks for all your help and input, really appreciate it!
Very sorry to hear that, there are a lot of dishonest people in this industry, "where there's money there are thieves always".
We have to be vigilant when it comes to investing in things we not familiar with.
That's it, you have to find a trustworthy source and as Beau suggested, see their plan through to the end, what are they offering, what is their goal and plan, to have a understanding of how the money works, if they are secure etc.
All the best ;)
hahaha thanks man. I appreciate the kind words.. People either love me or hate me.. no in between it seems lol..
I used to be in Amway when I was a young buck too.. I think around the same age as well.. I actually learned a lot from the motivational stuff... Stuff I still apply today.. Great products too..
Not selling BTC at the moment sorry pal.. Im buying a lot though
What are some MLM names to look out for?
My son has looked into creating a computer for mining cryptocurrency. He said it might be a good idea to join a pool instead of doing it on our own. However, it seems that mining was something we should have done in years past and is not as profitable today, unless you have a warehouse full of computers or servers.
We just went under contract to get a house that the seller said has unlimited electricity due to the solar panels on it. (we would pay a lease + $9 fee to connect to the grid) So, we could run any number of mining computers without subtracting the electricity cost from what we mine to calculate the actual profit.
We'll have to look at the agreement for the solar panels to see if the house seller is exaggerating about the "unlimited" electricity.
Icoinpro is one i have heard of. There are plenty out there.. best to avoid them completely. There is more money to be made investing and holding, than there ever will be from join an MLM.
If you have unlimited power then mining can still be profitable. Especially if you have no running costs and can mine coins you wish to hold. We are in a severe downturn at the moment so mining for a few months and waiting for the uptrend can see you in a lot of money.
Yes, joining a pool is advisable. There are some coins you can do solo. These are generally the less popular coins, but these coins also have some of the highest potential to grow.
Right now, without the cost of power, I would build a computer to mine coins. a single 6x GTX 1070 mining rig will pull you in about $530 per month at current prices. If you mine and hold these coins then the potential is much higher.
I agree you check your house seller on that. I am into solar as a business, if the panels are on the house, they placed the amount of panels up there based on the amount of electricity used by the seller. If you are using more than that you could potentially have to buy additional electricity for the additional amount used..
I've done some investing within bitcoin in the past. It's interesting to see how Bitcoin has exploded over the years. I have some questions to ask you if you don't mind me asking. Where do you normally purchase Bitcoins? Do you get them through Local Bitcoin or another site? Also, what kind of wallet do you use, an online wallet or a hardware wallet?
I would be careful when it comes to making a bitcoin miner. Normally you have to leave it on 24/7 and it can raise up your electricity bill. It can also damage the parts on your computer. Another route you can take is purchasing an ASIC miner, which is specifically designed to mine bitcoins. Though a fair warning though, these are very expensive to purchase.
At the moment because BTC is hard to acquire in NZ I have to purchase from LocalBitCoins and Cex.io
My long term holds are on a wallet stored on my pc called Exodus. I am looking to buy a cold storage wallet like Trezor or Nano Ledger. I only keep what I'm trading on exchanges.
Yeah I understand the complications with running a GPU rig. Definitely looking into ASIC miners. I don't mind the power bill as long as the ROI is greater :)
I never even heard of Crypto Currency, so I was about to skip over this post, but when I saw your name, I decided to expand my mind and give it a read.
Although this is not something I can do right now, I'm glad I read your post. Very interesting! It just confirms that there are a million ways to generate income, regardless of your level of knowledge.
Hopefully there are some on this platform who can move forward with this venture. Thanks, Beau!!!
You're right, there are so many ways to turn a coin online :) I'll be sure to share my results as I go :)
Thanks for the best wishes
I thoroughly appreciate your posts, Beau. I may not always fully understand, but I know there are plenty of members that are on "your level" that know exactly what you're saying. I welcome any time I can expand my mind, even if it's just for a few minutes.
Looking forward to your updates!
One more thing. If you are serious about crypto trading, check out ProwdClown at tradingview.com. He has recently done some really good posts about settings for Godmode and other things that can really help traders. Also, he seems to have a fairly accurate system.
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.
Yeah, I started with about $7000 at the start of this year and it's approaching $100,000 now just by holding. I got in at just the right time. I built a portfolio of about 9 diversified coins that are leaders in their fields, like FCT, BTC, XRP, ETH..... Some coins go up and some down in the week, but every week I've seen overall gain.
Do 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.
Wow cheers for sharing that man. You got in at the right time! I don't have those kind of results yet but I am determined to get there. I'm still pretty new to be honest (started trading 28th of may) but naturally I have learned a lot in that time.
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.
If you're wanting to diversify your resources, I would recommend diversifying across uses of blockchains instead of cloud mining. 2 of 3 contracts at GM for me broke even and one of them made me a little. WAY BETTER to buy and HODL in my opinion.
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.
You're talking large scale which means lots of noise and heat. I'm currently looking at submerging all the machines for liquid cooled (they do this in data centers) and possibly running the oil through a stirling engine to make some power to dump back in and cut costs and noise.
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 :)
It's going well. as far as mining, I have 2 rigs, an antminer L3+ and a gpu rig just to get familiar with things. My crypto has continued to grow. right now I'm all in fiat as it's about to crash, but I'll buy at the bottom and cash it out to start my mining farm the beginning of next year.
The L3 is a scrypt miner so it could mine any thing that uses the Scrypt algorithm, like Litecoin and dozens of others. Right now though, I'm just selling the hash power on nicehash. The gpu miner uses amd gpu's so I'm mining xmr. If it was nvidia gpu's, they would do better mining zcash.
For someone just looking to venture into the world of cryptocurrencies, where do you say is the best place to start? Thanks.
You have to realize that crypto is extremely volatile and 30% moves are not uncommon. If that makes you queezy and inducing you to panic sell, it probably isn't for you. Be careful trying to trade because most people see it running up and jump in at the top only to have it go down and then panic sell at the bottom. Emotions are a great way to clean out your balance.
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.
Just followed you..... I do not know anything about Bitcoin... but have always been interested in short term trading ... i dabbled in FX for a short period but was not very successful ... then got stung with binary option scams galore .
Would love to know more about trading crpyto currencies and what's involved ... and also the mining part you speak of
Thank you for clarifying that. You would be a wonderful person to do reviews on such companies because of your knowledge. Also if you fully understand these systems have you considered joining the launch sites that let you know ahead of time when these systems are coming out? If not let me know and I'll give your those sites. Also, another good deal is penny stocks--if you can pick the right one at the right time and Agora Financial has a lot of good information about penny stocks and how they work. Those stocks can be just as profitable as bitcoin. Take Care.
Thank you for the praise!
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.
YT is an awesome idea! I feel you would do very well on that platform because of your knowledge. You would definitely give your competition a run for their money lol.
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
sounds good, will do. I have no idea what website to go to or anything. I don't play the stock market so hope its easy to figure out.
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Real good snapshot and I agree with the advice regarding MLMs in Crypto currency. they all appear to be run as Ponzi schemes with owners who have a chain of bankruptcies to their names.
There does seem to be a move towards faster clearing of international monetary transfers.
I came across another one, which I am ashamed to say I have lost my note on the name. I heard a rumour that AliPay was goiung to adopt it.
If I can find the note I will let you know.
Thanks for a great post