【Cryptocurrency】 Is it profitable to invest in Bitcoin, Ethereum and mining machines?

Is it profitable to invest in bitcoin, Ethereum, and mining machines? What is the rate of return?

Because of the growing popularity of Bitcoin, various cryptocurrencies and blockchain applications such as Ether have emerged, which causing more people to want to invest in Bitcoin, Ether, or even buy mining machines to mine these cryptocurrencies by themselves and make money.

But can we make money investing in these projects or not? If so, what is the rate of return? Are there any special points to note?

This article will briefly introduce the things you need to pay attention to when investing in cryptocurrencies (Bitcoin, Ethereum, mining machines), hoping to help you, newbies!

Before investing you must understand.

1. The price of cryptocurrency (digital currency) is highly volatile, you must know its risks well and plan your financial allocation, as far as possible to do not put the eggs in the same basket of investment approach.

2. You need to have basic research and analysis of the currency you want to invest in. After all, the technology, liquidity, and use behind each cryptocurrency are different, so don’t risk investing in a commodity or market you don’t understand at all, if possible.

3. There are many cryptocurrency exchanges, many frauds, and many speculations. It is recommended to climb more, absorb all kinds of knowledge, and make your own choice, research and think; for example, the use of cold purse, or choose to research and invest in more mature and larger digital currencies, etc.

4. If you want to invest in digital (crypto) currencies, etc., you must study the various derivative costs, e.g. whether there are various handling fees or exchange differences for the actual currency (USD, TWD, etc.) into which the currency is converted.

While it is true that many people do make good money from cryptocurrencies, the basis for the creation of cryptocurrencies is that they should become a circulating currency that can be traded in one of the markets they support, replacing “traditional money”.

However, the use, popularity, volatility and stability of digital currency is not yet mature, and few people actually use digital currency for daily transactions.

What is the rate of return for investing in cryptocurrencies like Bitcoin and Ethereum?

The main reason why many people are keen to invest in cryptocurrencies is because of their very high upside, therefore the potential for very high rates of return in the short term; however, the downside is also relative and can easily be affected by various news that immediately produces price changes.

Basically, these cryptocurrencies are similar to gold and crude oil investment commodities. Their prices are constantly traded on the global exchanges to produce price changes.

Because cryptocurrencies do not have the so-called limit of increase or decrease, in the case of Bitcoin and Ethereum, even though they are relatively mature markets, it is quite common for them to increase or decrease by more than 10% in a single day.

Other latecomer cryptocurrencies, however, have been experiencing large swings almost daily, with rallies and declines of over 30-40%. This is also the main reason why many active investors are so keen to speculate and invest in cryptocurrencies.

比特幣-美元-價格-投資-賺錢

However, if you have experience in investing in stocks, futures, etc., and have been trading for many years, you may be able to invest a portion of your assets in cryptocurrencies through “technical analysis” and other forms of active investment planning.

Is it profitable to invest in cryptocurrency miners? What is the rate of return?

Many people may not want to trade cryptocurrency (digital currency) to earn the spread, but rather want to obtain cryptocurrency through a special way, and the common way is to buy mining machines, graphics cards to obtain these cryptocurrencies themselves.

The principle and details of mining will not be talked about in this editorial, we suggest that you can go climbing the article more. Here we will mainly discuss the”rate of return” with you.

The most important factors affecting the rate of return on investment in mining machines are:

1. Hardware part: the mining machine itself (Display card)

– Miners with high computing power or those developed specifically for mining are basically expensive, often costing tens of thousands of dollars.
– Some people buy second-hand mining machines, but the price of mining machines can fluctuate, and you need to pay special attention to whether there are any defects or damages on second-hand mining machines.
– Maintenance, repair, and depreciation of the miner also need to be factored into the cost.
– The space where the mine is located, the need to install fans, noise protection equipment, switches, safety equipment, and wiring, or the need to pay rent are all factors that need to be added to the cost calculation.
– Costs and time associated with the purchase, installation, and delivery of the mine.

2. Electricity bill

– Mining requires a lot of electricity, and electricity is one of the things that affect the rate of return almost the most. You may be in a different country, in a different environment, and the electricity you have to pay may not be the same.

3. The price of the corresponded currency 

-I believe many of you have heard of mining to lose money. The main reason for is that the price of the main cryptocurrency you are mining has dropped, or even can not pay the previously mentioned costs, and caused losses; therefore mining must also pay attention to the fluctuations of the cryptocurrency, and the cost of switching to traditional currency (handling fees and exchange differences).

A useful website for discovering mining equipment.

You can use this site to observe and research the most popular or efficient miners and check their price, power, power consumption rate, and the types of coins that can be mined, as well as calculate the potential return rate and how long it takes to return the capital.

Website:https://www.asicminervalue.com/

礦機-投資-報酬率-回本-賺錢-被動收入

You can click on a miner and pull it down to the bottom to see the average price of the miner and see how long it would take to make a profit with that machine at the current currency price.

You can also fill in the average price of electricity in your area and fill in the algorithm to calculate the approximate result after deducting the electricity through the sweet feature (with TWD conversion support) below.

礦機-價格-資訊-買賣-投資-電費-投報

Conclusion

Whether you are investing in Bitcoin, Ether, or other cryptocurrencies, or even mining directly by investing in a miner, you need to do your research before you start investing.

For example, if you decide to invest in a miner to mine your own cryptocurrency, you need to at least understand how much the price of the cryptocurrency should be in order for the mining to be profitable, and whether the rate of return can meet your investment needs, otherwise it’s a relative “screw-up”, spending a lot of time on hardware and settings, only to end up with nothing.

 


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