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.

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.

– 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.

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.

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.