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Month: August 2017

How to make money trading Bitcoin

How to make money trading Bitcoin

How to make money trading Bitcoin

Today is 9 August, 2017.  Recently, bitcoin is on the rise and the value is at the all time high of $3417.  Many people are getting into bitcoin and many are guessing how high would it goes. I want to discuss with you how to make money trading bitcoin.

Before I start, I need to tell you I am not a financial adviser and I don’t have any background in trading.  If you take my word and buy bitcoin, it is you own decision and it has nothing to do with me. I am not liable for any loss of gain that you incurred.

Some people say that currently, it is a bubble and it will burst.  When it fall, many people will lose money.  I want to show you one video.

He is correct that it will crash someday, but you have to realize that bitcoin has crashed few times previously.  After these drops, it has continue to go up after that.  Let me show you some data.

  • July, 2011 – it went up from 1.00 in April to 31.00
  • Dec, 2011 – it crashed down to 2.00
  • April, 2013 – it went up to 266.00
  • June, 2013 – it crashed down to 70.00
  • Nov, 2013 – it went up to 1242.00
  • Dec, 2013 – it crashed down to 600.00
  • Jan, 2017 – it went up to 1150.00
  • Jan, 2017 – it crashed down to 750.00
  • current – value at over 3,000

If you want to learn more about Bitcoin, you can visit Wikipedia.org – History of Bitcoin.

You can see the gain before the crash.

1st time – 1 to 31 (31 times)

2nd time – 31 to 266 (8 times)

3rd time – 266 to 1242 (5 times)

4th time – 1000 to ?  (if we predict less than 5 times, so now it is at 3 times value.  Would it crash soon?)

Could we use the past to predict the future?  Sometimes we can and sometimes cannot.  We cannot just use mathematics to calculate, because there are other outside factors which could affect the outcome.

Previously, there are less people who are interested in bitcoin and the market is smaller.  Since then, the market has grow exponentially.  Not to mention that some countries has legalized bitcoin.  Therefore, in my own opinion the value of bitcoin still has room to grow.

If you compare it to the past housing bubble, dot com bubble, gold market bubble.  It is still early days, until the day you see bitcoin go up to $10,000 per coin. This is just my own opinion. Therefore, I believe it is good time to ride the wave to the top.  There are lots of money to be made, but make sure that you are not too greedy and watch out for the crash.

The only way to protect yourself from losing money is to take profit along the way, minimize your position while it is still rising. Because no one could predict exactly when it will top out and start to fall.

 

How to research which altcoin to buy

How to research which altcoin to buy

How to research which altcoin to buy

There are more than a thousand altcoins to pick, which one will make the most money for you?  How to research which altcoin to buy?  Picking a good investment is not easy and making money is not easy.  You have to study and do your homework.

Currently, the coin market is very attractive.  More and more people are shifting from the share market to the coin market because the coin market is very bullish at the moment.  Also, it seems to be easier to make money than trading shares. But before you buy anything, you need to do your homework.  You don’t want to see your money disappeared overnight.  There are places where you can get the latest information.

Youtube

Type in the name of the coin you want to invest.  There are lots of information on Youtube and there are many good video.  Here is an example below on Siacoin.  Try to learn what is the technical behind the coin and see if you can understand.  You don’t want to invest into something which you don’t understand – as least the basic principle.

Coin Market Capitalization

One of the most popular websites we use to find information is Coin Market Cap

You can see how the value of the coins and also it is a good place to get relevant information.  You can get all the numbers and figures.

When you click on the name of the coin, you will see the screen below.

As you can see, there are lots of information.  You can visit their website and see the white paper and find out who they are the people behind the company plus other information and news.

News

Regarding news on certain coin, you can search on Google and you will be able to see the latest news.

Reddit.com

There are good information on reddit ror most of the coins.  Be sure you don’t believe everything they said, some of them want to promote the coins they brought.

CoinGecko.com

A very good website for doing research on digital currency, they give rating on different aspect of the coin for comparison.

In fact, there are too much information on the internet.  We don’t know what is true or untrue, and we can only use our own judgement.  I wish you all the best.

I have picked a very good Youtube video for you below.  I hope you enjoy it.

 

 

Is it profitable to mine altcoin in Australia

Is it profitable to mine altcoin in Australia

Is it profitable to mine altcoin in Australia

Do you know what “altcoin” means?

Altcoin means “alternative to Bitcoin”.  They are also digital currencies same as bitcoin.  As of this moment (8 August, 2017) there are over 1000 different altcoins.  Each one of them has a different technology and story behind them.  Some countries has introduce their own coin like “Dubai Coin” which is obvious,  “Arctic Coin” which introduced by Russia and “NEO” for China.

Some of the coins you cannot mine and some you can.  The most popular ones are Bitcoin, Ethereum, Monero, Zcash and Litecoin, etc.  For the purpose of this article, I will not discuss how to do the mining but just discuss about the profitability of mining these coins.

First, you might want to know “Is it profitable to mine Bitcoin?”

The simple answer is NO. You can refer to this article below.

7 Reasons Bitcoin Mining is NOT profitable or worth it in 2017

If bitcoin is not profitable to mine then is it profitable to mine altcoins, and I will discuss with you and focus on mining in Australia.  Since I live in Australia and I know how much it cost for electricity.  The calculation and figures below are in Australia Dollars.

Cost of equipment – mining rig

I will just give an example of using one mining rig with 6 video cards.

To build your mining rig, you will need the following.

  • CPU  $250
  • Motherboard $150
  • Power supply $170
  • Riser Cards $80
  • Rig $100
  • SSD hard drive $75
  • Mouse and keyboard $25
  • RAM $100
  • Video cards x 6 $3000

Total= 3950.  Lets round it up to $4000 as the cost of the equipment.

Electricity use by the mining rig

The mother board and the CPU would draw around 50 Watt.

Each video card will draw 90 Watt.

Total power consumption is 50 + (90 x 6) =590 Watt.  For easy calculation I will make it 600 Watt.

Electricity cost

The electricity cost where I live is around $0.21 per Kilowatt. (You can check you electricity bill.)

The electricity use per day = 600 x 24 /1000 Kilowatt = 14.4 Kilowatt

Cost of electricity per day = 14.4 x 0.21 = $3.024

Earning

I have used my own computer to do some experiments.  I will give you a conservative figure for the earning.  I will exclude the CPU mining in my calculation.

Earning per video card is $2

Earning for 6 video cards = 2x 6 = $12

Earning per day = earning – electricity cost = $12 – $3 = $9

Return on investment (ROI)

At you can see, I can make $9 per day with this setup.  How long will it takes to get my investment back.

ROI = Setup Cost / 9 = 4000/9 = 450 days

Which is approximately 450/30 = 15 months

Conclusion

So the conclusion – Is it profitable to mine altcoin in Australia?

You see electricity cost is a major factor in the profitability of mining altcoin.  In my calculation, it eroded a quarter of the earning.  In some countries the electricity cost is very low, then it would very profitable.

The other reason why it is not so good in Australia is because of the cost of hardware is more expensive than in USA.  Like the video cards which sold in USA is around US$340 and is equal to roughly A$400, but if you are to buy it in Australia it will cost $500.  A huge $100 different and six video cards will cost $600 more.  Not to mention all the other parts like CPU and motherboard.

Even though it takes 15 months to break even.  I would say it is still worth doing if you consider the long term prospect of mining.  Here are the reasons:-

  • After you earn back the initial investment after 15 months, from then on it will be pure profit.  Since the video cards should be able to run for 3 to 5 years.
  • The value of the altcoin increase and your profit will increase. Just take Ethereum as an example, it has increased like 100 times in a very short time and I foresee many of these altcoins will increase in value in the future.
  • It is a passive income, you don’t have to do much after you set it up. You just need to check it once a while to see if they are all running well.
  • Some people reported they are able to get their return on investment in around 6 month’s time.  Which is possible if the coin you are mining increase in value.
  • Although some coins have increase in mining difficulty, but you can always pick other coins which are more profitable.

If you are not the kind of people who have the patience to wait for a long term gain, you can invest your $4,000 in buying the coins you want in the exchange.  I recommend Coinspot, it is a good Australian company and you can read my review – CoinSpot Review.

The price of the digital market is very volatile and the price could swing up and down very quickly.  The result is you can make money quickly but you can also lose money.  As for mining, you will get a stable income and you won’t lose all your money even if mining becomes unprofitable.  Because you can sell your hardware and get back some of your money.

I  like mining because you can scale up your earning and invest more money.  If you are able to invest $40,000 for hardware, you earning will increase to $90 a day.

If you have any brilliant idea on how to make more money and think my calculation is not correct, leave me a comment below.