After my previous failed attempt to do trading on the market and to take advantage of the small arbitrage that was happening in some of the currencies I decided to do something new that has potential.
In my new adventure, I decided to invest in crypto-mining which is also known as cryptocoin mining.
What is crypto currency?
First of all, I’ll have to explain what is a crypto currency for those who don’t know, please bear with me. A cryptocoin or a crypto currency is a digital coin which is protected by encryption techniques. The encryption techniques will ensure that a coin can be transferred from person A to person B without the need of a third party and in a safe way using the blockchain.
This was a short intro about what is a crypto currency, there’s way more info about that which you could find online.
Usually, crypto mining was a risk taking, you went and mined a coin which wasn’t profitable at that time and hope for the best.
Some had a lot of success while other failed and lost a lot of money because it was highly speculative.
I’m looking at alternative investments from where I could generate higher returns than an index fund because I have high taxes there and it’s not worth the trouble.
An alternative investment also means for me that I should take higher risks.
After I’ve analysed the current situation of cryptomining I found out that it has a high profitability just by mining. I decided to invest $5k into this venture using my credit card as a leverage. Using the credit card to purchase in 15 months with 0% APR was good enough for me to start this venture using bank’s money.
This is going to be a good trial to see how things are going. If it will be profitable I’ll probably scale up the operation even more with my own money and if not I kind of having almost nothing to lose, because I’ll be able to sell back the current hardware on the market at a discount and to get my money back.
My end goal is to invest my money wisely by trying out an alternative investment.
I’ll keep you informed as I’m going to make new baby steps in this venture with what goes on.