Topic: $40 000 to invest, is there money to make in mining? (Read 6083 times)

They're both gambles though.  With mining, you have to secure the property, which sounds like not much of an issue but in some locations, it is.  And in either case, the volatile value structure of coins makes all of this risky.  And mining is hot and loud and there are substantial power bills to deal with.  And the return on the mining goes down constantly over time.  The return on successful investing goes up over time.  Also hardware failure is a constant risk with mining.

Don't get me wrong, I do both and I'm growing each side of the operation.  But I think I prefer trading so far.

Out of curiosity, why would you rather gamble with trading altcoins instead of putting $40,000 into ASIC's and making thousands of dollars per month without much of the same risk?

Here's what I'd do:

(Full disclosure: I'm pretty new to mining, crypto, trading, etc.  But I think this is a good plan, it's working for me so far.)

First, buy some BTC, say... $10k worth.

Go to Bittrex, put your BTC in a wallet there.

Buy a bunch of different kinds of alt coins.  Research them first, try to pick good ones, etc etc.  But get a very broad selection of them.  Look for ones that occasionally spike to 150%-200% (or more) of normal level.

Structure your automatic sells so if you buy 5 coins for $10, you sell 4 of them for $12.50, then sit on the 1 you have left.  So if you buy 100 at $10, sell 80 @ $12.50

Leave it alone for a while.  Two weeks, a month maybe.  Don't just sit there and watch it, you'll be tempted to micro-manage the process.

When you come back and look at it, most of them will have hit the auto-sell, covered the initial expense, and left a remaining fraction that was basically free.

Some of them won't have caught, and if you've given it a month and they did not, you might want to sell those off.  Or if you're feeling gutsy, buy more at the lower rate, restructure your sells the same way as before but with the new average buy in price in mind, and wait on them again.

Most of them will have caught because traders routinely pump up any/all of the altcoins to levels way past +25%.  

So then you have a portfolio of coins that was basically free.  Sell enough to cover the expense of the ones that didn't catch.  Remove 100% of your initial investment from Bittrex and put it back into long term savings.  Bitcoin would be a safe bet, or silver.

Then I like to setup auto sells with the free coins harvested so as the coin price hits certain targets, it sells off enough for a consistent payoff.  So if coin is bought at $5, and I want to make $100 per payoff, and I have 20 coins, I'd have sells at 10 for $10, 5 for $20, 2 for $50, 1 for $100.  That's 18 of the 20, then hang onto a couple for later.  You'll want to adjust those amounts to reasonable levels for any given coin but that's the idea.  Every time it hits a new higher target -> payday ($100 each in this case, $400 total).  IMO this is better than say... putting in an auto sell of 20 for $100.  Sure you'd make 5x as much... IF it ever hits.  Big if.  Or selling 20 at $10, you only make $200 but if the pump actually went up to $100, you missed out.  With sell targets like I outlined, you get a nice payout at all stages of a good pump and dump.  And you don't have to do anything, it just happens automatically over time.

Once the money from your free coins has built up enough to be relevant, take half of it and do the same process again with it.  Repeat until you have a giant stack of money.

On top of that, you could also mine.  But why?  If you don't have to, and you can do all this from a laptop with zero overhead of power / location / security / etc etc... I'm not sure it's worth the trouble.  What I'm suggesting takes a couple hours a month.

IF I'm you:
with 70% of amount I'll buy  (at least try  at bitmine.com)-
S9 and/or Lt3+
also some Avalon miners

with 30% of amount GPU rigs...


                         

You're welcome to check my whitepaper on my ICO for starting a crypto mining operation. We are currently running numbers with about $100,000 so you can get some idea of what kind of costs and profits are involved for BTC, Dash, Litecoin, and Ethereum/Altcoin mining.

They're still available on eastshore, but for the October batch which is ~60 days until they ship.

If you can even find any ASIC's to buy. The bitmains are the best deal but they're always sold out!

I'm doing something similar soon, I'll be going with ~20 of the the L3+ miners. They consume half as much power as the S9 which means less heat to deal with and electricity to pay, they can mine more than just one coin, and they're far more profitable right now than the S9.

I think with that you can enjoy yourself for some days.But you can't earn any thing. To earn anything you must take risk. And in bitcoin their is not such a risk at all.Mining is the best to inverse the money. As compared to trade ,mining give you a double the profit of your invested money.

40k you can buy a nice used car and enjoy.

Or buy 250 shares of Alibaba

Did you have a chance to consider http://btcfarm.org ?

In today's trend about the fork, it is so risky, maybe adjust your timestamp after August 1.
After that just consult or be assisted by BTCitcoiners with high mining experience, high rank with a high trust in this forum.
It wouldn't be wise being alone if your not familiar to it.

Wise advice.

With a potential Bitcoin fork in the horizon it would be especially risky to have any amount of money invested in mining Bitcoin right now as such investments can become far less profitable depending on the outcome of the fork. I'd just wait until some days after August one.

With $40K Investment I'd buy 3 or 4 if you can of the new Dash ASIC miners from Innosilicon:
 http://www.innosilicon.com/html/a5-miner/index.html

if you will not sell your coins, mining is great.
maybe it is not most profitable with those prices but  it will be good in the future.
mine and HODL.

If you are seriously looking to invest in mining, check out http://cloudmining.co.in

If you have near free electric you already know there is money to be made, your operational not including time is zero so why ask if there is any money to be made?

$40K is a capital that is quite a lot, with that much capital you will be able to a good miner tool. I advise you to mine a monerocoin with a low level of difficulty but a good price in the market. I usually use enhancements like external invidia for best performance.

i did more 60k
aug 1 will not kill btc even if segwitx2 hits
my opinion
just struggling how to use wallet to get most secured and get new coins also
coinbase not supporting now i have take out of coinbase my bitcoins
any info how to stay out of coinbase safely and how get forked coins ?

4oK investement , yes there is some money to be made in mining, with the right hardware and mining softwares you should be able to make some gains in the long run.

got your logic and its true if you know how to maximize your earnings just for 6-8months you will able to regain your investment and all the equipment can be sold after, I'm not really good with this but bringing the essence of your reply i seen that if this can be done properly that amount of investment can be doubled or more in just a year if lucky enough to mine good coins.

With a small scale we will certainly get little results. Taking the risk by buying rigs in my opinion is a good choice because we can still take advantage of our rigs, when we need money we can easily sell some of the hardware we have. Taking risks to earn a lot more income in my opinion there is nothing wrong to do. Utilizing some of the current altcoin mining can make us ROI between 6 to 8 months.

I think and believe mining for now is a high risk, the level of difficulty is increasing so the results always go down, better mining with a small scale if profit we can add again.

It is pretty risky and crazy, investing $4000 is fine, I think.

I read an L3 uses 800 watts, where did you read 100 watts?

That is a good amount to start mining. For the moment I do not recommend you go with R9 series, TDP consumption is big and the RX Series profitability is going down daily. I say you are good to go with S9 for the moment since they are in stock. If you wait a bit you may win big as the Antminer L3+ makes about 504 Mhs on scrypt and consumes less than 100 watt. About 25 of those would make some insane profit in only 2 months.

Mining is one of the top suggested ways to make money through bitcoins. It can be very profitable and secure investment if done with proper calculations of your profit and good management. Many people prefer it on large scale because on large scale you profit to expense ratio increases and it is easy to earn bitcoins out of it. On small scales it can be difficult some times to get profit out of it. In $40, 000 you will be able to get good hardware if you spend your money wisely.

I know, I never outlined that 2% was normal, I guess 5% would of been a better idea, as seems to be roughly the right amount: https://bitcoinwisdom.com/bitcoin/difficulty

But even at 5%, you'll still be sitting pretty if BTC price rises to $3k and beyond.

2% is absolutely unrealistic for difficulty rises as we're now seeing regular 5-10% difficulty rises nowadays. While calculators are good as an estimation, keep in mind they are estimations and are most of the time not correct.


As for working hours, supposing you use good PSUs and monitor + set heat limits on miners (which don't always work) you won't need to repair or do maintenance very much. Remember dust is your worst enemy and use compressed air to remove dust every few months on miners for optimal temps.

This kind of question is a little difficult to answer.

Questions about algorithm, electric costs, electric usage, cooling, GPU or ASIC, difficulty and many more.

Stupid quick calculation on BitcoinWisdom calculator at a 2% difficulty rise and it will take 12 months+ for your ROI including electric at a decent price point for the Avalon 7.

Something as big as an investment needs to be managed and looked after too. So man hours will be plenty.
 

With $40k of investment, how long is it realistically going to take to get a ROI?

I would avoid BTC mining, unless you can do it on a larger scale. Maybe look into LTC mining (miners are really expensive, so maybe not the best move now) or other alt coins using graphics cards to mine them. If you choose a great altcoin (Zcash or ETH) you may see better returns in long run. Mining is already a lucrative industry, so why not try to choose a coin without a huge difficulty.

I do have GPU rig set up but not as big as of been shown on the images you gave. I'm having the same wish too to have this kind of set-up I do agree its perfectly manage regarding on heat management. Mining altcoin on this set-up is good too since op do have nearly free cost of electricity which I can say roi would be more faster to reach up compared to regular miners which do have higher electricity cost. On the amount given if op would like to mine bitcoin its still profitable buying some ant miner s9 then it would be a good set-up if he changed his mind he can switch to GPU mining.

I forget to put under image its not my mining rig, its one our pool member.   Maybe someday 

Most R9 cards work, even the 290X or 290 which are essentially the same as the 390 and 390X as AMD got stuck with a lot of old Hawaii chips back when Scrypt mining died back in around 2014 IIRC. The lower end cards don't mine as fast, like the R7 370, but for the right price they can still make you decent amounts of money. Remember that efficiency is King in mining and you will have no problem.

Your rigs are just perfect and the heat management seems to be in a good level, congratulations 7GPUs on each motherboard.

I would suggest OP 50-50, 50% on buying mining stuff and 50% buying coins.

Based on this because the price will get increased and the mining stuff can be sold and make a good amount of profit.

It's quite risky. There can be no guarantee that the price wouldn't fall or that difficulty wouldn't rise all of a sudden. You could hedge the risk of the difficulty rising by spending some of your cash to buy some currencies you're interested in but that's only if you're betting on a continuation of the bull market.

You cannot expect to have money and let the world decide what's good for you.It depends on a lot of other things.A rich man with lot of money and no brains cannot run a successful business.
My suggestion : Hire a technical guy/miner who has experience with the set-up and can guide you from buying the best miner out there to installing the mining software.Because right now,there are too many options to choose from and all of them have pros and cons over each other so it's better to hire an experience person to get the job done.

Hey mining buddy,

40k$ investment is lot, you get that example R9 or RX series cards, powers etc what you need on mining. Ethereum is one good altcoin

http://i.imgur.com/gGjeNJ6.jpg
http://i.imgur.com/xI4pGqL.jpg

Some cards (i almost say R9, its maybe not  ) and EthOS (Linux on mining purpose)

Look at Avalon Miners here: https://canaan.io/

Then user this to work out income: https://bitcoinwisdom.com/bitcoin/calculator

Will give you a decent indication on what you should expect. Then also check out difficulty: https://bitcoinwisdom.com/bitcoin/difficulty so that you fully understand what this means and what you are getting yourself into.

If electric is "near free" why is that? Included in rent? Because $40k of mining equipment will rack up one large electric bill that will flag up somewhere.

with the current bitcoin value yes there is profit to be made with airliners s9 with 40k you are looking at 25-30 or 40 if you can find them

that is $376 pet month with each one minus consumption therefore you will too in 4 months or so

Hello,

I have a place that electricity is near free,

With 40k$ investment, is there a way to make profit in mining?

What gear to buy to make profit? what is the most profitable minable currency? what are best mining softwares?

Thank you