Topic: Am I in over my head? - page 2. (Read 546 times)

This guy is for sure trolling.  No one sells a business (at least not a profitable one) and buys 70 graphics card to only realize they don't know what they are doing. 

If you're looking to support yourself off the profits, you absolutely need to be mining the more stable coins that bring in ~3k/mo in profit. If you have the capital to sustain yourself while holding onto your mined coins you can go much more speculative. You need the capital because you'll most likely have to hold the extremely speculative ones for a long while before you see them make big jumps.

Think about what your monetary exposure is, then use that information to figure out how much risk you can take. If you're looking to be precise about it, you can run a Black-Scholes model to calculate the current-day market value of what you're mining https://en.wikipedia.org/wiki/Black–Scholes_model (sub in price per coin as exercise price where cost per coin is ((cost of rig)/(est. days to breakeven) + (electricity cost per day))/(number of coins per day), annualize the volatility by looking at the volatility in a given time window and extrapolating out to a year (or if it's been around for a year, look at it for a year), use fed numbers for interest rate, time to maturity would be your estimate of how long you could hold the coins for before having to sell them, and the current price per coin as stock price. You can find a calculator here: https://www.mystockoptions.com/black-scholes.cfm)

That should help you value your investment in a risk-adjusted way to help you minimize exposure.

I understand you, friend, I also took a risk. I sold my car for 3000 to build a rig of 6.

But the world is for those who risk

these moments of panic are normal. A couple thoughts:

1) It is almost impossible to truly estimate what you're earning unless you sell immediately. Since you need some cash to pay your bills, might put a few rigs on mph algo switcher with auto exchange and convert that to fiat immediately. Always a bit of a gamble even within a month's time, but if you look at the long charts, we bounced off bottom and are climbing slowly back up.

2) The rest--RVN etc.--I would think in terms of future value. For some coins, we have a wild guess at least, with previous highs (though unknown how long it will take to get back). Regulatory clarity etc. will take a while. Most of my portfolio is top 10 or 20, since that is what institutional money will go after, market-cap weighted etfs, etc. so I think those are safe. I've put a lot of resources on RVN and it is a long term hold, but has a better chance than many new coins in this overcrowded space.

3) If GPU prices go up, say if new NVIDIAs get delayed and market continues to climb, you may be able to trim your equipment for a slight profit, keeping your best cards. Many people go through cycles of expansion and "right sizing" depending on needs and market conditions, so it doesn't have to be all-or-none.

But, hang in there. Give things some time, and don't worry about the hickups in the market.

Congratulations on making the big move to crypto.

I wouldn't say it's too late to learn. The way you are mining is far from optimal and there is a lot more you can do to maximize your profits. Like what others have posted on this thread, try and move away from NiceHash. Directly mining coins is more profitable. You just need to find the right coins and make sure you have the most optimal overclock settings.

I envy you and wish i did the same a few months back but instead i invested in a smaller amount of GPUs. I made 100% ROI just this week and it would have been a larger amount had i invested more. Look on the brighter side, in a few months time you will be rollin' in it. Good luck.

when you think u r over your head ... go to mine everthing you can sell instantly without droping the market, or go to nicehash.
when u get over depresion ... start your business mining new project and stock the mined coin for long term , after that , start pray for that shit coin you mined easily to have a greater price when u need to sell it

Wow. Are you single? If you are not, and you have a family to provide for, you should see if you can sell your GPUs and get your restaurant back, or just get another job. Assuming you don't have another job already.

Otherwise, I don't have the experience to give you guidance, having only been mining a few months, but I have a few thoughts:

Why mine Raven when you can mine something worth more? You can always just buy the Raven, it has a big enough market that you wouldn't really be moving the market. Spec mining seems like it would not exactly be the right thing for you unless you found something really new and low cap and had a lot of confidence in it.

One thing I always thought about - and others can certainly tell me this is dumb - is that if you like a certain staking or masternode coin, and you are holding anyway, it might make sense to go for that coin (either by directly mining or mining and then buying) and then stake it. There are a lot of good coins that have decent returns; you might look at Lux, Neblio, Phore (you can do shared MNs at staking labs), etc.

You also might want to look into Salt Lending, if you live in one of the states they support right now, but be careful and DYOR obviously.

Best of luck in any case.

The name of the game right now is mining and holding for a brighter day.  Pay your electricity from other income and don't sell any crypto right now.  Hopefully you have a regular day job or something else to bring in other income.  If you don't, I'd get one.

As for your rvn mining stats ... The number of GPU's has nothing to do with it.  If you were mining the same thing with 70 1080ti's, you'd be mining a lot more rvn per day than you are with what you have.  Part of my farm is mining rvn,  I'm getting around 1450/day from two 1080's, eight 1080ti's, and fifteen 1070ti's.

You're not going to be making more with NH right now.  Do you check WhatToMine daily?  If you've been checking it every day for the past month, you would have noticed that NH hasn't been number one on any algo for quite a little while.

No one can tell you what to do.  Do what you think is best for your situation.  Maybe your best option is to downsize, maybe it's not.  How close are you to getting back what you put in?  How long have you been at this?  What do you think the price of btc will be in a few months?  You can sell rvn for btc, if you'd rather not hold rvn.  

But for now ... This is how it is.

You may be over your head.

First off, you need a a few years worth of "cushion" if you are going to live by mining only new coins. Mining and crypto in general is speculative and may continue to be speculative going forward.

1. If you don't have that kind of buffer, as you said you should either:
1. a) Use %70 of your hash power for relatively stable (i.e. available on many exchanges, have high vol and marketcap) coins to exchange them into fiat whenever necessary,
1. b) Use the rest from hidden gems like PGN, RVN.

or,

2. Sell some of your mining (i.e. %70) devices for fiat and invest in a way to establish some passive income. I.e. bonds, forex, interests, estate, other business, precious metals, etc.

3. If you have cushion, then go forward:
3. a) Try and mine projects you believe in with your %50 hashpower,
3. b) Mine any new project with %25,
3. c) Mine established projects with the rest to invest in more rigs & side projects & fun.

The thing about speculative *new coin* mining is, you can almost always profit similarly by paying to remote miners (i.e. NiceHash) only if those algorithms are available in such pools, e.g. Equihash, Ethash, Cryptonite v7. Because you won't really care about current price of the token you are paying for others to mine. You are mining that coin for it's imaginary future value.

Very brave of you to admit online to doing such a stupid thing.

All the best

Baz

If your number one concern is short-term payouts instead of investing in one coin because you believe that coin will considerably appreciate in value in the intermediate to long term, then you should consider switching algorithms based on current prices and having the poois convert the coins to LTC or BTC for you.  Raven was very profitable, but most of the interest seems to have shifted to Verge and soon enough it will be some other coin.

Do yourself a favor and try more pools than NiceHash. While NiceHash provides more consistent payouts, its prices are limited to what buyers in its marketplace are willing to pay. For a while, its buyers were fixated on Ethhash even though other algorithms on other pools were more profitable. Also, NiceHash doesn't support a lot of the more profitable algorithms such as Phi, Raven and Pigeon.  With that many cards, you could make considerably more mining on a pool such as BlazePool or HashRefinery.

There are several software programs out there that can help you switch between pools and algorithms based on prices, including my own: Hash Auger.  Most, including mine, have no upfront costs to try, so you can test each one to find whichever works best for you.

Im running a little home rig of 6x1070ti and a single 1050ti(for the monitor) currently making $255 profit per month. That equates to roughly $42 per 1070ti, so a little under $3k a month profit (if I had 70 of them like you).

I would split half on coins you know will make profit which would cover your costs and provide some sort of living wage, the other half of the rigs mine specultively and hope the coin price rises.

How much does power cost for you?  You should be able to profit around $3k/month on 1070s without any special knowledge, expertise, or tricks.

Well guys... sold my small business (restaurant), bought a shitload of GPUs.. and now I realize I may not know what the fuck I'm doing. I've got almost 70 cards running (mix of 1070s and 1060s, mostly 1070) mining rvn, getting like 1,500 a day or something like that. Overall at current prices, making like $430 a week before power. Which isn't shit. I realize I can go nicehash and make more probably but I'd be making maybe $600-$650 with nicehash or ethereum or zcash (probably a bit less with zcash at current prices).. My point is, is this the best way to go about it? Mining something speculative, or mining the most profitable coin at the time and exchanging to speculation? I need to liquidate at least some of my monthly earning to get by, but either way, it's a meager existence, and eventually, these cards will crap out despite my best efforts to keep them running at 65 Celsius, and I'll have nothing. Does anyone have any advice for me? Is it really true that 70 fucking Nvidia GPUs can only earn you round-a-bout 2k-2.4k a month after power?? Did I just screw myself??