Topic: **CEX.IO Bitcoin Exchange ** Buy Bitcoins with Cards in iOS / Android App*** - page 115. (Read 422328 times)

I am more than happy to be corrected on this one but when I had open sell orders my GH balance was reduced by the amount of the sell order. I assumed that meant it wasn't mining. If it was then I may have reconsidered! I don't have any Cex.io GH to test this with, can anyone else confirm?

That is not true. All GHS in an open sell are mining until it's finally sold.

One thing that is rarely mentioned is that if you lodge a sell order higher than the current market rate then your GH is removed from ghash.io while the order remains outstanding on cex.io. It does not mine for you. If you place an instant sale then the GH is sold at the market rate and stops mining when it is sold.

This is what led to me pulling out in the end. The fact that your GH doesn't mine for you whilst tied up in an open sell order forces you to actively day trade or use a bot. The only way to make money long term is to trade the highs and lows whilst having your GH mine for you(or sell GH on eBay but despite the many current eBay Cex GH/s auctions it is against their T's and C's - digital delivery).

So what is the difference between buying GHS or buying mining hardware that will never make a profit? Either way you are going to lose money. As an example an Antminer will not make you money unless the BTC goes to 3,000 US and the price of an Antminer has fallen about 25% in two weeks. How about pre-ordering from BFL? When you get it is worthless.  Unless you have big bucks to invest in a Cointerra first batch or a KnC first batch machine you are not going to make money mining unless bitcoin triples.

I'm not sure what you mean by dividends.  You buy GHS and it starts mining for you.  You can look on the ghash.io page and see the shares your miner is getting and also the block awards given each time a block is found.  Typically there are more than 50 blocks a day found.   On your CEX.io account you can the awards added to your balance.   You can also trade.  

If you go through someone's referral link, they get a 3% match for whatever you own in GHS.   I don't put up a referral link because I'm more concerned about making my btc through trading and mining.   There are very good days and bad days.  

If you just mine you may actually lose ground if you bought when GHS is high as the price of it declines over time as the network hash rate is increasing.   Because of the increase in network hash over time, you need more GHS to get the same results.   So in general you need to buy GHS when it is lower and move back to BTC when the price is higher if you really want to make BTC.   Also they don't take fiat currency so you have to buy your BTC before you can trade there.   The higher demand doesn't translate into higher prices all the time because more GHS is being added to the supply.  That is probably how CEX.io makes their money.  

It can be a lot of fun and it isn't hard to make BTC there.   I started keeping track after I broke even.  (My first buys were just before Christmas and the price of GHS is 1/3 lower now.)   In the last 12 days I'm up over 5%.   That is a combination of mining and trading.  Right now if you just mine and the price of GHS stayed constant, you would make about .5% a day.   So my trading is mostly just protecting my value.

Most of my trading is with a bot that I put together in Python.  CEX.io has an API for program trading.   It has good days and bad days but mostly it is fun to build something like that.   I won't share my bot because then I would have to support it and that isn't fun.  I'm in this as a fun way to make some money.     I don't know of any place that currently compares to CEX.io, but I'm always looking for it.  

Yes, every 5 minutes or so.


The price of your GHS can go up or down, so the price may be low when you come to sell.


Yes, you can reinvest your 'dividends' to get more GHS though.


Or trade the GHS on the up/down/down cycle from minute to minute, day to day...


My referral link https://cex.io/r/0/colinminor/0/ 

I'm just beginning to look into this.  If you buy in, do you get "dividends", and if so, how often are they paid out?    What is the downside to buying and holding while the hardware mines?  is it that difficulty will keep going up so you'll get less and less in dividends?  Then your only hope would be if the price of BTC goes up, right?

Wow you guys are really off the deep end!

The CEX.IO is unfortunately also a zero sum game as bitcoins can't be magically produced.   We do know that from time to time CEX.IO adds new hardware and they sell the ownership of that hardware on their exchange.   Since they do it this way instead of adding the hardware to the current owners CEX.IO is also in the market and taking market risk.   It is true that as long as the network hash rate is growing they are normally on the wining side of these trades.    However, if the GHS/BTC market soars as it does at times and someone cashes out and withdraws their bitcoin, who pays for that?  It would be CEX.IO, the other miners that still invested in GHS have only gained on paper, their investments are still available to them at least in theory.

Internally in CEX.IO there must be many hundreds to thousands of transactions a minute.  These are being handled internally and are not apart of the normal bitcoin transactions.   There isn't anything wrong with that, it is a typical approach to handling bitcoin.  This also means that there is basically a pool of bitcoin that people are adding and removing from.   I expect that CEX.IO also has additional mining going on that hasn't been "sold" at any given time and that might also be added to the pool.   I also expect that the maintenance fees cover the expenses of running the business and I think that could include paying the employees but I may be incorrect there.   So the main business of CEX.IO is selling ownership of hosted hardware.   They are doing this in a way that is risky for them but also allows them the chance at great profits.  I don't have insight to how they can withdraw from the pool, but that could be the a point of real danger.   The other point if of danger is that if everyone cashed out at once it might bankrupt CEX.IO.   (A so called run on the bank.)     

Over the last six months the huge growth of the network hash rate has likely benefited CEX.IO.   The real test will be when the network hash rate growth slows down.   At some point mining will probably be profitable but it may not be profitable to sell new GHS into the market.   It is hard to be sure what will happen at that point and it is a real risk.

So while one it using CEX.IO, they also need to carefully manage their assets.    That is because of the many risks and I suppose there is a risk is that CEX.IO could be criminal, but I believe it is far more likely they just implemented a great idea that many people love.

If you don't like CEX.IO, you should create an alterative instead of just bitching about them.   The naysayers are really the lame ones here.     



 

Sync the clock on your 2FA device. Make sure its very accurate!


How's that for a timely response 

Warning............ Sexy.o is a store for bot Trader and Scammer do not trade Ghs on this!

That is a sure way to cause the crash of all crashes.   Traders don't cause crashes, they prevent them.   They are the ones that are buying when the price is plunging and selling when the price is soaring.   It is the people that don't pay attention to what is going on and start selling in a panic that cause crashes.   

I've been mining since the 3rd January and so far everything has been very good.

This is absolutely FABULOUS!
I'm IN!!!!

Yeah I get those "low difficulty shares" as well. Never put time into researching it but even though my rejected and stale share rate is a bit higher on ghash, it is still on average the most profitable pool to mine (speaking for myself). I am still playing with BFGMiner trying to find a sweet spot in the configs which perhaps is related in some way. 

Here you are: https://bitcointalksearch.org/topic/mining-with-cexio-or-why-do-i-not-believe-skeptics-378439

I need help.I can't log in.The Two-Factor Auth Code is always invalid.What 's the problem?How can I do?

The only way to profit is to buy at a very very low price or to trade in and out repeatedly for profits, to lower your actual GHS costs.

Im in need of similar education myself. Also, is this related to those "Low difficulty shares" that show up on the worker graphs? Dont recall btcguild reporting those...

Now my 65GH/s - 70GH/s hashing power directed at ghash.io is getting 256 difficulty shares sent for the past 2 days now. emailed support, they said be sure that 32 difficulty is set on my profile > miner settings in cex.io profile page. well it is so what gives? It does not seem to have affected my overall revenue. Should I be concerned and press the issue? I know that higher difficulty shares just means a variance that eventually evens itself out but im trying to be as efficient as possible.

Exactly, what is the difference...they won't make money with AntMiner either and it will be harder to sell too. Fact is, you need lots of money to buy the very best if you are in this for profit.