Topic: Confused between mining and holding (Read 455 times)

I've been here in cryptocurrency industry for 6 yrs and yet I never try to buy any mining rigs to  mine Bitcoin due to its too expensive in the market and the electricity also was too high, in short it consume high electricity monthly depending in the price value of bitcoin. So, the better things you need to choose and to do is buy and hold, in fact, when you buy the 50% of your holdings can be use for short trading actually.

Well buy and hold is simple.
then buy at dca and hold is a bit harder.
lastly buy the dip and hodl is the hardest of all to time.


Mining ⛏ is complex. To say it is better than buy and hold is simplified.

The point you began to mine is important.
The mine and hold idea is important .

A long long long time ago I got an s-1 if I only mined with that and simply held every coin it mined I would have made a lot of money.

Now to say it cost three coins and earned 2.9 coins while it mined for years thus buying the three coins is better than buying the three coins and spending them on the gear only to earn 2.9 coins is one way of looking at it.

But it involves more than that as this time it is different.

why do I say that? an s-1 did 200gh and burned 400 watts

it was quickly replaced by

s-3
s-5
s-7
s-9
s-15
s-17
s-19

if you studying the watt to th improvements  they are getting flatter.

I propose this flattening is different and will favor mining over buy and hold.

But BTC is not predictable so I could be wrong.

Also if you buy on ebay and get a deal you paid in PayPal cash not btc.
You may have six months to pay with zero interest.

I got two s15’s on ebay July 2020. cost was 700 usd with six months to pay 💰

So if I did this and simply mined and held until Jan 2021 It would be better than if I purchased the btc at 700.

A ) I can buy the gear on layaway zero up front. six months to pay
B) I can not buy btc on layaway zero up front six months to pay.

This is a big reason why I mine more than I buy and hold.

Absolute crap

They probably compared it to retards buying BTC high and selling low
or buying miners a few years ago and selling them now for more than someone paid for them.

In reality though, the price you pay for a miner in BTC is usually around or less than the total BTC it will ever mine.
Selling off the miner after that to some sucker who is going to regret buying an old miner for the rest of their life will not be making you 4-5 times more BTC ... ever.

They are a company that wants you to mine ... so of course they are gonna report ridiculous stats to make you want to mine not hodl.

There was a great report on how mining has actually outperformed holding over the years released by Jefferies last week. I will put the link below so you can read the whole report but the takeaway for the purposed of this thread are below.

Buying bitcoin versus mining it

Jeffries' primer tackles the persistent question of whether mining is more profitable than simply buying bitcoin. Of course the analysis finds mining to be more profitable, which is the correct answer. In this analysis, they note:

• The cost to buy an ASIC miner is generally earned back within 6-12 months.
  
• Mining has resulted in up to 5-6x higher returns over multi-year periods compared to buying and holding.

https://compassmining.io/education/jefferies-bitcoin-mining-report/?utm_source=miningmemo&utm_medium=newsletter

I recommend holding! Not that mining is not profitable, but it needs a lot of money in preparations and running the whole process 24/7. But you can start holding even with $500 and if you start holding at the right time then you'll see an increase to your portfolio slowly day by day.

@CrossroadBTC HODL is only good as long as you don’t hold and forget. Hodling is less burdensome but you still need to keep a close eye on daily movements because crypto being highly volatile can yield most unexpected results.

It still depends, not every holders are ready to hold for years to come, some are holding for quick up trend in crypto market for few dollars more, for them HODL is more risky, my friend was forced to hold BTC in 2018 after buying at ATH, he has no choice but to hold but he wasn't prepared for it

Mining is the use of your computer to produce a certain cryptocurrency of interest. Think of Mining as being similar to printing or minting currency bills just like the central bank does. while to hodl is to acquire a given cryptocurrency and holding until its value increases. In any of these cases, you have the opportunity to make huge profits if you are doing it right.

As of now from my point of view just hold your altcoins and see the market value. in which you need to learn trading that will help when to withdraw those tokens/ altcoins. Really besides use giving you suggest the best option is for you to learn to trade and you need to be good on decision making that you will really need and besides that, you need to study the ICO, company, or your token/ altcoins background if it has a good reputation.

Related to mining discussions  I would suggest if you have money still, you can do is to be patience when the market value goes down to 20k or 30k dollars there, in my point of view you might get a big chance to earn big.
Likewise, you need to be patience as well and learn the specs you need and ideas with trading at the same time.

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I want to ask do you have any idea and there would be a chance that the bitcoin that is in your hands has the most income? if yes stay with bitcoin and learn how you will depose the other altcoins you have if you want to get the income return? you have to rely on the words I said above.

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Also, I want to share that when it comes to holding bitcoin is much better rather than altcoins it has more potential rather than altcoins.


Lastly, A pro tip on trading and mining is you should have a goal when you think you got enough of that amount of your money you can really earn. Your first thought like for example you just bought a miner, for example, a 700$  and you think you can have 30,000$ a year it two, stop.

You must stop so you can stop your losses in which this tip is better to be applied on trading and a bit on mining.

You have a point on this. If the OP is not ready to get into mining because there are several factors to consider like is he working in Dubai or a local resident? Because if you are just working in Dubai, I guess you need to consider your power consumption, your space and other. Don't know also the regulations of Dubai when it comes to crypto mining. Anyway, what I am trying to say here is that, before going into mining, you have a lot of considerations to think about. But if you want less effort but of course high risk route, you can easily go to holding. But holding only worthwhile coins, maybe start from btc and top alts. And then, after a while, assess your position. The OP already experienced investing in what we call shitcoins, so he should know better what coins to hold.

Mining is a passion. If you don’t have a passion for it, you won’t stick around when things get tough which will keep you from realizing the best gains.

Holding has historically been the better yielding investment, so if your motivation is purely profit based, the odds are that this would be the best way to realize that.

The path of least resistance points to holding.

m o h

I quote from your word, which says "5 years later". I think that compared to mining I prefer to buy crypto and hold it for 5 years or hold it until the price suits me. Long term buying risk is very less than mining. Mining has the risk of electrical installations and the threat of bad guys. what is dangerous is from electricity, when mining takes a long time it will heat up your tools and experience a fire and not only that, you can get a loss when the electricity goes out for days or even weeks. I personally prefer buying crypto than mining crypto.

Definitely finding a low cost hardware is the deciding factor whether mining is going to be a profitable venture, or just a waste of time.

In my opinion, everyone has their own risk, if you choose a long-term investment, you must have capital 2x your investment, if you choose mining you must have the capital to buy equipment and electricity that is so expensive, the risk of mining is when you go drop out and you will lose a lot. time and equipment. I think it is better to choose long term investment, because cryptocurrency will never die.

Buying and holding there is very little you need to figure out except the price you bought it and any dollar-cost averaging in you did. Mining there are a ton of variables to take into consideration which for most people they quickly default to its not profitable or its always better to buy and hold.  If you are smart about it and invest in ASICs and other equipment carefully and dont chase prices you can slowly acquire the mining equipment and potential hosting locations and get started as slow or as fast as you want.  You need to know your monthly cost and plan to be in it for the long run.  You can 100% beat the returns over time depending on your equipment but it can quickly go against you if you make poor decisions, overreact to price movement or have a short term outlook.  For most people buying and holding makes sense.  For others mining does, and for even many others you can do both which always seems to be forgotten. 

I have personally been doing both since 2017 and can say I have made back the returns of all my miners both GPUs and ASICs well before this bull run so now they are just making me money day after day which is always a good feeling. The BTC I bought in 2018-2019 during the bear market also has appreciated a ton.  My outlook was much different in 2019 but I kept on going because it was the long term I was focused on. Not turning off the machines because it was barely profitable. It was accumulation for if/when this bull market ever came.  I used the early part of the year to invest some profits into new S19j Pro to continue the cycle.  What is right for you? That is something you need to figure out based on your financial situation and all the variables of mining. No one who gives you a yes or no answer actually knows if it will be profitable unless they have all the personal information you know that would make things work in your scenario.  Do the homework and take the path that fits for you.

When you mine a currency (mainly bitcoin,) you are not just betting on its future, but you are betting on bearing losses, if you do not do your calculations accurately, the probability of your loss is higher than the average compared to buying.

Mining is related to the continued rise in the price of the currency compared to your accurate calculations to obtain more blocks and thus make a profit, and it is a science related to several factors such as electricity costs, space, and economics of cost, which studies the costs of depreciation, the possibility of obtaining an alternative opportunity to mine another altcoins and others.

So you have a lot of options, but if you don't study it carefully, changing plans can be costly.


As for buying the currency, it is the easiest, it does not require a lot of calculations, and you have a good chance to do it if the price collapses by 60% to 89%.

There are several strategies but I would prefer you to buy when a crash occurs and then follow DCA rather than mining unless you have a good plan and do everything carefully.

Finding a reliable and trustworthy pool is easy with several that are well known and trusted so that part is not a problem. Finding low cost power is the hardest part of the equation.

@philipma1957 I don’t think these two are only important aspects of successful mining. Choosing a reliable and transparent mining pool is equally important as well as having powerful hardware.

buy and hold doing a one shot buy is the highest risk you can do.

dca buy and hold reduces risk greatly.

mining sucks until

A) you get a good power deal.
B) you paid off the gear.

If a and b is true mining is really fucking good.

The only difference between holding and mining is that it has a machine to mine but they are both holding coins all mines will be directly sent to your own wallet.
It depends on you if you want to hold your coins or sell them or sell the portion of your mine coins every month to cover your Electricity bill.

The only risk on mining is actually if you bought a defective miner and 2nd hand miner with locked pool settings. Mining is easy to manage it shouldn't be risky but still, you will still need to have a bit of electrical and technical knowledge so that you can manage them well.

Holding would be also risky if you don't know how to protect your machine from any hack and virus. The same goes for mining you need to protect your miner and wallet from any possible attacks.

You are right; I've missed quite some of the risks of mining. But I was referring though to financial risks. At least that was my main point/idea.
Imho if all is calculated good and electricity price is small, the miner will be earning some money; sometimes more, sometimes less. On the other hand, at HODL, with the huge price fluctuations, with FUD, one can easily get to buy high and sell low.
But I've corrected: both are risky in a way or another.

I find it hard to agree with this point, HODL is a lot less risky, you just need a proper hardware wallet to "store" the coin, your risks are limited, predictable, and avoidable, with mining, however, I can name tens of risks associated, many of which are not controllable by any means, people have no clue how hard is it to maintain a mining farm, but worrying about theft, fire, damaged PSUs, dead fans, heatsinks falling and all that is a lot of headaches and a lot of risk to be taken.

current miners with miners in the era of 2009 to 2017, much different, miners used to get a little more, not the same as now, with super-sophisticated technology nowadays, many people are mining, so now it's much different from the past.

With that for miners who used to prefer to quit and sell all their devices and switch to coins they think are worth buying, with the new system they are doing now is more productive than having to waste energy to do mining, even though the coins purchased have to wait for years.

I will say buy and hold. Because mining requires energy you have to spent money every now and then if any of the parts is damaged and also its needs space and its cost a lot of electricity.  If you see holding is more better and profitable than mining.

Mining is one business, investing is a different business. You can HODL without mining, you can mine and sell directly or mine and HODL...
While mining (and selling instantly) has a more or less quantifiable ROI (based on difficulty and electricity price), with buy and HODL nobody can tell how much you'll earn.
Mining comes with headaches - hardware that works, fails, needs maintenance, maybe personnel too, internet connection, maybe cooling too - while HODL is easier (and riskier too). [edit: not riskier; both are actually risky in their own ways].

All in all it's hard to compare and pinpoint like "this is the right choice". No. And well, it's you who has to decide.
The miners will be able to help you with the math if needed. But at the end of the day, it's your decision.
I find buy-and-HODL a much easier option with much more potential on long term, but Bitcoin price also falls badly now and then and you need a certain mindset to not panic-sell then.

Okay this is not the right section, but I will give you some advice.

First this is most likely going to be moved to economics section under speculation. As it goes beyond mining.

Second this involves a host which would be in service section.

Third and most important it wants to compare mining with a host to hodling. Which is kind of a speculation and investment question.

If I were you I would create a DCA buy and hodl plan with a good exchange.

ie. 100 USD a week in btc at coinbase is 5200 usd a year.

do it for 4 years it is 20800 put in. then hodl it with a few sells set at 2x and 4x what it cost you.


I picked 100 a week assuming you can afford that.

Most people get crushed due to going all in when they buy to hold.  Don't do that.  do DCA   that is Dollar Cost Average.  DCA will never be perfect but it will not be the worst move.

Think what just happened early this year coins were 64 k. go all in and now the coins are 37k = ugg.  DCA and you are better off.

We have never had a straight up 4 year price rise .  That case would mean you make less money with DCA than buying all in on day 1.

These are all guesses based on the past. I am not advising you financially.

Hello there
A Lil intro about me
I am based in dubai been in the crypto space since 2017 invested in a few shitcoins (bitgold,mlm schemes )(im looking at you bitclub) as well as a few long term based projects.
However none of my previous ventures have beared fruit as i anticipated
Currently im weighing in the pros and cons of mining a coin vs just holding the same worth of coin and reaping benifits lets say 5 years later
From what im reading on this forum the variabilities in mining are way too many compared to just buying the coin and holding it in a cold storage wallet
Ps:If mining id be looking at colocation (usa,kazhakstan,canada) was looking at a few options from compass mining (dont know how legit they are though since ive heard about them only through voskcoin)
What are your thoughts ?
Buy and HODL or Dive into the world of mining with colocation