The main idea of my article was - I'm NOT lucky
However, I didn't lost any BTC and even made some profit with cex.
Topic: Mining with CEX.IO or why do I not believe skeptics - page 7. (Read 22063 times)
You know, I don't think I'm lucky.
The main idea of my article was - I'm NOT lucky
However, I didn't lost any BTC and even made some profit with cex.
The main idea of my article was - I'm NOT lucky
However, I didn't lost any BTC and even made some profit with cex.
Prior to the dot com bubble anybody could have thrown darts at a WSJ paper and hit a winning stock. BTCe Trollbox should indicate there is minimal skill and mostly luck in trading cryptos.
Consider yourself lucky. For every winner in CEX there are 2 loosers.
Consider yourself lucky. For every winner in CEX there are 2 loosers.
I was interested in the question why do people buy GHS on CEX.IO for such a high price.
And the answer was quite clear:
But the network difficulty is constantly growing, which means GHS make less profit, while the electricity and maintenance cost percentage should increase as well.
Everyone I know keeps telling me that a long term investment in GHS is plain silly, you can only get some profit on short trades.
At first I agreed with all of these arguments, as I’ve never had any experience with an Exchange, but one day, something possessed me to buy 6.5 BTC worth of GHS.
And here is what came out of it:
At first I decided to try to play on short rate fluctuations: I bought a small portion of GHS and put them for sale for a price a little bit higher than I bought, and etc.
A couple times I even managed to make some profit.
Here is a screenshot of my trading history:
At first, there were no signs of trouble.
But as you can see, I made all the transactions on the 25-26th of November, at the time when the prices were at the all-time high.
A couple of hours after my purchase the price for 1 gigahash began to crumble.
My first thought was: “Oh s%^$t! I will never use another exchange in my life!"
The price for 1 Bitcoin at that time was about $900 per BTC and it swiftly moved to $1000.
You can imagine, I spent $6000 on something unclear and I watched my investments depreciate rapidly.
If you look at the Bitcoin charts you can tell that the timing for my investment couldn’t be worse.
But eventually I was able to calm myself and just stared at the charts.
I also kept myself busy making a calculator, which allows users to predict the exact maximum profitability of a GHS, calculate profitability per day, per month, taking into account network difficulty increase and other various factors.
I put it on the net: http://mining-profit.com/
So, using my super awesome calculator I have counted that my 79 GHS’ profitability is 0.0553 BTC per day. And if I wait for two weeks, I will get about 0.7742 BTC in income. This means that if after two weeks the price for 1 GHS will be equal to 0.072 BTC, then I can sell my GHS and break even. If I decide to hold on to my GHS for 1 month - I can sell them for 0.65 and break even. Hence, all I need to do is sell GHS for a price higher than the ROI price and get profit while I’m mining.
Considering the fact that I was afraid to lose somewhere around 1.5 BTC, which is roughly 23% of my investment, the prospect of me breaking even gave me a warm satisfying feeling.
I decided to keep trading and mining to make some profit out of this situation!
I decided to wait until the prices rise again, but they were fluctuating up and down, so eventually I was tired of waiting and sold them all, when I understood that am no longer at loss, but even made small profit.
My trading resulted into a profit of 0.26 BTC, which was equal to $250 at the exchange rate at that time on bitstamp, or nearly 5% of the investment.
Here's a screenshot of my recent trades:
6.73 BTC it is not a huge amount, as many would expect, but it is a decent reward for a beginner like me, I also gained great experience.
And considering that initially I could barely hope for a minor loss of my investment, at the end of trading - I made profit, which is very nice.
So coming out of my personal experience I can say that even people without any experience or perfect understanding of how the bitcoin mining/trading works I’ve managed to make profit from the CEX.IO exchange.
PS. If you enjoyed my story, and you want to try out mining and trading yourself - be sure to sign up with CEX.IO with my referral link: https://cex.io/r/0/kickbit/0/. It'd be greatly appreciated.
And the answer was quite clear:
- They can be sold at any time, at least in theory.
- While owned, GHS make profit in the form of Bitcoins.
But the network difficulty is constantly growing, which means GHS make less profit, while the electricity and maintenance cost percentage should increase as well.
Everyone I know keeps telling me that a long term investment in GHS is plain silly, you can only get some profit on short trades.
At first I agreed with all of these arguments, as I’ve never had any experience with an Exchange, but one day, something possessed me to buy 6.5 BTC worth of GHS.
And here is what came out of it:
At first I decided to try to play on short rate fluctuations: I bought a small portion of GHS and put them for sale for a price a little bit higher than I bought, and etc.
A couple times I even managed to make some profit.
Here is a screenshot of my trading history:
At first, there were no signs of trouble.
But as you can see, I made all the transactions on the 25-26th of November, at the time when the prices were at the all-time high.
A couple of hours after my purchase the price for 1 gigahash began to crumble.
My first thought was: “Oh s%^$t! I will never use another exchange in my life!"
The price for 1 Bitcoin at that time was about $900 per BTC and it swiftly moved to $1000.
You can imagine, I spent $6000 on something unclear and I watched my investments depreciate rapidly.
If you look at the Bitcoin charts you can tell that the timing for my investment couldn’t be worse.
But eventually I was able to calm myself and just stared at the charts.
I also kept myself busy making a calculator, which allows users to predict the exact maximum profitability of a GHS, calculate profitability per day, per month, taking into account network difficulty increase and other various factors.
I put it on the net: http://mining-profit.com/
So, using my super awesome calculator I have counted that my 79 GHS’ profitability is 0.0553 BTC per day. And if I wait for two weeks, I will get about 0.7742 BTC in income. This means that if after two weeks the price for 1 GHS will be equal to 0.072 BTC, then I can sell my GHS and break even. If I decide to hold on to my GHS for 1 month - I can sell them for 0.65 and break even. Hence, all I need to do is sell GHS for a price higher than the ROI price and get profit while I’m mining.
Considering the fact that I was afraid to lose somewhere around 1.5 BTC, which is roughly 23% of my investment, the prospect of me breaking even gave me a warm satisfying feeling.
I decided to keep trading and mining to make some profit out of this situation!
I decided to wait until the prices rise again, but they were fluctuating up and down, so eventually I was tired of waiting and sold them all, when I understood that am no longer at loss, but even made small profit.
My trading resulted into a profit of 0.26 BTC, which was equal to $250 at the exchange rate at that time on bitstamp, or nearly 5% of the investment.
Here's a screenshot of my recent trades:
6.73 BTC it is not a huge amount, as many would expect, but it is a decent reward for a beginner like me, I also gained great experience.
And considering that initially I could barely hope for a minor loss of my investment, at the end of trading - I made profit, which is very nice.
So coming out of my personal experience I can say that even people without any experience or perfect understanding of how the bitcoin mining/trading works I’ve managed to make profit from the CEX.IO exchange.
PS. If you enjoyed my story, and you want to try out mining and trading yourself - be sure to sign up with CEX.IO with my referral link: https://cex.io/r/0/kickbit/0/. It'd be greatly appreciated.
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