Topic: Trying to take loan for mining build (Read 224 times)

Smart miners use borrowed funds when they already have a certain amount of income from mining, and they can repay debts from mining profits. In this situation, profit may not be enough.

Yes, it is possible if you know what you must do with that loan and you really can make a profit from that so you can pay back the loan at the right time. But as you already know, the market now is unpredicted and it is hard to hope that the market can increase soon so you can sell your reward from the mining process at a profit. You can calculate the risk how many amounts you should earn from the mining so you are in the profit position to make a profit, plus you can pay the loan.

However, you should think of another worst scenario to prevent the bad things from happening and you can make prevention if that is really happening.

The Crypto market isn't stable so why would you take a loan on something that is highly volatile? You can build your rig today and mine for months then the reward goes lower making your ROI grows longer than ever, you won't be able to sleep at night.

I know it’s temping to load up on GPUs when you are making good profits. However in the past I met many people who got themselves in a hole by doing so.

Generally they bought most of their gear with a credit card and interest is crazy high at 20%. Then the markets took a shift and they were pretty much mining at break even. And those 20% interest hurt every month. So they were forced to liquidate their farm to pay off their debts. Not smart.

If you are new to mining, then it is better to find a partner who rents your premises from you, and with the money you receive, your partner will make you a mining farm. The profit in mining is not big now, and I think that you should not rush into shopping. It is better to wait for the end of ethereum mining and buy very cheap video cards.

I'm not new to mining, I have rigs that are hashing away right now in my home but I want to take a loan to build rigs I'm only asking for advice from people who have walk on same path before me.

I would be careful but would not care much if Eth goes PoS or not as there are other coins right now that are still profitable to mine especially with free electricity.My advice is the same as many others start small,buy all the needed parts to build a rig but just start with one graphic card,(I don't suggest ASICS as once the algo they are mining is switched from the developers you can only use them as space heater then) so you can test the waters with that one card.See for a month and if you like it slowly build it with another card,you don't need 25.000 dollars for this that is a sure thing but you can need like 5000 to just build a 5-6 GPU rig depending on the cards you will buy.

Lot of credit cards offer intro 0% apy for 12-18 months. Just an option. Or get a personal loan.

I wouldn't recommend till after eth goes POS

You can buy gpus at many sellers with a loan and pay it back in 1 year.
Nearly nobody would give you this advise for mining crypto, but it is possible.
How much solar do you have? I doubt you can run 3 rigs full time, but if so
it might be an option to look for a partner to do this.

In case you basically have nothing, no hardware and no knowledge in mining
you wont find one. In this case.... better forget it.

For me, 2 ghs or so isnt a farm.

I honestly do not know if a traditional financial institution will give you a loan for building a mining rig. A bank manager will most probably not understand mining fully in order to make an informed decision on your application. Financial institutions like low risk. In addition, a mining rig depreciates quickly unless you can keep building it out with your profits and replace hardware in time and successfully offload the depreciated assets. In the old days it was still possible to get into a ninja launch make a buck but those days are over in the new predominantly DeFi ecosystem. Mining rig providers also keep a close eye on the difficulty and prices of the target coins they make rigs for and you will probably buy their second hand equipment after they used the profitable equipment to make money before they go to the general market with their equipment. So your timespan to be profitable will be short, especially if you have to re-pay the loan with the profits. Perhaps three months or maybe six if you are lucky.

Having said this, your electricity is free (solar) and you have already invested in that so it is sunk cost which is a huge advantage to you. I would recommend that you either go to a family member with your plan, or try to go to the DeFi market and use some of your other crypto as collateral or something to that effect. Alternatively take a loan against other real life assets. But be warned, mining is high risk as is any crypto and don't use any money you cannot afford to lose. Taking a loan to use for crypto is a big no-no in almost all use cases.

Honestly if you need a loan then I wouldn’t venture into mining. It comes with risks. The mining equipment is very expensive and if ETH keeps declining while difficulty keeps increasing then you won’t make much pretty soon, whether you got free power or not.

My advice just use some of the savings you have and start slow, and each month build up your farm. But borrowing money to buy all this gear is not a good idea trust me.

You need a financial advisor. You won't find one here.

That is good advice….start small with what you can afford to risk…let the farm pay its way by reinvesting some or all proceeds.

Are you new to mining or do you have some experience with it and all other stuff like the basics about crypto ?
My personal advice and opinion is to not take a loan for just building up a mining build.
Maybe you can just start from small and you can look how it goes , specialy the GPU price is to expensive right now.
But thats my personal opinion for you.

Is it possible to collect loan of 25,000$ to build a mining farm? I have free electricity through solar but the loan part is what I've never done before your advice is needed.