7 Super Smart Ways to Save Money on Cloud Mining

Blockchain Tech

There are countless ways to make money with computers, but less on how to save money with them.

The crypto industry is as lucrative as they come today, with interesting and varied opportunities for mining popping up every quarter. The decentralisation of money has led to this new digital gold rush, as individuals, mining pools, and full-fledged mining companies vie for the same blocks. So how do you stake your claim and mine your own minty fresh crypto cash? It’s all about building your rig and balancing performance with efficiency.

Bitcoin, in particular, has had a blockbuster decade. It has skyrocketed in price and even earned the long-awaited support from big banks and financial organisations. However, for many interested investors and traders alike, it can still come across as a complicated investment. It’s historically expensive, volatile, and can’t be purchased through a brokerage account not backed by a financial institution.

But there are still ways that people can invest in cryptocurrency and even bitcoin, or the technology behind it, without holding any coins themselves. While it might not completely shield investors from cryptocurrency’s trademark volatility, it can give them some protection from loss.

In the early days of crypto, mining was a boon for small-time entrepreneurs – but soon the mining business became increasingly competitive, as miners purchased massively powerful computers while scaling up their operations to remain profitable. Here’s how you can make bank – without breaking it.

1. Do your research

Before anything else, the first decision you need will need to make is what currency you’re actually mining. This will influence every other decision you make and it is in itself a complicated question. You need to consider the currency’s value and block reward against the difficulty of the hash and how many other miners are chasing the prize. The more difficult the race, the meaner your machine needs to be.

By setting up a strong foundation of information beforehand, it will make the rest of your foray into the world of cloud mining that less daunting and more intentional. Less beginner mistakes, too.

2. Consider the investment side of the equation

You’ll also need to take into careful consideration the actual investment side of the equation. Some mining can be done with the PC you already use, but in most instances getting serious about mining means you’re going to want to invest in a purpose-built system. This means spending real money and it could range from hundreds to tens of thousands of dollars depending on the currency you’re chasing and how competitive you want to be.

That’s just a starting investment. The day-to-day cost, the incremental loss, is electricity will have to be factored in as well. Throwing around hashes in the trillions per second makes a rig mighty hungry, and even moderate mining can make a noticeable impact on your power bill. So not only do you have to be mindful of your rig’s performance, you need to balance your profits against the increase in your electrical bill.

By calibrating a carefully designed system that works for your own financial capacity, it will save you hundreds of dollars down the line by skipping over any accidental splurging on electronic or subscription bills.

3. Have a strategy prepared

It’s not easy to develop a genuine cryptocurrency regime that actually works, given how rampant crypto scams are in the industry. Instead, try looking at a project critically. How many users does it have? What problem does it solve? Does it have any links with industry? Avoid coins that promise the Earth but haven’t delivered anything tangible.

If you set up this arrangement beforehand, it saves you the apprehension of going in blind later on. By addressing any potential mishaps that might happen and having your questions be answered, you’re already given some form of insight into what you’d expect going in and the right tools to navigate any potential incidents that might occur.

4. Learn to manage risk

Some people offering crypto trading tips might not have your best interests at heart. So don’t get stung making the same mistakes as others. Set limits on how much you invest in a particular digital currency and don’t be tempted to trade with more money than you can afford to lose. This contingency plan might be the one thing that’ll separate you from being completely bankrupt later on.

Cryptocurrency trading is a high-risk business and more traders lose than not.

5. Invest in companies with crypto interests

Rather than buying shares in any single crypto-forward company, most novice traders advise that it’s better to maintain a balanced portfolio by identifying companies with crypto interests.  Make sure their shares are included in any index or mutual funds you put money into. Not only does that allow you to invest in the companies where you see potential, but it also helps you keep your investments diversified within a broader fund.

Keep in mind that specialized ETFs or mutual funds can also come with higher fees than total market indexes, so pay attention to how much you’re going to be charged for buying shares. For an already speculative investment, high fees can hinder your growth even more.

6. Look into blockchain ETFs

ETFs, or exchange traded funds, operate like a hybrid between mutual funds and stocks. An ETF is essentially a group of stocks, bonds or other assets. When you buy a share of an ETF, you have a stake in the basket of investments owned by the fund.

While many ETFs — such as total market ETFs — have very low expense ratios, specialized ETFs can be closer to the 1% ratio that Schneider would consider very expensive. This will make less of an impact if more expensive ETFs comprise a small portion of your overall portfolio, keep in mind the cost when considering options.

7. If not, try crypto ETFs

For would-be crypto investors who are deterred by exchanges or buying and holding actual coins, one simpler way to invest — via crypto or Bitcoin ETFs — has remained out of reach until recently.

The first Bitcoin-linked investment product, the BITCO Bitcoin ETF, launched in October after much anticipation. Plenty of companies — from crypto exchange Gemini to longstanding investment firm Fidelity — have attempted to offer Bitcoin ETFs. You might want to get into the action now before it’s too late.

Conclusion

For anyone looking to get into the trade but is wary of the potential financial loss, you can rest easy knowing there’s no way crypto values will ever drop far enough for mining to cease. Organized crime wouldn’t let that happen. But you can, however, save a few bucks in doing so!

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