In January 2018, I was celebrating my birthday at Disney World in Orlando, Florida. I was in line with my friends for the Seven Dwarfs Mine Train Roller Coaster, when I suddenly realized this recreated cavern was as close to a representation of what most people knew of as mining. A cave where people (and dwarves) were boring into the earth for gems and precious metals.
When mining for cryptocurrencies, the idea is modeled after the uncovering of precious metals and stones from the earth. This digital mining usually involves proof of work and verification of the blockchain and isn’t done with pickaxes, but with hash power from computers and graphics cards.
An alternate mining method is called proof of stake and involves holding, or staking, coins in your wallet, on the company’s network, or another specified location. Some companies allow you to set up a node. Owning a node can also be a profitable way to help secure the network and earn you cryptocurrency for participating in the network ecosystem.
The mined cryptocurrencies which you earn can be transferred to your digital wallet for safe keeping.
As I have mentioned before on this website, I’m not offering professional investment advice, but I’m just sharing my thoughts and ideas as a cryptocurrency enthusiast. If you find this topic interesting, like I do, I encourage you to continue your research and consult with an investment professional who understands the local laws in your jurisdiction.
In the words of Warren Buffet, “Risk comes from not knowing what you are doing.”
One of the reasons I decided mining (and robo-trading) cryptocurrencies was a good option for me, was that I believe in the idea of cryptocurrencies. I may be late to the market, or maybe I’m still way ahead? Either way, I wanted to enter the market in the safest way I was able to discover.
My 5 main options I saw were:
- I could buy and hold a specific coin.
- This is sometimes called HODLing. To HODL, or “hold on for dear life” usually means you’ll hold on to the specific crypto over the long term despite volatile fluctuation.
- I have decided to do this with a few of my favorite coins. We’ll see how it goes.
- I could set up a node.
- This is something I would like to do eventually, but it’s expensive, usually costing several thousands of dollars to activate a node.
- I could trade coins like a investor trades stocks.
- I don’t have the time or inclination to day trade these digital coins like many of my friends do. It seems too stressful for me and I feel that I don’t have the knowledge or experience to be successful using this strategy.
- I could mine the digital coins.
- This mining strategy seemed the best for me because of my busy schedule.
- I can see my accumulated crypto currencies on a daily basis.
- After reviewing several online independent mining calculators, it looked like I could double my initial mining contract deposit within 2 years, (even less time when bitcoin was trading higher).
- Please Note: Proof of work mining is ONLY profitable when the specific cryptocurrency is at a certain price so that your mining reward will cover your electricity, hardware and/or contract licensing costs.
- When cryptocurrency mining lost profitability during the bear market of 2018-2019, I researched other options in the traditional stock market and discovered robotrading was being applied to the cryptocurrency market.
- Robo-Trading allowed me to keep my day job and have an artificial intelligence (AI) algorithm do the trading for me for a small licencing fee.
- The crypto-trading and multi-trading services being offered gave me the ability to leverage my cryptocurrency assets and increase my crypto holdings.
Of course, this is not a guarantee of performance, but what I interpreted from the data I researched. I encourage you to investigate the data on your own and ONLY enter the mining & trading market if you have done your due diligence.
With April 15th just around the corner, I feel many people will have some EXTRA money to “invest” from their tax returns. I’m anticipating a spike in the crypto market and wanted to make sure you have enough information to whet your appetite to research this market.
I plan to go into more depth on cryptocurrency mining and cryptocurrency trading over the summer months.
There are many cloud mining and crypto trading services out there, but I chose to work with 2 Companies, HoneyMiner & Neo Mine Tech as my best overall mining options. Honeyminer is based in New Jersey and all mining is converted to BTC. You can connect your existing mining rig to their system for optimization and if you need additional computer power, you can purchase that from them with a 3-month or 6-month contract for bitcoin . Neo Mine Tech is based in California and can take credit cards (instead of ONLY cryptocurrencies) to purchase mining packages.
Both HoneyMiner & Neo Mine Tech, are approved for business in the United States and you can choose to participate as a customer for their new mining products which are being released in June 2019. They also offer an affiliate program as an option for people who like to share information about their favorite products.
For extra hashpower with HoneyMiner, they take care of all the updates, power cost & optimization and you receive satoshis based on your contribution to the mining pool. If you use my referral link is: https://honeyminer.com/referred/5bldz then we BOTH receive 1,000 bonus satoshis. Thank you for your support! =)
I’ve had several meetings and conference calls with several founders of the Neo Mine Tech and I like the company vision and where they are headed in this emerging and evolving market.
- I will be creating a TEAM resource page which explores cryptocurrencies like bitcoin and the concept of mining & trading.
- This is my affiliate link for Neo Mine Tech where I do my crypto-mining. They are available in the USA and also available in most countries around the world. If you have friends and family around the world, teach them about cryptocurrencies and the potential benefits of mining. I am happy to answer any questions you may have: https://agent.neominetech.com/TofuAlan