Trading cryptocurrencies like Bitcoin or other altcoins for profit can be done with great results. You can easily double your money, or better. But as an unregulated form of currency, you are going to need to use common sense in finding reputable crypto exchanges and getting the best rates, etcetera. This can seem like a bunch to take in, but let me tell you, there are many people banking hard with these methods. Don’t just narrow your vision to only Bitcoin or Litecoin, there are many other profitable crypto alternatives. Any budget, you can invest in crypto, typically Bitcoin and Litecoin are the most expensive currencies out there but there any many other types.
So you feel like a rockstar and want to start a mining empire? Well, lucky for you the current high prices make it profitable, however there is the cost of the hardware to have a think about, then there’s the space and cheap power rates that are needed to make it profitable. Miners generate heat and this is something you will also need to consider. There’s plenty of resources for determining the profitability, that allows you to account for your hashrate with your power rate taken into consideration.
You will also have to take into account that what is profitable now may be unprofitable in the future, cryptocurrency can be incredibly volatile in price fluctuations. The nature of your mining equipment, will likely mean that eventually it will become unprofitable. That is, it will use more cost in power than what you can expect to make mining. This happens as new more reliable technology reaches the market and increases the hashrate and in turn difficulty of mining.
So if you were to decide to mine you have to keep all this in mind; you will want the latest and best hardware, so it takes research and a pretty substantial investment. There is of course different algorithms that in turn use different types of hardware miners, so you are going to do your research into what type of coin you want to mine and base your decision on that.
You also have to be mindful that the “latest” and “best” hardware may not only cost a pretty penny, but there are quality control and reliability issues, this I can tell you firsthand. I was into cryptocurrency mining a few years ago, and had the KnC Titan miners. Had a total of 7 cubes and 2 controllers, before I sold them, they were a handful and part-time job, to keep them running and mining efficiently.
I ultimately had to return 3 of the cubes and that cost me time and money in the mining game, you want all your hashing power going all the time. I had PCI ports frying on these cubes and had to downclock from factory setting so the wires didn’t burn up and start a fire (this even with the beefed up y-splitter cables). Mining in a space you also live in can literally be hell during the summer season. This is because the heat these miners can generate, you are really better off investing the money you would buy the hardware with into buying the currencies and trading them to turn profits.
Bitcoin has literally been on fire this last year, and it shows no signs of slowing down, but you have to be careful and really make sure you don’t end up losing when buying bitcoin when the price is so high. I have seen it crash before and I would say it’s definitely a high risk investment, however with much risk the returns can be worth the risk. Right now as I type this post, Bitcoin is still making record gains, last I looked over $6,300 USD for a Bitcoin, compared to just in January $1,000 USD for a Bitcoin. If you’d have bought a single Bitcoin in January, you would have over $5,200 USD profit, wow.