Last year I got interested into Bitcoin, on all aspects to it. From how to buy them to how to mine them and how to map out the current online ecosystem that exists.
This writeup is simply a recall of my experience with the currency, my hope is that this gives plenty of you some guidance on how to prevent some of my early mistakes.
After reviewing multiple system, I ended up choosing the following option:
A great platform that allows you to buy Bitcoin and Ethereum. You can connect your bank account, debit card or credit card. The bank account connection works, but it takes 5-7 days to deposit the cryptocurrency into your account. If you use your Debit or Credit Card, the deposit happens right away.
Their web interface and mobile App is quite well executed and easy to use. In my view much better than most of the major banks Web or App interfaces.
I’m currently on boarding with Genesis as well, since to me they are more sophisticated and from I hear in NYC the main institutional trading firm on the market.
2. Cryptocurrency Exchange
If you need to exchange Ether into Bitcoin or any other currency, I found Changer to be reliable and very usable.
3. Cloud Mining
It is very clear that this is the right idea, but at the end its not that easy. Based on my tests, there are only a couple providers who seem to be real cloud mining solutions but based on forum discussions and user feedback - none of them are truly stable. I ended up testing out 3 providers.
a. TERABOX - 100% SCAM ALERT
As I mentioned in the title of this provider - “SCAM ALERT”. This provider looks pretty from the outside, and gives you a taste by providing you a Trial instance to pull you into the service. But the only way you can withdraw your earned bitcoin is by buying their Hash Rate.
I hope you get to read this before your purchase! Its clear that they continue their operation of a deathtrap, with the continued illusion that you should be able to withdraw your earned account balance.
Recommendation: Stay away!
Genesis has been around for 820 days, an important factor that needs to be considered when you decide which service you want to trust. Still that doesn’t mean that it will be around and its a guarantee that you will get your payout. Reading forums such as Bitcointalk gives you a better understanding on how other users experienced the service.
My experience is that Genesis Mining is the only platform that consistently is paying out daily, with a ROI payback of 0.23%/day or 83.05%/year. Its a long term play with them.
PRO: Daily payouts, direct deposits to your bitcoin or ether account, no maintenance fee, allocation of mining power towards other crypto currency
CON: Time will tell, but for now this is my cloud mining choice.
Recommendation: Only invest a small amount, never go all in. And wait for your investment to be returned. Don’t double or triple down, since that is where your losses will stack up.
Hashflare presents itself quite well on the outside, by providing pictures of their operations or an address of their location in Estonia. Their interface seems not only sophisticated but way more superior compared to any of the other offering in the market space. Being able to set your mining pool settings for your hash power.
PRO: Lots of stats, pool setting customization
CON: Maintenance fee
Recommendation: The maintenance fee simply destroys the economics of mining, and sets the return 0.05%/day or 17.52%/year - a payback period of 5 Years & 8 Months - just to get your investment capital back. They have Ether and Dash plans that are more favorable but there is a reason they limit those to 1 year.
TOP 4 choices in my view:
1. Genesis Mining ETH | Return: 0.41%/day / 148.84%/year
Contract length: 2 Years
2. Hashflare DASH | Return: 0.26%/day / 96.68%/year
Contract length: 1 Year
More gambling than anything else, before you decide to use them, please be aware of the following guidelines:
- Invest in HYIP at its initial development stage. It is the most profitable one
- Select investment plan with lesser term of so called investment freezing
- Invest in any HYIP project only once in order to reach “in the black” quickly and regularly withdraw money you get
- Be sure to assess web site design quality and content coherence
- Mark as a “plus” if web site displays contact details and official documents
- Don’t invest money which serve you as important financial instrument
- Try to diversify internet investments
HYIP reminds me of the legal low cost bidding sites such as Tophatter, where the crowd is enabling others to mostly loose their investment while they hope that they are the ones who will walk away with the goods.
Represents every pyramid scheme in the past, more of an earning cult than anything else.
I tested the following 3 platforms with a minimum investment ( loss ) strategy:
a. Metizer | Return: 2%/day | Working days: 72 | Got shutdown April 5th, 2017
0.20 BTC invested - 167.23% returned
b. FlexiBit | Return: 3.3%/day | Working days: 75 | Still running
0.15 BTC invested - 202.4% returned
c. BitOffice | Return: 10.1%/day | Working days: 34 | Website is shutdown
0.29 BTC invested - 220.1% returned | Day 30
Recommendation: Always find out how long the platform has been around, and understand that anything you invest with HYIP is already lost. Never double down, just because you think the returns are there - they are not! This is the closest thing to gambling.