Bitcoin Forum

Does it make sense to sell 40% of your mining rigs and keep the money for direct crypto investment and continue mining with the 60% left? How good or bad is this plan? also, It looks like miners are staying stronger this period, I expect many to have left mining but difficulty still remains very high.

Selling 40% is a good plan but buying crypto now is not a good plan, sell now and wait for the hehell crash in few months then you buy.

I would sell half of your mining equipment, save the other half in fiat, then either buy coins or buy mining rigs cheaply after PoS. It is usually 20-40% cheaper to mine most coins than to buy them when you consider depreciation & tax advantages.

A lot of things make sense or don't make sense based on your own personal situation.  Did you buy the rigs using BTC when the price was at $60K?  If so, selling the rigs off for more BTC now would be a smart move.  Are you having problems cooling those rigs during the summer?  Are you forced to sell at low prices to pay for electricity?  Do you have strong conviction in another asset you want to purchase and need to raise funds for it?

There are always so many variables...  Consider everything and do what's best for your own situation.

If you have already paid off your mining farms, then this is probably a good plan if you have expensive electricity and cannot compete with other miners. And if you bought your equipment expensively and have not paid back yet, then know that miners always paid off mining equipment if they continued mining.

Totally agree, and it's very interesting to see here all the plans to have more ideas

I don't know the situation of OP, but I like the idea of split your investment, never put all eggs in on basket
So, if you sell 40% of your rigs, or even 50% you can split the money to buy coins, and save some to DCA in a few weeks/months
In this way you'll have:

1 - cards to mine in a good market (POW coins)
2 - you'll have coins if prices rises
3 -  and you have cash to continue buying if price falls
4 - If prices of GPU falls, you already sold 50% in a good price

It's a good strategy, not so risk

In all my experience of mining, I found that many miners who choose to be traders usually end up losing all their mining profits. Miners should just keep on mining and stay away from trading.

I knew too many of them who tried out altcoins trading or leverage trading and they made good profits at first but eventually ended up losing it all during some nasty crash that crypto has time to time.

If you want to hold some coins for years then do that. Don’t do leverage trading.

Experienced miners don't think about selling or stopping mining when profits are close to zero. I also lost some money on trading and investing in various projects, and mining has always brought me good profits. But there are a lot of miners and the profit is falling.

Depending on what Coin you are mining , a few years ago there was some shitcoins that would be give you a profit when you trade them early.
Trading should be only done when you need money or BTC at least. Most new Users havnt the patience to hold them for long terms.
But i think we all was going through that stage when we was starting with Crypto.

No I am not talking about mining some low cap coin and selling it. I am talking about miners who mined BTC or some altcoins on Nicehash and earned BTC and then decided to deposit that BTC to Bitmex back in 2017-2018.

So many miners basically ended up losing all the ETH and BTC they mined by trying their hand at leverage trading. Just like many also tried their luck at gambling sites and lost it also.

Basically hold or sell your coin for fiat, don’t try your luck at gambling or trading.

scam wick'd, liquidated scam, wash traded LOL


best move is venture out of crypto with surplus money..  ;)

Depends.

This plan can be different for anybody because everybody has different situations. Depending on your electricity bill, your personal expenses&life standards, your mining hardware (GPU or ASIC?), the country you live in, your warehouse/home, the size of your mining rig... anything can change.

If 40/60 works for you, that's great. Keep doing it but don't expect this to work for everyone else.

That is insane, not even I do that. There are too may traps, yeah if you can control the coin market where you are doing the leverage trading then you profit big if not then you get liquidate very easily, that 50x and even 100x is hilarious ehhe, get rich quick or die ehhe

I strongly agree with this statement.Once I bought a Rx 5600 Xt from a guy and he didn't know I was a miner since 2015/2016 and started telling me what to do with the money made from mining,he used to mine ETC when everybody else was mining Ethereum,had like 2000 or more coins and told me he sold for profit at 9 USD an ETC when not long after that ETC hit an all time high.This means that trading is never recommended for mining,better keep mining,keep accumulating your preferred coin and when the time comes sell that or some of that for a big profit.The true story of this guy who could have been a millionaire if he waited just a big longer is my main lesson nowadays every time I think of selling coins or selling part of their rigs.

If I had held half my DOGE (https://dogechain.info/address/DAoDPPLxfKAD8g6G2QAyLKrU3CW8QQMmHZ) from 2013-2014 and sold, I would've ended up with $220k
If I held half my ETH from 2016, I would've ended up with $100k

I finally learned my lesson, bought a portfolio of coins in late 2018 and built a GTX 1060 rig in 2019 for just $140 per card. It was all I could afford after my warehouse went bankrupt. That rig paid for itself 5-6x over and I got a 9x return on my coins.

This time, I will mine with a dozen rigs during this bear market regardless of how bleak the future looks for GPU PoW. I don't care if they make zero profit for 3 years in a row.

that sounds like an addiction lol, we all have our regrets didn't we all? we should all start treating crypto coins like a gold.

Then very few people knew about cryptocurrency. In 2015, the Radeon HD 7970 video card brought several Ethereum coins per day, but the coin price was very small. There are a lot of miners now and it is very difficult to earn a similar profit

This is the same I will do,I will expand my rigs soon enough no matter if Ethereum goes PoS or not,I see in my country the prices of the Rtx 3000 series dropping like crazy,a RTX 3060 for 399 Eur is a good price right now but I will wait a bit longer if I can get it at 250 Eur and with just 2000 Eur I will buy 8 such cards to build a rig with those,it will be near 400 Mhsh now that 100% LHR unlock is possible.I don't think I can find any cheaper card than 250 Eur at 49 Mhsh.

I think prices for RTX 3060 cards can go as low as $180. The cheaper video cards become, the more I will buy. I should have enough power+cooling in a medium-size house to run 200 or so RTX 3060's. Power will only cost 8¢ after tax now!

It is a good idea to diversify your investments also because i believe the price of the gpu will fall shortly i would sell half of the rigs but investing in crypto is a big risk you have to be very careful the market is unstable

There is a lesson that I've ended up learning the hard way, do not sell all your coins or tokens even if you have to sell, always leave behind some small numbers just in case, selling some GPU to buy coins direct is a good strategy and selling all rigs for buying coins is a bad strategy too.

I can tell you many stories when the coins that were mined in 2012-2015 died. Now the situation is different and sometimes too lazy to keep track of all the shitcoins in a few years that you mine. Most coins die.

Then it can become a good idea to just convert all your coins to Bitcoin and hold,it is easy with 12 words seed phrases to not lose them.You can also sell many of the coins you have but that would never be a good idea in the long term so the best to do is to sell just the amount of coins for the needed money in case you need the money and the rest convert to real coins like Bitcoin to not suffer from pump and dump style which many altcoins suffer.

The future is looking brilliant as Bitcoin crashed to 30 in 2013 then in 2015 to 300 and then in 2018 to 3000 and now in 2022 to 30.000,notice a pattern here,if it comes true then 2027 should be Bitcoin crashing to 300.000 dollars.This is enough for me to keep a large part of my Bitcoin untouched and only sell low amounts.

Bitcoin is the safest haven for crypto miners, convert your coins to BTC every week or days but something that I am when aware of is that a bear market is where you make names for yourself, things will get tougher and look hopeless but that's the time you should be doing the opposite, buy and keep mining coins cos on the long run it will favour you in ten folds.

Och, that hurt. Guess those 'potential gains' eating you every day and harden you toward a long time holder. But for OP, diversification is fine if all he has was his mining rigs or the majority of his assets was mining rigs. You have to take into account that there is plenty of bearish news about mining ETH in future prospect terms. The difference this time, the PoS merge looks quite possible.

With each new market cycle, the rise in the price of bitcoin decreases. It may be safe to store savings in bitcoins, but the price of ethereum and ethereum classic can grow stronger. I do not recommend mining shitcoins in the hope of making big profits.

I still think speculatively mining altcoins is a good idea as long as it's cheaper to mine them than to buy them. I ran the numbers. In general, over the past 6 years it's always at least 30% cheaper to mine any coin than buy it. If price stays stagnant, it can easily be 50% cheaper to mine the coin. I will always have at least 1 rig for speculative mining.

BTC is definitely the safer coin and dominates the market cap during bear markets. It's probably better to HODL BTC while it's still falling, but trade it for altcoins when the market starts trending upward again.

Take me along when that hell of a crash happens because it's very hard to know when the crypto market bottom hits, some are saying BTC have already hit the bottom but like me I always do the opposite of what everyone is doing so I don't believe.

Many people are doing the same thing I have done in 2021, sold 80% of my eth too early for around 1500 usd, they are buying too early, at least when the bear market comes I have a lot more patience to buy cheap than when the bull market comes and then sell, how much greedy can somebody be? buying at extreme bottom is being greedy too, in 2018 I was too greedy, I got all the eth I could around 80 - 100 usd.  This time I will wait, my initial projection says btc will crash to 14k - 22k.

You do not take into account the latest changes in mining. Now a lot of people and companies are engaged in mining. You can earn profit if you have minimal electricity prices less 5 cents and video cards in your home, so you do not pay for maintenance and security.

I took into account the tax advantages of mining. That is how it became 30%.