Four strategies how to invest £100 to £100,000 in cryptocurrency
Today, we have written an article that should speak to a very wide range of investors, from the complete beginners to the most seasoned. Today’s title in the Mining Column is very clear, I propose to dissect four different investment strategies in the world of Bitcoin and cryptocurrency mining. These four approaches, for reasons of convenience and clarity, will be linked to the aforementioned range of financial resources.
Depending on whether you want to invest £100 in cryptocurrency mining or you plan to become a potential industry leader by ploughing in half a million quid, the strategy will obviously not remain the same. However, you will find that certain fundamentals are consistent, regardless of whether you feel like a small fish or future whale of the sector!
Today, no matter what your crypto goal is, everyone will learn a little something about the fascinating world of Bitcoin mining investing.
Take advantage of 5% reduction on any order (machines included!) placed on feel-mining.com with the code TCT.
This article is brought to you in partnership with the company Feel Mining. Crypto investments are risky by nature, so always do your own research and due diligence investing only within your financial means. This article does not constitute investment advice.
Before getting started: a Bitcoin and cryptocurrency investor safety pack
You’ll find out in a moment what might be the best strategy for investing in Bitcoin and cryptocurrency, depending on whether you have modest or more substantial means.
Investing £100 in a product as exotic as Bitcoin mining compared to £100,000 in a range of services and materials, refers to different concepts and concerns with fundamentally distinct audiences that cannot be understood in the same ways.
This is generally false with the exception of the fourth strategy, which, as you will discover a little further down, by its industrial nature is governed by its own rules, just as much as it is only intended for a very well-informed public. There are in reality no irreconcilable differences between an investor who spends a few hundred pounds on an asset and another who has ten times that.
In any case, everyone should keep in mind some basic precautionary rules. For the extended version of these rules we encourage you to consult our article titled ‘Follow these 13 rules when investing in Bitcoin and cryptocurrency’. Here you can begin to take your first steps into the wonderful world of crypto investing in the most secure way possible.
In the meantime, while making sure we stay on topic, remember the following two rules:
1. Determine the level of risk you are willing to take
Investing in Bitcoin and cryptocurrency is an exciting adventure, which could ultimately provide you with a happy retirement, even just with one BTC, however bear in mind the following – there is always a risk that the money you invest could be lost. A new sector with such big potential inevitably means higher risk.
So, apply this golden rule: invest only the money that you can afford to lose – and subsequently only non-essential funds. You should never take out a loan to invest in Bitcoin, ever, even if you’re certain beyond doubt. If you think we are talking rubbish, wait for the next bear run and maybe we’ll have a chance to talk about it again.
This rule is intrinsically linked to what is known as risk aversion. In other words, your ability to invest peacefully while continuing to sleep well at night. The ability to do so is unique to you, it varies from individual to individual and is not necessarily rational. You may find it difficult to mentally manage a £500 investment in Bitcoin mining, while your neighbour, who has the same income and resources as you, will be able to manage an investment ten times higher. It is important that you put your mental health at the top of your priority list!
It is therefore essential that you can provide a clear answer to two simple questions:
- What is my financial and technical capacity to invest in crypto?
- How much am I mentally comfortable investing with?
2. Diversification is the key
Another tip, which not only applies to the world of Bitcoin and crypto but any investment: do not take the ‘all your eggs in one basket’ approach (placing your whole investment in a single product). In other words, in order to mitigate risk, seek to diversify your income sources. In this way, you protect yourself from the possible fall of one of your assets as your exposure is spread out.
Choosing your investment strategy
With the basics established, here are four strategies which correspond to four different levels of investment:
£100: just starting out
£1,000: a concerned investor
£10,000: starting to get really serious
£100,000: part of the big leagues
Keep in mind that the illustrations that will follow are not an exact science. It is up to you to continually train and inform yourself in order to make informed decisions. This article is for illustrative purposes only and does not constitute investment advice.
Invest in Bitcoin and cryptocurrency based on your circumstances!
It’s time to really get stuck into the main reason for today’s article with a look at the selection of investment products vis-a-vis the mining of Bitcoin and other cryptocurrencies. In partnership with Feel Mining, our emblematic partner, let’s take a look at what’s on offer!
1. Invest in Bitcoin/cryptocurrency mining with just £100
Typical audience: almost everyone! £100 equates to a nice evening out with your better half! If you cannot put aside this amount of money for an investment in crypto, forgive me, but perhaps this isn’t the article for you.
The main issue with an investment of this size is the difficulty of diversification. That being said, this amount will allow you to sign up to one of three shared masternodes on feel-mining.com. It will get you the following:
- Two parts of Horizen = ~£89
- Two parts of SysCoin = ~£87
- Two parts of Polis = ~£88
- Two parts Zelcash = ~£80
Need a quick reminder on how masternodes work and what they offer from an investment point of view? This article is made for you.
The ROI (return on investment i.e. the interest you will receive yearly) is paid daily and pays up to 27%. Polis being the masternode that offers almost 27% of yearly profitability, a nice choice to start with.
2. Investing in Bitcoin and cryptocurrency mining with £1,000
Typical audience: spending a grand on an investment means having a small amount of available assets and a recurring income, typically in the form of a salary, which is sufficient enough to meet your daily needs. It also is already a significant amount for some people. Unlike like a £100 investment, there is much more scope to diversify hence a few options to consider.
Option one: a full masternode
Feel Mining allows you to invest in shares of masternodes, but also to sign up to a full masternode, which you will own and Feel Mining will operate on your behalf. Thus with an investment £1,000, you can sign up to:
- A full Horizen masternode = ~£270
- A full Bitgreen masternode = ~£280
- A full Polis masternode = ~£440
- A full Zelcash masternode = ~£400
- Five parts of Zcoin = ~£880
- Six parts of Pivx = ~£980
- Three parts of Dash =~£880
- Seven parts of Energi =~£895
A decent range so you can diversify your masternode portfolio and also for a relatively reasonable sum and ROIs up to 60% annually.
Option two: masternodes + Bitcoin/ZEC cloud mining
Now we are entering into real diversification as, in addition to masternodes, a budget of £1,000 allows you to sign up to the cloud mining offering of Bitcoin or ZEC. If you want a reminder of how cloud mining works, check out: ‘Profitable Bitcoin cloud mining: separating the myths from the truths’.
- 15 TH/s Bitcoin cloud mining: £339.41 (per year)
- 5000 H/s ZEC cloud mining: £99.77 (for one year)
Option three: why not a Bitcoin mining machine too?
Starting with a £1,000 investment, you have the possibility of acquiring a Bitcoin mining machine (an Antminer T17 to be more precise). Be sure to check the website often as these offers usually are out of stock.
3. Investing in Bitcoin and cryptocurrency mining with £10,000
Typical audience: now we are starting to get serious. Having £10,000 to invest in crypto assets means you are perhaps better off than most. Your income is good and you generally have other investment products: real estate, some gold, stocks, life insurance policies… As such, a £10,000 investment in cryptocurrency would enrich your overall portfolio which is probably five or ten times bigger. It is NEVER recommended to put your whole investment profile of £10,000 in Bitcoin and cryptocurrency. It should be part of a wider investment strategy.
Option one: Bitcoin mining machines and masternodes
With £10,000 you can achieve real diversification. You can really start to mix passive masternode income with the mobilisation of Bitcoin production tools such as the exploitation of specialised machines. A diversified portfolio could look a bit like this:
- Two Antminer S19 PROs (the Godzillas of Bitcoin mining, for which you will find the corresponding article here) = £5,340 (includes £120 per machine for international hosting)
- Two full Horizen masternode = ~£530
- Ten parts of Dash =~£3,000
- A full Energi masternode =~£1,300
Option two: Bitcoin and ZEC Mining
Not as diversified but costing just a little over £10,000, you can obtain BTC & ZEC mining machines.
Two Antminer S19 PRO machines = £5,340 (includes £240 for international hosting)
Two Antminer Z15 machines = £4,700
4. Investing in the mining of Bitcoin and cryptocurrency with £100,000 and more
Typical audience: an entrepreneur, fund manager or institutional investor… you are aware of the potential of Bitcoin, both from the point of view of its profitability, but also in its capacities to revolutionise the global monetary ecosystem in the next decade. Just like the ‘legend’ Paul Tudor, you know that Bitcoin is ‘the horse to bet on’. You also have both the adventurous spirit and the desire to evolve among the heavyweights of the industry. Based on these conditions, Feel Mining is the partner you need.
Option one: £100,000 – benefit by having a fleet of Bitcoin miners
Feel Mining has an ‘Investor’ section which opens with a minimum investment of £100,000. In this section they offer personalised support with the establishment of Bitcoin mining machines located at the company’s international locations.
The ‘Start’ offer allows you to have professionally negotiated prices that mean the investor can obtain improved profitability through certain economies of scale enabled by wholesale purchases. Above all, at this entry point, you will have all the expertise of Feel Mining at your disposal. You should allow two to six months for the implementation of the project, including the negotiation of your machines, and getting them up and running.
Option two: £500,000 – your own Bitcoin mining farm
With half a million quid, Feel Mining will support you in becoming a true professional in the Bitcoin mining industry. Through their Mining Farm offer, your very own mining farm can be set up.
Those who read my articles often will know that I sign up to the services I talk about on TheCoinTribune. However, being aware of the last couple amounts of investment suggested, you might be able to forgive me for not having signed up this time. That being said, I am convinced that if I had £500,000, I would already be in the midst of negotiations with the team! The worst part of all this is that, given the consensus that Bitcoin could reach one million dollars some day, this investment may appear retrospectively as the one that should not have been missed back ‘in the 20s’.
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Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.