Quote from: Iwilechu on December 07, 2013, 03:01:56 AM

My personal approach, if I had $10000 land in my lap, would be one of two options:

2. Put your BTC into multiple exchange accounts, open a CryptoTrader Pro account, and let it manage the day-to-day trading for you.

Thansk I'm going to look into CT Pro now.

Quote from: daisotope on December 07, 2013, 04:36:43 AM

The problem with getting into mining is that your returns over time are the inverse of this function:
https://blockchain.info/charts/hash-rate

Buying and holding BTC has proven to be easier and more lucrative for me.

Glad to see someone who knows their stats 101.

I can't remember what machine I snagged this graph from (genisis block) because I'm working on like 10 charts at once right now, but this is exactly what he's talking about above.

Although I have to say that buying and holding 10btc for 10k doesn't sound like a well diversified risk. Maybe when they were less than $400, and even then it was scary.

https://www.evernote.com/shard/s26/sh/d9f823c4-4886-44b3-9c9b-15bd02218c98/d0da39db65fbab32cf85fe1f36e612fa/deep/0/Bitcoin-Calculations.png Click for large view - Uploaded with Skitch

Quote from: odolvlobo on December 06, 2013, 07:21:10 AM

Please don't invest in mining without first learning how to compute your expected return. Too many newbies blindly invest and end up losing money.

For example, on cex.io, a popular cloud mining site, 1 GH/s costs 0.074 BTC, but 1 GH/s will never mine more than 0.05 BTC. For every GH/s you buy on that site at that price, you will lose up to 0.024 BTC.

This is true. But odolvlobo fails to include the future-value of the btc and the future-value of the GHS in his calcs. That's the only thing that makes cex.io profitable, if only mildly - hedging on the increase. Which means, in THIS CLOUD situation, I would recommend buying and holding over mining. (Something I RARELY recommend)