How to reduce risk in the digital currency industry
There are some basic ways to protect yourself when it comes to getting into the digital currency industry. Just about all of them are common sense, but it doesn’t hurt to review them.
Do your research
Just like real estate, the three most important things to consider when getting into digital currency is research, research, research.
Every digital currency has a whitepaper explaining what the coin/token is about. It may include some very technical information, but each whitepaper should give you a good idea of what the company’s plans are. You will need to decide if the company’s plans align with yours.
Many times, people will research to prove that their ideas are correct. This can get you into trouble. It should be just as easy to find someone who disagrees with your take on things as it is to find someone who agrees with you. You need to know the arguments for and against your decision so you can be certain you know what you’re doing.
Be sure to consider mining when looking into the digital currency market. Mining may not be as glamorous as currency trading, but it is a lot less risky. Most often, digital miners create new coins/tokens at a fraction of the market price. The difference between the mining cost and the market price is called profit.
FYI – If something sounds too good to be true, it probably is.
Make sure you have enough money
Again, this sounds very basic, but you’d be surprised how important this is. Places like Las Vegas and Atlantic City are built on people who think they are going to win “next time.”
When getting into the digital currency industry, you should only use money you can afford to lose. Digital currency is a very volatile industry. If you are going to use your house payment money to strike it rich, you had better have a backup place to stay.
Digital currency mining is very different from currency trading. Miners have the luxury of watching the market move up or down while their mining costs are (most of the time) MUCH lower than the market value of the coins/tokens being created.
Watch and learn about your market
Digital currency is a “big boy’s/girl’s” industry. No one is going to listen to you if you say you want a “do-over.” Once you have decided the direction you want to go, you need to continue to do your research to see if you can spot any market trends.
Again, be sure to consider arguments on both sides of your topic. As you watch and learn about the market, you will start to see some trends. Knowing the trends can be your friend. People who continually wear rose-colored glasses in the digital currency industry are usually not in the market for too long.
Last suggestion – don’t get into something just because everyone else is doing it
People like to be part of a crowd. When it comes to digital currency, crowds can be loud, but they can easily lead you astray. Don’t give in to peer pressure when it comes to your hard-earned money.
If you have done your research, and you feel comfortable with your decision, don’t change your mind just because someone has some “new” information. Be conservative. When you have earned enough money so you can be sure that your original stake will not be threatened, then you can try something new. And don’t be afraid to keep the profits you have made.
This final suggestion applies directly to mining. “Playing” in the digital currency market can garner you some spectacular profits and some huge losses. But mining digital currency is like the tortoise in the tortoise and the hare race. Slow and steady (profits) will always win the race.
Remember, it is better to be a little happy than extremely sad.
Why does Cloud Rush mine for Filecoin?
Cloud Rush mines for Filecoin tokens because the network rewards miners for creating new decentralized data storage, which becomes an actual product that you can sell. The new data storage created by the Filecoin Network makes data storage safer, and data easier to retrieve.
Cloud Rush has low out-of-pocket costs; excellent profits!
a 96T (terabyte) machine plan from Cloud Rush has an initial out-of-pocket cost1 of only $16,889. (A token pledge [priced at 5.1FIL/T as of 10/28/21] is also required at the commencement of mining; please contact Cloud Rush for details.) The estimated mining cost-per-token is $19.50 or less. On October 28, 2021, Filecoin tokens were priced at $58.00. This sounds like a pretty good deal.
Is now a good time to begin mining for Filecoin?
Absolutely! For more information on Filecoin mining, please contact Cloud Rush, 626-779-2116 or ConsultCR@CloudRush.io for a FREE digital currency consultation.
Disclaimer: This blog is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
1 Out of pocket costs are defined as machine buy-in price and the first year’s hosting fee. The remainder of the term’s hosting fees will be due yearly upon the anniversary date of the contract.