The prices of both bitcoin, ethereum and many other cryptocurrencies have been soaring to new highs and of course that has me feeling extremely excited. But, there is also a part of me that is a little sad as well. I had been going all-out to accumulate as much bitcoin and ethereum as I possibly could before the bull ran began and I feel I did a great job with that. But I can't help but to fell a little sad that the days of it being easy to accumulate quickly and cheaply has come to an end. A year ago, one full ethereum would have cost you around $200; which was a price that many people could afford and still accumulate quite a bit. But now the price has risen to over $1,800. And also the price of one bitcoin is now around $48,000. You're money isn't going as far to accumulate as it did in the past.
But as the prices go up, I have strongly feeling the need to accumulate even more before prices become more out of reach. My goal is and always has been wanting to increase my portfolio, in hopes of growing my passive income and someday soon being able to retire. But like I just mentioned, those easy days had now come to an end.
I needed to find a solution, but what could I do?
My first reaction was to lend even more of my portfolio out for a great interest rate. This has been going very well for me actually. I have been lending out bitcoin and ethereum to places like BlockFi and also Celsius. I have also begun staking my ethereum into ETH 2.0 which has been netting some nice rewards so far.
But I was still wanting more. I would like to get to a point with my passive crypto income where I don't actually have to put my own cash into it every month. By lending and receiving a passive income I was hoping to have the system work all by itself.
And my solution for this was to get into Ethereum mining. Yes I am aware that ethereum is completely switching to a proof-of-stake chain anytime from now, or next year or possibly 2 years from now. But that still gives me some time. A year ago it would not have been very profitable for a single mining user to make much of a profit from mining, after mining costs. But now ethereum is at an all-time high price, and the transaction fees are sky high. The game has changed, and suddenly ethereum mining has become very profitable for a single user if you have the right gear.
This has been something that I have been considering for a long-time. I have a friend who is heavily into mining and we have been discussing it for quite a lot. After these discussions and also my own research, I came to the conclusion that this would be the best possibly way to increase my ethereum holdings while the price continues to go up.
But there is a large upfront cost and risk. I didn't have any of the gear that I needed and so I had to purchase it all. Which mean it will actually take a few months until I actually make enough earnings to be in profit. But after that, it will be sole profit. Not only that, but I plan to then compound those extra earnings by either lending them out to services like BlockFi and Celsius, or even staking it. It will be compounding passive income on passive income.
If things go well I plan on adding more power to my machine to make it perform even better. But thankfully I was able to find a pretty good deal for the require GPU, which has an extremely hot resell market. And so if things do go sour, I would be able to sell that for a decent portion of my total investment.
I don't have a huge mining farm, so I won't get rich by what I am going to mine initially. But by just paying the electric costs, it will allow me to receive more ethereum than I would normally buy each pay period, and at a heavy discount. As the price continue to go up, it will just compound the earnings for me. Once ethereum does completely switch to a proof of stake chain I will then need to consider my next move. There are other chains that I would also be able to mine, or I would be able to get paid in the coin of my choice for my hash power. Or I might just sell the machine. Everything could change at an instant. If the price of ethereum drastically drops, or if transaction fees drop drastically as well. Both would affect my profits. But currently it looks like after all my costs, I will be making more than a 500% daily profit.
It will take me a week or two to get everything up and running; to then receiving rewards. But I am excited to add this category into my next monthly crypto earnings report and talk about how my newest form of passive income is going.
So the moral of the story is that for the longest time I was thinking about how to accumulate more bitcoin and ethereum. By buying, lending, blogging and more. But there was another opportunity that was always there that I never considered. Because I have never mined before; I considered it to be too daunting of a task. And that could possibly still be true; we shall soon see. But always keep your eyes open for the next opportunity!
Are you currently mining any ethereum or other cryptocurrency? And what are some creative ways that you are increasing your crypto portfolios!?
As always, thank you for reading!
An inspirational article that may lead to a new goal for me.. thanks for your wisdom and plan about focusing on cryptocurrencies .. Godbless😊😇