3 Ways to Earn Money on Mining Equipment in 2018
In this article we will analyze three schemes of earnings on equipment for mining and financial models of each scheme, as well as talk about the pitfalls and problems that can be encountered. We will not disassemble the complex technical issues associated with mining. The article is designed for both active miners and people who do not understand this topic, but they want to invest for the first time in mining and make money on it.
Therefore, complex technical issues: how to disperse equipment, on which pools it is better to mine, we will not touch on, but we will simply analyze three true ways, as in this system you can earn.
The first way: pre-order purchase and retail sale
The first way to earn money is to buy equipment on pre-order and sell it at retail. In principle, the scheme is very simple and understandable. The price of pre-order is much lower than the order of available equipment, but will have to wait for this equipment for a while. You order it today, make an advance payment, but it will take place about one and a half to two months before you receive it.
The situation on the market at the moment is approximately this: for pre-order you can buy equipment with a power supply unit, with documents, with delivery to Moscow for about 250,000 rubles, and the price for the same set of equipment is available – from 320,000. In this example we are considering specifically ASIC S9, because at the moment this equipment is the most promising. And in this article all the examples will be given on it. The price for such a set of equipment with the original power unit and documents is about 320,000, respectively, the mark-up per unit is 70,000 rubles.
But let’s analyze the situation, which was not so long ago, in December 2017. The equipment at the beginning of December cost 140,000 on pre-order with delivery to the end of January – the beginning of February. And in stock at that time the equipment cost 245 000, that is, the gap was larger, about 105 000 rubles on one unit. But the price for the end of January was already 320 000. That is, the person who ordered in December and received in late February, at least doubled the invested amount, because the equipment is growing in price.
Now a small drawdown due to the depreciation of the crypto currency, but still the equipment becomes more expensive, and this can be earned. Let’s leave past experience and see what you can earn now.
Let’s say you are investing one million rubles. The price for one unit of equipment on a preorder about 250,000 rubles, we buy four units. This price with delivery to Moscow, with documents, with a power unit. There are many suppliers that bring without documents, there are problems that we will discuss further. Therefore, we are talking about white import schemes, and the price is indicated for equipment with documents. In March, you receive equipment for 320 thousand. Again, this amount can grow, for now, we are just considering the situation at the moment. If we sell this equipment for 320,000, we get 1 280 000. We subtract a million, which we invested in the purchase of equipment, and get 280 000 rubles. This is 28% for two months on the invested amount. According to this scheme, we do not do mining at all: we bought, sold and got our profit.
The second way: pre-order purchase, mining and retail sales
Here we also buy equipment on pre-order, but we put it on for two or three months, and after a couple of months we sell it already at retail. Let’s calculate how much you can earn with this scheme.
We also invest one million rubles in four pieces of equipment. Profitability from the mining in a month today is somewhere in the range of 600-750 dollars from one unit, because the rate has very much subsided. A month ago, the situation was much more interesting, and the yield was from $ 1,000 to $ 1,400. When the rate is leveled, the profitability will increase, but we will consider it at a minimum, according to the situation that is now.
The cost of connection, light, room – an average of 1 unit per month will be up to 12,000 rubles. We will count on the maximum: if we place not at home, but pay for electricity, somewhere around 12,000 rubles will be spent per month from one unit. And we think that we will get: the yield for the three months of the mining of 4 units will be about 7,200 to 9,000 dollars. This is approximately 400 000 – 500 000 rubles. The cost for 3 months is about 190 000 rubles.
If after three months the equipment is sold at 300,000, we get the following picture: we received 400,000 rubles from mining, 1,200,000 – the sale of equipment, we deduct 196,000 (electricity and space costs) and subtract the million that we invested. Approximately 400,000 rubles is a net profit for five months, where we wait two months for equipment, and three months of mining. That is, the profit will be somewhere around 40% of the invested amount for five months.
The third way: buying at retail, mining and retailing
Let us examine the third way of earning. The third scheme is for those people who are not used to waiting, but are accustomed to receive everything at once. Here the situation is this: you buy equipment at retail right now, set it to mine for 3 to 5 months and then sell it also at retail. We will calculate whether it will be more profitable, or better wait two months.
The investment also takes a million, the price of a unit of equipment is 320,000 rubles, the profit from mining is also 600 – 750 dollars, respectively, we now buy 3 units, the costs will be 12,000 rubles per month for 1 unit of equipment and we get a profitability for five months of mining from three units – from 9000 to 11 250 dollars. In rubles it will be about 500 000 – 630 000 rubles.
The cost for five months for the premises, electricity and installation of equipment will be about 180 000 rubles. Equipment in 5 months is also sold at a purchase price of 320,000 rubles. Here is what scheme turns out: 500 thousand rubles is profit from mining, we add 960 000 – this is the sale of equipment, we deduct 960 000, which we invested and deduct 180 000 rubles – this is the expense. It turns out 320 000 – 450 000 rubles net profit for five months, depending on the profitability of the mining amount will be slightly different. This is about 32-45% of the invested amount for five months.
How to increase profitability from mining in the long run
Now let’s talk about how to increase this yield. Many newcomers in mining deduce namayenye money in Fiat, that is, in rubles, in dollars. Their profitability is only the money earned from mining. How it is possible to increase profitableness? Do not print money and money, but convert them into crypto currency, into perspective coins. For example, take a coin ethereum. In 2017 it has grown 50 times. If you bought a year ago for 1 000 dollars of coins of the etherium, you would have now $ 50,000.
This year, the coin already can not give such growth, but there are many different other coins in which you can invest. You diversify the risks, take all the profits from mining and buy different coins. Here you need to understand for yourself, for how long you are entering the project, and invest the money in various cryptonyms. So you can earn more on growth.
In the long term, the exchange rate is growing. If there is a drawdown, many begin to panic – everything, the collapse of bitcoin, – and withdraw money, sell equipment. If you enter the project for a year, you should not panic, but simply buy coins and do not worry because of the recession. Recession is good, because you can buy coins at a more profitable rate, because they will still grow in perspective. Therefore, if you take for yourself such a scheme – mining + investing in your own crypto-portfolio, you will be able to increase your income a lot. It can happen not in 40-45%, but in 10-15, 20 times more, but in a year.