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I have $10,000 which I have decided to invest in crypto-currency.

How should I go about investing this money for maximum profit? E.g. should I invest in a mining setup? Trade the currency? A combination of both?

A few investment parameters and some background on myself is provided below:

  • Risk sensitivity would be very high. Although I wouldn't want to be stupid with how I go about investing the money either.
  • I am a technically minded person (I am a mechanical and software engineer and I develop progressive web applications for a job and build computer hardware systems as a hobby).
  • I would be okay with constructing and maintaining rigs. Although I don't know what coins to mine but I have a basic idea on how to mine them using either ASIC hardware or graphics cards with off the shelf software.
  • I wouldn't say I have an investment style. I have never really invested in anything before beside putting my money in high interest bank accounts.
  • What is your risk sensitivity? Are you okay if you lost all of this money? Crypto is highly volatile and as such a very speculative investment. – user65146 Nov 23 '17 at 3:52
  • Are you technically minded and okay constructing and maintaining mining rigs? Do you know what coins to mine and how to mine them? If not, then moving the money into crypto through the buying of coins might be a better approach. If you do buy coins, what is you investment style? Are you a buy/hold type of person? Day-trader? Swing-trader? – user65146 Nov 23 '17 at 3:54
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    @AR71 Risk sensitivity would be very high. Although I wouldn't want to be stupid with how I go about investing the money either. As for being technically minded I am a mechanical and software engineer and I develop progressive web applications for a job and build computer hardware systems as a hobby. – Josh Nov 23 '17 at 4:10
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    @AR71 I would be okay with constructing and maintaining rigs. I don't know what coins to mine. I have a basic idea on how to mine them using either ASIC hardware or graphics cards with off the shelf software. I wouldn't say I have an investment style. I have never really invested in anything before beside putting my money in high interest bank accounts. – Josh Nov 23 '17 at 4:11
  • Mining sounds like a good option. There are a few ways to do it. GPU or ASIC. The common ASIC miners (Antminer) are 220v, so you would have to get an electrician in if you are in the US. Each runs in the 800-1000W range, kick out a lot of heat and are a little noisy (70-75 db). There are a lot of websites that tell you how profitable certain coins are. If you Google "crypto mining calculator" there will be a few sites. I use Coinwarz. They list all the algorithms used in mining. Not all algorithms are minable with ASIC miners. They are set to a specific algorithms so you lose some flexibility. – user65146 Nov 23 '17 at 4:19
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I'm going to assume Bitcoin since that is by far the most common cryptocurrency by mindshare for people who are new to the space.

Since you have $10k to invest, you could buy around 5 to 7 bitcoin mining rigs with a capacity of 13 to 16 tera-hashes per second each. Investing in these mining rigs will give you about 1 year of mining time before the rigs cost more money to run than they can make. You could make approximately $10,000 to $30,000 profit during that time assuming you have cheap electricity, and buy 5 x 15 TH/sec bitminers. This path requires far more technical knowledge than a simple purchase of bitcoin. To get 5 mining rigs for $10k, you'll need to buy direct from a manufacturer. Bitcoin mining rig manufacturers typically require a wait of 3 or 4 months until delivery.

If you buy bitcoin, you might lose the entire investment if bitcoin goes to zero; on the other hand you might make 10 times your investment if bitcoin repeats the past 12 months of performance. If you stay invested for a longer timeframe that risk/return is extended.

There is no simple answer to your question since it depends on your technical knowledge, risk appetite, and timeline.

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