Questions about bitcoin(or other crytocurrency) to satisfy my feeble mind

2

After a few days of research and reading about bitcoin and ethereum, I got interested on investing in these. Just small amounts to try it out.. maybe $30 - $50 for starters. I'm from a 3rd World Country and want to earn some sort of passive income.

Still after all these research. I still got a lot questions about it. These ones are one of the most important to me.

  1. Is it worth it to invest in a BitCoin/Ethereum Cloud Mining contract? Lets say i'd purchase a starter plan. because mining rigs are so expensive and I cant run it 24/7.
  2. What are some of the potential risks of trading in Exchanges?
  3. Can I start trading with $30 to $50 staring budget? can I get somewhere with this budget?

Hexxed

Posted 2016-06-15T01:16:43.260

Reputation: 121

Question was closed 2016-06-15T11:38:50.513

You're unlikely to get anything close to passive income. These things are volatile, and a LOT of them are scams and/or unfit for purpose and/or a copy/paste job. As for mining, what Logan said below. You're likely to lose your shirt if you go in without being sure what you want. – user36303 – 2016-06-15T10:09:51.767

Welcome to Bitcoin.SE! It is preferred that you post separate questions instead of combining your questions into one. That way, it helps the people answering your question and also others hunting for at least one of your questions. Thanks! – Murch – 2016-06-15T11:37:13.653

Answers

1

  1. Cloud mining is generally only profitable for the Operator (otherwise they would mine themselves instead of selling their hash power).
  2. Your account or the exchange getting hacked, or the exchange deciding to suddenly close (perhaps also claiming to be hacked) and taking your funds. If you buy coins on the exchange always use 2FA and take the coins off of the exchange (send to your own cold wallet) as soon as possible.
  3. You can start with as little as you wish. Focus on learning at first. Large, quick profits are very unlikely for a beginner with limited funds. Most "traders" lose money because they are less informed than coin developers/promoters. Focus on code you can see in GitHub, not what developers are promising to deliver in the future.

Logan

Posted 2016-06-15T01:16:43.260

Reputation: 373

Asked: 2016-06-15T01:16:43.260

Viewed: 56 times

Active: 2016-06-15T07:25:27.843