Your Cryptocurrency Newsletter for 26 October ,2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [How to Build a Crypto Mining Rig in 2020 to Earn Bitcoin and Ether]( Mining with home rigs is back, so here’s what those interested need to know to put together their own rig at home.In a time of global crisis, a pandemic, and a generally unstable political and social environment, cryptocurrencies have shown remarkable stability. Moreover, the pandemic-induced economic downturn played into the hands of the industry by not only attracting professional cryptocurrency traders but also reviving mining as a way of generating passive income. It is not surprising that countries experiencing difficult political and economic situations have witnessed a boom in the purchase of GPU cards in recent months. In the region of Abkhazia, where all crypto activities have been illegal since 2018, citizens spent more than $500,000 on mining equipment over a period of six months. Another factor that has worked to further popularize mining is strong crypto prices. Bitcoin (BTC) has risen by almost a third, while Ether (ETH), the most popular currency for mining, has added $150 to its price and the decentralized frenzy has meant that gas fees have reached unprecedented levels.So, here’s how to design a cryptocurrency rig — and an exploration of whether it needs to be done at all, given all the associated risks. Mining rig components A cryptocurrency mining rig consists of a computer that has many graphics cards but no monitor. Computer cases are filled with GPU cards, a power-generating unit, a motherboard and a cooling system. If a monitor is connected, it can become a regular computer where a user can open a browser or play their favorite video game. The rig is connected to the internet, and thus, the blockchain network. The network operates by itself to conduct monetary transactions using the power of the graphics cards. To be more specific, a mining rig consists of: - An ordinary motherboard, which has the capability of linking to a number of connectors for GPU cards. - A hard disk drive, or HDD, with 100 to 250 gigabytes of memory to house the cryptocurrency wallet, with an Ether wallet usually taking up 25 GB and a BTC wallet requiring 50 GB or more. - Several GPU cards, which are the most important components in a rig because they are the base that defines the cryptocurrency that a user will mine, along with their future profit and its timeline. - A power-generating unit. A rig with four GPUs often requires more than one power unit. Usually, miners have a few 750-watt units connected together. - A power adapter for GPU cards. Video cards are connected to the motherboard using special extension cards called “risers.” There are many different types and models of risers, but the PCI-E 1x version 006 is the most popular. - A power switch. - A cooling system, and it’s preferable to have several coolers to provide additional airflow. Another important detail is the frame for the rig. It is better to make a frame out of wood or aluminum. The size of the mining rig will be slightly larger than its frame due to protruding parts, adapters and a cooling system. For example, a seven-GPU rig will be approximately 21 inches wide (53 centimeters), 12 inches deep (30 centimeters) and 12 inches high (30 centimeters).After purchasing all the components of the rig, it’s time to design it, which is a rather easy task for a person who has experience with computer hardware. Additionally, there are plenty of guides on YouTube. When a rig is ready, all that needs to be done is to install some software — i.e., to choose a program for mining the currency of preference. Another way is to find a mining pool, which is a popular way to mine, as it’s becoming harder to do so individually due to the rising complexity of crypto mining. There are also some tools available such as TeamViewer, for remote control, and WatchDog, which automatically restarts the system if the program freezes. GPU card in the top As a rule, one rig should include four to seven video cards — it’s a number that will not go beyond the framework of a stable operation, although there are exceptions. Miners can connect 10 to 15 GPU cards to one motherboard, but seven is the optimal number because Microsoft’s Windows 10 operating system can detect only this number of cards. But there is a solution: specialized mining software based on the Linux kernel. In that case, the key is to choose the right motherboard, such as an ASRock Pro BTC+ series or similar. Determining which GPU cards are best for mining is not so straightforward, as the answer depends only on the amount of money that the miner has. In general, it makes little sense to buy the most expensive, powerful GPUs for the price of two to three slightly weaker ones, as there is a greater chance the cheaper ones will bring more benefits due to their low power consumption and initial cost.The highest income in mining is currently achieved with Nvidia GeForce RTX 2080 Ti and AMD Radeon VII cards, but it is more profitable to build a mining farm with AMD Radeon RX 580 and Nvidia GeForce GTX 1660 Super cards, as they will pay off much faster. It should also be kept in mind that AMD RX series GPU cards can be flashed by changing the working time of the RAM, downvolting the core and overclocking. Programs such as MSI Afterburner and Sapphire TriXX can assist in making these manipulations, which will help GPU cards achieve maximum performance during the mining process. Electricity in question In over 10 years, the mining industry has turned from something incomprehensible and rather cheap to a professional, high-tech venture that implies high barriers of entry, not only for the equipment but also for its maintenance.After purchasing mining equipment, paying the cost of electricity during its operation becomes the main expense that directly affects profitability. The energy consumption of one mining rig consists of the following components: - GPU cards, depending on the power and mining algorithm, consume between 360 watts and 1500 watts for a rig of six to seven cards. - The motherboard, power unit, HDD and RAM consume up to 100 watts. - The cooling system uses from 20 watts to several kilowatts when using air conditioning systems. So, how can a miner reduce the cost of electricity? The main consumers of electricity are the GPU cards, and with the right settings, electricity consumption during mining can be reduced significantly. For example, when mining Ether, the main thing is to overclock the video memory. The most optimal operating mode for GPU cards is setting the core voltage to about 830 to 850 millivolts for AMD cards and 650 to 850 millivolts for Nvidia cards. Lowering the voltage on the core of the card, in addition to reducing power consumption, decreases the amount of heat, which has a beneficial effect on the equipment. Power-generating units can also use less power if they have a “gold” certificate, which means they save a large amount of electricity (about 15%) compared with power units that lack them. Another way is to change HDDs to solid-state drives, which will increase the speed of loading the operating system and reduce the power consumption of each rig by five to 15 watts. Furthermore, modern RAM (DDR4 or DDR3L instead of DDR3) and processors can reduce consumption by another 10 to 20 watts. A miner can also reduce consumption through slightly more complicated ways too, such as finding more economical electricity tariffs — for example, installing the rigs where there are reduced tariffs for consumers with electric stoves or electric heating and lower night-time prices. If possible, miners can even reach out to a power plant that generates electricity to find out if it has surplus capacity. Some miners can create their own solar or wind farms and use them for mining, but not everyone can afford such an investment. Mining in the cloud Keeping in mind the unstable situation in the economy, some may want to join the crypto mining community but cannot due to the high initial costs associated. Here’s where “hosted mining” can come into play, whereby cryptocurrencies are mined through a remote connection to equipment that has been rented out. Philip Salter, head of operations at Genesis Mining — a cloud mining provider — told Cointelegraph: “Since mining is becoming more competitive, margins are shrinking and it’s harder for home miners to compete. Miners need to get every drop of efficiency they can, and that means growing the operation (economies of scale) and doing it somewhere where electricity is insanely cheap.Mining in the cloud seems like the only viable option for many.” Hosted mining starts with a user choosing a provider of computational capacity. Then they enter into agreements with the company to connect to its equipment. After paying for computer capacity, miners are provided with access to remote mining of cryptocurrencies through rented equipment. So, users only need a computer and a fast internet connection to operate. Hosted mining commissions are charged in accordance with the agreements established between the parties. This type of mining has a number of advantages, such as not requiring start-up capital, not needing to connect equipment by yourself, no costs of maintenance and electricity, the ability to disconnect from work at any time, and not needing special technical knowledge and skills.There are also risks in cloud mining, primarily because, like any young industry, many rogue actors seek to take over the funds of ignorant users. So, when choosing a platform, users should spend time and carefully study its history and reviews. Also, hosted mining brings in lower income compared with mining using one’s own equipment. Nevertheless, this is a possible option for those who really want to get involved in mining because, in any case, no one will give up an opportunity for passive income, even if it’s not too significant. Buil it on your own In summary, it can be said that today, mining seems to be an attractive way to make some income. If for some reason hosted mining is inconvenient, then setting up a personal rig is not too difficult. This will require an initial investment and a little time to figure out how the system operates. Randy Ready, CEO and chief technology officer of Mining Rig Rentals — a hardware mining rental platform — believes that building your own system certainly is more interesting, adding: “I suggest going with a small rig and potentially going larger once you are familiar with mining and have a stable profit.” [Read Full News]( The post [How to Build a Crypto Mining Rig in 2020 to Earn Bitcoin and Ether]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Bull or bear? Pros don’t Care! Here’s 3 Strategies Every Trader Should Know]( Here’s 3 strategies pro traders use to produce profits regardless of the market’s direction.Those new to investing might think that professional traders spend the majority of their time staring at screens day and night in order to analyze the markets and pick the best trades but this could not be farther away from the truth.Having a good eye isn’t what differentiates top traders from average ones, it’s the application of tried and tested strategies that give pro traders the ability to stay net positive over long periods of time. Today we will discuss how the futures carry trade, funding rate, and use of trailing stops are used by top traders. [crypto trader] Each of these simple strategies do not involve proprietary trading bots or a substantial margin deposit, meaning an investor does not need a massive trading balance to generate profits. Non-directional strategies The crypto markets are known for their whipsaw price action which involves many assets rising or falling by double to triple digits within a 1 hour to 24 hour period. Investors are drawn to the possibility of capturing stellar returns so it might sound crazy to suggest seeking just a 2% monthly gain on cryptocurrencies.Why would an investor engage in such a ‘low yield’ strategy? The answer is compound interest. If a trader can achieve 2% per month, their yearly gain equals 27%. Few traders would be able to match this return consistently by trying to guess market tops and bottoms. Thus, having more reliable gains relieves one from the stress of potential losses and the almost impossible task of trying to time the market.One great strategy called the carry trade consists of buying a cryptocurrency on traditional markets and selling its fixed-month calendar futures.This rate can be measured by analyzing the basis indicator, a metric also referred to as the futures markets annualized premium. [eth futures] This is not a permanent trade as the basis indicator oscillates depending on how bullish investors are. Usually, there is a stronger opportunity in altcoins as there is less competition for those.Viewing the chart above, take notice of how Ether’s (ETH) basis touched the 20% annualized level in mid-August. But, there’s a catch.The devil always lies in the details, and this is one of those cases. This trade will only work if the cryptocurrency deposited as margin is the same one being shorted via futures. Some derivatives exchanges will only let you deposit Bitcoin (BTC) or Tether (USDT) as collateral.One important thing investors must remember is that unlike perpetual futures (inverse swaps), fixed-calendar futures contracts have a set expiry date. Hence, one needs to sell the spot position at the moment of futures contract liquidation. Trade the funding rate Other non-directional trades include options strategies which usually involve multiple expiries and futures contracts.One example, which is less risky is to exploit and trade the funding rate. Perpetual contracts (inverse swaps) will charge either longs or shorts, depending on the leverage imbalance. Those exchanges inform an estimate for the next funding window, usually every 8 hours.When this rate goes up, professional traders will short futures contracts and simultaneously buy it on spot exchanges. Thus, their risk is fully hedged, collecting the funding rate and reverting the trade right afterward. Automated trading equals success Sometimes, in the market there are not many risk averse trading strategies available. In situations like these, even professional traders might consider taking a directional risk. What sets them apart from novice traders is the use of automated trading.Most traders know how to use stop-loss, which’s a good thing, but that’s not what creates winning opportunities. The same tool can be used to initiate trades, especially if using a trailing stop. [binance futures] In the above example, this trailing stop buy (long) has an activation price of $12,900. Thus, while the market remains trading above that level, this order remains dormant.Once Bitcoin reaches that level, it will only buy after a 0.8% bounce (callback rate). Hence, it will automatically buy as soon as Bitcoin rises $103 from its lows.This strategy is one that is frequently used by professional traders to automate their investing process and it significantly reduces the need to check prices 24-hours a day. Practice and master those three strategies: futures carry trade, profiting from the funding rate, and buying using trailing stops. Focus on learning non-directional trading and options strategies and free yourself from guessing market tops and bottoms. [Read Full News]( The post [Bull or bear? Pros don’t Care! Here’s 3 Strategies Every Trader Should Know]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [New Considerations in Cryptocurrency Investment – Trading Contracts for Difference (CFD)]( For a number of years, investing in currency largely meant evaluating the very concept of it. People bought it based on whether or not they thought cryptocurrencies would take hold, hoping for significant, long-term gains. Some of those people were rewarded handsomely when crypto markets skyrocketed in 2017. Soon thereafter, however, the same markets declined, and they have since been fairly volatile. Meanwhile, the nature of crypto investment has shifted.Whereas people once made decisions about whether or not to buy into the idea of cryptocurrency, there are now multiple additional considerations in what’s become a bigger and more complex asset class. Here are a few specific things that prospective cryptocurrency investors would now be wise to keep in mind. [ crypto investment] Altcoins Gaining Influence Most of the time when people refer to cryptocurrency, they’re really talking about bitcoin. It was the first of them all and remains the most valuable by a significant margin. However, some alternatives (known as “altcoins”) have carved out their own niches over the years, and now warrant more consideration from investors. That’s not to say any one altcoin is necessarily a wise or unwise investment — rather, just that they are more significant alongside bitcoin now than they once were. Ethereum tends to capture some investors’ interest in particular. This cryptocurrency is designed to adapt and be used for new functions, such as fulfilling smart contracts or selling real estate properties So naturally, it always had the potential to become more significant in one way or another.This is just one example, but it shows why crypto investment today can involve broader consideration of options, rather than just bitcoin. Company & National Bank Cryptos On top of the idea of altcoins gaining influence, we are also likely to see more new cryptos backed by companies and even national banks in the near future. These are somewhat unorthodox ideas when considered within the core concept of cryptocurrency, but they now appear inevitable.The first major example of this kind to come to our attention was “Libra,” a forthcoming crypto option designed by Facebook and backed by numerous partner companies. An examination of Libra by HKU a couple of years ago went as far as to refer to it as a challenge to the global financial system”and suggested its launch could be akin to the termination of the gold standard. Whether or not Libra proves to be that big of a development remains to be seen, but a new crypto option launched on a worldwide platform would certainly be a jolt to the crypto market, at least. Meanwhile, we’re also beginning to see a steady trickle of stories about national banks designing their own cryptocurrencies, from the United States to China. These wouldn’t necessarily be cryptocurrencies in the traditional sense, but they would still likely broaden the general asset class even more for investors. CFD Investment Methods of cryptocurrency investment have also changed over the years. Rather than purchasing actual cryptos and holding them in the hopes of value increases, investors can now choose to buy into futures for some cryptos instead. Perhaps even more uniquely, investors in some areas can also invest via Trading Contracts for Difference (CFD).It’s a means of trading on leveraged popular commodity futures. Plus500 explains that the main difference in investing in bitcoin itself and trading bitcoin CFDs is the leverage ratio. In the past, it’s traditionally been an option regarding more established commodities, such as gold, silver, and oil. With cryptos increasingly thought of as part of the broader commodity market though, CFD trading is now an option in this area as well. It essentially boils down to the idea of investing in asset movement, rather than actual asset holdings. Investors secure earnings if they successfully invest in a rise Prolonged Economic Uncertainty Finally, the unfortunate economic circumstances in which the world now finds itself also have to be mentioned. The global pandemic has already resulted in massive market sell-offs and has led to predictions of long-term declines in economic growth. Furthermore, The Standard’s outline of the crushing economic blow we may see pointed out that human psychology will play a role as well. The article cited a professor of economics who, referring to the conditions following the SARS epidemic, noted that panic might ultimately be the biggest drain on the economy. What this means for crypto investment is impossible to say with any certainty. In the early going, major cryptocurrencies have struggled as well, though perhaps not quite as much as traditional markets. However, there are still some who believe cryptos will ultimately become popular alternative investments if the stock markets remain unstable. It’s not something investors should blindly buy into, but it’s certainly worth keeping under consideration. Altogether, these changes help to illustrate how much more complex the crypto market has become. It’s going to continue to grow and evolve in the years ahead as well. But already these are factors that could be considered by anyone considering an investment. [Read Full News]( The post [New Considerations in Cryptocurrency Investment – Trading Contracts for Difference (CFD)]( first appeared on [Feed Binary](. 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