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How To Invest 1 Million Rubles In A Cryptocurrency Profitably?

Mining

For 1 million rubles, you can buy 1-2 new ASIC miners for bitcoin mining with a payback period of 12-24 months, said Philip Modnov, CEO of the LAZM technology company. According to him, for this amount, you can also build a new farm on GPU video cards, which will pay off in 8-15 months. To reduce the payback period, you can purchase used equipment, but it will carry great risks.

Nowadays, miners are more likely to choose GPU-based computing equipment for mining cryptocurrency due to a shortage in the market, Modnov noted. There is also a service for renting computing power. However, when choosing it, you must be as confident as possible in the supplier.

Investment

When forming an investment portfolio, it is necessary to take into account three circumstances: the shares of certain coins, portfolio diversification and hedging, advised the leading analyst at 8848 Invest Viktor Pershikov. About 20-30% of the portfolio should be invested in the most capitalized assets – market benchmarks, the specialist believes. Currently, these include BTC, ETH, BNB, which, moreover, represent different sectors of the crypto market, which has a positive effect on diversification.

The expert recommended another 40% to be allocated to assets from the top 100 of the crypto market, which are less capitalized, but liquid and have high investment attractiveness. These coins now include ONT, NEO, TRX, EOS, CRO, CAKE, BAT and many others, Pershikov believes. These assets represent different sectors of the crypto market (DeFi, financial solutions, blockchain platforms, media). According to Pershikov, it is important that tokens and coins belong to different sectors of the market and are tied to different protocols, which will help to mitigate the risks of falling one sector.

Another 20% should be invested in tokens of current projects with low capitalization, the expert noted. Now these include NFT and DeFi projects and, among other things, tokens of the new Binance Smart Chain network (for example, REEF, SPARTA) This is an aggressive share of the portfolio, which can give multiple growth, but it should not be the basis of the entire portfolio, so it is significant increases risks.

Pershikov advised using the remaining 10-20% of the capital for hedging, for example, to buy put options (gives the right to sell an asset at a given time at a given price) on BTC. This is a very important condition, any portfolio must be hedged in case of a market drawdown and a decrease in capitalization, and it is worth using these funds for insurance, and not for earning. If the conditions are met, you can expect a yield of about 70-80% per annum, with a risk of drawdown at the level of 30%, the specialist concluded.

DeFi и NFT

Any investment in DeFi requires prior analysis and strategy development. The maximum profitability can be obtained there if you understand the complex schemes for reinvesting tokenized assets, explained Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. He singled out Uniswap as one of the decentralized finance projects as trading volume continues to grow, and the team recently posted an update that was well received by the community.

NFT is a much more complex topic, so Soshnikov does not recommend investing in it for a person who is far from the world of digital money or who is just starting to understand it. NFTs on art objects require not only an understanding of the cryptocurrency market, but also knowledge of the art market conditions, which is also a non-trivial task.

If you still want to invest in NFT, the expert advised you to pay attention to the work of street artists in the United States. There, the art market is the most mobile and ready to accept new forms of self-expression, Soshnikov explained

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