How benefit Arbitrage Crypto Trading compared to GPU mining?
I had been started GPU mining 3 months ago. I started with 6 GPUs of NVIDIA 1070 mining rig and put in my extra tiny space at home. As expected, it took me a while to get those 6 GPUs as they are really out of stocks. The total cost of getting the mining rigs is about $5,000 USD. I started to mine with Nicehash and since the difficulty is rising and we’re competing the hashrate each other, the daily returns is about 0.001 BTC. In average i mined 0.03 BTC per month before the electricity cost, which is about 25% of the output.
This is my simple calculation of my ROI (Returns on Investment). In short, it takes me 21 months for ROI
On the other hands, I’m comparing the returns on arbitrage trading by using arbitrage trading bot that do the same thing as mining, where the bot run on the same mining rig 24/7. I have been running for a week and so far the returns is about USD 250, which is equivalent to 0.03 BTC. Please note I’m using 1 BTC and 5 BCH coins in two separate exchanges to capture the simultaneous arbitrage
My intention of GPU mining is to collect more bitcoins and hope for the appreciation one day. At the same time, I tend to believe arbitrage trading help me to increase my coins with my existing bitcoins and altcoins that I keep as long term investment. I don’t want to take higher risk in technical analysis trading but I believe arbitrage opportunities are every where in crypto currencies world and the risk is minimal.
Arbitrage trading is not easy? Yes, it is not easy if you have to sit in front of the computer to perform buy and sell 24 hours a day. No, it will be easy if there is a bot bot to do the job for you.