Plan for Investing in Group Buys

I am not a financial investment professional and this article should not be interpreted as the author giving financial investment advice. This is an overview of investing into crypto currency group buys based on my personal experience and best guess of the future of crypto currencies as a whole. Each person should weigh this information based on their financial standing, capacity for risk versus reward, and how much exposure to the crypto currency market they are comfortable with.


I have sixteen years of law enforcement experience, with many of those years spent investigating financial crimes and fraud. With this experience, I can say with ease that there are literally thousands of ways to be scammed out of your money from the most obvious paper money flim-flam to elaborate, seductive multi-million dollar mirages of future wealth. The best defense to any of these schemes is research! I cannot stress enough how important it is for an individual to do their own, independent research and then cross check their findings with respected entities within the community they are seeking to invest in. I have been fascinated by crypto currencies since I first came into contact with them, but was leery of investing into them until recently do to ensuring I did my due diligence of research. My searching uncovered a multitude of methods to become involved with crypto currency investing from the minimal amount to fully immersing yourself into thousands of dollars’ worth of computer mining gear.

My Research

My research began with Here I was able to find a seemingly unending amount of information about bitcoin as well as the other alternate currencies. I knew that I was limited with my knowledge of computers and the amount of exposure I (truthfully, my wife) was willing to endure in my initial investment. With these limitations in mind, my research quickly led me to the possibility of investing smaller amounts of fiat currency into group buys for a partial share in a computer mining set-up. This appealed to me due to the low exposure, I found entry level as low as $40.00 USD with my initial limit being $1,000.00 USD, and that the set-up, programming, and hosting were all handled off site.

My research also revealed that for my initial investment, I would concentrate on mining group buys that were primarily focused on mining bitcoin (BTC) as opposed to alternate crypto currencies. I felt based on market history that BTC retained the greatest potential to steadily increase in value whereas, in my opinion, the other alternate currencies were as of yet untested. The next step was to research the individual group buys and test them as best as I could for stability and trustworthiness. Again, this is just my opinion, but my research led me to the DZ Miner Co-Op located here, With this organization, I was able to purchase a 1/50 share of a Black Arrow Prospero x-3 mining rig that would entitle me to approximately 40 gh/s per share. With my exposure limit being set, I purchased four shares at $130.00 USD, placing my exposure at approximately $520.00 USD. They offer other types of investment opportunities, but this was the best fit for my budget and computer experience.

My plan is based on the $520.00 USD initial investment, I would take 50% of the returns until I reach a return on investment (ROI)and then that would go into a profit account and the other 50% I would keep in an account I have set up just for future investment opportunities with crypto currencies.


In my opinion, this group buy is the best opportunity at ROI for mining BTC at the moment. They are the only group buy Black Arrow is going to allow with their products and their shipping deadlines fall slightly ahead of the other types of mining rigs being developed right now. The low entry level of investment was just what I (my wife) was looking for and it allows me to delve into crypto investing without sinking the farm into mining equipment. A group buy is attractive to a “regular” guy like myself in that I am not blessed with the computer talent others in this field possess and I do not have to worry about space for mining equipment, maintenance of equipment, heating problems, or electrical cost due to all this being included in a fee that is deducted before payout. Additionally, once the equipment is no longer profitable to mine with, the gear is sold off and the proceeds are divided among the shareholders. This group buy has a proven track record and have many verifiable vouches within the community.


Many people suggest that with the ever increasing difficulty of mining block chains, that a ROI in highly unlikely with any group buy. My answer to that is that is all investment involves risk and their calculations are based on BTC staying at the current market price with no increase. All investments are made with the hope and faith that the commodity, stock, or currency is going to increase over time. To me, this is a long term investment, not a get rich quick scheme. I am sure the same people were screaming that BTC was never going to be profitable to mine when it was only trading for $10.00 USD and I can guarantee you that every member of the crypto currency community would cut of their right arm for a chance to go back and prove the pundits wrong. Another downside to group buys is that they are not an immediate investment, due to shipping times and set up schedules. My investment with a group buy in November 2013 will not even begin mining until at least March 2014 or even later. For some, that may be too long to have assets tied up, but again I think if you view the investment as a long term holding instead of a “pump and dump” then a few months is well worth the potential payoff.


As stated before, ANY investment entails risk and the possibility of no ROI and should only be entered into after due diligence. That is why I chose my fist leap into the world of crypto investing be a small one with an investment cap of $1,000.00 USD. It is imperative that you develop your own parameters and that they are written down. A person is 80 % more likely to follow through on a plan if it is clearly written down. It is equally important to make precise plans for your returns and that some of the profits be set aside for future investing.

My next adventure when this one draws to an end is to look into the newer ASIC technology being developed for scrypt mined coins such as Feathercoin and Litecoin. I am looking forward to see how successful my purchase into a group buy goes when it begins mining in late February or early March and I will post an article about its successes or failures. Good luck and always, always, always research your product and team before letting go of your hard earned money and never risk any amount of money that, if lost, would affect your family’s lifestyle.

Finance | Business | Investing

QR Code
QR Code plan_for_investing_in_group_buys (generated for current page)