I have been going down the rabbit hole of mining lately. My problem is I typically go for all or nothing. I want to start mining and I know I should start small, but that is just not in my DNA.

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That is definitely a risky approach mining Bitcoin. I would have been way more successful if I had started small.

Would you recommend starting small with hosted miners, since electrical cost would be less? My thought is to pay the higher rates (still profitable) and mine at home.

Personally I would not do hosted unless I was a part owner of the site and could physically inspect it and whoever was running it. Depending on your electric costs, timeline and goals, mining at home can be a great option.

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