So its basically a really low yielding investment. From what I gather there are many people out there that know how to use the money to generate more - however they do not have the initial funds to do so. You or me step in by providing the money for them to use it to make more money - same concept I guess on how a bank takes your money in a savings account and invests it to make them money and you a few cents a month right
If so how do you manage your account so that instead of making $.35/th/day or less (losing money) to make $.47/th/day or $.95/th/day etc?
Also you pay taxes on this?
Is not really low yield... at least I don't consider being able to double my money in a few months low yield. But as far as mining, you can have a few strategies;
You can buy your initial amount, let that contract run for a year, and pull out your value each day, and trade it for cash,
or you can stock pile your earned coin, and wait to trade it for USD when you feel the market is at the level you want it to be (it got up to $11,300 this morning, and so people have sold like crazy, and it dropped to $9300 around noon, and its back up to $9900).
if you buy through hashflare, you can reinvest your earnings into more mining capacity automatically each day. This is my strategy for now, I plan on letting it snowball for the next 3 months, then pull out just enough to recover my investment, and then do a 50/50 split, one day let it roll, then pull the next day, etc. so it both continues to grow, and so I can enjoy some of the money.
as far as taxes, I haven't earned enough, a couple hundred from eth that doesn't touch my initial investment costs, so no taxes there. Next year when I actually pull more than my investment? I'll have to see how they expect taxes to be filed on it, but it is/will be accounted for.