So, you have decided to get your feet wet in the world of cryptocurrency. But how should you go about it; should you mine Bitcoins, or buy or invest in Bitcoins? The decision will ultimately depend on whether you can afford to maintain a powerful mining rig for mining, own enough funds for trading, or are prepared to take the risks of investing.
When you decide to opt for Bitcoin mining, you must realize that there will be very high power costs involved. Not only will you have to shell out money for buying specialized high-end computers to do the job, you will also have to pay for high electricity costs and cooling costs. Maintenance expenses will be an ongoing expense in mining, unlike in either trading or investing. So, mining involves much more effort on part of the individual. In trading, you need to be good with numbers while investing demands the least expertise.
Trading Bitcoins is recommended for newcomers who have no technical knowledge or mining experience. For them, buying Bitcoins is much cheaper than mining. Mining is not only capital-intensive but also not as productive as trading where you can earn high profits in much shorter time. In mining, you will have to wait for months on end to see returns, but trading can give you good returns in very less time. Investing will be for people who are willing to hold onto their crypto assets in the hope of high profits in the long term.
If you trade Bitcoins, you can buy some coins at first then wait for the value to increase. But Bitcoin market is volatile and there are always risks involved. For instance, while December 2017 witnessed a huge surge in Bitcoin prices, the following year the prices simply nosedived. Such price swings are to be expected when you trade but if you can identify the right time to sell or buy the coins, you can make profits with ease.
If you plan on investing in the Bitcoin you have to realize that it is still an experimental nascent technology. So, you must devote a lot of time or researching about Bitcoin history, blockchain technology and market trends before taking a decision. You should never invest more than you can afford to lose. However, going by the current conditions, it seems that the time is finally right to invest.
One, somewhat of a calculated risk you can potentially take, if spare funds are available is to utilise a Bitcoin Automated Trading Robot based on algorithms to make the best investment decisions on your behalf. Whilst, starting out, this can be a relatively inexpensive way to invest in real time whilst not sacrificing too large a part of your bankroll. To find impartial deep dive reviews into the several of these robots available on the market we would recommend you read up on the The News Spy and make a safe decision on a trading robot based on their recomendations.
Mining, trading, and investing each has its own share of advantages and drawbacks. They all represent different methods of earning more Bitcoins. Investing is perhaps the quickest and simplest way to get more Bitcoins. Apart from a substantial capital in hand, you do not need to buy or maintain costly mining equipment or track charts and graphs round-the-clock for trading. In that sense, investing is hassle-free when you can set aside some money for crypto investments. Mining is perfect for those who wish to be a part of the crypto industry actively and want to get rewarded for their hard work. The costs are high and payouts may not be as good as investments or trades, unless you resort to a mining pool. Trading is best for beginners as you can always start off with a small capital and then increase your stakes.
For more information on Investing, Trading and Mining consult our link for a deeper dive into these Cryptocurrency topics.