Bitcoin has achieved a lot in the past few years. Among all the cryptocurrencies that we have in the virtual world, Bitcoin is number one. The most important time for bitcoin was the last two years when its price increased by over 224 percent. So if we compare these two years with the last decade, these years were crucial.
However, there are two things in bitcoin, mining, and trading. At first, mining was more profitable because miners would get the profit only without risking anything. However, traders need to take the risk every single time. They will invest their money, wait for the right time, and then make a profit.
However, in the last two years, traders made huge profits. Therefore, this thing is not black and white. We cannot say whether mining is better or trading. One thing always has leverage over the other. So the important thing is your strength. If you are good at mining, you will make a profit from that. Likewise, if you do not know anything about mining but are good at investments, you can make a profit through trading.
For example, you can use bitcoins-code.de to start trading. This makes trading much simpler and easier for you. In addition to this, Bitcoin Code has its unique trading algorithm. Furthermore, it also understands the details of financial information about any virtual currency. So whether you are dealing with BTC or any other currency, it can handle it.
Mining cryptocurrencies
As said previously, mining was easier during the beginning years.
But why was that?
What is mining?
It is the process of generating bitcoin by solving complex numeric puzzles. The numerical puzzles will increase in difficulty with every coin generation. Therefore, it becomes complex and difficult with time.
At first, the questions were not that tough and that is why the computers of that time were good enough. However, today, the difficulty level has increased to a higher level. Therefore, you will need a better computer with a powerful GPU. That is to say, you will need to most advanced level system present at the time.
This will cost you a lot of money. Plus, you will need a lot of electricity too. The whole energy consumption by mining is too much. Therefore, environmental organizations were also against it. That is why, to deal with this, miners started using the solar system for electricity generation.
In addition to this, miners do not work alone. They are usually working together in one building. So if there are powerful computers in one building with manpower, they will also need air-conditioning. Thus, the cost of mining also increases.
So now you understand why it was a profitable thing in the past but not now?
Block reward for miners?
If miners are working individually, they will have everything to themselves. However, this is not the case. Therefore, they get their block reward.
During the initial years, the block reward was higher, miners would get 50 BTC. Later, the worth of block rewards started decreasing because of bitcoin halving. So nowadays, miners are getting around 6.25 BTC. It is expected that by the year 2024, the block reward will reach 3.125 BTC.
Cost
The cost of the whole process varies with the computing equipment and the electricity cost. In addition to this, the miners. They will be spending their time and efforts. Therefore, they cost the highest in the whole process. So if you are planning to start mining, you need to keep these things in your mind.
It is known that mining compensation is declining with time because of all these factors.
Bitcoin trading
The other thing that we have is online trading. This is more like the stock market. You will invest your money and make a profit through it. Therefore, you need better investment skills to make a profit.
Furthermore, unlike miners, where there is a fixed income, investors can make amazing profits. The profit varies from a few hundred dollars to thousands of dollars. People who bought BTC during the initial years and did not sell them out are filthy rich right now. And that too, by doing nothing.
Ease of use
The best thing about online trading in BTC is that it is now super easy to do. There are automated programs that do trading in your place. So if you are not in a mood or you are feeling ill, you can make use of such programs. They help you out with your work without taking a break.
However, this does not mean that you do not need to know about trading. Although the programs are designed to make profits for you, they are still automated programs. Therefore, you can make the best use of them only when you know how to trade yourself.
Advantages of online trading
Online trading is accessible. You can learn it from someone and start doing it even with the little money you have. Automated programs help you make profits even with little knowledge. Furthermore, if you do not have anyone to learn from, you can do that through such programs. Invest some amount through an app and let it do the investments. In this way, you can learn when to invest and when to withdraw your money.
Another benefit of doing online trading is that you can always change the currency. If the BTC market is going down, you can invest in any other virtual currency. So you will have more options to choose from. On the other hand, mining is not for all cryptocurrencies. Every virtual currency uses a different process of coin generation.
To sum up
So now you have the pros and cons of the two. It will be your decision to decide on the lucrative one. You can analyze your strengths and then choose your way of making money through BTC.
