Mine or buy: what is the most profitable way to cryptocurrency

Mine or not to mine - that is the question of most modern crypto enthusiasts. The fall in the value of bitcoin and its altcoins has significantly reduced the opportunity to profit from mining coins. However, in the field of sales, everything is also not so smooth - due to the desire to comply with the requirements of regulatory bodies, most marketplaces have introduced merciless KYC requirements. About which way it is preferable to go, about the pros and cons of each approach - later in the material.

To the question of mining, as a way to become the owner of cryptocurrency

In 2018, mining became one of the most discussed topics in the crypto community. In the wake of a prolonged downtrend, cryptocurrency prices continued to plummet. As a result, the profitability of mining has declined significantly, and many users have chosen to turn off the equipment. The crisis was the reason for changing the network in the direction of reducing the level of complexity, due to which a long process of forming a certain balance began, the result of which will be the installation of an adequate reward for the expenditure of computing power.

Mining efficiency directly depends on the power level of the user equipment. As a result, in the field of PoW crypto-production there was a race for manufacturers of equipment: buyers do not have time to buy another asyk, as another model is replacing it. As a result, most of the computing power began to move into the field of companies engaged in the extraction of cryptocurrency on an industrial scale (private miners are simply unable to constantly invest in the purchase of expensive devices).

The combination of mining nuances, as well as the complexity of its technical component, seem to be extremely repulsive for beginner enthusiasts. In order to see the realities of modern crypto-production, it is necessary to consider its positive and negative sides, in relation to the current day.

Pros of mining

The main advantage of mining is getting cryptocurrency (for example, Bitcoin), at a price lower than the market. Accordingly, the earnings in this case will be the difference between the cost of production and the profit received from the sale. It is important to take into account the fact that for the profitable realization of the extracted cryptocurrencies it is necessary to choose the appropriate time to enter the market. The general advantages of mining include the following points:

• Working with the equipment directly, the user gets the opportunity to explore the whole world of cryptocurrency from the inside. Understanding the capabilities of digital assets: the facets of their use and the nuances of the technical component allows us to dive deeper into the topic, and as a result, to find ways to increase the level of profit. In particular, it is possible to control the market, and if necessary, switch equipment to the extraction of other coins that are more relevant at a particular moment.

• Getting started in the mining area today can turn out great prospects in the future. The fact is that in the wake of the fall in the cost of cryptocurrency, many crypto producers began to actively sell their equipment. As a result, in the secondary market, there was a mass of proposals for the acquisition of all the work necessary for the technical start. Manufacturers, seeing their losses, are also trying to attract buyers with loyal prices.
  Given the duration of the downtrend and the peculiarities of the current position of the cryptocurrency market, in the near future the beginning of a new phase of growth is quite likely. It was during this period that miners who bought equipment from their desperate colleagues, will be able to get the maximum profit.
• Mining today is rather an investment in the future. Many network-connected cryptographists work on the verge of loss, however, they are driven by their belief in a bright future of cryptocurrencies and the possibility of a more rational use of equipment during the period of market growth. It is likely that the bitcoins earned today and withered for a year or two (at least until the next halving) may well turn into a decent state.
• The market is extremely mobile. This means that it contains promising moments for the sale of earned coins, for example, pampas. Accordingly, bitcoins obtained by mining, the initial value of which is lower than the market value, can bring more profit than in the case of their purchase.

It is also important to note that mining is network support. Without users who carry out transaction processing, there will be no development. Accordingly, crypto-production is a kind of contribution to the bright future of the world of cryptocurrencies.

Cons mines

Unfortunately, in the realities of the modern market, the disadvantages of mining can significantly outweigh the possible positive aspects of this direction. The main points of crypto-production include the following points:

• To get started, serious investments are required: the purchase of equipment and its placement. The exception is cloud mining, however, as practice shows, this area of ​​crypto mining is not doing very well today.
• Independent mining implies a long payback period. If previously a user could close hardware costs for 6-12 months, then during periods of Bitcoin costs in the region of $ 3400-3500 and below, this may take years.
• For efficient crypto production, the search for cheap electricity is needed. Many ideological enthusiasts, in pursuit of cheap mining, decide to go to regions with cheaper "rosettes". Accordingly, effective crypto-production today presupposes a nomadic lifestyle, an alternative to which can only be cunning (illegal connection to the communications of other people and other illegal actions). Another option for work in this case could be a mining hotel search.

• In order to earn on the resale of received cryptocurrencies, it is necessary to have a good understanding of crypto-trading. This “science” requires a great deal of practical experience, and is comprehended over the years.

In addition, the cryptocurrency market is unpredictable. The precariousness of its position adds to the problems - in the absence of clear regulation rules from the government, users do not see real prospects. No one can guarantee that in a couple of months the government of the Russian Federation will not pass a bill obliging the country's miners to pay a huge tax. Or a catastrophe may even happen, for example, the beginning of the prosecution of crypto-miners and users of crypto-currencies, as citizens working with an illegal financial instrument. In this case, the digital asset market will expect another fall.

Purchase, as a way to become the owner of cryptocurrency

Direct acquisition of cryptocurrency without mining has always been considered the easiest way to become the owner of digital assets. As of the beginning of February 2019, the decline in mining profitability has attracted more users to this path.

Pros of purchase

Next, you need to consider the benefits that a crypto-enthusiast can get by giving preference to acquiring digital assets, against their mining:

• No need to purchase expensive equipment, the subsequent implementation of which in this case is extremely unprofitable and time-consuming process.
• There is no need to know the technical component of mining and maintain equipment for the mining of coins.
• The acquisition of cryptocurrency does not take much time.
• If you have free time and desire to save money, you can explore the market and choose profitable moments for purchasing cryptocurrencies. In this case, the result of profit can be much higher than in the case of mining.

Cons of shopping

In addition to the advantages presented, for completeness, it is also important to consider the possible disadvantages of a simple purchase of cryptocurrency. Speaking about the shortcomings of work in this direction, we can note the following:

• The user needs professional knowledge in the field of cryptotrading. Otherwise, the transaction may be unprofitable.
• Buying can be more expensive than self-mining (subject to availability of equipment).

Another problem is the notorious KYC. To buy cryptocurrency on the vastness of popular digital asset exchanges, the user may be required to fully disclose his identity.

The results of the fight

In general, the truth of the actual choice between mining and buying cryptocurrency can be expressed by the following message from the user Lynwod, which he left on the bitcointalk forum: “If the socket is free, then you can begin to mine at any time, and if it is paid, then it is better to buy crypts.” However, it is worth remembering that in most cases the purchase will destroy the user's anonymity.

Alternative ways to get cryptocurrency

It so happened that for most users, mining and buying are the only ways to become the owner of cryptocurrency. In fact, if you carefully study the proposals of cryptospace, you can see a number of alternative proposals. These include the following:

• cryptocurrency earnings through participation in bounty and airdrop;
• cryptocurrency winnings;
• earnings on "cranes";
• earnings for the work.

At the same time, in a detailed examination, each of the methods represents the following essence:

1. Bounties and airdrops are traditional ways of drawing attention to projects and cryptocurrencies developed for them from their teams. In essence, they represent a distribution of coins, with the aim of starting the turnover of an asset and increasing its popularity.
   Bounty implies the need to perform a number of tasks (reposts, user engagement, and so on). Airdrop can be issued just like that.
   It is important to note that in the wake of the popularity of cryptocurrency (in the period of high prices), many users viewed the bounty and airdrop sector as the main source of income. Unfortunately, in the realities of the modern market, it will not be possible to receive a lot of money in this area, but this does not mean that participation in a couple of programs will not be able to bring a certain number of digital assets.

1. The network often hosts contests, the main prize of which is cryptocurrency. Of course, participation is not a guarantee of victory, but if we are talking about an area in which a particular crypto enthusiast is a professional, winning can become a reality.
2. “Cranes” means sites where any person can earn a cryptocurrency for performing any simple tasks. The most common example is filling a captcha for sites. It will not be possible to make a fortune on “cranes”, but getting a small amount of cryptocurrency is quite realistic.
3. Cryptocurrencies come out of the shadows, and gradually become a real financial tool that can be interesting not only to speculators, but also to ordinary people. Thus, there is a trend in the network to increase the number of proposals on the part of employers to hire employees with the payment of wages in digital assets (most often this uses Bitcoins and Litecoin).

Summing up

Thus, during a period of low prices in the cryptocurrency market, the easiest way to become the owner of digital assets is to buy or participate in the distribution of tokens. However, the mining area should also not remain underestimated - the downtrend cannot continue indefinitely. Accordingly, sooner or later, patient crypto miners will be able to enjoy the rays of glory.

Dear readers, do you mine the cryptocurrency, or prefer to buy it?