The talk on everybody’s lips is Bitcoin this, crypto that. With the launch of advanced mining equipment, specifically ASIC (application-specific integrated circuit) miners like the Antminer D3, websites have been showing astronomical profits. Videos on YouTube (below) show astronomical profits such as covering the cost of the miner in 14 days. That’s insane!!! The problem is, that you need capital and if you have capital, most of the sites are out of stock and delivery in 2 – 3 months.
- Cost of mining hardware
- Electricity costs
- Network difficulty
- The value of the coin \ crypto
Other restraints exist like setup and cooling cost.
Trading on the other hand requires less capital if you want. Earnings can be quick, if you know what you are doing. Risks are high, but hey, no risk, no reward, right?
Trading requires knowledge of the external and internal factors of the traded currencies so that the trades you make are more informed and less risky. Issues such as the volatility of the crypto market, and prices of crypto’s affect trading. ICO’s or Initial coin offerings add to the volatility of the market as investors look for a quick way to increase profits by “Pumping” when coins are low them “Dumping” them when they are high.
This process sees the value of coins increasing exponentially and then dropping, never to reach those levels again, or could they?
This is just my thoughts. Essentially, both require understanding and strategic planning if you want to remain sustainable. Sustainability as well is never assured as external Factors affect the core of the crypto community.
So, what’s the choice? Mine or trade?
Answer: Depends on YOU!