Cryptocurrency trading is on the left, mining is on the right? Which one should you choose?

Mining vs. cryptocurrency trading, which is better? I believe many people have debated this proposition. Some say mining is better and some say cryptocurrency trading is better. However, judging from the results since the birth of this industry, mining is obviously better than cryptocurrency trading! I think there are several reasons:

1. Cryptocurrency traders have to struggle with confidence and fight against human weaknesses

There is no specific pattern for the rise and fall of the currency price, and the space for rise and fall is not limited. Therefore, many people who speculate in the currency will spend a lot of time and energy watching the market and the curve in order to seize a fleeting opportunity. Staying up late is a common thing, and the spirit is highly nervous.

This will also cause mental and physical fatigue. Under such circumstances, it is difficult for people to control their greed, gambling,

Therefore, there is an unwritten saying in the industry: after a series of operations, you will find that your account is 250; more operations may not necessarily result in good results. Mining is different.

Mining is a relatively good fixed investment. Miners have it relatively easy. They spend money to buy computing power and get their money back based on the price of the currency. As long as they enter mining at the right time, buy stable mining machines (machines from the four major manufacturers), and find a stable mining site, they don’t need to study the so-called curve, nor do they need to watch the market frequently, which will not affect their previous life.

As a miner, you only need to pay electricity bills every month. The mining machine will continuously produce coins like a money printing machine, and the miner only needs to sell it through the exchange when the price of the coin is right. The miners’ return on investment in the past has been quite considerable.

2. The cost of cryptocurrency trading is relatively fixed. The cost is determined by how much money you pay for the coin. However, the cost of mining is relatively vague.

For example, a miner invests 10,000 yuan in the mining industry (including the cost of mining machines and electricity costs). After a few months, the price of the currency rises sharply. The rise in the price of the currency will correspondingly lead to an increase in the price of mining machines and a shortage of supply of mining machines.

It is very likely that the price of this second-hand mining machine will exceed the price of the original machine when it was purchased (this situation has actually happened many times, for example, in the second half of 2017 and the first half of 2019). For miners, the mining cost in these months is almost zero, and the income is net profit.

Since the cost of mining is vague, miners are more stable, especially in a dynamic market. The stability of miners is far greater than that of cryptocurrency speculators, and it is easier for them to hold on to the coins and obtain a better rate of return.

3. Mining has lower risks. When the price of coins rises, mining can enjoy the benefits brought by the increase in the price of coins, and the benefits are only slightly lower than directly buying coins.

When the price of the currency falls, the bear market will lead to a decrease in miners and a decrease in the difficulty of mining, which will correspondingly lead to an increase in the amount of currency produced by mining machines (for example, at the end of 2018), which will greatly make up for the losses caused by the decline in the price of the currency. In addition to the electricity expenses, more coins will be obtained.

If you can hold coins in a bear market, you can get higher returns in the next bull market cycle. Hoarding coins in a bear market and selling coins in a bull market is the best description of miners!

4. The cost of mining is lower. Taking Bitcoin, the largest mainstream currency in the current market, as an example, the current direct purchase price of 1 Bitcoin is US$10,000, about RMB 69,000.

The cost of mining one Bitcoin is about RMB 50,000. Mining gains space through time, and gains stability and peace of mind through space!

5. The mentality of mining is better. Speculation in cryptocurrencies is speculation, just like speculation in stocks. Only a few people can make money. It is a zero-sum game. A few people earn the money of the majority. The probability is low. Many people have experienced the bull market in 2017 and the market after 2017, but very few people can make money in the end.

Therefore, it is not recommended for people with poor psychological endurance to participate. Mining is a fixed investment, which requires a more stable mentality. This can be seen from the fact that the only group that can be active in this industry in a bear market is the mining circle.

Mining is suitable for anyone with spare money, and has a wide audience! Judging from the results in recent years, as long as they enter the industry appropriately, miners are likely to be able to seize the great opportunities in this industry!