In this article, we explore the two main options that allow you to obtain BTC.
As the price of bitcoin has grown over the years, so did the hype about this digital cryptocurrency. Also, even more alternatives to bitcoin were born as a result of the increased popularity of cryptocurrencies and blockchain technology. Consequently, today, we are looking at a great number of people who want to obtain BTC. In this article, we explore the two main options that allow you to obtain BTC.
What is Mining?
Before we explain what mining is, we need to explain what a blockchain network is. The blockchain network is the peer-to-peer payment system, also known as distributed ledger technology, which means that it relies solely on its users to function. It doesn’t need a middle man or financial institution to validate the transactions on the network.
Actually, the miners have the job of validating transactions in the network. More specifically, a bitcoin miner approves a block of transactions and gets a reward for his/her work. The reward is bitcoin tokens. But, you need to keep in mind that the reward is halved every 210,000 blocks or every four years. In 2020, the halving that occurred in May has decreased the block reward from12.5 BTC to 6.25 BTC.
Still, to get the reward, the miner needs to be the first one that solves a complex math puzzle. This means that mining takes time and effort. Their role is also very important because they make sure the network stays secure and transparent.
The Equipment and Costs
In the early days, it wasn’t that difficult to mine and obtain BTC, and it was the only way to get BTC. Furthermore, many people were aware that cryptocurrencies exist, nor that they will have that much influence in the future. Otherwise, people simply used their desktop computers, but today, the situation is much different.
On top of the time and effort you need to get BTC, you also need to have state of the art equipment. You need to invest in a computer that has great performance, features, a great graphics card and also you need to take into consideration your electricity bill. It’s also worth mention that the level of difficulty of mining increases as the general computing power increases on the network. It also decreases when computing power goes down.
Not only the registration process is fairly straightforward, but you also don’t need to make an investment in your equipment to start trading. All you need is a stable internet connection and a smartphone. You can sell and buy BTC exchange, BTC for fiat currencies, and more. However, always make sure to sign up on a safe, reputable platform like the bitcointrader.site.
On this site, you can potentially earn up to 400% daily profits, but you need to deposit at least $250. They use AI technology, and the AI trading robot has received the Most Profitable Robot 2020 award by the American Trading Association. As this is an AI trading platform, you don’t need to spend a lot of time on the site. Hence, even if you’ve just started to learn about BTC, you can sign up.
Overall, it is easy to invest in BTC on trading platforms compared to mining. It’s also far more efficient, and you can get results faster than when you mine. On the other hand, there are some exchanges tailored to institutional traders, and naturally, individuals can find platforms that suit their personal goals and financial situation. Keep in mind that based on the options available on the platforms, you will also need a bitcoin wallet. Also, always be aware that your outcome is also impacted by the overall market conditions when you trade.
In the beginning, there were very few reliable trading sites and mining was the main way to get BTC. But today, the tables have turned, and for a lot of people, it is more lucrative to consider trading as an option to get BTC than mining. It doesn’t require a great upfront investment, and you can use the devices you already own like smartphone, tablet, or computer.
You also get to choose from a great number of online trading platforms. But, bitcoin mining is and will be a very important part of the blockchain network. That being said, today, a lot of people are joining biotin mining pools, but you will need to pay a fee to become a member.
So, based on your individual circumstances, mining might be profitable for you. Therefore, if you have the time and resources, and it aligns with your goals, there’s no reason why you can’t try it. All in all, it’s safe to say that the bitcoin gold rush attracts a great number of people.