Once a miner understands the blockchain technology, they’re in a better position to make winning trades, as well as speculate on the movement of the price of a digital coin. However, the price of cryptocurrency is highly volatile; and it’s vital to understand the underlying qualities of a digital currency, as it will allow a trader to learn more about the coin they want to trade.
Here are more reasons why trading is more profitable for mining:
- Low starting capital – Trading requires a far smaller amount than what is necessary with mining. You can trade from a minimal of $10, whereas mining requires particular components which are relatively expensive. Also, the electricity consumed by these components is high making it a costly venture to start.
- Wide variety of options – Mining rigs are usually dedicated to mining a particular cryptocurrency, and if there is a drawback of that coin, it may lead to a considerable loss to the investor. The pooling of many coins during the mining process will offset a loss of one coin making it easier to have a high return of investment.
- Trading for others on commission – Minors usually have lots of knowledge of the blockchain technology and may use capital from other investors to pool resources to create a huge capital base for investment.
- Building a Bitcoin faucet – Faucets are profitable. If a miner had mined a certain amount of Bitcoin, they might develop a faucet. They will then ask advertisers to place ads on the faucet, and with every click, they pay a fraction of a satoshi. Owners of the faucet can charge a large fee from those placing the ads.
It’s impossible to ignore the lure of mining cryptocurrencies. The fascination of solving the complex arithmetic equations still excites many techs savvies. There will be people who will say, ‘we can crack the digital currency world,’ and will make every attempt to be the next big cryptocurrency. However, the ever-changing crypto scene is making it more difficult for small scale traders to break even. Large corporations have overtaken the profitability of mining, and the difficulty of solving the equations is becoming more complex.
Which Coins to Mine
Now you know what mining rigs are available, it’s time to know which coins have a high return on investment. Bitcoin is the most popular coin, and as a result, have attracted many miners. However, since there are more miners, it makes the probability of solving the complex arithmetic equation nearly impossible. Competition is extremely high, and some rely on powerful rigs to mine Bitcoins.
However, it’s important to note that the cryptocurrency space keeps rapidly changing. You should keep a close watch over the changes in the market. Websites such as Coinwarz and Whattomine.com are great sources to know which coins are the most profitable to mine. Coinwarz compares the profitability of mining other digital currency to Bitcoin while Whattomine compares the profitability of Ethereum to Bitcoin.
Some of the profitable coins to mine in 2019 are:
Another important aspect that you should really consider before you start mining is having a secure digital wallet to store your coins. There is a variety of wallets on the market, and it can be either a hot or cold wallet. Hot wallets are online, and cold wallets are offline. However, they can be further classified as a hardware or software wallet. It’s essential to do thorough research to find the best wallet that suits your needs before you start mining cryptocurrencies.