Where to Invest: Mining or Trading?

️Where to invest? Trade on an exchange or get into mining?
This is the question many retail investors are asking themselves, so today we will try to find the answer.
Trading (buying and selling assets on an exchange) as a source of income has appeared way before any of the popular exchange-traded assets of today and surely before first cryptocurrencies. Traders put their money into certain assets (often cryptocurrencies), speculate on the exchange rate and earn the difference in the buy and sell price of the coins. There are two ways of profiting from cryptocurrency price action: the first option is going long on coins that you believe will rise in price far into the future, the second option is trading coins daily, taking advantage of both negative and positive price action.
Mining is generating cryptocurrencies through validating transactions. Recently it has seen a true gold rush the likes of which only compete with the original phenomenon in Alaska. Considering the rise in popularity of cryptocurrencies, the number of miners has also grown, driving the network difficulty up. This means that what used to be to enough to mine cryptocurrencies, such as a home PC that would easily calculate blocks to add them to the blockchain, is no longer sufficient to compete with more powerful, application-specific machines created solely for mining.
Therefore if you want to earn good money this way, you will need more powerful equipment, a topic we will touch upon in one of the next publications.
However, what is more profitable — mining or trading?
If you want to get profits as soon as tomorrow — trading is the way to go! If you are looking for a more long-term investment option, mining wins over trading in the future perspective. This owes to the fact that the cryptocurrency market may soon spawn ETFs on Bitcoin, attracting huge institutional money from Wall Street, which will, in turn, drive the price up and allow miners to sell their coins at a much higher profit. Meanwhile trading as we know it will most likely give ground: centralized exchanges will be replaced by decentralized platforms while bots and algorithm traders will become more effective than retail investors thanks to their ability to make decisions quickly and efficiently…
The market situation is quick to change and if you want a piece of the pie — now is the time to start dealing on the cryptocurrency market.

