The advantages and disadvantages of Bitcoin investing and mining

There are two main ways that you can obtain BTC, through Bitcoin mining or online trading - here are the pros and cons

Bitcoin’s price has skyrocketed along with its popularity and the number of users in 2021. At present, there are 4.8 million users that own Bitcoin, and every day, on average, there are 400,000 BTC transactions on the network. 

That said, there are mainly two ways that you can obtain BTC, through Bitcoin mining or online trading. Both have their own set of advantages and disadvantages, while BTC trading is the more popular one. Here we take a look at the pros and cons of Bitcoin mining and online trading.

Online trading 

When we talk about investing in BTC, most investors, regardless if they are retail or institutional ones, are turning to online trading sites to invest in BTC. Initially, there weren’t many exchange sites where you can invest in BTC or a consensus regarding the price of BTC. 

This means there was a real need for an online exchange platform. Over the years, there were different online exchange sites that failed, due to various reasons, including technical problems. But, today, as the technology is much more advanced, trading is not only very convenient and accessible, but also there are a plethora of reliable trading sites to choose from. 

However, you should be aware that you still need to get to the know blockchain technology and improve your skills and knowledge in this area if you want to achieve the best results. Also, keep in mind that you need to stay updated about the latest developments in this industry. But, overall, it’s easy to get into trading.

A popular trading site, especially among beginners, is Bitcoin Storm. The site utilizes powerful AI trading algorithms, which means that this is essentially an automated trading system, and the robot is able to facilitate trade at a high win rate. You can register here and know about bitcoin storm scam

Bitcoin mining

When it comes to Bitcoin mining, this was the primary option for getting Bitcoin in the past before the proliferation of online trading platforms. Bitcoin mining will always be a vital part of the blockchain network and the entire Bitcoin ecosystem. When we talk about Bitcoin mining, we think of miners that are verifying blocks of transactions on the blockchain network, and with that, they ensure the network is secure for all participants. Furthermore, as they add new blocks of transactions to the network, new BTC is generated. So, suffice it to say, they have a very important role in the network, and without mining, the blockchain network won’t be able to operate.

It should be noted that Bitcoin mining is a very time-consuming and energy-intensive activity that takes a lot of effort. You also need specialist mining equipment, and miners also need to be able to solve computational puzzles in order to receive the block reward. 

The block reward is the main motivation for miners to continue to add new blocks of transactions. But, due to bitcoin halving, an event scheduled by Satoshi Nakamoto, to cut in half the block reward of the miners whenever 210,000 blocks are added to the network, mining is very costly. 

After every four years, the blocked reward is reduced, and today the block reward is 6.25 BTC, while it was previously set at 12.5 BTC. Another disadvantage of mining is that the collective computing power is increasing in the network, and this means that the difficulty of mining is also surging. 

The main advantage is the ability to vote on the changes in the blockchain network. Also, if you want to get into mining, it can be profitable when you join a mining pool or a mining farm. Basically, you will be able to combine your resources and computing power with other participants of the mining pool or farm.