CRYPTO MINING Vs TRADING…. Which way for newbie?

bushman (56)in #cryptocurrency • 7 years ago

The demand for crypto increased over the year as market is capped at $487,622,734,886 as at time of writing this. Year 2016 and 2017 saw a new dimension in crypto world as hundreds of coin emerged within these years. This has since moved many people to turn their attention to cryptocurrency especially the newbies who are looking for a new way to make money and multiply their coins… This raised the question: is mining or trading best for beginner's.

NOTE for this article: Trading involves whether buying/selling from exchange, a market place or one-on-one. To most people trading is the best way to make more money and multiply their coins while to others mining is their best choice. There are a lot of article online about how to buy and sell crypto and how to trade crypto on exchanges. Directly or indirectly all these articles points at same end “profit’. But many times most of these articles makes the newbie confused as they don't know the best one to base their decision on.

Trading crypto simply means buying/selling. That is buy low sell high. But this is not where it ends. It involved skills, experience and wisdom. A newbie when heard with trading he can make 100s of dollars daily will jump in and at the end will fail. Many websites, articles and pros will advice them to buy and hold but is that a way to multiply his coins daily, every two days or weekly. Buying and holden for long is good for long term plan and plan for the future and it's more like investment. The first challenge everyone face in crypto (even in daily life) is capital then wisdom. And most newbie don't have enough money to invest to have a lucrative gain in the future. Even if they has the money after investing they will be left with nothing. So before investing they should try out a way to multiply their coins first and this brings about trading or mining.

In trading you can make 100s of dollar in some minutes and you can also lose 100s of dollars in just a minute unlike in mining which grows gradually. But there pros and cons of each one of the two. As a newbie or a student who don't have much you can start trading with as little as $20 to & $30 worth of crypto ( you can buy at coinbase, localbitcoins or remitano). But before you start think of wisdom, experience and skills. Wisdom here implies learning, reading and decision on how to program oneself. Don't read anything related to trading that will not add knowledge to you. Don't be confused by thousands of articles and videos online. The best place to start with is THE CHART SCHOOL by stockchart.com, its free.

Give yourself a week or two to digest the chart school. Read about money management, Read how news affects the market and subscribe to news websites like bitcoin.com (and a lot of other. You can google for crypto news websites). Purchase bitcoin from any of the exchanges mentioned above and transfer to any exchange of your choice (research about the exchange) and start trading applying the knowledge you gain from chart school, money management and news, then join free trading group and pros to gain more experience and skill (Don't pay for any group at first until you start making enough gain).

You see how easy/hard trading looked like? In mining you don't need to stress yourself or pass through all these said above. The disadvantage of mining is that as money started flowing into cryptocurrency the gadgets (mining tools) and set ups skyrocketed.

You will need these to engage in mining…

A free private database called a coin wallet. This is a password-protected wallet that stores your earnings and keeps a network-wide ledger of transactions, A mining software package, A membership in an online mining pool, Membership at an online currency exchange(likewise trading too), A reliable full-time internet connection (very important), A hardware setup with an aircool mechanism, A desktop or custom-built computer designed for mining, An ATI graphics processing unit (GPU) or a specialized processing device called a mining ASIC chip, and A steady source of power supply.

Looking at these things you will know is not a child play. Should you choose not to stress yourself about trading, mining will be an option. But have in mind that the income growth is gradual and requires patience, but expensive to set up. The table shows the similarities and differences of both...

TRADING	MINING
1.Can start with little money	Much expensive to start up
2. Required skill & experience	Not much experience & skill
3. Requires time and patient	Require time and patient
4. Trade on the go	Location required
5. Not much power needed for your computer.	Much powers needed
6. Needs reliable internet	Needs reliable internet
7. Can lose all your gain in a second	No fear of loose, income is gradual