Cryptocurrency is the Donald Trump of the financial world; love it or hate it, you can’t help but talk about it all the time. Rarely a day goes by without some type of cryptocurrency news hitting the headlines – and it’s not always positive!
In the past few years, the amount of people buying crypto has increased exponentially. Influencers are buying it – and tweeting about it, so everyone else hears about it and wants to buy it, leading to an increase in value; smart! Investors are buying it too, mainly because of how cheap some forms of crypto are, and the potential they contain.
However, I’m here to say that you should think twice before buying any cryptocurrency. If anything, you should avoid buying it if you want to make a profit. Why? Is it no longer profitable? Should you spend your money elsewhere if you’re looking to grow your wealth?
Well, things aren’t quite as simple as that. You see, cryptocurrency is still a fairly profitable investment idea. All I’m saying is that you shouldn’t ‘buy’ things like Ethereum or Bitcoin. Instead, you should look at an alternative way of investing in them; mining.
What is mining?
Cryptocurrency mining is a very complex process. Essentially, it’s a way to validate all the cryptocurrency transactions that happen throughout the world. This ensures that people buy the right thing and don’t get conned. A miner is basically someone that sits there and gives the thumbs up for every transaction. When you do this, you actually get paid for it in the cryptocurrency you mine. Essentially, you’re investing in it without having to actually spend your money.
So, you could have a lot of Bitcoin, but you’ve not actually bought it, so it doesn’t matter too much if the price drops. You can still sell it and make real money!
How do you start mining?
I won’t go into detail about what happens during the mining process as I don’t actually know. It’s way too complex for me, all I know is there are loads of complicated equations that determine if a transaction is valid or not. Don’t worry, you won’t be doing loads of math if you’re a miner! Instead, it’s all done by a mining rig. As you’ll see in this mining rig build guide, you can build a platform that does the mining for you. It’s made out of a computer circuitry board, and you can make multiple adjustments for it to work more effectively and allow you to mine more crypto. Obviously, the more you mine, the more you earn. Some people have even started quitting their day jobs and taking up a full-time career as a cryptocurrency miner! I’m not saying you should do this – I think having a steady job is always the best idea – but the fact people are doing it just shows how much money you can make from this.
Why should you mine crypto instead of buying it?
The simple answer to this question is that it’s just better with regards to making a profit. When you buy something, you’re putting a lot of money into it, and you could lose all of that money if you’re not careful. But, if you invest in crypto via mining, then you’ve not technically bought anything. Furthermore, the only thing you’ve truly bought is the equipment you use. It can be expensive to build a mining rig, but the investment is worth it as you now have valuable technology that also sells on if you no longer need it. Let’s say you start mining, and things go well, then you decide to stop. You sold all the crypto you made and want to ride off into the sunset. Now, you’ve got a fully functional mining rig at your disposal as well. This is something people will eagerly want so it will fetch a fair bit of money if you sell it.
To kind of sum everything up; I’m not suggesting that crypto isn’t worth much and will make a bad investment. What I’m saying is you should think about how you invest in it. Is it more worthwhile to invest in a rig and mine different cryptocurrency rather than buying it the traditional way? Well, there are certainly some very good arguments that claim that’s the best thing to do! In the end, everything points back to the title of this article; don’t buy cryptocurrency before reading this. If you’ve read it and still want to purchase crypto the normal way, then that’s fine, and you can still make money. But, I may have just opened your eyes to a new way of investing in this market.