Investors interested in Bitcoin typically explore its value through two approaches: mining and trading. Most of the get-rich-quick stories we hear about happen among traders, but today we want to discuss why many people still choose mining over trading.
Q: There’s a saying, “Trading coins is inferior to holding coins, and holding coins is inferior to mining.” What are the differences among these?
A: Trading coins is like trading stocks; it involves investors trying to buy low and sell high frequently to make a profit. Holding coins is more of a long-term holding strategy, where investors sell their Bitcoin only when necessary. Mining can be understood as creating or producing Bitcoin. Mining is almost the only way to acquire Bitcoin at a low cost. It means getting digital currency from the source, at the lowest cost in the primary market.
Q: But I feel that trading coins is cooler and more thrilling, while mining Bitcoin based on fixed program rules seems quite dull. It seems like traders have more courage and wisdom, and they also have more opportunities to get rich quick.
A: Mining is equivalent to a fixed investment. If you are a miner, you will unconsciously pay attention to distributed storage and the development of related industries. In fact, you will understand the future direction and value of Bitcoin better than investors who focus solely on price fluctuations. You will also have a better understanding of the entire Bitcoin industry and even the whole cryptocurrency industry, understanding their developmental laws and logical relations. However, if you buy coins directly on the secondary market, you are likely to understand it only from the perspective of potential gains. Therefore, miners can understand the Bitcoin ecosystem more deeply, grasp patterns and trends, and embrace stable wealth opportunities.
Q: However, compared to trading, mining has a higher investment threshold. After all, a mining machine can cost thousands of dollars, while trading is much more flexible—you can even buy $10 worth and still participate in Bitcoin. Why spend so much money on mining? The startup cost of entering the game through mining is too high!
A: Compared to trading, trading indeed has the advantage of almost no cost barrier and the chance for a windfall like hitting the jackpot. However, very few can technically master buying low and selling high, and on a human level, overcome fear and greed. Most people suffer from missing out or selling too soon, and some even bet aggressively in pursuit of getting rich quick and regret it for life. The pain doesn’t come from the currency itself, but from the eternal human weaknesses that traders cannot overcome during the process. Historical experience tells us that most people who have invested in Bitcoin through mining have made money. Miners are at the top of the food chain, producing BTC that trickles down to lower markets, without worrying about being manipulated by market makers, selling at a loss, or losing money due to market volatility. Therefore, for conservative Bitcoin investors, trading is too worrisome and unsettling, while mining is like guarding a cash printer.
Finally, SC MINER would like to remind everyone that all investments carry risks, so decisions should be made cautiously.
All information above has been compiled by SC MINER for our mining fellows. SC MINER is the world’s most renowned international mining equipment trader and a core agent for manufacturers such as Bitmain and Goldshell, with the advantage of priority sales. SC MINER’s sales team has been serving miners in dozens of countries globally since 2017, with sufficient experience and outstanding integrity to maximize your wealth!
