Monday, November 26, 2018

Is It the Right Time to Start Bitcoin Mining in Bear Market?

Up to now, it reached the highest bitcoin price of 20,000 US dollars last year, the entire cryptocurrency market has been intermittently falling for nearly 10 months, we continue to see a lot of project, media, exchanges, etc. faded out one by one. The once-rich cryptocurrency ecology has long been deplorable: the project has long been unable to launch an ICO, the trading volume of the exchange is bleak, and only some of the miners who remain are still looking at their own profits.
Once mining has once again become the final value support for the entire industry, it has become the final leg that can prove the existence of the industry; for any investor who still wants to continue to make money in the cryptocurrency, mining should not be ignored for current investment potential. And as the market has entered the bottom area, the investment dividend for mining has once again become clear.

The best way to invest in Bitcoin: fixed investment or mining

There are two main types in Bitcoin investments:

1. Long-term investors:

People who agree with the long-term value of Bitcoin are generally based on fixed investment (fixed investment refers to investing in a fixed period, such as buying a certain amount of bitcoin per month). Fixed investment can spread the risk of investment on average, and is extremely suitable for investment products such as Bitcoin and Ethereum.

2. Short-term investors:

For investors with a certain level of trade, it is necessary to have a higher level to ensure stable profitability.

3. Ordinary investors:

Bitcoin mining, mining has a large threshold, involving many factors, so many investors will choose to invest in mining by purchasing cloud computing (cloud mining) products.

So for investors, they will think about a question: which one can earn higher profits? Fixed investment of buying bitcoin or investment of mining?

The general conclusion is that when the price of the currency is constant, there is no difference between mining and fixed investment; when the price of the currency rises steadily, the fixed investment is better than mining; when the price of the currency rises, the mining is better than the fixed investment. The theory is the same, but in the actual investment behavior, although the fixed investment is stable, but the investors generally have problems that are difficult to implement continuously: 1. Lack of time and energy to execute the fixed investment; 2. Because of the aversion to loss, people always want to wait for lower price, which has led to the inability to implement the fixed investment strategy; 3. In the market fluctuations, it leads to greater losses in the short-term speculation . But Mining, investment quit is more troublesome, like a mandatory fixed investment method, often can obtain more sustained and stable income. It is for this reason that we often see that a large number of large-capital holders are mining origins. Therefore, for retail investors, if they can allocate fixed investment and mining investment into their own portfolios, the relative risks are far lower than purely buying bitcoins.

How retail investors participate in mining?

In recent years, as a low-threshold mining investment, cloud mining has become a common action for more and more cryptocurrency investors; For cloud mining platform, Genesis-mining and OXBTC are recommend as old brand platforms with more than one million users.
In essence, cloud mining is a mining investment tool that splits the mining rights of the mining machine. The user does not need to purchase the whole machine, and does not need to operate the mining machine, completely eliminating the capital and technical threshold for the general user to invest in mining. In terms of revenue, because the cloud mining saves the troubles of mining machine operation and maintenance, although the price is slightly higher than that of the mining machine, the income is more stable (the cloud mining platform generally distributes the proceeds according to the theoretical value. It avoids the loss of revenue caused by faults such as the drop of the mining machine).

The key to investing in cloud computing power is:

1. Choose a trusted platform to avoid the risk of platform disappeared after purchase; it is generally recommended to choose an old-age cloud mining platform with a long running history;

2, Price and maintenance costs need to have cost-effective; under the premise of the credit and performance capabilities of the platform, the lower the external selling price of the cloud mining contract, the more investment advantage.

At present, after the price of mining machines has fallen to the bottom of the market, the price of some cloud mining products in the market has also bottomed out; recently, the world-renowned cloud mining platform OXBTC (oxbtc.com),  it has dropped the contract price to 26.5 US dollars per TH/s, the unit cost even exceeds the direct purchase of a mining machines.

Based on the judgment of the current market conditions and confidence in the cryptocurrency market, mining investment may have entered a new dividend period. In addition to the fixed investment in bitcoin, retail investors are also equipped with a certain amount of cloud mining products. Very valuable investment options!

No comments:

Post a Comment