Obtaining digital currencies has been at the top of people’s minds for well over a decade now. From the moment the first cryptocurrencies started appearing, investors and experts from all the different industries and businesses opted to start investing in them. Since most predictions pointed towards a digital currency future in which many different cryptos would be prominent in the way the economy works and how business is done, it was not that hard to persuade people to invest portions of their savings in them.
Fast forward to 2023 and the craze has never been bigger. However, the manner in which people are nowadays obtaining cryptocurrency has changed considerably. At the moment, it is cryptocurrency trading that has taken the world by storm contrary to other forms of obtaining these valuable assets like straight-up buying more of them with regular money or mining. So why is that and is there any clear indication of when it may stop? To find the answers to these and similar questions, make sure to keep reading the article. In addition, if you wish to find out more on the matter, we advise you to click here.
It is Easy in Theory
The trading of digital currency has been made very easy in order for many more investors to come into the game and bring along more money. Nowadays, all it takes is a few simple steps aimed and you can start your crypto journey. Most of the things that an average virtual currency trader needs are present on one and the same platform. By opening a free account, you get access to the whole new world where you are able to connect with other investors and carry business deals. Not only will you easily be able to buy and sell your favorite cryptocurrencies, but you will easily trade whichever you want.
Most people start their careers by buying a small portion of Bitcoin since it is the most famous and valuable currency, and probably always will be. To start things off the right way however, it is smart to start diversifying your portfolio from the get go. Therefore, buy a few more cryptos you think will become more valuable over time just so you have more things to trade and more safety nets to fall back in if one of your currencies suddenly drops.
The platforms in question are called cryptocurrency exchanges, and they are exactly that, online services where traders can exchange their assets for whatever they want. They come equipped with electronic wallets to keep your balance ins securely and safely, as well with an abundance of tips, advice, and news from the cryptocurrency world. Best of all, dedicated mobile apps are also available for Android and iOS systems so that you can react quickly when changes in value happen and make the moves in a few clicks.
While all of this has been easy and straightforward by the creators and developers, it still takes research, experience, and knowledge to be able to trade Bitcoin and other cryptos successfully. Making money like this does not always depend on you alone. Cryptos are infamous for their spikes in value and unpredictable changes that can leave you broke or make you a millionaire overnight. It happened before, and it will surely happen again.
Mining is No Longer Viable
While the sudden surges in price of Bitcoin brought another wave of new miners onto the scene in the recent five or so months, this practice is largely unprofitable on a smaller scale. Back in the day when cryptos were still in their infancy, anyone with a modest personal computer could hop online, set everything up, and mine on their own. Getting Bitcoin in return was a lucrative business until the halving phenomenon took place and miners were rewarded half the amount. Then a few more events took place and less and less Bitcoin was given to the miners for their work, while the demand and price increased beyond recognition.
At the moment, it takes a lot of money to build a strong enough mining rig and mine on your own. The computational power needed is available only through a combination of powerful hardware, mostly graphics cards, which have to work together in unison around the clock for you to have any benefit. Even then, the electricity bills coming your way will make it very hard to make profit. This is why contemporary mining is largely reserved for companies and tech giants who can afford mining farms, whole hangars and rooms packed with expensive technology and countless rigs connected with one goal, mining as much as possible 24/7 in search for new cryptocurrency blocks to add to the network.
Since that is the case, mining at home by average people does not pay off so trading is the next best thing. Buying your first batch of cryptos is easy since you can use credit cards and bank transfers to do it, after which you are left to your own devices when it comes to obtaining more. Trading is much different from mining and much more hands-on than mining though, and it does feel like actual work. But since the demand is at an all-time high and mining is getting harder and more expensive by the day, it is the best and most logical bet you can make.
Conclusion and Takeaways
A mix of several factors has led to the trading of cryptocurrencies being as popular as it is today. It mostly has to do with the evolution of modern tech and the fact that it is very easy to set things up. Moreover, mining has changed and became less lucrative across the board so many of those who cannot or will not buy more expensive hardware turned to trading. To top off everything, prices of the most famous digital currencies are constantly on the rise as well so naturally the demand is also skyrocketing. When it comes to Bitcoin at least, it has a cap of 21 million after which it will no longer be possible to mine more. So far, already 18.5 million have been found and are in the hands of investors. Trading will become even more dominant since it will be the only way to increase one’s balance. Many other currencies are not capped but Bitcoin is the leader so it will be interesting once this happens, that much is sure.