FrontNode on Whether It’s Better to Mine or Buy Bitcoin

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If you’re reading this article, you’re thinking of different ways to acquire Bitcoin. We’ve prepared a helpful article to help you make the best decision for your investment goals. As you’re probably aware, Bitcoin will still be one of the most appealing digital assets in 2022.

Investing in BTC is still a great opportunity, as the cryptocurrency has already become a household name in the mainstream. Dozens of businesses already accept it as a payment method, including PayPal, the huge payment provider working with tens of millions of online stores.

Before we break down mining vs. buying Bitcoin on exchanges like FrontNode, let’s briefly cover the basics of the cryptocurrency.

What is Bitcoin?

Bitcoin is a cryptocurrency that runs on blockchain technology. The powering technology is innovative because it is:

  • Highly secure – Nobody can change the transaction history. Therefore, it’s the most secure payment method in the world. That was the biggest flaw of other online payment methods. While the traditional banking system is entirely secure, it’s nowhere near the security levels of blockchain.
  • Transparent – Anyone can access the transaction list and see who sent BTC where. That means there’s no foul play, as all the transaction data is available to everyone.
  • Fast – Sending Bitcoin to others is quick. Unlike traditional banking methods that take days, crypto transactions are quicker, ranging from minutes to hours, depending on the network activity. Still, these features are consistently in development, which will make BTC faster in the future.
  • Decentralized – The most significant selling point of cryptocurrencies is that nobody’s controlling them. The creator of BTC is still unknown to this day, and blockchain technology is the only thing powering the whole network. Nobody owns the system, as it’s powered by miners scattered worldwide.
  • Anonymous – While the transaction record is there, each wallet’s address is in no way connected to a person’s name. So all transactions remain anonymous.

These features make bitcoin truly revolutionary for the financial world. If you’re planning to get in on it, there are two ways to do so. You can either purchase equipment for mining or simply register on an online exchange such as FrontNode, and purchase BTC directly. 

Let’s look at which one’s the better option.

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Bitcoin Mining: Pros and Cons

Bitcoin runs on a proof-of-work method that ensures that everything on the blockchain is secure. The process requires hardware, which performs advanced mathematical functions that validate all the transactions on the blockchain.

The whole network rewards the miners, who receive Bitcoin for their efforts. Every four years, there’s a halving on Bitcoin rewards, but as the price of BTC keeps growing over the years, their rewards remain high. If you’re planning to mine to get Bitcoin, here are some of the pros and cons to consider.

Pros

By mining on the Bitcoin network, you become a part of the decentralized system that supports Bitcoin. That means becoming a part of a vast community that does good for the whole system. As a bonus, you also get a reward in BTC for participating in the entire process.

Miners are also the ones who decide which way Bitcoin is going to move forward. They vote on whether some features should be adopted or not. If you have enough processing power, you become a part of the BTC governance. You can then cast more votes and influence decisions.

Cons

Mining is not a simple process these days. When the network started running, people could receive rewards using GPUs on their computers. However, the system’s complexity increased the hash rate as the network grew bigger.

What does that mean? It’s necessary to invest a lot of money in mining equipment to ensure that the process is profitable. Mining rigs are notorious for their power expenditure, so you need the machines to make more money than they spend.

Furthermore, the pace of the technology is fast, and you’ll likely have to replace those machines with new ones to keep up with the system’s complexity.

Last but not least, people with no prior technical experience will need some time to set everything up. There are plenty of guides online, but the process is not as simple as it looks. A technical background can significantly help speed up the process.

Still, mining is a viable option if you want to be a part of the community and you have the space to place all the hardware. Check out a mining profitability calculator to ensure that you’re going to have enough hash power to make it profitable from day one.

The Case for Buying Bitcoin

The main reason buying is a more appealing option is that you immediately know what you get. Mining and buying are both risky, but the second option is a much simpler process that requires no technical background.

The final decision is entirely up to you, but buying BTC on exchanges such as FrontNode is a quicker process that takes minutes  and requires little effort from a financial standpoint. On the other hand, mining requires a hefty investment, mining space, hardware management, and recurring electricity cost.

How to Buy Bitcoin on Exchanges like FrontNode

The way you acquire Bitcoin is a matter of personal preference. If you want to join the BTC ecosystem from the governance side, mining might be a better option for you. However, if you want just to own BTC, it’s better to head over to an exchange like FrontNode and purchase it directly.

Purchasing Bitcoin takes minutes. You simply have to go online and find a reliable exchange such as FrontNode. Then you can use your Visa or Mastercard to purchase Bitcoin to your heart’s content. The platform automatically creates a BTC wallet for you when you register.

Use the wallet to send and receive Bitcoin from other wallets, and have fun trading BTC. You get to keep the wallet as long as you have an account, as it’s connected to the platform.

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