3 Reasons To Choose Bitcoin Cloud Mining Instead Of BuyingAlthough most investors believe that there is one way to invest in cryptocurrencies, cloud mining provides an alternative way to invest in Bitcoin. In this article, We will compare cryptocurrency trading with cloud mining.
The most popular question in the blockchain community is the one about the future of cryptocurrencies. Is the hype is gone forever? Will we see the prices going that high again? Is it profitable to mine yourself, or it’s better to go with cloud mining? As different researches show the interest of people to blockchain and crypto is quite high. According to the ING International Survey, about a third (35%) in Europe thinks that Bitcoin is the future of spending online. And around 32% of respondents agree cryptocurrency is the future of investing.
Crypto Market Back
During the last month, the demand for cryptocurrencies started to rise again. It may confirm that significant part of one-day speculators seen back in December left the market and gave way to more reserved and professional investors.
There are rumors in the crypto market for a long time that big institutional investors might come to the market, and are going to drive the demand for crypto assets.
It’s partly confirmed by the recent news in the industry. For instance, US exchange Coinbase is planning to build out a prime brokerage platform. This way it wants to spark the interest of institutional capital, with the help of a $US20 billion hedge fund.
Moreover, as Google Trends data shows, searches for “bitcoin ETF” (exchange-traded fund) all over the world have grown 5 times in July. It also forecasts that the December searched number may be exceeded by early August.
Buying or cloud mining?
We are not going to talk about mining at home – it’s a hard thing to do at home unless you are from Finland and live at some abandoned lumber factory having all the contracts with energy company signed. We will compare cryptocurrency trading with cloud mining.
It’s all about money, and to buy 1 Bitcoin now, you would need to invest around $8,000 at the moment. Sure enough, you can buy it in smaller amounts, but in the end, you would still have to pay $8,000 per 1 Bitcoin. And given, all the potential for digital assets to grow further, it’s going to be even harder to enter the market every coming day with the intention to get a decent amount of cryptocurrency.
With cloud mining website you may finally get even more than 1 Bitcoin for less money. For example, with Hashtoro.com you can pay $6000 for an annual contract for 100TH. Given the current network complexity, you can recoup your investment within one year, as you will have 1.71 Bitcoin mined. And if its price rises, the user will receive additional revenue from that growth, as happened in 2017.
Eggs in Basket
It’s worth thinking of diversification when dealing with cryptocurrencies, as there are cases when all market rushes into Ethereum abandoning previously loved Bitcoin. If you prefer to buy, it means you need to have at least three different assets in your portfolio, or you need to constantly check the market environment for the best purchase.
With cloud mining, you don’t need to worry about the diversification. The service will do it for you automatically. Hashhtoro.com mines all three cryptocurrencies, LTC, BTC, and Ethereum, in equal proportions, to spread out the risk.
For example, early in the year, it was very profitable to mine Ethereum and Litecoin, but when their prices fell, it became more lucrative to mine Bitcoin. The system determines which currency is most profitable to mine at the current moment and dynamically switches to mine that particular currency. At the end of the day, the currency is exchanged for the one the client chose to mine. The tests have shown that this allows the client to generate up to 10% more profit.
The number of cases with malware and hackers stealing huge amounts of cryptocurrencies is growing fast. If you keep your crypto assets at the crypto wallet, there is always a risk to lose all.
Hashtoro.com cloud mining service never stores Bitcoin in a hot wallet. All the coins mined are transferred to cold storage and payouts are performed manually once a day. This way, no criminal can steal the Bitcoin mined by clients.