How to Mine Bitcoin
How to mine bitcoin? Can I do it with my laptop?
Cryptocurrency has been a buzzword since the prices of bitcoin and altcoins skyrocketed in 2017. Bitcoin was worth $20,000 per coin in December 2017. This week, the price has surpassed a whooping $50,000.
Suddenly, everyone is after crypto, and the number of miners and mining farms is growing by the day. It’s no surprise. At a glance, mining BTC seems like a no-brainer – all you need is a bitcoin mining computer to solve complex mathematical problems, right? We wish it was that easy.
What do you need to account for to mine bitcoin? Let’s find out!
The Setup You Need
If you decide to jump into mining bitcoin, be prepared to rig up.
The setup costs vary greatly depending on the cryptocurrency you want to earn as a reward. Bitcoin is not cheap to mine as the competition is mind-blowing. Back in 2009, when bitcoin was just launched, miners could freely earn thousands of coins. Now that everyone wants a piece of Satoshi, everything’s changed.
The average cost of decent mining equipment is around $5,000-6,000. Some miners spend more than $10,000 on powerful hardware for mining. Reality can be harsh.
The next thing to consider is energy costs. If your electric rates are high enough already, you may end up consuming more energy than you will be able to earn BTC. It’s been calculated that the lowest electricity cost to mine one BTC is around $3,000.
Investing in expensive mining hardware and considering impressive energy bills is only worth it if you’re serious about mining – and sure you have a good fighting chance.
Cloud Mining as an Alternative
In our previous article – How to Make Money With Mining Bitcoin – we discussed cloud mining.
Cloud mining companies make it super easy for you to start mining crypto for as low a fee as $10 – with everything set up and running.
Simply put, a cloud mining service allows you to rent the equipment you need from a company. It may sound like a dream come true, but the disadvantages of cloud mining include small rewards and rent pay. Don’t expect to be mining considerable amounts of coins using such services.
Isn’t Investing in Bitcoin as Risky?
It is. However, investing in bitcoin has more pros. How so?
Investing in Bitcoin Long-Term
Let’s start with long-term investments. First, you can invest as much money as you want, be it $10 or $100, or just as much as you can afford to lose if the crypto market should crash.
Buying $100 worth of bitcoin mostly takes a few clicks and will hardly affect your financial situation – as compared to the $5,000 as well as the time and effort you need to invest in setting up mining hardware. True, you may lose the money or not win anything in both cases, but in the end, the former case would be less painful all things considered.
On the other hand, the price has been growing steadily and is predicted to continue to rise. This means that investing a mere $100 in bitcoin value can turn out a pleasant surprise in the shortest time.
Do you know what Kay Van-Petersen, an analyst at Saxo Bank, predicted for Bitcoin? According to the analyst, the “digital gold” could hit $100,000. The reason behind this potential enormous rise? A larger uptake of institutional investors and futures contracts.
It was Van-Petersen who in December 2016 predicted that Bitcoin would reach $2,000 in 2017, which it did in May 2017.
Short-Term Investing aka Trading Bitcoin
As to short-term investments, day trading must be the most popular strategy. In essence, it’s the buying and selling of cryptocurrency with the aim of making a profit in the same day.
Day trading is a good strategy for making smaller profits on a regular basis.
Where Can I Invest in Bitcoin?
Start simple – with a crypto exchange that makes investing in bitcoin easily accessible. Cue CoinMetro.
CoinMetro is safe to start with, regardless of your status in the crypto market. We have something for beginners and professionals alike. Strictly regulated, our innovative crypto exchange offers you the features and services that’s right for you.