Even though most investors believe that there is one way to invest in cryptocurrencies, cloud mining provides another way to invest in the digital currency. In this article, we will discuss cryptocurrency trading and why cloud mining is better.
The most asked question in the cryptocurrency world and in the blockchain community is about the future of cryptocurrencies and digital tokens. Will there be any huge breakthroughs after the launch of bitcoin and ethereum? Will they ever reach mainstream popularity?
However, during the last year and recent months, the demand for cryptocurrencies started to rise again. This can be an affirmative sign that the digital currency industry is barely getting started.
The rumors that big institutional investors might come to the market and are going to drive the demand for crypto assets may just come true.
Buying vs. Cloud Mining
This industry is all about gaining some money. At present, you would need to whip out a fortune to buy one bitcoin. Of course, you can buy smaller amounts. However, you would still have to pay the same price in the end if you intend to buy one bitcoin.
Digital assets have all the potential to grow further and it’s going to be more difficult to enter the market every coming day with the intention to acquire a decent amount of cryptocurrency.
On the other hand, with cloud mining websites, you can finally get even more than 1 bitcoin for less money. For instance, with Hashtoro.com, you only have to pay a smaller amount of money for an annual contract for 100 TH. Given the present complexity of the network, you can recoup the investment within one year. And if the prices rise, you will receive some additional revenue from that growth.
Diversification is a worthy subject to ponder on when dealing with cryptocurrencies since there are cases when all market rushes into ethereum and abandoning the previously loved bitcoin. If you choose to buy, it means that you need to acquire at least three different assets in your portfolio. You also need to constantly check the market environment for the best purchase.
With cloud mining, you don’t have to worry about diversification. The service will be doing it for you in an automatic way. The aforementioned website mines all three major cryptocurrencies: litecoin, bitcoin, and ethereum, in equal proportions to spread out the overall risk.
For instance, during the earlier part of this year, it was very profitable to choose to mine ethereum and litecoin. However, when their prices dropped, it became more profitable to mine bitcoin. The system spots which digital currency is more profitable to mine at the current moment and dynamically switches to mine that prospective currency.
At the end of the day, the digital currency is exchanged for the one that the client has chosen to mine. According to the various surveys and tests done with this kind of system, the user can enjoy up to 10 percent benefit.