Almost everyone has heard about Bitcoin in 2020. As the cryptocurrency has entered a new bullish cycle, a growing number of people want to get their hands on BTC. 

Online exchange sites are the most popular way of investing in BTC, but also mining has seen a surge of popularity in recent years. If you’re wondering what the advantages and disadvantages of Bitcoin mining and trading are, this article provides an overview of the main pros and cons that you should take into consideration before you make your decision.

Overview of Bitcoin Mining

The blockchain network is a decentralized, peer-to-peer network that is mainly based on the efforts of the miners that approve and add blocks of legitimate transactions In the blockchain network, and with that, they ensure the network is safe. Also, miners are responsible for releasing new BTC into circulation. The mining process takes a lot of computing power and also time and energy from the miners that need to solve computational problems in order to identify the block of transactions. 

They get Bitocin tokens for what they do, but, to receive your reward on the network, you compete with other miners that are doing the same thing. Basically, you need to be the first that solves the computational problem. 

Therefore, the disadvantages are associated with the overall upfront costs of your money, energy, and time. The first miners didn’t have a problem with mining because it was very easy, the blockchain network didn’t have many users, and miners used mainly their personal computers.

In 2020, there aren’t that many miners that mine on their own because as the network grew, so did the competition. Also, the difficulty level of mining increased because it grows based on the total computing power on the blockchain network. Consequently, mining pools and farms arrived as a response to the increased competition. A mining pool and farm facilitate mining on a bigger scale thanks to joint resources and computing power of several members. They work professionally, using spaces and equipment designed for mining.

Overall, the main disadvantages of mining would be the competition against mining farms and pools that have great computing power. Furthermore, on your own, you need to be aware of the initial costs like electricity, computer equipment, and time you need to invest before you get the block rewards. 

Overview of Online Trading 

On the other hand, online trading sites are definitely easy to access through your web browser on mobile and desktop devices. And although you need to be familiar with cryptocurrencies and trading, nowadays, there are exchange sites that make it easier for beginners to invest in Bitcoin. 

An example is the Bitcoin Prime official website. This is an auto-trading site that is powered by AI technology. Thus, beginners aren’t required to do much because the advanced AI technology completes the technical aspects of trading for you. What’s more, you can potentially earn up to 60% in profits on a daily basis. If you want to open an account, you need to deposit $250.  

The main advantage of trading is that it is easier than mining, and you can invest not just in BTC but other cryptocurrencies. Opening an account also takes only a couple of minutes, and you can trade on your smartphone on the go. However, to be able to reap the benefits of trading, it is essential to keep up with the news in this field and work on your knowledge and skills in this area. Also, it is important to pick the right platform for you and do your own research. All in all, for a lot of people, trading is a preferable option instead of mining.  

Conclusion

One of the advantages of mining is that you will have voting power in the network, which means you have a say on the future changes in the blockchain network. And if you want to do it in the long run, it might be a profitable option for you. Also, you can take part in mining pools and farms and join forces with other miners. It also worth noting that Bitcoin halving decreased the reward miners get every four years, so in 2020 is 6.25 BTC, and it will be even smaller with each subsequent halving.  

Online trading is more accessible, but you also need to be aware that you still need to invest in your own knowledge, skills. All in all, Bitcoin is certainly one of the biggest cryptocurrencies right now, with a number of supporters from all corners of the world. So, based on your future goals and what you want to achieve, you need to make the best decision for your financial situation.