A friend purchased computing power to mine Bitcoin at the beginning of 2020. It is still necessary to share his mining experience after one year. This best guide for mining cryptocurrency is mainly focused on the newcomers entering the circle of mining and investment.
As Bitcoin is on its biggest bull market in 2021, which also brings in many new opportunities. According to my friend, the first time he heard about cryptocurrency and registered a blockchain wallet was in early 2014. It happened to be the end of the bull market, but because of the bear market, he couldn’t continue to pay attention. The second time he formally participated in cryptocurrency investment was in the middle of 2016. At that time, it was the early stage of the second bull market. He saw a lot of low-priced coins but could not also jump in. He didn’t start investing and buying coins until 2017.
He first bought a lot of altcoins, because the altcoins rose relatively large, and due to the close relationship between the altcoins and Bitcoin, they were growing simultaneously. After the first round of buying spree, he had a lot of altcoins, and as well as a small amount of Bitcoin in his wallets. The purchased cryptocurrencies continued to rise while taking advantage of that opportunity, which was also unexpected.
Although, those early investments in the currency circle cannot basically be regarded as an investment, but can only be said to be speculation. Buy whichever coin you see has great potential to rise, but with caution to avoid suffering a catastrophic loss. Just so you know, before learning to walk, you must fall several times. But you can avoid some of those mistakes by knowing more about mining and investing in cryptocurrency for newcomers.
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Cryptocurrency is divided into investment and trading strategies. For trading, most people must first learn to do long-term, then learn to do swing, and finally learn to do short-term. Of course, if the swing or long-term is done right with good knowledge, there is no need to do short-term.
In essence, it is relatively simple to do long-term, just hold it still or keep making a fixed investment, without judging the market trend.
Then do the swing if you notice the price is much higher than what it was when you bought. The swing or daily trading requires some kind of good crypto trading market knowledge for you to succeed. It is very technical and can be very difficult for newcomers to grab all the tricks and strategies for better trading.
The most difficult thing is to do short-term. Short-term is speculative to a certain extent. If you don’t grasp it well, you will lose money. Therefore, short-term operators basically restrain their desire to buy when it is time to buy. , You must sell when it’s time to sell. Even if you lose a lot, you have to cut the meat. This time is basically more difficult for ordinary people.
Also for cryptocurrency investment, a certain process is required. First, learn how to mine cryptocurrency, then hold Bitcoin and mainstream currencies and finally learn investing in altcoins. Similarly, if Bitcoin and mainstream play well, there is no need to participate in altcoin speculation.
Why should mining be ranked first in cryptocurrency investment? Well, the truth is not farfetched. Cryptocurrency mining is actually a true test of a person’s ability to invest in cryptocurrency for long-term, rather than really expecting quick returns.
Simply put, mining is a long-term process. A whole lot of patience is needed if you intend making a fortune from it. In this case, the mining industry is one of the best ways to enter into in cryptocurrency investment. Develop this mentality, not only to make money in the mining industry but also to make great progress in the aspects of daily life and work.
Let’s take 2018 digital currency mining as an example. At the beginning of the year, the currency price continued to fall, which hit the mining industry. Many people may not persist in it. However, due to the currency price, mining basically failed to keep up with the currency price in the middle of the year. , Because of the sharp drop of 312, plus the subsequent halving, my friend clearly remembers that the daily net income of 50W/T is less than $015/10T and at its lowest.
At that time, the price of computing power was also relatively low. It was actually the hardest time of the year. When Bitmain’s new mining machine came out, the pressure on computing power rose instantly, and it was basically difficult to sit still at this time.
But fortunately, after experiencing a difficult period in the middle of 2018, my friend was eager to recover the cost, so he had to hold the mined Bitcoin and not sell it. Why did he have to? In fact, this process of mining is the process of cultivating Bitcoin to hold and not sell, because if calculated according to the net rate of return of less than one dollar a day, it will take him at least 5 years to pay back, so he has to hold it at this time with the hope that Bitcoin price will rise
My friend is not the only person hoping for the next Bitcoin Bull Run, other miners too are hopeful. Most miners hold their mined coins which is precisely what led to this current explosive bitcoin bull run we are seeing in 2021.
Then, after learning crypto mining, you can then enter the crypto world. The return of mining is mostly due to the rise in currency prices and constant persistence in time. This is the essence of profitability and it is also a way to deepen the cultivation of character.
So for those who have experienced mining, only then can they cherish every opportunity for low-priced coins in the market, and then can they buy bitcoins and hold them, and then not sell them. Because of this, you can invest in Bitcoin and mainstream coins after mining.
After all, mining is not as efficient as buying coins, unless it is in the early stages of a bear market. In the early period of the bear market, the price of mining machines was not high, the price of currency was not high, and the market had to persist in a four-year bear market. Therefore, buying coins could not make a profit in the mid-term. This time is the best time to enter the mining period, and on the bear market, the final period is the best time to buy coins. At other times with fewer events, mining can be done, but the profit will be less or even more gruelling.
After getting familiar with investing in mainstream coins and Bitcoin, the next step is altcoins for novices. Altcoins have one feature, high risk and high return, and some are even worthless, making you lose all your funds. Some can rise to the sky and make you rich in an instant. In terms of probability, every coin is possible. Every day there will be news about the rise and fall of various currency prices in the market. It is easy for a novice to be confused and buy some worthless coins or altcoins.
So what kind of people is suitable for investing in altcoins? People who have proper knowledge of cryptocurrency and experienced various routines are eligible to invest in altcoins. All you need to do is find potential coins from a bunch of altcoins, buy, and finally make a profit at the right time.
Finally, in fact, God is fair. You don’t have to worry about too many things in mining, and you can make profits with a high probability. It can be done without a foundation, so it is the best way to exercise patience while investing in Bitcoin and mainstream coins require certain skills. , But the relative mining gains are not small. In the end, the investment in altcoins is the most demanding. It requires a sharp vision. It is naturally difficult for many people to do it. Naturally, if it succeeds, then you will make a lot of profits.
Having said that, the two-eight law is still very useful in the currency circle. Therefore, investing in fake coins means you are prepared to lose your entire investment. Carry out your market research any altcoin you want to invest in before buying.