Cryptocurrency has become one of the most popular investment options. Even considering its volatility caused by not being backed by anything, it allows investors to get profit. The best thing about cryptocurrency is that anyone can become an investor.
Digital tokens open a lot of doors. People who couldn’t even imagine retiring early now can guarantee for themselves a nice future or retirement. Traders can conveniently convert various types of coins, for example, xlm to btc, or fiat to crypto money by using exchanges. They can also mine crypto tokens. But what method is better? Check out the article to find out.
Ways of Getting Crypto Tokens
You can say that there are 2 the most popular ways of gaining cryptocurrency:
Mining or exchanging come first into mind, even though you may consider some other ways of obtaining digital tokens. Getting cryptocurrency as payment for a job on the Internet or even winning tokens are two less popular methods. Mainly, because you can’t rely on these options. So, we are left with exchanging and mining. Which method is better?
An exchange platform is a convenient way to quickly and effortlessly obtain a digital token of your choosing. You may choose between these types of platforms:
A centralized platform requires paying small fees, while a decentralized platform doesn’t require any payments. The disadvantage of a decentralized platform is the need to find a buyer of your currency who is selling tokens you need.
Mining Digital Tokens
In general, experts distinguish three methods of mining crypto money: solo, pool, and cloud mining. Details are described below.
When mining on your own, you should consider the following factors:
- expenses on buying equipment;
- electricity consumption.
If you use GPU, which is better than CPU mining, you may use the graphics card later for gaming. But this method consumes a ton of electricity, so the bills won’t be nice. ASICs consume less energy and offer more hash power, but they can’t be used in any other way than mining. Mining solo requires investments, but when you find and solve a block, you get a rather nice reward. But the chance of finding and solving a block is scarce.
When joining a pool, you join a group of people mining the same cryptocurrency. Whenever someone finds a block and solves it, the reward is spread among the group. It takes less electricity since you get rewards more often. The disadvantage is obvious – the reward is lower than when solo mining. You will still need to invest in equipment, and you need to pay the entrance fee when joining a pool.
This method does not require you to have equipment at all. Cloud mining is available on platforms that have mining farms. You need to create an account, choose a package with a certain crypto coin, and after some time mentioned in the package, you get your reward. It’s less costly than buying crypto coins, but the range of digital tokes is usually limited.
If you don’t want to spend time figuring out all the technical details of mining, but you wish to enjoy trading crypto coins, it’s best to use crypto exchange platforms.