Miners vs Traders. Who wins more?

The big question when entering this world of cryptocurrencies

When we begin to know about this new ecosystem, a lot of information comes from family, friends and acquaintances.

Hello Luis. how are you? Look, you have to invest some $$$ in cryptocurrency trading, volatility leaves many opportunities for big profits, although the risk is high, it's worth it.

On the other hand, another person arrives and says:

Waaaoooo I just bought an ASIC and the current value of the currency is leaving me $ 120 per month. At this rate I recover the investment in 5 months and then I will have a fixed income of $ 120. Nothing bad! You should buy one. It is a safe investment.

After that the confusion is immense and we do not know what to do. Then, as Trader and Miner I will show you a vision of each of these two aspects.

Traders

Source

Adrenaline to million, raise or lower the price. Buy or sell?

It is an activity that although it is very exciting is also very risky. It is possible to lose all our capital in less than an hour.

In trading, you must be 100% connected to the market, because you need to be aware of prices, indicators, news, you can not afford to lose operations by being distracted by something else. You need a lot of education in finance, economy, politics, society and in our case also cryptocurrencies, Blockchain, Technology, and everything that generates stock movements.

With trading, you may earn a lot of money in an operation, and it is possible as long as you keep the pace in your education on the issues I mentioned above and get involved in the market. The profits can be substantial, because the risk warrants it.

I belong to a Telegram community called: Living from Trading. In this community the permanent emotion is maintained by the market, especially Forex and Binary Options, and you can see the profitability that can be obtained with a simple trading plan. Only the Trading Plan will not give you profitability, but it will if you add education, work and discipline.

Trading is a very profitable activity and in certain cases and moments it will be more profitable than mining, but it is also very stressful and overwhelming despite the adrenaline with which one lives. Due to the high risk, the profits are very good and precisely because of the risk it is always recommended to invest money that you can afford to lose.

You already know that if you plan to trade, you need to like it, you need time, money, dedication, discipline, good habits, effort and above all you need a strong mental attitude.

Source

When I speak of strong mental attitude I refer to what in Trading we call: Trading Psychology.

To emphasize a little in this term, it must be said that in the market anything can happen and you must be willing to assume the consequences. You can have all the news up to date, the graphs and the indicators well analyzed and you enter with an operation and suddenly ZAS !!! the market flips and you lose the operation. This situation is something that happens very often and that is when our Trading Psychology comes into play, which refers to our attitude to respond to these eventualities. Some specialists consider that it is the most important aspect in Trading. You can read the post from @jodekss (The needed psyche for any cprytocurrencies investor) where it speaks a little more on this topic.

In short, Trading is a high risk activity that can be very profitable if you stay connected to the system, or very harmful if your Trading Psychology is weak.

Miners

Source Professional mining farm

Investment, time, hope and collect the Money Flow

A mining investor is someone more focused on obtaining Cash Flow as a return on investment, unlike the trader who works for Capital Gains.

Investing in mining does not give you the excitement or occupation of the Trader, but in "a certain way" gives you a little more peace of mind, you do not need to be all day in front of the PC, the news, although important, is not vital, The behavior of the market is not as important either, as the ups and downs are no longer as important as long as the investment has already been recovered, because any dollar of income is profit.

When you work in mining, the profits can be a little slower, though safer. The most important thing here is that we do not depend on the market value, but on the Hash rate of our mining equipment, because the more sophisticated the higher the Hash rate and the more profitable we will have. Another important thing is that although we do not depend on the market, it is very rewarding when we have some cryptocurrencies in our purse and the market rises, at that moment we can withdraw some FIAT money to enjoy it.

Source Small scale homemade mining farm

The risk in Mining also exists, as there is a possibility that the equipment will suffer damages and our investment will be affected. For those of us who live in Latin America it would be more expensive to send an ASIC to China for repairs than to buy a new one, which is why it is vital to keep them in an adequate environment that allows them to work with as little effort as possible. This environment must be free of dust but in turn must have a continuous flow of air to remove the heat generated, thus preventing overheating. In addition, it must be a space with excellent acoustics, to avoid sonic contamination, as the noise they generate tends to be annoying.

An advantage over Trading, is that you can take funds from mining and invest in trading, if you lose your money you will still have a cash flow from mining that supports trading activities.

The business of mining, by its nature is more stable than Trading and in a scenario where both are generating profits we could say that trading is more profitable, but with much more risk and much more work, while mining It offers less stress and a constant cash flow.

My final recommendation is that if you want to start doing with mining while you train in trading. By the time you are ready, you will have some money saved from mining and you will be able to enter Trading a little stronger financially and mentally.

If you have any questions or comments, I would like you to let me know.

Bye