Bitcoin has managed to be in the top position in the world of digital currencies since years. It is a rapidly growing method that helps in making digital payments worldwide. Being bitcoin in so much in demand, everybody is finding ways to invest more and more in bitcoins. Broadly, Bitcoin Mining and Bitcoin Buying are two popular ways to make money via bitcoin. But what is the difference between them? Which one is better? All of your queries will be solved here. Know everything about bitcoin mining and buying.
The process of adding the transactions records in the public ledger of bitcoin i.e. in the blockchain is known as bitcoin mining. Wait. Blockchain? What is that? Well, blockchain is a decentralised register where all the bitcoin transactions are stored. The places where these transactions are stored are the blocks. The authenticity of the blocks is ensured to check that if the same coin hasn’t been expanded again before the transaction is recorded. Hence, the bitcoin is created.In short, the whole mining process is being carried by the blockchain.
Bitcoin mining – sounds like a heavy term that only coders can do. Well, it is not. You can also mine your bitcoins, all you need to have a proper internet connection along with a powerful hardware, and you are ready to mine. In the process of bitcoin mining, you have to solve an encrypted puzzle and create blocks. If you are able to crack it first, you can claim your reward. The reward includes the transaction fees that you have paid along with extra bitcoins that encourage you to mine more.
With the mining of a block, some bitcoins are released every time which is known as the ‘Block Reward’. After every four years or reaching the level of 2, 10,000, the blocks are reduced to half. The diminished block then results in the formation of the bitcoins that will be always less than 21 million. If you have reached the limit of 21 million, then you cannot mine the blocks anymore. However, to reach the limit of 21 million, it will take about a hundred years. So, need not worry and keep mining.
The level of difficulty in bitcoin mining depends on the number of users participating in the mining process. It is also true that the profit generated by the bitcoin miners is directly proportional to the number of the miners. Hence, if more people are mining the bitcoins then you will be able to generate less profit through mining.
Purchasing of bitcoin from exchanges or from the market is known as buying of bitcoins. You can buy bitcoins from exchanges like BTC Monk that provides you with an authenticated platform for buying or selling bitcoins or other cryptocurrencies. Also, you can purchase bitcoins from individuals who possess some of the bitcoins, or by debit and credit card transfers. Even some of the countries have a separate ATM for bitcoins.
To buy a bitcoin, you should have your own bitcoin wallet that will enable you to purchase and store your bitcoins. The wallet can be downloaded by any cryptocurrency exchange. For an excellent experience in buying, selling, trading or storing of cryptocurrencies; go on with BTC Monk as it is one of the popular bitcoin wallets across the globe. You can download the online wallets either by using the web portal or the mobile application.
After learning about what actually mining and buying is, know which one is a better option for you to bag more and more bitcoins rapidly. Let us compare them on the basis of few aspects.
After evaluating some of the aspects, it is quite obvious that buying of bitcoins is much beneficial than mining them. If you also want to gain profit, buy bitcoins via BTC Monk which is one of the best digital platforms.