Passive Earnings: Mining vs Forex
|Beginners find their way to the financial markets in search of additional income, which would ensure freedom from the shouting of bosses and life without need.
The electronic trading organized by stock exchanges through brokerage companies and the Internet made a true revolution, making speculations available in the markets for stocks, commodities, currencies, and derivatives. Anyone who owns a personal computer or a smartphone with an access to the World Wide Web could become a trader in a few clicks.
Fame came to the Forex market due to a low initial deposit. Many forex brokers offered to open an account in three minutes with a minimum deposit.
Comfortable conditions on Forex accounts provide access to the whole variety of financial assets: stocks, stock indices, goods, and currencies.
The crypto currency brought about the second revolution in the opportunities of passive earning. The algorithm for its creation involves mining, real income is brought by online calculations that allow you to obtain electronic coins.
Bitcoin exchanges, plastic cards, and exchange points allow miners to exchange crypto treasures without any problems.
Miners are rewarded for confirming transactions (Bitcoin transfers) by providing their computer as a server for the distributed network of the payment system that contains the register of all payments from the launch. A new payment is distributed among all the miners, and in the case of confirmation, it is synchronized with the existing registry. The support is rewarded by a commission, which is already included in payment.
The computational algorithm running on the computer is built into the system, confirming the transactions and simultaneously mining the crypto currency. The received commissions and the extracted funds are transferred to the user's electronic wallet.
Comparative analysis
Financial costs of Forex:
A cent account allows you to start trading with $10. This amount is quite enough to implement a strategy without high risk and not go broke from a series of losing trades.
Financial markets are bound by the principle: invest more - get more, therefore the optimal investment will amount to $1,000, maximum - $10,000.
Financial costs of mining:
Each new user reduces the overall reward of the miners, and each mined coin increases the complexity of mining (computer resources). The payment for the block of transactions, which started at 50 coins, now costs 12.5 bitcoins. Bitcoin mining at home will require at least a stable connection to the Internet, electricity and a powerful computer. Another option is to obtain other crypto currencies or join the cloud-mining communities.
The minimum costs for cloud mining will be around $30, the optimal solution for home mining - from $3,000, maximum - some $5000.
Forex Training:
According to the statistics of open tenders held by various stock exchanges, brokers, and prop-trading companies, the share of traders with a positive financial result reaches 40%. Statistics of the accounts of ordinary clients shows the figure of 5%. This indicates a frivolous approach to Forex but does not say anything about the complexity of training.
Diverse and profitable Forex trading strategies are your confidence in trading. Organized as an app for a smartphone, they are ready-made examples, where you can learn and earn simultaneously.
Forex has existed for more than 40 years, stock markets – for 4 centuries. There is no point reinventing the wheel in industries where there are a lot of proven solutions. There are only three qualities required from the trader - concentration, attention, and assiduity.
Learning to mine:
Mastering mining is much simpler than trading on Forex, it is similar to learning to work with software at the user level. At Github, you can get free software and recommendations, and cloud mining will help create a complete mining configuration, for example, Giga Watt.
Forex potential:
There are three ways to increase earnings from currency speculation on Forex:
1. Reinvestment of profit
2. Increasing the deposit by investing own funds
3. Attracting third-party investors.
A trader with a trading system that brings a stable profit can attract an infinite number of investors through social trading.
Mining potential:
Crypto currency mining is finite in terms of resources, if you do not determine points on the Laffer curve based on feasibility/cost ratio, you will begin to suffer losses.
The transition to mining another type of crypto-currency is fraught with risks: if the demand for altcoins is low and the cost does not grow, it will eventually lead to losses.
Conclusion:
As the saying runs: a bird in the hand is worth two in the bush. In our case, a bird is Forex. Start trading, or investing operations, you can invest into the crypto-currencies as well. You can spend a few years for testing and, eventually, choosing the best trading strategy but it will help you to attain financial independence for the rest of your life. Remember that Forex and stock exchanges will remain forever.
Recent bitcoin crisis has shown that crypto currency transactions can be displayed and confirmed outside the system of blockchain (SegWit). It means that the metal produced by miners will eventually become useless and expensive scrap metal.
No one can predict what will be the exchange rate between the bitcoin and the USD when the crypto-currency market experiences the first financial crisis; especially, knowing the fact that even in case of the slightest negative situation the prices fall by 50% or more.
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