5 Reasons Why You Should Mine Crypto Instead of Just Buying Coins

Uncategorized Apr 27, 2022

As a crypto mining enthusiast, one of the top questions I get is “can’t I just buy the coins and get the same gain?”

 

It’s a really great question. 

 

Why go through the effort of figuring out which miner to purchase?

And then you need to also figure out where to host it, what pools to join in and how to handle the tech and other issues that pop up. 

That sounds like a lot more effort than just buying a coin on an exchange in a few clicks, right?

What I’ve found is that, even with that effort, it’s worth doing.

Let’s go through five reasons that mining crypto makes more sense than just buying coins:

1. You get to be the Visa of crypto when you mine. What? Well, the Visa network takes a percentage of every transaction on their network, all the time. Bad economy? They take a percentage. Good economy? They take a percentage.  Crypto mining is similar to this. When you mine a cryptocurrency, you gain both from the minting of the coins and verifying transactions. With all the attention on crypto, there are a lot more transactions to be verified. After validating them, miners are paid a transaction fee.

Watch more below:

 

 2. Continually buying an asset through highs and lows has always been sound financial advice. The financial term often used here is “dollar cost averaging”. In simple terms, when you are buying continually, both in low times and high times, you will come out ahead overall. It’s also a lot easier than figuring out lows and highs, and hoping your timing was perfect. Crypto mining is similar in that the continual hashing (tech word for mining) is always going, with modern miners doing 100s of trillions of transactions every second, every day.

This short video explains more:

 

3. Mining is insulated. While coin prices would greatly affect a situation where you are just buying them at one point in time, mining is a bit insulated from this. Yes, when the value goes up, the miner enjoys this. And, when a value goes down, it does affect a miner to a degree - but remember there are still transaction fees. Crypto sitting in a wallet or an exchange won’t get those.

You can watch more here:

 

4. There can be considerable tax advantages. While this is not tax or financial advice, and is just informational, one could form an LLC and write-off the business expense of a crypto miner. That’s hard to do when just buying a coin on an exchange.

This short video explains this:

 

5. Mining is fun. This last reason is what most miners lead with as their primary reason.. Yes, there are some things to learn and issues to deal with. But, at the same time, the community is exceptional, good natured, and wants to help people. As a miner, you are helping advance the many positives of crypto too, and that doesn’t happen as much just holding a currency.

This short video shows a little more:

 

Now, while a lot of you would be happy with those five reasons, some of my friends want to see financial numbers and ROI to compare these two approaches, and we have an article coming with that too.

Others might have heard of environmental concerns with mining crypto. Most of those claims around environmental impact are considerably blown out of proportion, based on proven, expert reviewed studies from places like Cambridge. And yes, we have a detailed article coming here as well.

 

If you’re on the fence about getting into crypto, or just mining in general, we hope this article has helped sway your opinion. Mining is a great way to get started in the crypto world and can be more profitable than buying coins outright. Not only that, but you also get to help secure the blockchain and play a part in processing transactions – something that is essential for keeping the network running smoothly. 

 

And, with our lucrative Mining Round and Miner Share programs, we make it easy for anyone to start mining cryptocurrencies and earn rewards for doing so. Sign up today and see how rewarding crypto mining can be.

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