Which is more profitable, trading Bitcoin or mining Bitcoin?

[Mr forfee]

Bitcoin mining and trading both have their unique benefits and drawbacks ,They both involve risks. which do you think is more profitable 

[Oshosondy]

Trading is very risky.

Only a small percentage of traders are profitable, and most make losses:
Day traders
Only 1–20% of day traders are profitable, while the rest fail. One study found that less than 1% of day traders can reliably earn meaningful returns after fees.
New traders
According to the 90-90-90 rule, 90% of new traders lose 90% of their deposits within 90 days.

I think if you check about mining, most miners will make money because they will make mining profitability calculations before starting. But in trading, PnL is not possible to know.

[Botnake]

Mining is only profitable if you have decent capital to start with. Most miners today are large corporations that can afford expensive equipment and cover high electricity costs.

For a regular person, mining might not be feasible, but trading is a great alternative as you can start with a small capital to test your skills, and eventually over time, as you gain confidence and experience, you can gradually increase your exposure to improve profitability. The good thing about trading is that you don’t have to worry about monthly expenses or equipment maintenance, which can be a constant source of stress if you’re running mining rigs.

[Mr forfee]

yeah u have a point there bro may be thats why we have more treaders  than miners ,the high electricity costs  and the decreasing rewards over time due to the halving process is a disadvantage

[serchan]

U depends on current market stat. Sometimes it is more profitable just hold crypto and sometimes to mine. But often people going for mining can leverage from investment like model when they increase expenses in their company for example www.oneminers.com issue you invoice for data and computation management services. So you have relevant expence when buying miner and expense for power consumption.  They even offer AI servers so it is dependable from Tax services as legitimate expense.

For holding please do so but use real good crypto wallet. Like onekey wallet https://onekey.so/. It is open source wallet so no monkey business shall not be hidden inside . Or use hardware wallets such as trezor . Never hold your coins in exchange because in long term most of them will bankrup.

For tokens just stay away from them . From all tokens in long term investment .!!

Marry christmass 🎄
Serchan

[mikeywith]

if by trading you mean the constant buying and selling then the mining is less risky, but also a lot less rewarding.

if you compare holding (just holding not trading) then in the vast majority of times holding bitcoin beats mining at all levels, not too long ago people bought S19s for 0.5BTC, at best that unit generated 0.25 BTC before failing or becoming unprofitable, the same logic applies to most other models.

[philipma1957]

if by trading you mean the constant buying and selling then the mining is less risky, but also a lot less rewarding.

if you compare holding (just holding not trading) then in the vast majority of times holding bitcoin beats mining at all levels, not too long ago people bought S19s for 0.5BTC, at best that unit generated 0.25 BTC before failing or becoming unprofitable, the same logic applies to most other models.

It depends on how you buy the gear.

I can buy with a CC on time with discounts 21 months 0% interest, but I can't buy coin like that.

I can get 25,000 credit so I can buy 3 s21xps no money out of pocket. No coins out of pocket.

they burn 270 kwatts a day at 6 cent power that is $16.20 a  they make 47 usd a day so net of 30 bucks a day. 900 a month

chances are you will have them paid in 2 years or less. You never laid out money to own them.

But it is for smaller scale and you need good power costs.

[Outhue]

Trading is risky, it depends entirely on skills and funds management, it is not going to be easy to be a successful trader.

Mining Bitcoin isn't easy either but it takes less stress, all you need is money to get the Asic miner and also cheap electricity rate and you can start making money.

Both requires lots of patience, it takes time for you to ROI when mining and you need lots of patience to trade too, I found trading to be more overwhelming, lots of emotion control is required.

[philipma1957]

Trading is risky, it depends entirely on skills and funds management, it is not going to be easy to be a successful trader.

Mining Bitcoin isn't easy either but it takes less stress, all you need is money to get the Asic miner and also cheap electricity rate and you can start making money.

Both requires lots of patience, it takes time for you to ROI when mining and you need lots of patience to trade too, I found trading to be more overwhelming, lots of emotion control is required.

Trading is really really really hard.



Hodling via dca purchase is the best way. I think you can not find any 5 year time period that a weekly dca of x and hodl has lost money.

this means 52 x 5 = 260 weeks in a row buy x amount of btc and do not sell until you did the 260 weekly buys .

I do believe in every case that is a sure winner. At least on past history.

[shield132]

Bitcoin mining and trading both have their unique benefits and drawbacks ,They both involve risks. which do you think is more profitable 

Mining is a very competitive business. Top mining companies have thousands of mining rigs with access to cheap or almost free electricity and some of them are even in exclusive tax free zones. For example, here BitFury pays no tax on mining equipment import and no tax on the profit they generate, it's a heaven on earth for them. Many mining companies are like that, it's also a corrupt business. If you aren't a millionaire and powerful, it will be hard for you to generate a good profit from mining.

I think that mining is more risky and less rewarding than trading. When you start a mining business, you have to order mining rigs from China, which can be a problem if you receive a bad batch and then you have to send them back, then receive them again, pay additional shipment costs, etc... For me, it's a headache and doesn't worth it in such a big competition. I think that it's possible to make more money in trading with less headache but you need to work on yourself. Do not expect 100% ROI from trading in a year or two, focus only on the best moments and not on day trading.
I always hold my coins after halving and only sell them when I believe that price is already high and needs correction but I sell most of my coins before the bubble bursts. When the bubble bursts and the market crashes, I wait till the price reaches at least 30% of its ATH and then I buy my coins and hold until at least the price doubles.

[mikeywith]

I was talking about the basic buy gear vs buy coin scenario, things that involve borrowing money or playing with tax laws in certain countries are not available to everyone and not everyone understands them (myself included), you have been mining BTC long enough and I think if you were to spend the time on 10 random gear purchase you made, and check how much BTC you could have bought, it's very likely that 9 out of 10 times you were better off buying the coin.

Us old miners have probably spent a few tens of BTC on gears, right now, I am sure as hell not many of us own even 1 whole BTC.

[philipma1957]

I was talking about the basic buy gear vs buy coin scenario, things that involve borrowing money or playing with tax laws in certain countries are not available to everyone and not everyone understands them (myself included), you have been mining BTC long enough and I think if you were to spend the time on 10 random gear purchase you made, and check how much BTC you could have bought, it's very likely that 9 out of 10 times you were better off buying the coin.

Us old miners have probably spent a few tens of BTC on gears, right now, I am sure as hell not many of us own even 1 whole BTC.

absolutely correct.

I can’t begin to tell you how much i gave away on the difficulty threads back in 2013,2014,2015

well over 7 btc maybe as much as 10-11 btc to promo btc for people.

[FP91G]

Bitcoin mining and trading both have their unique benefits and drawbacks ,They both involve risks. which do you think is more profitable 

The main expenses in mining are the cost of electricity. If your electricity is expensive, then your mining will be unprofitable.
Perhaps when the price of bitcoin is high, mining will be profitable, but the world's mining companies have prices of 2 to 5 cents per kilowatt.
If you do not have such an opportunity, then there is no point in talking about mining.

[Mia Chloe]

Trading is very risky.
I think if you check about mining, most miners will make money because they will make mining profitability calculations before starting. But in trading, PnL is not possible to know.

It's very possible to calculate your profit and loss before you place a trade whether in crypto or in Forex trading as that is the essence of stop losses and take profits which most people know as SL and TP. It actually depends on your analysis and the kind of softwares you make use of . Some help you calculate in dollars (or your respective fiat currency) some make use of a risk to reward ratio.

That simply means the bigger your risk to reward ratio  the more you have to lose. It's simply a matter of the distance from your entry to both your take profits and your stop loss. The biggest draw back I see in trading is experience and patience.

[ranochigo]

It's very possible to calculate your profit and loss before you place a trade whether in crypto or in Forex trading as that is the essence of stop losses and take profits which most people know as SL and TP. It actually depends on your analysis and the kind of softwares you make use of . Some help you calculate in dollars (or your respective fiat currency) some make use of a risk to reward ratio.

That simply means the bigger your risk to reward ratio  the more you have to lose. It's simply a matter of the distance from your entry to both your take profits and your stop loss. The biggest draw back I see in trading is experience and patience.

Neither of which is guaranteed. The point is about how much certainty you can predict your outcomes before starting off. It's impossible for trading and if you have to ask this question then trading is probably not for you.

Something that is probably overlooked is that you're going to have to spend time to manage them and also time is wasted waiting for the equipment from preorder or shipping. These are fairly time consuming and eats up a good source of profit, either due to opportunity cost or just forgone profit from downtime. A good rule of thumb is to have your ROI guaranteed by using the average difficulty increment as a gauge.

[BlackHatCoiner]

Stacking sats is the most profitable, in most cases, because it can apply to nearly every person. If you have a job, and can save a little money at the end of the month, then you can stack sats. There's nothing particularly difficult about that, it only requires time to understand bitcoin.

Mining requires extremely cheap energy, and capital to begin with. It can rarely beat stacking sats. 

Trading is gambling squared.

[Oshosondy]

Trading is very risky.
I think if you check about mining, most miners will make money because they will make mining profitability calculations before starting. But in trading, PnL is not possible to know.

It's very possible to calculate your profit and loss before you place a trade whether in crypto or in Forex trading as that is the essence of stop losses and take profits which most people know as SL and TP. It actually depends on your analysis and the kind of softwares you make use of . Some help you calculate in dollars (or your respective fiat currency) some make use of a risk to reward ratio.

I am not new to trading. I know that you can set the TP and SL before you open a position. I also know that exchanges have a trading calculator. At least I have seen that on exchanges like Binance and few exchanges before while all the exchanges that I have used have the TP/SL which you can check on to set either TP or SL or both. If you do not see the TP/SL, you can go to preference to enable it.

What I was talking about is that in mining, you know the cost of miner, you know the cost of electricity, you know the percentage that you will pay miners and others which can be used to calculate if mining will be profitable for you or not before buying miners and setting up a mining rig or farm. But in trading, you do not know if you will make profit or lose. That can only be known after you have closed the position you opened or the trading fund got liquidated or after the trade. You can trade for weeks and make money and later lose. Trading is very risky.

And normally, trading is very risky. Majority of traders are losing.

[jayoh]

I'd say trading can be much more profitable, for those with the time and skill. There is no guarantee, however (thus is life).

Mining can have a long, steady and slow return. It's for the person who believe in Bitcoin for the long haul, wishes to be a part of the network, and can put up initial capital and on-going electricity (and potential maintenance costs) and watch it slowly trickle in again over time.

[BitMaxz]

What I was talking about is that in mining, you know the cost of miner, you know the cost of electricity, you know the percentage that you will pay miners and others which can be used to calculate if mining will be profitable for you or not before buying miners and setting up a mining rig or farm. But in trading, you do not know if you will make profit or lose. That can only be known after you have closed the position you opened or the trading fund got liquidated or after the trade. You can trade for weeks and make money and later lose. Trading is very risky.

And normally, trading is very risky. Majority of traders are losing.

I don't see any difference if a trader is doing it on BTC in the long term since miners also mine BTC and it is volatile. There's still no assurance that you know your profit in the future if the price of BTC drops. The same goes to a trader unless you are trading on futures, which is what both of you are pointing out. That is riskier than spot trading if you are a trader doing it in a short period of time, but if you trade on a long-term basis, like only if you confirm that the price of BTC is cheap or a dip price, that is the time to buy and hold for a long period of time, like those who do swing trading because the price of BTC is like a roller coaster, they capture those trends to buy and hold it for a few weeks before they sell. However, trading futures is risky, which is why the vast majority of traders lose.

My main point is that there are still pros and cons to trading and mining. If the BTC drops a lot, the unit you bought will no longer be profitable, but traders still have a chance to make profit at small spikes through spread trading.
Also, about we do not know if we can make profit in trading it is also the same in mining if you bought a miner then the price of BTC suddenly drop do you think it still profitable while sustaining paying the electricity bill?

[Mia Chloe]

What I was talking about is that in mining, you know the cost of miner, you know the cost of electricity, you know the percentage that you will pay miners and others which can be used to calculate if mining will be profitable for you or not before buying miners and setting up a mining rig or farm. But in trading, you do not know if you will make profit or lose. That can only be known after you have closed the position you opened or the trading fund got liquidated or after the trade. You can trade for weeks and make money and later lose. Trading is very risky.

Okay.. Now I actually get your point Initially thought you were saying that it's impossible to calculate what you are risking in a particular trade but now I understand your point. I agree trading is very difficult and many traders on average have a negative net profit on their cumulative all time trades. Fundamental analysis is one thing that easily causes losses and it's difficult to predict since it doesn't follow a regular pattern and that's where bitcoin volatility puts traders at a disadvantage.

Still one of the drawbacks I'm mining is your location because aside from electrical costs too which is relatively higher in some regions, mining wares are also relatively expensive and difficult to get in some regions too and that is part of the reason why some regions have more solo miners than others.