How to Get in Bitcoins – Mining and Investing Strategies

How to Get in Bitcoins – Mining and Investing Strategies

What do you have to do to get a bitcoin? Basically there are three ways to get one of these cryptocurrencies: mine bitcoins, buy bitcoins through a platform and sell something and get paid in bitcoins.

Of the three formulas for getting bitcoins, the first two are the most used unless you have an online store and also accept payment in virtual currency.

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Mining Bitcoins

Mining is the first way to achieve bitcoins. The work of mining involves using powerful computer equipment to solve mathematical problems, while acting as guardians of the security of the coin.

To help you understand it better, remember that bitcoin is an encrypted code associated with a bitcoin address that is stored in a bitcoin purse that does belong to a natural person.

These bitcoins can be sent to other people, used to pay, exchanged for another crypto currency, or collected.

Any transaction will not be valid until some additional thing that approves the Bitcoin P2P network, which is made up of other users and miners.

Each transaction is grouped into a block that must be sealed. This process requires complex mathematical calculations and therefore requires a lot of computing power to perform. That's where the miners come in.

As a reward for lending their equipment for this task, the Bitcoin network releases blocks with new bitcoin for which the miners compete says

How to Mine Bitcoins?

To mine bitcoins on your own, you need a robust team specialized in this task.

The reason is that with increasing competition, domestic equipment does not have enough power to make the job profitable.

Today the best teams are specialized and incorporate ASIC circuits.

Their price ranges from 1,300 euros to more than 2,000 euros. Among the houses that manufacture them are the Chinese Canaan, Bitmain, BitFury, or Spondoolies Tech.

This equipment will be necessary to mount specific hardware to mine bitcoins that often sell the same manufacturers.

That is to say, the program that will be in charge of mining effectively.

In recent months has come together with an alternative formula to mine bitcoins without the need to have your computer.

This is cloud mining, which rents a mining contract with some mining power (ability to resolve those algorithms we talked about).

Instead of having the equipment at home or in a ship, you pay a specialized company, which is the one that does the work and then shares the profits with you.

But bear in mind that most people will reserve the right to keep everything they have obtained if they understand that the price of bitcoin at that moment does not cover their expenses or does not leave them enough margin.

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How Long Does It Take to Mine a Bitcoin?

The time it takes to mine a bitcoin will depend mainly on the processing power or mining power. The longer it is, the less time it will take.

Today's machines already include comparative statistics on the time it can take and the chances of success.

What needs to be taken into account is that the more people are involved in mining and the more competition there is, the more difficult it will be to mine, and the more power will be needed.

Similarly, there is less and less bitcoin left (remember that a maximum of 21 million will be emitted) and that is why the network makes it increasingly difficult to mine them.

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How Much You Gain by Mining Bitcoins?

This is the million-dollar question. Is it profitable to mine bitcoin? 

Can you really live off it and make a fortune? As you've just seen, earning money by mining is not that simple.

There are several factors that influence this, starting with the processing power you have.

If you prefer, there are minefield calculators based on your power. Here you can see one.

In any case, the profitability of mining bitcoins is directly related to the price of the bitcoin. In other words, the more expensive the coin, the higher the return and vice versa.

In this sense, if the difficulty to mine continues to increase because more and more people enter the business and do so with more powerful equipment (what is called mining potential).

The result is that more and more resources have to be invested in making money mining bitcoins.

Miner and Entrepreneur

A separate issue is that to be able to mine bitcoins with all of the law you must register in the IAE in epigraph 831.0 of section 1, as explained in this article.

Besides, if you earn more than 9,600 euros (the Interprofessional Minimum Wage) you will also have to become self-employed and pay the corresponding self-employment fee.

How to invest in bitcoins

Another formula to get bitcoins is to invest in virtual currencies. In other words, speculate with the crytodivisa as we would with gold, oil or any stock.

How to Buy Bitcoins?

To buy bitcoins, go to one of the bitcoins trading platforms. For those who already invest in the stock market, its operation will be similar, although somewhat different from that of a usual broker.

These platforms are called bitcoin purses and are where virtual currencies are stored. There are different types of bitcoin portfolios depending on issues such as security and usability.

The first ones are bitcoin purses for PC, which you can download as a program for your computer.

The second one are the online purses of virtual coins, which can be for mobiles or computers, it is indifferent. The second ones are the safest and are the hardware purses. In other words, a physical device that will store the virtual codes of your crypto coins.

As a user, you can use one or several virtual purses that will have their backup passwords and encryption system. In this sense, it is common for online purses to ask for double confirmation of keys via SMS.

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Which Bitcoin Coin Wallet to Choose?

The market for bitcoin portfolios is broad. The Bitcoin Wallet you choose will depend on the use you want to make and the number of bitcoins you have associated with your user address. Virtual wallets are suitable for small quantities because they are much faster to operate.

On the contrary, they are not recommended for storing large amounts. However, when working with these purses it is essential to keep the private key they will give us, since it will be the one that will allow us to recover the bitcoins later.

As a general rule, the more bitcoins you have, the more recommendable a physical wallet will be and not constantly connected to the network.

The danger at this point is what can happen if the device is broken. Again, the solution is to aim at paper and have located the private key or private address of the account.

When choosing a cryptocurrency coin mechanism there is a difference between those that are used coin mechanisms, with their public and private keys, and the bitcoin platforms, where, at the end it is the web that keeps the money and not you with your keys.

Among the best-known purses is Coinbase, very easy to use and intuitive, but it will also charge important commissions every time you buy, sell or transfer bitcoins.

Moreover, as it is a platform or exchanger, the security of your bitcoins will depend on their encryption and not on what you do.

That is to say, you will be including a third party that is the one that will have all the data of your bitcoins.

On the other hand, Kraken is slower in the execution of orders and income, which should be carried out by transfer for large amounts, but has lower commissions. If you have invested in stock exchange, it is not very different from choosing a stockbroker or a supermarket of funds.

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