When is the best time to buy a miner?

When is the best time to buy a miner?

"Bull market speculation, bear market mining" summarizes market laws and a reasonable avoidance of risks. For investors, the core advantage of mining is that the coins they hold continue to increase. Even if the currency price is falling back, the total assets in the future will not shrink significantly, and even after the bear market, it is the joy of asset explosion. And compared to spot hoarding, investing in mining will not occur when the currency price pulls back due to panic cuts and stop losses, and when the currency price rebounds, it is difficult to get out of the game in advance. It is difficult to grasp all the benefits. Mining is a Long-term and stable income return!

So how do ordinary people participate in mining? If you build it yourself, you need to pay attention to mining pool data, trading conditions, maintenance and inspection of mining farms, maintenance of miners, and cleaning. Mining requires thousands to tens of thousands of miners, venues, and cheap electricity bills. In addition, put up with noise and take risks with local policies.

As mining is becoming more and more industrialized, mining is no longer something ordinary people can do. The most sensible thing for ordinary people is to find a reliable miner, buy hash rate, and buy miners for hosting.

You have invested in miners and will receive dividends according to the corresponding hash rate. If it is in a bull market and the price of the currency increases, you will gain profits; if it is in a bear market, some small mining farms will close down. After the mining farms close down, the mining difficulty will decrease, and you will earn more coins. When the currency price is low, hoard the currency and wait for the arrival of the bull market. The bull and bear transformation cycle in the currency circle is about 4-5 years, so it is more appropriate and safe to consider the income.

Why is the bear market more suitable for mining?

When a bear market comes, all miner producers adjust miner prices by a certain percentage. On the one hand, it is because the market determines the price. The seller launches a price reduction policy when the supply less the demand. On the other hand, it is to consider the actual income of miners. After all, the price of mined coins has fallen. To shorten the payback period of miners, we can only reduce the cost miners have to invest in purchasing miners. Therefore, one of the advantages of buying miners in a bear market is that they are cheap.

In addition to the currency price, another critical factor that affects miners' earnings is the difficulty of mining. When the bear market comes, miners' enthusiasm for mining is not as high as that of the bull market, and the growth rate of the hash rate of the whole network will also slow down, which means that the difficult adjustment period is relatively prolonged. Then miners can mine a stable amount of coins for a long time.

Another point to consider is if your entry time is not sure whether it is in a bull market or a bear market, or if the bull market has just started and you don’t know when it will end, do you need to wait until the bear market to start miners? If you are already involved in mining, you can wait, but if you are not involved in mining, it is best to take part of the funds, for example, 10%, 20%, participate in the form of fixed investment so that you can have chips in your hands. Otherwise, if the bull market continues for another year, you will find that your miner cost has been recovered in the year you waited, and the back is pure profit. Waiting for you to participate in mining after a year, you will find that the mining difficulty also increases, and fewer coins have been mined. Others have begun to take pure profits, and you are still on the way to returning to your original capital.

There are also two better time points for participation in mining: the head mine and the wait for stability before participating. Therefore, we recommend that member users invest most of their funds, such as 80% and 90%, into mainstream currency mining, such as Bitcoin miners, and the remaining funds to participate in relatively reliable head mines.

Generally, whether it is a bear market to buy miners or a bull market to buy miners, it is a kind of risk investment. Therefore, before investing, people should understand more about the profit principle and make choices based on their actual situation to make the most reasonable judgment at the right time.