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Profitability comparison

Mining vs. Exchange - Which Earns More?

Mining vs. Exchange – Which Earns More?
Is it better to mine crypto or buy it on an exchange?

Buying 1 LTC costs €60

Mining 1 LTC costs €26 (example)

Example:

  • Electricity = €8 /day (large 3kWh machine at €0.11/kWh)
  • Miner = €4 /day (machine price €7300, lifespan 5 years (1825 days), so €4/day)
  • TOTAL = €12 /day (cost to run your miner for 24 hours)

But the machine mines, for example, €20-€40-€60 /day (depending on the model).

So you invested €12 /day, and mined €40 /day = a profit of +330% /day (even if the cryptocurrency price on the exchange didn't rise by a single cent).

Buying Crypto: €12 → tomorrow you have €12

Mining Crypto: €12 → tomorrow you have €40

A) Mining earns even when BTC is falling

You invested €12, you got €40. You earned +330% even if the cryptocurrency price on the exchange didn't rise by a single cent that day (and even if it falls).

*If the coin's price also grew (e.g., by 20%), you would have earned +20% on the exchange, but with mining, you'd earn even more (330% plus another 20% on top, so 396%).

B) You got crypto at a -70% discount

You mined crypto worth €40, but you only paid €12 to get it. So you got crypto 70% cheaper than its current price on the exchange.

(It's as if you wanted to buy 1 BTC on the exchange now for €60,000, but you only pay €21,000).

C) A miner conjures 0.6 BTC from 0.3 BTC

A miner + electricity for 5 years cost you, for example, 0.3 BTC, but in 5 years, it mined 0.6 BTC for you. So you earned +200% (even if the BTC price didn't rise by a cent in 5 years).

But if the price of BTC also increases, you've earned even more (the miner produced 0.6 BTC from your 0.3 BTC, so you have 2x more BTC + those BTC have a 4x higher value in Euros).

Not Always

Of course, there are periods when mining is on the edge or even unprofitable (when crypto is at the end of a 1-year slump, related to 4-year cycles).

The machine and electricity cost you, for example, €12 /day, but you only mine, say, €12 or €10 per day, meaning zero profit or even a loss.

In such periods, we suggest turning off the machine for a few weeks and waiting for the coin's price to rise again until mining becomes profitable.

However, 90% of the time, the machine mines more than its operating cost, so you are making a profit.

Mining vs. Buying Crypto?

  1. How much will mining earn you vs. an equally high investment on an exchange?
  2. How to get BTC at a discount of -30% or even -40%?
  3. Why, if BTC doesn't grow by a cent in 5 years, does BTC mining earn about 40% in the same period?
  4. If a miner earns, say, €20 per day, how can you make it earn, say, €100 per day?
  5. But why is it completely irrelevant how much a miner earns today?
  6. Why is buying BTC like buying and selling real estate, and mining BTC like renting out real estate?
  7. Buying BTC = like buying gold; Mining BTC = like buying a gold mine.
  8. Why is profit from mining only 1 of 3 forms of profit you achieve with miners?
  9. Why is mining a privilege for the wealthier?

€2000 into Crypto or Mining? Which Earns More?

For €2000, you can now buy: 0.1 BTC or 1x Antminer S19.

Which will earn you more in 5 years?

If BTC doesn't grow by a cent in 5 years, you haven't earned a cent on the exchange, but with mining, you've earned about +60%.

How is that possible?

In coins: The miner + electricity cost you, for example, 0.3 BTC, but over its 5-year lifespan, it mined 0.5 BTC for you.

In EUR: The miner costs you, say, €3 per day (calculated over a 5-year lifespan), electricity €8 per day, for a total of €11 (operating cost for 1 miner for 24 hours); but the machine mines crypto worth €17.5 (you only invested €11... so a 60% profit).

You earned 60% even though BTC didn't grow by a cent.

On an exchange, you only earn from the coin's price movement (and only if it grows. If it doesn't grow → you don't earn; if it falls → you lose).

With mining, however, you earn in 3 ways (even when BTC isn't growing):

Mining = 3x Profit

  1. Profit from Mining – the miner cost you €5500 (€3/day), electricity for 5 years for a 3KW/h machine at €0.125/kWh = €14,600 (€8/day), total €20,100 (€11/day). But the machine mined €32,000 (€17.5/day) over 5 years = +60% profit.

  2. Profit from Coin Price Growth – If the price of BTC also increases, you've earned a second time. (You invested 0.3 BTC, you mined, say, 0.5 BTC (1st profit), at today's rate = €15,000. In 2 years, if BTC is 2x more expensive = €30,000 (2nd profit)).

  3. Profit from Selling the Used Miner… If in 2 years the miner is mining, say, 4x more (because the price of BTC has risen), then miners will also be 4x more expensive (new units). Therefore, you can sell your 2-year-old used machine for about 2.5-3x more.

1. Profit from Mining

To buy 1 BTC on an exchange → today it costs approx: €26,900

To mine 1 BTC → it costs approx: €17,000


Buying 1 LTC (€60) on an exchange costs €60.

Mining 1 LTC (€60) costs approx. €49.

(So with mining, you got LTC at a -18% Discount)

In other words:

For €49, you bought 0.8 LTC on the exchange yesterday... today you still have €49.

€49 also cost you electricity and the miner (for 1 day)... but they mined you 1 LTC, i.e., €60.

With mining, you are therefore +22% /day even if LTC didn't grow by a cent today.

Real Estate Analogy

Just like with real estate – the price of an apartment might not grow in 5 years, but 5 years of rent earned you XY% (you earned even if prices didn't rise). But if prices do rise... you've earned twice.

Gold Mine Analogy

You buy gold and wait for the price to rise. If it doesn't, you don't earn. vs: You buy a gold mine and earn just from the mining itself (you don't care if the price of gold is rising). Because operations (workers, machines, diesel, etc.) cost you, say, €10,000 daily, but you mine gold worth €12,000 daily. You simply earn from the mining itself, even if the price of gold doesn't rise. And if the price of gold also rises, you earn twice.

Will BTC Go Up?

We expect a BTC DROP of -80% (in 2026).

But before that, BTC to $100,000 (peak at the end of 2025) (4-year BTC Cycles – info).

Why?

Because in April 2024, there is a BTC HALVING – a huge event that happens only once every 4 years.

And every previous halving has always triggered a massive 1.5-year BTC (and entire market) rally to a new peak.

Specifically:

  • 1900x BTC growth during the halving 10 years ago (2013)
  • 131x growth 6 years ago (2017)
  • 22x growth 2 years ago (2021)

Now we expect BTC to reach $89,000 - $179,000... (and thus yields and miner prices X-times higher).

The Strategy is Therefore:

  1. Buy at the market bottom and mine for about 2 years (the bottom is now).
  2. At the peak at the end of 2025, Sell Everything (both mined coins and the miner).
  3. Wait out the entire year 2026, during which everything should Fall by -80% again, and at the beginning of 2027, at the market bottom, buy new (and cheap) miners again (but 80% cheaper).

Therefore, now is the best time to buy miners (in the last 4 years).

NOW or not until 4 years later (2027) – when the next BTC bottom will be.

Since its inception (2009), Bitcoin has been moving in 4-year cycles over these 14 years: 3 years of strong growth followed by 1 year of a slump (by about 80%). This has been repeating for 14 years. This is all caused by the halving, which BTC has exactly once every 4 years.

Profit Calculator HERE Bitcoin Cycles from Blockchain.com

So, how much exactly will a specific miner earn you?

And how much will an equally high investment on an exchange earn?

Profit Calculator HERE

DISCLAIMER: We are not trade advisors. The information in this article and on the entire website is for informational purposes only and does not constitute financial, investment, or other advice. Everyone makes decisions at their own discretion and based on their own research. We bear no responsibility for your potential financial losses when investing in cryptocurrencies, cryptocurrency mining miners, or on other markets.

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