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Getting bitcoins can help you to make a profit to anyone as an investor. Also the various methods to get bitcoins have played an important role in the process, allowing users to buy bitcoins with PayPal and other payment methods and other benefits that every investor can use! With the help of online space, bitcoins are always guaranteed to be accessible!
Of course, getting into bitcoin will let you do some research especially when you're trying to make a profit with the bitcoins' value increase. There are two known ways to get bitcoins, both well known today: bitcoin arbitrage and bitcoin mining.
Bitcoin Arbitrage vs Bitcoin Mining
What is Bitcoin Arbitrage?
Arbitrage with Bitcoin is the practice of buying bitcoins in a stock exchange where the price is significantly lower and then selling those bitcoins in an exchange at a higher price. 
How does it work?
For this process to work, just look at several bitcoin exchanges through the web. Compare the prices they are selling and buy bitcoins for and then, choose the bitcoin exchange to buy your bitcoins, preferably at a lower price.
So, once your bitcoins have been bought, take the opportunity to sell your bitcoins on another bitcoin bag at a higher price, which can help you make a profit on your part as an investor.
The advantages of Bitcoin Arbitrage
- Easy monitoring of resources
Since the process involves both buying and selling bitcoins on different platforms, this allows you to keep track of your resources easily. You can also keep track of the current value of bitcoins, which can help you buy and sell bitcoins at the price you want for profit.
Having a detailed account of your resources is another advantage you can expect with bitcoin arbitrage. Arbitrage with Bitcoin comes with a detailed calculator that you can use to track other aspects of the process, such as legal currencies, withdrawal fees, transaction fees and many others.
- Opportunity for high profit
With the ability to sell bitcoins above the market price to be taken into account, there are more opportunities for you to make money with bitcoins! The market price may vary depending on each bitcoin exchange used for the process, which may also offer more opportunities for increased profit!
The disadvantages of bitcoin arbitrage
Bitcoin arbitrage may take time to complete. It may require many account checks, waiting time for paid deposits and other factors to consider with this disadvantage.
Because bitcoin arbitrage involves working with bitcoin exchanges, many of them have commissions and other fees to be paid. Prices may vary depending on the exchange, so it is better to take this into account.
The manipulation of the market is something that is seen as negative in the cryptic world and, with the use of bitcoin arbitrage, it can also be subject to that.
What is Bitcoin Mining?
Bitcoin mining is a process that involves creating new bitcoins through the work of "miners" who solve complicated math problems from hidden data within "blocks".
How does it work?
This process involves miners working together on a single block at the same time. They all have to guess a mysterious number called "nonce", in which they apply the hash function from the resulting data and combine it with the data block. The first miner to solve the problem wins 1st place and bitcoin is rewarded for their hard work.
The advantages of Bitcoin Mining
- Several blocks of data to extract
Blockchain technology is provided with different blocks of data for bitcoin miners to work on, which means more mining pits and more opportunities to earn bitcoins.
- Work with several miners
The extraction of Bitcoin would not be possible without the help of mining pools, which helps to reduce the time it takes miners to solve a blockade.
- Increased chances to earn Bitcoins
With the help of mining pools, there is also a greater chance for each miner to earn bitcoins as a reward. The more the miners work together, the more chances they have a high profit.
The disadvantages of Bitcoin Mining
- It can take a lot of data and energy
One of the main disadvantages of bitcoin mining is that it may require a toll on data and energy consumption. This drawback can hinder progress in bitcoin extraction.
- Increased risk of malware
Bitcoin mining sites are everywhere. But this can also be a cause for concern as there are sites that contain malware, which is dangerous for the system as a whole.
- Network connectivity errors
Since bitcoins are managed online, this also applies to bitcoin mining. If there are network connectivity errors, there is the possibility that the whole process can crash.
Which is more profitable?
Overall, both bitcoin and bitcoin mining proved to be beneficial methods for obtaining bitcoins. Arbitrage with Bitcoin, however, seems the most practical method to rely on. It is easy to manage and can guarantee a profit, which is excellent both for the purchase and for the sale of bitcoins.
Why try at your own risk?
Both methods that you try, even if profitable, come with their fair share of risks. This is why it is important for each user to recognize these risks and circumvent these methods responsibly. At the end of the day, the responsibility of the user will always be a key factor in the profitability of both bitcoin and bitcoin mining.
Author: Joshua Marcus M. Bautista
