What is cloud mining ?
With the development of cryptocurrency, more and more people are thinking now of working with it. The interest in cryptocurrency mining is growing every year. Issuance of cryptocoins is limited and today users have already mined two thirds of it. Therefore, the complicity of mining is constantly growing. Not long time ago it was quite possible to mine bitcoin on your home computer but today for these purposes you will need to purchase and set up special ASIC miners which require considerable investments. Cloud mining is an alternative way not only for beginners but also for those users who want to relieve their mining process of “crypto-gold”.
A little of history
Mining is the process of cryptographic calculations which are performed through computer hardware. Currently it can be noted four generations of miners:
- CPU mining – cryptocurrency mining through a processor.
- GPU mining – cryptocurrency mining through video cards. And if in the first case, users needed only one processor, then for GPU there were available whole farms based on graphic GPUs for Bitcoin mining.
- FPGA mining – a competing technology for GPU miners. It consumes less electricity resources but at the same time its price is vary high as compared to GPU technology.
- ASIC miners – specialized devices, whose tasks are hash solving and Bitcoin mining. Today these are the only devices that allow users to engage in traditional mining of the first and most popular cryptocurrency. But there are little users who have sufficient seed capital to invest in purchasing, customizing and asic maintenance. In this case the best option is cloud mining.
Today cryptocurrency mining is available for everyone, therefore it’s safe to say that cryptocurrency mining is very popular now. It’s possible largely due to cloud mining. This is the opportunity for users to earn Bitcoin and altcoin by leasing out the production capacities of a specialized and configured hardware for cryptocoin mining. In this regard there is no need to purchase hardware adapted for cryptocurrency mining, pay electricity bills and spend your time on miner maintenance.
You lease out capacities from companies who owning their its data centers. The transaction is performed through specially created cloud mining services. Project participants pay money for the purchase of Gh/s including the commission established by the company. Instead users receive cryptocoins in accordance with the volume of purchased capacity.
How to start cloud mining: user instructions
- Users need to choose a cryptocurrency cloud mining service. The further user’s profit depends on the right choice. Today there are a great number of projects on the Internet that offer capacities for bitcoin and altcoin mining but not all of them have real hardware. Many of these projects are hype. Of course you can also earn on them, but the strategy will be different. For those who plan to invest exactly in cryptocurrency mining should pay their attention to reliable cloud mining services that have already gained popularity and trust with users. These projects are: Hashing24, Hashflare, Genesis Mining. The company must have a registered legal address and real contacts;
- Create an account on the cloud mining service, specify your crypto wallet and purchase the desired capacity. Contracts can be issued, both on an ongoing basis and with time-limited period of validity. To start cloud mining in 2017 you can have only a
- few dollars. Using a special promo code users can receive a discount on contract purchase;
- Distribute paid Gh/s among your pools and start cryptocurrency mining. Project calculators will help you to calculate your profit and graphics will let you monitor your successes in different pools;
- The received popular cryptocurrency can be exchanged on special stock exchanges or you can make purchases on the Internet using it;
Advantages of cloud mining service
- There is no need to buy high-priced hardware, spend your money on its maintenance, customizing and repair it;
- Pay electricity bills. Hardware for cryptocurrency mining consume a lot of energy, therefore, usually all specialized data centers are located in districts with cheap electricity. Also for these purposes can be used solar panels;
- It’s an easy way for cloud mining. Buying a contract users can receive their first profit next day;
- You can predict your profit. Any user can calculate possible profit including his/her investments by using project calculators;
- Users can mine different types of cryptocurrency simultaneously. Even on the same cloud mining service you can mine not only Bitcoin but also other altcoins;
- Referral programs. Generally, such projects provide users ability to earn on their partner systems. This enables to not only increase the income but also allows to start cryptocurrency mining without investments.
Disadvantages of cloud mining
Like in any investment, there are some risks:
- Users can invest their money in fraudulent projects. That why it’s very important to act properly during the selection of the cloud mining service;
- The cryptocurrency rate can go down and it’s mining will become ineffective. This applies not only cloud mining services but also traditional mining;
- Internet resource can be prone to hacker attacks. In this case users risk loosing their unwithdrawn funds. Therefore, you should beware of investing in projects that don’t provide the possibility of quick withdrawal of funds to the user’s crypto wallet.
To sum up what has been said, we can conclude that today on condition of working with the proper service, cloud mining is an optimal and really profitable way for cryptocurrency mining.
Published: 12 August, 2017