The situation with competition in the field of cryptocurrency mining is constantly getting more and more complicated every day. Supporting large mining farms is becoming increasingly difficult, which has led to the emergence of so-called cloud mining. What is the essence of this process, and is this option really worthy of your attention? What should you know about this mining approach before using such services?
We Reveal All the Truth
The evolution of cryptocurrency mining has gone through several stages – from solo mining to uniting people in collective pools. Since 2013, solo mining has turned into a non-profitable business. As a result, the first mining pools with multiple participants uniting their efforts to obtain gigantic computing power have been created. At the same time, cloud mining services became available. In essence, it is no different from conventional mining. In cloud mining two parties agree to sign a contract for rental of mining machines.
In most cases, such a cloud mining operator offers its customers certain mining packages. Depending on the cost of the package, miners buy hashrate or rent specific equipment physically located on the company’s premises. At the same time, the contract includes all the costs associated with paying for electricity and servicing the leased equipment, although this service is carried out by the operator.
Cloud mining can be done in different ways; here are some of the options you have:
- Equipment rental – allows you to use mining machines of a particular data center. The service provider gives you a list of such equipment, each of which has its own computing power. Your profit will depend on the capacity of the machine;
- Virtual dashboard – some companies deploy all mining capacity on 1 mining pool account and then distribute payouts among users depending on their contract terms.
Recommendations for Choosing a Mining Company
If you decide to do cloud mining, it is recommended to analyze all available services and take into account a variety of factors – from the availability of a license to user reviews on specialized third-party sites. But the most important criterion is the company’s official website. Honest enterprises have nothing to hide and describe all aspects of the cloud mining process. At the same time, it is worth paying attention to reviews of real customers. The better they are, the more confident you can be. To minimize risks, you can use the services of several mining companies at the same time.
Final Say
All in all, it is worth noting that cloud mining is quite a reliable way to get cryptocurrency. The approach is suitable for those users who do not have experience in this field, special equipment or time for setting up their own mining farm. But even with this approach, it is necessary to follow the cryptocurrency exchange rate and understand a little the essence of the issue in order to make a profit.
