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Are you looking for a subtle way to invest in bitcoin mining without managing your hardware? Here is a way!
Take advantage of cloud mining to earn your coins. But before you begin with cloud mining, you need to know what it is, what benefits it offers, and how it is better than hardware mining.
So how is cloud mining different from hardware mining?
A process of mining cryptocurrencies is called cloud mining. It involves a data center that is remotely located and has shared processing power.
The advantage of cloud computing is that a miner does not need to purchase, procure or establish mining hardware, mining software, bandwidth, internet services, offline services, which include cooling systems, ventilation systems or housing infrastructure to accommodate the mining rig, and electricity required to perform the mining activity.
Moreover, a miner does not need to take care of mining hardware in Cloud Mining Service. Free from upfront investments, cloud mining involves a small amount a miner pays to cloud mining service provider for registering and purchasing the mining contract. Your mining contract mentions a pre-fixed amount of hashing power for a particular time frame.
What gives an edge to cloud mining over hardware mining.
- No continuously humming fans and you enjoy cooler homes
- Lesser electricity costs
- You do not need to bother about equipment even if it does not earn you profit.
- As hot equipment are not there, you do not suffer ventilation problems
- No need to find out reliable mining equipment suppliers.
Types of cloud mining
Three forms of remote mining available.
Lease a mining machine that the provider hosts.
Virtual hosted mining
Develop virtual private server. Install your mining software.
Leased hashing power
Lease hashing power, without a virtual computer.
What is Hardware Mining?
Hardware mining has a set of conditions, for example, a miner has had to purchase mining equipment for mining cryptocurrencies. A miner needs to set up a proper mining rig housing infrastructure after buying the mining hardware or the mining rig according to his/her requirements.
From costs of mining operation to fees for the setup rig to financial liabilities, you become responsible for all mining operations.
As hardware mining requires a significant amount of electricity and time, a miner cannot expect a high profit from it. Depending on the brand and type of hardware the miner uses, hardware mining can also become noisy.
More often than not, miners mining cryptocurrencies join in groups to make it a mining pool. Continuous use of equipment by miners in hardware mining makes it a hard to follow.
Steps to cloud mine Bitcoin
Select a mining company
A number of mining companies are available to offer you cloud mining packages at affordable prices. As there have been several scams in the past, make sure you check the reviews and ratings of the company before you sign the contract.
Follow the ideas mentioned below to stop being a victim of a cloud mining scam.
- Keep a check on the domain name as most service providers do not register the domain name in the name of any real user.
- Be aware of their vague answers when you ask for verification.
- If a service provider focuses on promotion rather than quality, drop your idea of investing in the company.
Select a mining package
Selecting a package is as important as choosing the right company. The hashing power divides packages into different categories. Usually, packages with a high hashing power are expensive. The more expensive packages yield better return on investment, though it does not happen every time.
Select a mining pool
Joining a mining pool is important, no matter whether you mine through cloud mining or on your own. Mining through cloud mining companies can be secure and risk-free as compared to doing it on your own.
Mining pools refer to the large groups of bitcoin miners who solve blocks all together. All miners divide the reward they receive after solving the blocks. Trying to mine on your own may not earn you any BTC, no matter how many months you have been mining.
A number of Bitcoin mining are available, such as BitMinter, Eligius, CK Pool and Slush Pool.
After selecting and paying for a suitable mining pool, cloud mining will begin within a few days and you are likely to see some bitcoins in your wallet within a few weeks. A few mining companies also provide the services of daily payouts. Having some bitcoins in your cloud mining account permit you to transfer coins to your bitcoin wallet.
Search online for the wallets that let you save Bitcoin. Many mining companies allow you to reinvest your BTC for a higher hash power or you can check the Bitcoin chart to sell your BTC.
Your goals decide whether you should opt for cloud mining or not. You can certainly use it if you want to earn Bitcoins. The ease of use that cloud mining offers while eliminating costly hardware installation, makes it way better to solve blocks and earn BTC.