Cloud mining – advantages, disadvantages, services
“Cloud mining” concept has appeared recently. This way for getting cryptocurrencies substituted the usual mining or collective mining pools. It happened due to growing competition in the mining sphere and complication of algorithms when usual ASICs cannot compete to large farms.
Cryptocurrency cloud mining: what should you know about it?
To put it simply, this is a process for getting cryptocurrencies, like Bitcoin or any other, with the help of general and remote data-processing center.
This mining way provides a possibility to get and withdraw Bitcoins without participating in hardware management. Thus, all you’ll need is computer and wallets for withdrawal of money.
Why is cloud mining better than the classic one?
Evolution of this process included several stages:
- Solo miners
Or a private club of geeks who “mined as they could” at the very beginning of Bitcoin cryptocurrency formation. At that time capacity of a personal computer at home was enough for the work. Taking into account today’s BTC exchange rate, many solo miners have really “mined” a crazy fortune.
- Collective pools, farms, hardware rent
Bitcoin algorithm is actually rather simple: once about 200 000 blocks are formed (approximately every 3-4 years) the reward is reduced.
At the end of 2013, it became unprofitable to mine without special hardware. And collective pools and then also farms appeared. The users unite into pools (send their data on block) for further distribution of cryptocurrency among all participants. As a result, the user’s capacities are merged for mining of desired electronic coins. Farms are real monsters in the field of cryptocurrency mining.
Thus, cloud mining is not a myth, but rather a coercive measure. High competition and complicated algorithms resulted in monopolization of cryptocurrency mining by farms.
Usual users have to unite or rent cryptocurrency mining software, calculate contract terms and payback.
Is it possible to mine without investments?
Actually it does not make much sense. If you do want to rental mining, you should rent powerful hardware and calculate the payback. However, we can say a couple of words about it.
Services of this kind usually give bonuses for registration and provide free equipment for mining and earn from the fees. In fact, these capacities are not enough for earn some money. You’ll earn pennies but you can try.
What are the pros and cons?
Here are some theses on using the cloud mining:
- quiet and peaceful atmosphere at home without permanently switched on сomputer;
- no expenses relating to electric power;
- no need to think about state of the hardware: where to buy new, where and whom to sell the old one (hardware is expensive and costs thousands dollars);
- no problems with hardware service: repair, cooling, etc. and refusals of hardware suppliers.
- chance to face fraud;
- lower profit and payback time;
- mining can stop due to high volatility (changes) of cryptocurrency exchange rate;
- brings no pleasure.
Best cryptocurrency cloud mining: instructions for profit-making
Actually there are many mining services on the Internet. These are MiningRigRentals, Genesis Minig and Hashflare. The latter give Scypt and SHA256, Ethereum. The minimal amount for withdrawal – 0,0004BTC.
- Open the site and press “Register” button;
- Then press “Buy hash rates”, select the quantity and payment method: bank transfer, Webmoney, Payeer, BTC.
- Payback of such investments makes up to 6 months;
- Capacity is distributed manually every day;
- Automatic payments;
Cloud mining is a reliable way to get cryptocurrency if you are not the expert in this field and do not have the required experience or hardware.
Popularity of this way of earning consists in the following: during cryptocurrencies boom, cloud mining provides a possibility to get the desired “digital coins” even if you don’t have possibility, time, or hardware to mine independently or in pools.