Cryptocurrencies have become one of the popular investments worldwide with the potential to drive marketing growth. The digital currency is likely to hit a transaction value of $16 billion + as more people get associated with it in 2023.
Cryptocurrencies are created through crypto-mining. It’s a process where professionals use maths problems to verify transactions and include them in the blockchain ledger. A bit complex!
Thankfully, we are in a tech-oriented world where with the help of cloud mining, things have changed for good. So, what’s cloud mining, and how can it make crypto mining easier? Let’s find out:
What is Cloud Mining?
Cloud mining is an efficient way to create cryptocurrencies, where professionals use rented computing power from a third-party source. These third-party sources are usually cloud mining service providers.
In this process, you don’t have to invest in mining rigs or running blockchain nodes. Rather you rent them from the service providers. This means even their management and maintenance are none of your business.
You can also rent hash power, that is, the computational potential in a machine used for crypto mining, from their mining farm.
Meanwhile, you can monitor everything (including revenues and hash rate) from your smartphones/pc at home. This makes it much more convenient than traditional crypto-mining.
All in all, cloud mining is perfect for those who aren’t into technicalities.
Types of Cloud Mining
There are two types of cloud mining:
- Host Mining: Host mining, as the name denotes, is where you lease or buy mining rigs. It’s quite useful as you’ll just have to pay maintenance costs and get complete control of the mining rigs. With this, you can mine multiple cryptocurrencies and get good profits. Another plus point is that you can claim the rewards entirely without sharing them with a third-party source.
- Leasing Hash Power: In leashing hash power, you don’t have to pay any maintenance and setup costs. But you’ll just be able to borrow the hash power. This means you wouldn’t get any control over the equipment, and the rewards will be shared by the mining farm platform.
How Has Cloud Mining made Things Easier for Miners?
Now that you’ve understood the basics of cloud mining, you must have got a quick idea of how it has made things easier for miners. There are several benefits that highlight the same:
Hassle-free mining: In cloud mining, there is no hassle of equipment configuration, electricity costs, or wiring loads. Everything is managed by cloud computing service providers.
Multiple currency mining: Cloud mining can be a golden opportunity if you’ve been planning to mine multiple currencies from the same service provider. With this strategy, the risks will be much lower. However, when mining a new currency, stay aligned with the crypto predictions and choose accordingly.
Peaceful environment: We know how chilling towers and cooling fans (due to mining equipment) can be loud and annoying. Thankfully, there are no such issues with cloud mining. So, you can have a peaceful atmosphere at home.
High Power: In cloud mining, there is no power issue. As you can access large data centres with a high amount of power, you can stay assured of the same. Sounds much better than building your own mining farm, doesn’t it?
Cost-efficient: Cloud mining is much more reasonable and cost-cutting than traditional mining. As you don’t have to install hardware, you can stay stress-free of the purchase cost and electricity cost.
Reliable: As everything is managed by the service providers themselves, your mind can stay at peace on a regularly serviced platform. If any equipment suffers from a glitch or breakdown, they’ll handle the same.
Dos and Don’ts of Cloud Mining
If you are interested in trying our cloud mining, there are certain things that you must keep in mind:
- Always choose a trustworthy and well-known cloud mining platform for your requirements.
- Do your research on cloud mining and mining platforms so you can identify any red flags instantly.
- Choose your cryptocurrency (for mining) as per the blockchain trends and profitability.
- Check for the hash rates that are provided by the platform. It should justify the investment you are making in it.
- Don’t choose platforms that take control of your earnings. Also, ensure that the platform is serious about its safety and security.
How to Identify Any Fraud in Cloud Mining?
Earlier, we were talking about how you should be able to identify any red flags while choosing a cloud mining platform. When we say that, you must stay cautious of platforms that promise you unrealistic rewards in a short time.
You must also go through the company history and information thoroughly. If the details seem less or irrelevant, try to rectify your queries directly with the company.
Another red flag for a cloud mining platform is when there are insufficient options to recharge the account. All in all, you must do your research and try out a company, only if they are 100% genuine.
We hope now you know how cloud mining has made crypto-mining easier for the miners.