What is cloud mining?
Cryptocurrency extraction, i.e. mining, generates a lot of buzz these days. This activity became popular in 2009, when the first cryptocurrency, Bitcoin, came into common use and its mining was rendered possible. Today, the number of cryptocurrencies is incomparably greater, whereas the mining process – a hundred times more complicated.
Simply put, mining is a way of getting a remuneration in the form of a cryptocurrency via processing mathematical operations on your computer. The more algorithms your computer manages to process per unit of time (hashrate), the higher is your bitcoin or other cryptocurrency remuneration. It, therefore, logically ensues that the amount of money received depends, in the first place, on the performance of your hardware. Whereas this process did not require a large hardware resource back in 2009, with today’s growing number of the algorithms cryptocurrency mining needs capabilities of a different level, which often is not available to an ordinary user. Cloud mining is meant to resolve this problem. Cloud mining implicates a possibility for a miner to use remote data centers and servers belonging to other companies to extract a cryptocurrency via Internet. The user themselves does not need to provide all the equipment at home; the hardware capacities are available to them remotely, while the processing equipment is maintained by somebody else.
Cloud mining or Traditional mining
What are the benefits of cloud mining against the traditional way of cryptocurrency mining? Let’s start from the fact that, at the beginning of the mining fever, cryptocurrency extraction based on one’s own hardware capacities used to be more profitable. The functioning hardware that required expenses on electric power paid itself off by the amounts mined by each individual user who kept the computer at home. Today, the volume of extracted cryptocurrencies increases steadily – as well as the number of users interested in them – and so the mining algorithms become even more complex and energy-consuming. To date, there have appeared lots of currencies alternative to Bitcoin (known as ‘altcoins’) but even they already require the hardware capacities that are either inaccessible to an ordinary user or make the whole thing unprofitable. Cloud mining uses other computer owners’ equipment – the user as if rents it for a certain monthly fee. Even though such a fee is absent in traditional mining where the user exploits their own equipment, cloud mining proves to be more profitable in the long run at this stage:
- Cloud mining is conducted using remote data centers, therefore you do not need to waste money on high power equipment, as well as its maintenance and repairs when it breaks down. You’ll need only a personal computer of sufficient performance.
- No staggering expenses on electric power, no noise of the constantly working processor and cooling equipment.
- Whereas traditional mining requires the user to be technically and mathematically knowledgeable, cloud mining is characterized by a more user-friendly appearance and a lower barrier to entry. In fact, any person interested can quickly get immersed in cloud mining.
- Naturally, cloud mining providers supports their users which is important in case you are a beginner miner.
Traditional mining, of course, includes spending a considerable sum on a computer and cooling equipment at the beginning; however, it could turn out somewhat more profitable in the end. A share of your cloud mining income is ‘eaten up’ by the servicing company’s fee – consequently, your monthly earnings are lowered. On the other hand, a cloud service user will never face the trouble of selling the equipment if mining becomes unprofitable for them.
How to start cloud mining?
Due to the fact that all the processes related to cloud mining are simplified as compared to the traditional extraction of cryptocurrencies, it is quite easy to start mining. You’ll only need to choose a suitable and trustworthy service offering its capacities for cloud cryptocurrency extraction and select a cryptocurrency to mine. To do this you should read up the commentaries of other miners on cloud mining services and familiarize yourself with the cryptocurrency market’s status as of today.
Further on, when the desired currency and service are chosen, you should create a wallet for the cryptocurrency of your choice and get registered at the provider’s website. Since cryptocurrencies, currently, stir a lot of racket, there have appeared a number of dubious cloud mining services on the Internet, which, in reality, are scam. Place an emphasis on finding a safe and profitable provider – only a good one, such as Hashflare.io, will suffice.
Which Alt-Coins Should Be Mined?
When selecting a cryptocurrency to mine, it is important to take note of several factors. Take into account the exchange rate of this or that cryptocurrency, as well as your equipment expenses and monthly cloud service payment. All the resources spent should pay themselves off in the next 18–24 months at the most; however, the majority of miners would agree that their cloud mining expenses have been compensated within the first year.
The nature of cryptocurrencies is the very reason why there is no controlling financial body that would limit exchange rate jumps and falls for them. That is why it is quite tricky to predict the value of a specific cryptocurrency. At this stage, experts recommend to start with Litecoin or Dogecoin because they best suit beginner miners. Bitcoin mining is not the best starting point due to a highly competitive mining medium. Still, Bitcoin remains the most popular cryptocurrency of all and is much sought after among experienced miners who can mine more professionally and allow themselves more substantial hardware capabilities. Furthermore, Bitcoin mining requires a greater math skill because the algorithms on which the extraction is based have become especially complicated for the last 8–9 years.
A beginner miner can expect their altcoin mining to bring them an income of $1–2 a day. There always remains a possibility that your chosen altcoin will suddenly grow in value over years; however, you should entertain reasonable expectations regarding the mining activity, which is employed, basically, as a long-term prospect.
Best Cloud Mining Provider
One of the safest providers that is also most thoroughly checked by the mining community is the cloud mining service Hashflare. The service Hashflare belongs to the company Hashcoins that has been doing pioneering work in the area of cryptocurrency cloud mining since 2015. The 3 year experience in this fast-growing area is an eloquent evidence of the competency and reliability of the service Hashflare.
The service aims to provide each user with a possibility to mine regardless of their level of experience and hardware capacities owned. Since the aim of the company HashCoins is to popularize cryptocurrencies as anonymous, independent and safe means of payment, Hashflare is destined to always remain simple in use and financially affordable.
Except for its experience in the area and popularity among mining pros, the service features an array of competitive advantages, namely:• The possibility of distributing the working capacity between pools for a more effective and less energy-consuming mining:
• Affordable rates without hidden transaction fees;
• Fast registration and kick off;
• Around-the-clock informational support;
• The possibility to mine both major altcoins and Bitcoin;
• Profitable conditions of smart contracts;
• Income withdrawal;
• All the main methods of payment are accepted, including credit cards, Bitcoin and Webmoney.
The service offers 1 year-long to life-long contracts. With its simplicity in use, it is just the thing for novice miners lacking deep technical knowledge, as well as for those miners who just started moving to cloud technologies.
Cloud Mining Bonuses
Cloud mining providers also offer a number of bonuses and promo codes for their users. A fat plus of Hashflare is the affiliate program that allows active miners to earn money on newcomers who arrive at their recommendation. Affiliates receive 10% of each purchase made by a user led to the website via the unique affiliate link.
Most users of Hashflare can also make use of bonuses and promo codes with discounts. The service values its loyal clients and therefore provides them with the opportunity of an extra income for each new user and positive reviews within the mining community.
Before making your first steps in mining, it is necessary to get prepared and carefully choose a service provider. Today’s cloud mining market, unfortunately, teems with dishonest fraudsters who vanish as soon as you join their service. Carefully check all service recommendations and reviews in social networks, read articles of popular bloggers on such services and choose only those companies which are most trusted by miners.
In addition, make sure you have done all the necessary pre-mining preparations:
1. Create a wallet for the selected cryptocurrency, which will be used to receive monthly payments from the cloud service.
2. Calculate both levels of income and risks related to making investments in cryptocurrency cloud mining. Lots of calculators and other means of checking the profitability of mining a specific cryptocurrency can be found on the Internet. Do not rush it, take your time to make all the preliminary calculations at the initial stage.
3. Read carefully the conditions of smart contracts that are about to be signed with a servicing company in order to avoid the risk of deception or hidden fees. Check that the conditions do not depend too greatly on the selected cryptocurrency’s exchange rate.
Finally, there remains to be said that the most important thing in cryptocurrency mining is your constant desire to evolve in the chosen direction, read recent articles and analyses, monitor the market ceaselessly. Mining is one of the most quickly growing and changing economy areas, so you need to adapt as fast as possibly to all the changes and stay posted on relevant information to constantly benefit from cryptocurrency extraction. Good mining, all!