Earning through cryptocurrency farms can be complex and energy-consuming. The cost of equipment often doesn't justify the investment, making home mining less relevant. To address this issue, cloud mining was created.
What Is Cloud Mining?
Cloud mining is earning through computational capabilities hosted in specialized data processing centers. It eliminates the need to purchase specific equipment; instead, you can rent it from data centers to start mining via cloud storage. This makes the process accessible for those living in countries with expensive electricity.
Working Principle
Miners earn by increasing mining speed, while services generate income from transaction fees. The mining process remains unchanged, with block formation taking about ten minutes. These computational nodes are grouped into pools.
All transactions occur within specific time intervals with no possibility of cancellation. The equipment calculates a new block, attaching it to the existing chain, rejecting any incorrect blocks and reducing fraud risks in the network.
Types of Cloud Mining
There are several types of cloud mining. Some companies allow mining without capital investments, such as popular Bitcoin faucets. Paid companies provide equipment rental.
Various forms of mining include:
- Classic hosting. Rent equipment from a product supplier.
- VPS purchase. Rent the power of a virtual dedicated server; users independently install and configure required programs.
- Rental of computational power. Users have no access to devices or programs.
The choice depends on user preferences and capabilities, each option having its pros and cons.
How to Start Mining?
Before starting currency mining, it's crucial to study the characteristics, choose a service offering favorable conditions, understand the concept of «hashrate», and select a hashing algorithm.
Afterward, choose the power level and contract duration; the optimal duration is a year, but there are also contracts for six months or unlimited. After payment, the company assists with currency mining.
Bitcoin Mining
Mining BTC is the primary focus of many companies. Some offer mining of altcoins that can be converted into Bitcoins.
Ethereum Mining
Ethereum is a common and promising currency allowing coin mining with minimal computational power.
Cloud Mining Dogecoin
Dogecoin, a cryptocurrency gaining popularity, is easy to mine due to its simple hashing algorithm, ensuring a quick return on investment.
Services for Cloud Mining
Various services offer cloud mining for Bitcoin and other altcoins. When choosing a company, factors like computational power and contract terms are considered. This provides an opportunity for profitable investment without paying for electricity. Popular services include:
- IQ Mining. Known for automatic profitability control; mining ceases when altcoin income drops, all while operating at low energy rates.
- BeMine. Offers cloud hosting for ASIC miners, combining significant computational power. Various income options are available for clients.
- CCG Mining. Provides powerful computational systems with an interface in twenty-seven languages worldwide.
- Genesis Mining. Designed for Bitcoin mining, allowing daily withdrawals with profitability reaching up to 150% annually.
- HashFlare. Profitable for mining coins even with small investments.
The choice of service depends on user preferences and goals; each option has its advantages.
