Mining is a serious job and requires you to commit fully to it. Besides setting up a separate space, powerful hardware, cooling solutions and other important things need to be running24/7 without a hitch if you want to be as profitable as possible.
As it is now regular mining process does take up a lot of time, money and most importantly a lot of electricity. You probably know this by now but there are differences in how much you earn in different parts of the world. Those differences exist thanks to different electricity bills. So, if mining is worth it in one part of the world, it might be uneconomical in a different. Since crypto mining has reached a high point these years many countries, mostly those that struggle with electricity, have issued bans to crypto miners or are limiting and raising prices when it comes to the most valuable resource in mining – electricity.
Most of us miners have been looking for a solution to this problem and one emerged as a decent one that could replace a lot of finking with graphics cards, processors, RAM and other necessities. That solution is called cloud mining. Today we will discuss it and explain to you just how do cloud miners make their money. If you need more information on this topic feel free to visit europeanbusinessreview.com and inform yourself as much as possible.
If we told you that you can lower your hardware costs substantially, and your electricity bills, as well by having someone else mine for your what would you say?! It is not possible! Right?! Well, cloud mining does just that. You rent hash power from a company that mines cryptocurrency on your behalf. This is where you do not need to worry about getting and maintaining hardware needed for this, which is ridiculously overpriced due to mining, or deal with any excess energy costs.
Cloud mining isn’t anything new and it is around for years now and not every service is the same. Cloud mining is based on two basic elements – cloud computing and cryptocurrency mining.
Cloud computing has become a popular service in recent years which allows users to access the processing power or storage capabilities of massive computer systems that are maintained by the companies that own them. Most of you probably know about this technology because it does power many apps on both mobile devices and PCs. On the other hand, crypto mining is the process by which cryptocurrency transactions gets validated and new coins get created. In essence, you as a miner have to run a powerful computer to crunch the numbers required to create new blocks on the blockchain. This is a very competitive process and the more powerful system you own and use will, on average, create more blocks than the weaker ones.
Cloud mining is the place that collides these two worlds to benefit both the companies that offer this service and you, the one using and paying for it. Companies that offer these services will offer something you already heard of – massive mining farms. These are much larger and much more powerful than what any of us individuals could ever pay or hope for. They will then begin mining crypto with these systems and once operational these companies will offer contracts to potential customers who can buy a percentage of the hash power for a fixed period. This will then allow you to earn the cryptocurrency of your choice by using the computing power of the company you opt for.
The best deal in this entire story is that you as a cloud miner do not have to worry about anything other than paying for the service and waiting for your crypto of choice to fall into your digital wallet. The company running the operation and selling its computing power will take care of all tedious tasks like hardware maintenance and electricity bills. This on the other hand is worked in the price you pay for mining without worries. It all comes down to making a registration, paying for the package you want or can afford and directing the returns from mining to your specific wallet. It is important to note that most of these contracts payout regularly which is an awesome thing. This means that the company you opted for, as well as the plan you purchased, will allow you to start accumulating cryptocurrency almost immediately.
We also need to inform you that there are two different models of cloud mining. Hosted mining model users run the actual hardware itself and take their profits directly. The contracts here are usually organized around which type of crypto you are mining and, of course, the company will also take a cut from that. The other model is leased hash power. It is similar in premise, the idea here is instead of renting the actual hardware you rent out a fixed amount of hash power. The amount of hash power you rent will be directly proportional to the level of payout received. The hash power of the entire network, as well as the price of the asset being mined, will also affect profits but this is impossible to control whether you are mining by yourself or cloud mining.
So, hopefully, by now you can see all the appeal that cloud mining offers to everyone. Like everything this process has come a long way, and much more resourceful individuals or a bunch of them saw a way that they can streamline the entire process. What is even more interesting is that regular miners who have mined so far are gathering their profits and investing in cloud mining. Most of them are doing so because they cannot physically increase their power of mining, due to high prices in newer hardware or due to electricity prices spiking everywhere in the past couple of years. By ditching the old style of mining, they are freeing themselves of a huge burden and they are continuing to rack up profits even if they do not run the mining operation by themselves.
The only thing we need to warn you about is that, unfortunately, many of the companies offering these services are scams. Wherever there is huge money involved scammers try to get in on the action as well. This is why you need to know your service provider and you need to know that they are legit, if you want any chance to make yourself any profit at all.