What Is Cloud Mining?
Beginner’s Guide to Cloud Mining
After Bitcoin’s big break in December 2017, Bitcoin users, as well as miners, increased in number. The hype was so intense that everyone rushed to mine Bitcoin and naturally it became more difficult for everyone. Instead of earning from mining, miners suffered higher electricity bills and hardware maintenance brought about by the bigger competition. Cloud mining then came into the picture and alleviated most of these difficulties.
So, what is cloud mining? Cloud mining is when you invest in companies that have established data centers already mining crypto currencies in exchange for hash power which determines the amount of crypto coins you will get in return. With this type of mining, you no longer need to buy specialized hardware or worry about electricity bills. All you have to do is find a reliable company, purchase a contract, and wait for your profit to top up your bankroll.
Cloud Mining Explained
There are two types of crypto mining: traditional mining and cloud mining. How traditional crypto mining works might sound complicated, but it really isn’t. In simplest terms, you use specialized hardware to solve blocks containing transactional information on the blockchain. In return for your service of solving the blocks, you earn rewards in the form of crypto coins.
Cloud mining is generally regarded as a more convenient process. With traditional mining, you have to select suitable hardware for your pocket. You need to maintain the good performance of your equipment by making sure that it’s operating in a cool area. You also need to consider the electricity bills because you will be operating the hardware 24/7. With cloud mining however, you need not worry about these problems. Just focus on finding which hash power provider to join and which cloud mining package is best for you.
There are two types of cloud mining: hosted mining and virtual hosted mining. Hosted mining is when a host provides you with a server to mine. Meanwhile, virtual hosted mining is when you are the one who created the server for you and other miners to mine.
The most used type of cloud mining is hosted mining, which is exactly the service offered by MyHashing. Join our cloud mining site by simply creating an account. Then choose a contract and after that - we do the mining for you.
How do we provide you with hashpower?
Cloud mining sites have data centers where hundreds of machines are stored. These expansive facilities are so powerful that they can provide multiple clients with varying hash rates.
Eliminating the expenses on hardware and electricity is a good reason to choose cloud mining over traditional mining.
Advantages and Disadvantages of Cloud Mining
Cloud mining will not only earn you profit; it will also allow you to save money. If you are new to Bitcoin mining, and you do not have enough funds to buy mining hardware, the easiest and most cost-effective way to mine is through cloud mining.
Since the competition among cloud mining companies is fierce, you can now easily find sites that sell mining contracts. At MyHashing we aim to keep our price packages at reasonable prices for our clients. Choosing a hash power provider to do the mining for you is going to free you from Worrying about upkeep and maintenance.
How to Start Cloud Mining
Is Bitcoin cloud mining profitable? Investing in crypto coins isn’t free of risks. But you can minimize those by choosing a reliable cloud mining site.
Check for Red Flags
To ensure that you will find a reputable hash power provider, make sure to do research first to check the credibility of the company. Afterward, take into consideration the pricing of the packages offered. Is it too high that you won’t be able to earn, or is it so cheap that it looks hard to believe? It will also help if you compare the offers of different providers.
The data center’s location is also a very important factor. This is why MyHashing built its mining farms in Georgia, a country tagged as an ideal mining farm location because of its cheap electricity and hardware-friendly climate. Following this, you can expect low-cost fees from us.
Never trust sites that offer free hash power. This is an investment business and it’s only natural to put something in to profit from it. After all, if all mining companies offered hash power absolutely free of charge, they would not last long.
Follow the Signup Process
Once you have found the right provider, you can start cloud mining. Here are the easy steps to follow:
- Create an account.
- Select your contract.
- Pay through your chosen method.
- Monitor the status of your cloud mining package through the reports provided by the company.
If this is your first time with cloud mining, it’s better that you go for the cheapest contract. Test the waters of cloud mining first. If after a while you see returns, you can purchase more hash power. And never forget to use this rule of thumb: The bigger the hash power, the higher the potential return. Of course, be sure you are not risking more than what you can afford.
Cloud mining has proven that there is an easier and better way of earning Bitcoin or any other crypto currency. The convenience it offers is enough for you to switch from traditional mining. Although there are disadvantages that come with this type of mining, avoiding them should be simple when caution is applied.