Cloud Mining is the most popular trend in the world of cryptocurrencies and blockchains, and cloud mining is growing and gaining popularity.
This type of cryptocurrency mining has managed to overcome all the problems of traditional mining — we’ll talk about it soon — and it hasn’t stopped there, but it has provided a lot of other advantages.
The reason we write about this is that it is a major revolution in the mining world and helps beginners enter a very strong and profitable field of digital currency.
In this article, we will give you everything you need to know about cloud mining, its features and disadvantages, its types, how it works, and much other information.
What is cloud mining?
Cloud mining is a type of cryptocurrency mining, which relies on cloud computing where it makes mining operations, but remotely away.
You may think that this type of mining is relatively recent, but on the contrary, it dates back to the beginnings of cryptocurrencies, but it flourished more after the spread and fame of cryptocurrencies, especially Bitcoin.
Before getting to know cloud mining more, I think it’s best to go through other mining types quickly:
1. Individual Mining
This type of mining is the traditional mining that we all know, where individual mines his or her digital currencies alone without relying on anyone or other company.
The problem with this type of mining is that it needs great technical knowledge because you will be primarily responsible for dealing with mining hardware and software.
In addition, you will have to maintain the devices periodically, make sure that they have electricity 24 hours a day, and that you are responsible for monitoring them throughout their operation.
It’s also expensive because you’ll have to buy mining devices, which are usually very expensive, and you’ll need to set up your home or room for mining operations and devices.
There are some side effects as well, such as the constant noise of the devices, the very large electricity consumption, and the excess heat produced by these devices.
2. Pool Mining Complex
A mining complex is a group of people who mine digital currencies and decide to integrate all their computer capabilities through a network, to increase the effectiveness of their mining process.
After mining and acquiring cryptocurrencies, each of them takes a percentage of what they have mined according to their computer capacity or so-called Hash Rate.
Although some may think that this type of mining is very similar to cloud mining, this is not true at all.
In the mining complex, you have to own your Mining Rigs mining equipment, through which you will participate in the mining process with other people in the same network.
In cloud mining, you lease this equipment from the company, and the company is charged with all necessary operations and maintenance.
3. Mining using CPU Mining and GPU Mining processing units
The point of difference between these two types is the gear used for cryptocurrency mining, where CPU or GRAPHICS processing units may be used.
Of course, there are a lot of differences regarding prices and efficiency between these two types, but this needs a full separate article to talk about.
If you want us to write in detail about these two types of mining type us in the comments.
The last type we are focusing on today is cloud mining.
You can think of it as Google Drive – or any other cloud storage platform, but for mining, instead of storing your files on your computer and uploading them to the cloud, that’s the case with cloud mining, instead of mining yourself doing it remotely.
All mining equipment is located somewhere for the company, operated, maintained, and maintained by specialists to operate effectively.
In this way, you won’t have to worry about any malfunctions, power outages, or even the loud noise and heat these devices produce.
Cloud mining is a very special option for beginners because you won’t need any technical expertise and you won’t have to pay too much to buy mining equipment.
In cloud mining, you rent mining devices or you rent hash power that mining.
Read also: The best cryptocurrency wallets and types and how to choose what suits you best
How does cloud mining work?
Cloud mining operates as traditional mining so that devices incorporate headquarters to perform complex digital currency sports operations.
But three basic types of cloud mining explain how cloud mining works:
1. Leased Hashing Power Mining Capacity Leased
In this type of cloud mining, you lease the computer or mining capacity of Hash Power through which the actual mining process takes place.
Contracts for this type will be measured by hash power units, such as Giga Hash per second GH/S or Terra Hash per second TH/S, which reflects the ability to carry out mining operations, the greater the capacity the more likely you are to find digital currencies.
You will take your percentage through cryptocurrencies obtained from this computer power, without having any technical skills or hardware.
2. Hosted Mining
Hosting mining is the type of cloud mining in which you rent or purchase several mining equipment and equipment so that the company operates and maintains them for some additional expenses.
This type is the most profitable of cloud mining, but it is.
The most expensive among other species, it remains less expensive than solo mining or individual mining.
The option for equipment leasing is the most common and popular among the cryptocurrency mining community, which is commonly referred to as cloud mining or its traditional model.
3. Virtual Hosted Mining
This type of cloud mining is a bit similar to traditional hosting, but it depends on you installing certain control software and leasing virtual servers that do the mining operation.
The difference in this method is that you need a large technical background to manage and control virtual servers and mining tools, which may be less profitable than previous methods.
Cloud mining features
There are many advantages where cloud mining outperforms traditional mining, the most important of which are:
1. You won’t need to buy expensive mining equipment and you won’t put them in your home
In cloud mining you will rent the hardware or mining power from your company or location, so you will not need in any way to purchase this expensive equipment and you will not have to equip and prepare your home to suit it.
2. You will start to profit immediately
You’ll start mining from the moment you buy the Contract contract or rent a computer or mining power, and profits will start to fall on you right away.
3. No need to worry about operation and maintenance
Your cloud mining company will process all the maintenance and hardware operations, and you won’t even need to pay attention to it, so you can live your life the way you want, and you’re mining cryptocurrencies.
You won’t worry about any hardware problems either, no crashes, no failures, nothing, the company will handle all this technology.
4. Don’t worry about noise, heat, or lack of space in your home
With cloud mining, you won’t have to deal in any way with the annoying noise of mining equipment, not even the big heat it generates.
Besides, you won’t have to adjust the house arrangement to provide the right space for these mining devices, isn’t that great?
5. You won’t worry about electricity consumption
Mining devices consume a lot of electricity, raising electricity bills for people mining, so with even a slight increase in unit prices it will cost you a lot of extra money, but don’t worry about cloud mining companies not worrying about it.
6. Passive Income Source of Negative Profit
After everything we’ve said about cloud mining, it will become clear to us that cloud mining is a very important source of negative profit that everyone has to pay attention to. It is one of the most lucrative ways to invest money online.
Cloud mining flaws
Yes, cloud mining has disadvantages, nothing is 100% perfect and there are certainly several drawbacks to this investment:
1. Theoretically profits are lower than individual mining
Your cloud mining company takes a certain amount or percentage of profits for all the services you provide to you, so theoretically self-reliant mining will be more profitable for you.
But this is not true on the ground, because for individual mining you need to buy expensive mining equipment and equipment, as well as electricity, maintenance, cooling, etc.
2. Lack of control when dealing with some cloud mining companies
When dealing with some cloud mining companies and locations, you’ll find that they don’t give you the full control you want over the mining capabilities you’ve purchased, which is a major disadvantage for some customers.
3. Deception and fraud
This is the most important and influential disadvantage in cloud mining, as there are a lot of sites and companies that trick customers, take their money and close the site.
Unfortunately, this is very common in cloud mining companies, and according to some experts, more than 90% of these companies are fake companies that operate a fraudulent Ponzi scheme and cheat their customers.
So you have to take precautions to choose the trusted companies you’re dealing with, so you don’t lose your money. In the next part, we’ll give you a range of tips to help you choose the right cloud mining company for you.
Important tips on selecting cloud mining companies
1. If sites or companies make exaggerated offers, then they are undoubtedly fake, as is said in English Do your Math.
2. Don’t believe the words written on these companies’ websites or sushi media pages, and instead see reviews in mining forums, groups, and sites.
3. Make sure that there are real and legitimate headquarters for these companies or sites, to ensure that they work real and that they are not fraudulent companies.
4. Do a little research on this company, and do not rush to decide to deal with it.
5. Make initial calculations, and make sure that the numbers they display are realistic, while not unfair to you.
6. Don’t forget to add maintenance, operation, rent, electricity, cooling, software, and other legitimate things that may reduce mining returns somewhat.
7. If the company does not adequately disclose itself, its employees, and owners, then it may not be the best option to deal with it.
8. When purchasing a contract from different companies, make sure you read and fully understand all parts of the contract before signing it.
In general, if you take these steps, you’ll find a lot of trusted companies, which you can handle with reassurance, and we’ve published an earlier article on the top 5 cloud mining sites, and I strongly advise you to look at it.
If you have any questions about the deception point of counterfeit cloud mining companies or any other point we mentioned in the article, you can easily
You mention it in the comments, and we’ll respond to you.
Conclusion
Cloud mining is a very distinctive type of cryptocurrency mining, through which you can enter this vast world with the lowest possible costs and skills.
It is based on your hire as a customer of mining or mining capabilities, all of which are concerned with the technical details of the companies you deal with.
You won’t have to monitor the devices and withstand the noise and heat from them, and you won’t even worry about periodic maintenance or cooling.
That’s why many people start investing in cloud mining, especially those who don’t have the economic potential or the technical knowledge.
There are a lot of cloud mining advantages that we talked about, but before you make this decision you should also take a look at the flaws and challenges.
Especially the problem of having many fraud companies, and in this article, we have given you some advice and steps that will enable you to choose trusted companies to deal with, in addition to writing an earlier article about the top five reliable cloud mining sites.
In the end, I strongly advise you to start investing your money in both cryptocurrencies, mining, or other ways to invest and profit from the Internet.
