Cloud mining is one of the main methods of cryptocurrency mining. in this post, you will learn what is cryptocurrency cloud mining? is it worth it? what are the advantages and disadvantages of cloud mining?.
Before we get into that all stuff, I do not recommend cryptocurrency cloud mining. I will explain to you why.
I recently posted about general cryptocurrency mining and I explained basic terms of cryptocurrency mining there. You should also read that article for basic knowledge.
Mining can be categorized into two major ways which are Hardware mining and Cloud mining.
Using computer processing power to mine cryptocurrency is hardware mining.
It’s about a simple difference between cloud and hardware mining. Okay, let’s get into the topic.
Cloud Mining Technique
I told that hardware mining uses computer processing power to mine cryptocurrency. Everybody has no money to build up that kind of computer set up.
However, A company or organization built up a massive computer setup to mine cryptocurrency. For everyone can use it, they rent out their computer setup to start mining online. This is the basic term of cloud mining.
Usually in these farms, Using GPUs to set up mining.
“Renting out a cryptocurrency hardware mining setup via online is called as cryptocurrency cloud mining“
Basically, You can invest in cloud mining with your money to mine cryptocurrency online. But, how do you count your mining process according to the fund you invested?
For that, You will need to understand a term called “Hashpower“
So, What is the Hash power or Hash rate in other words?
In simple, Hash power or Hash rate is the mining speed you get for your fund. It is calculated per second.
The more Hash power, the more bitcoins.
Facts Of Cloud Mining
The biggest disadvantage of cloud mining is, You have no control. unlike you own a mining setup, the cloud mining company has the control.
Here we running into a problem. If the cloud mining company is not a trusted one, You might lose your money. That’s why I do not recommend this mining method.
Is it fair right?
Think if you invested about 1000$ in a cloud mining platform, you will get a matched hash power to your money. But the thing is, the breakeven can be longer which means to get your 1000$ back takes time. it’s depending on the hash power.
For an advantage, Everyone can start cloud mining with money having in their hands. But don’t forget the point. “I do not recommend“
It is my personal strategy but it does work. this quote worths
What are the trusted cloud mining platforms?
There are a few of them. I found a great collection here. Make sure to check out if you’re interested in cryptocurrency cloud mining.
Did you find an answer to your question?
I would like to know your opinions.
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