Those fans of cryptocurrency who are not much sophisticated in technical issues, generally choose cloud mining. That would save costs for electricity and prevent from monotonous noise of hardware equipment. Let’s take a closer look at this way of earnings.
In plain language, “mining in a cloud” means gaining digital coins by using energy of remote data processing centers. Companies produce or purchase special mining equipment and afterwards they sell the power thereof to the customers. This practice allows users to earn quite a significant profit, whereas troubles with maintenance, electricity costs and Internet connection come upon sharing companies.
Modern effective graphic cards may cost you a fortune. With cloud mining, you only need your computer and bitcoin wallet. You lease the power of remote equipment, make investment to its owner and earn coins.
Strengths and weaknesses of cloud mining
One may think this way is extremely comfortable and looks like the easiest breadwinning ever. However, there are certain risks in this business too. Let’s consider pros of cloud mining first:
- no involving of highly expensive hardware;
- no need to control the stability of equipment and provide special maintenance;
- increase of profitability comparing to mining on an individual hardware;
- simultaneous winning of several cryptocurrencies;
- referral programs granting you a reward from winning of a person invited by you.
Nevertheless, you can’t but remember the following wrinkles:
- at any point, price for a cryptocurrency may come crashing down, and you would have to wait until better days;
- you may simply invest funds to a swindler and ultimately lose your money;
- technical damage of data centers which ceases the process of coin gaining;
- web-resource of the company in which you invest may undergo a hacker attack. If this happens, your coins would flow to an undisclosed location.
To avoid the last problem, cloud miner should research the respective market and make choice considering reputation of a site among other users.
Types of cloud mining
Nowadays there are three most widespread kinds of remote mining:
Virtual hosting. A user may lease a server from an owner and install his / her mining software on it.
Simple hosting. All you have to do is to lease mining equipment from a provider.
Rent of power. In that case, you don’t even need a physical computer. Just lease some hashing energy of server.
How to calculate mining profitability
Prior to starting mining it would be a good practice to calculate the amount of investments and following winning. You may use online calculators to find out whether it’s profitable for you to set to cloud mining or not.
Genesis Block, for instance, wants information on investments and electricity to be pointed. Making calculation for cloud mining, you have to figure out the equivalent cost for kwh to enter this data into the respective box. Doing this is no hardship – just divide the value of running cost per month by parameter of conversion which amounts to 0.744.
How to sell bitcoin?
Now let’s imagine you’ve earned some digital currency and want to make a fortune on it. There are some ways of BTC selling:
BTC owner registers at a specific service (e.g., Bittylicious for UK or Coinbase for US) and offers cryptocurrency. Once someone is interested in buying it, the seller will be informed. It’s possible for them both to cooperate with no intermediaries (except for the service where the deal is done).
After registering at such services you have to place order for selling. In case there’s someone with a matching purchase order, the transaction will be completed by the service. The sum is subsequently credited to the account of the seller.
Do not hesitate to investigate market tendencies and speak to former participants for more information. Don’t lose your chance to become a lucky investor in the currencies of future!