What is cloud mining?

The era of individual mining of crypto-currencies is nearing its end and large companies are entering the arena, offering to lease computing power for the generation of virtual assets. Today, almost everyone who is interested in the field of cryptocurrency, has heard about such a concept as cloud mining. Over time, the complexity of the algorithm for generating tokens increases, and the profitability of the mining process decreases. This is because the number of users of the system is constantly growing and there is a limit on the total number of tokens, respectively. Therefore, many individual miners began to look for an alternative, which is cloud mining.

How does cloud mining work

Cloud mining is a special service for selling part of the computing power, provided by companies that own powerful data centers. This is the investment of finance in the possibility of earning on the generation of blocks in the blockchain.

Today there are three main types of cloud mining:
Hosting is a service for renting equipment from its owner;
Virtual hosting – rent space on the server with the subsequent installation of your own software for mining;
Rent computing power of the server without the possibility of adjusting its operation.

The system of cloud mining includes a set of ASIC-farms and a computer that monitors their work. The process of token generation is performed by solving complex algorithms. The complexity of these algorithms is constantly increasing.

Unlike hardware mining, which requires the purchase of expensive equipment and the payment of large bills for electricity, cloud mining allows you to receive passive income without understanding the technical aspects. Additionally, because of the continuous growth of the complexity of algorithms, the individual mining becomes less and less appropriate. Therefore, many users began to use the services of major players in the market, which can provide a stable income.

Cloud mining services

The most popular services provide the ability to generate basic cryptocurrency: Bitcoin (on the algorithms SHA-256, Script), Dashkoin (on X11), Litecoin (similar to Bitcoin), Etherium and Zcash (on graphics cards – GPU). Each user is given a choice of a token for generation and a level of processing power, determined by the processing speed of the algorithms. The promising currencies for mining today are Dash, Litecoin, Etherium, Zcash and Monero.

The most reliable sites for cloud mining:

HashFlare isĀ  on of the best options. It is a reliable service offering the most favorable rates and high speed of calculations (hash rate). The date centers are located on the territory of Iceland and Estonia.
Genesis Mining is one of the first services providing cloud mining. It is absolutely competitive with HashFlare in all parameters including such as computing power, cost and user interface.
CCG is a profitable service, and also quite easy to use. So these three of us would be the best choice we recommend to start cloud mining.

The benefit of cloud mining is because most companies that provide this service are also manufacturers of specialized equipment. This causes a low maintenance cost of equipment and a relatively small prime cost of the process of generating tokens.

According to experts, the cost of crypto currency in the future will only increase, as demand for them does not decrease. Therefore, cloud mining will remain one of the most profitability type of investment.

Smart Miner