Over the past couple of years, the crypto world experienced numerous changes, and the same happened to cloud mining. The entire face of cloud mining has changed, and the system’s complexities are increasing with every passing year. As the system takes up new forms, users have reportedly found difficulty mining certain crypto coins. In order to reach your target BTC amount, you must have a rig full of GPUs in your possession that will work around the clock and retain them. Because of the same reason, users face difficulty getting their hands on the software. The most common people ask today about cloud mining is “whether it is still profitable?”. The answer is yes, cloud mining is a profitable mining method, and to know the reason, follow this article till the end. Before we dive right into the cloud mining benefits, let’s have an in-depth understanding of cloud mining and blockchain development.
What is cloud mining?
Cloud mining is where you mine crypto coins utilizing the rented facilities of another company. The most exemplary feature of cloud mining is that the equipment can be installed anywhere across the globe, giving the miner the opportunity to easily access them online via the control panel with a decent internet connection. The users don’t have to worry about anything else as the company takes full responsibility for the maintenance and placement of the mining facilities. The Cloud mining option is currently available for cryptocurrencies like Bitcoins backed by PoW (Proof-of-Work) census algorithm. The cryptocurrency for mining completely relies on the provider offering the users pre-set charge and fee plans. The miners can confirm the hashing power—for example, the charge for Bitcoin mining, the charges one terahash per second.
Technically speaking, cloud mining is not that different from regular cryptocurrency mining. To validate the tractions, the miners receive crypto coins as rewards in return for the computing power spent.
About Cloud Mining Platform
If you wish to earn money using cloud mining technology, the first thing is to find a mining platform that puts forward reasonable deals and has a good reputation. This is because reputable companies never compromise on their quality services and customer trust. New platforms are introduced every year, while some have been established for quite some time. In order to find the best blockchain certification mining platform, perform in-depth research and analyze reviews and feedback online. Generally speaking, cloud mining platforms are considered good if they have been around for a while. There are certain things to keep in mind if you are looking for a cloud mining platform, including the equipment offers, online reviews, packages, and communities. Once you list the best cloud mining platforms, you can narrow down the research according to the client reviews and feedback. This will give you better insights into their services, productivity, and reliability and helps you make informed decisions.
Knowing about the equipment is equally important because different platforms offer different hardware, and some offer cheaper ones than others. The miners cost around $2000 to $3000, which could increase if they are custom-made for certain companies. This has become an increasingly popular trend.
History of cloud mining.
During the initial phase of cloud mining, the users used video cards. Later, the advancement of blockchain technology was reflected in the devices used for cloud mining. With time, devices supported by AISC micro-unit came to light, and these advancements added ease to cryptocurrency extraction. The benefits offered by these devices were many; for example, the electricity costs dropped down considerably, keeping the device’s power high.
As the number of miners increased rapidly, cloud mining got ranked as one of the most profitable businesses. The demand for independent mining, also called home mining, diminished. Today cloud mining is the only profitable crypto mining method, attracting more and more investors every year worldwide.
What are the types of cloud mining?
At the moment, there are three different cloud mining types, namely physical farm rental, virtual farm rental, and computing power rental. We will talk briefly about these three cloud mining methods separately.
Physical farm rental
Physical farm rental involves renting a configured farm or a server as a whole that belongs to a single data center.
Virtual farm rental
Virtual farm renting is similar to the physical farm rental method. Here, you get to rent a small fragment of the farm and control the settings as per your requirements.
Computing power rental
In this method, you buy or attain a contract with a reputed company and later rent a significant part of its hashing power.
What is a mining pool?
If you choose to mine solitary, it could take forever to complete; this is where cloud mining comes into play; as the difficulty in cloud mining is growing, the majority of miners use a mining pool. By participating in a mining pool, the probability of making better profits are high, especially for small miners. The mining pool offers the miners numerous benefits and breaks down the difficulty of mining. The individual miners integrate their resources with other miners. Doing so makes it much easier to mine a block and earn crypto coins as rewards. Remember that when a block gets mined, the miners involved in the pool receive their reward proportional to the amount of computing power they contributed.
There are two options available for you. You can take up the role of a host where you take responsibility for buying or selling the rigs. This could be a little bit more expensive, but you have the power to alter the hash power wherever and whenever you want. This is highly beneficial for people who are passionate about crypto investments and wish to change things every month. The host has to manage the equipment maintenance, which will not be too expensive. The second option is the majority preferred option which involves leashing the hash power. The primary reason why people lean towards this option is that once the deal is made, you don’t have to think about anything else.
You might be wondering, “what exactly is leashing the hash power?”. When put in simple words, leashing the hash power means you rent or buy it for a decided period, and the company will pay you rewards in return for your contribution from the pool they select. The amount of hash power you can rent is determined by the platform you choose and the type of contract you prefer. The rewards completely rely on the amount you invested in every platform. There is a calculator on every single platform, which makes it easy to determine the profit amount of the price that strikes a certain amount.
Before you decide to participate in a mining pool, there are certain factors you should consider:
This factor does not apply to every mining pool because not every mining pool demands a fee. Fees are generally drawn from the reward playout, which typically ranges from 0% to 4%.
Pool size is the major factor because the payment frequency increases with the size. This also implies that the rewards one receives in a large pool will be less as the number of participants is more. On the other hand, smaller pools’ pay-outs are more while the payment frequency is less.
Security and reliability
Before confirming with a mining pool, make sure they offer multi-level security. The risk of hacking, fund theft, etc., is less likely to happen in mining pools with long histories and is well established.
What do you need to begin cloud mining?
- Mining software
- Competitive mining computers
- Mining pool membership
- Low-cost power supply
In order to mine cryptocurrency on your own, you need to keep an eye on the following factors prior to purchasing any equipment.
- Equipment cost
- Electricity cost
- Amount of time required to recoup the equipment price
- How often do you require to replace the equipment
Reasons Why You Should Choose Cloud Mining
As pointed out earlier, cloud mining is a profitable crypto mining platform, and here are eight solid reasons why it is so.
One of the major concerns of miners is their privacy. Data theft and hacking have increased manifold in the crypto market, and to keep up with the threats, cloud mining platforms have deployed excellent security systems that guarantee safety. If privacy is your major concern, then cloud mining is the ideal option for you. It offers the finest and most advanced privacy features which keep your assets safe and never reveal your data at any cost.
Cloud mining might appear difficult for beginners, and the learning curve is quite steep. But once you are familiar with the process, you can make better profits in a very brief period. In most mining platforms, the fee charge is high, and they are withdrawn from the received pay-outs. This could adversely affect your earnings because the fee withdrawal frequency increases. But when it comes to cloud mining, you do not have to worry about the fee because they charge a negligible amount. If your primary objective is to make a profit with less fee, cloud mining is the ultimate option.
The best advantage of using cloud mining is that your transactions will never get faked as the mining is powered by blockchain technology. Blockchain platforms have the potential to safeguard you from any form of threat. The major benefit is that, once your transaction is completed, the data is recorded on a timely basis and cannot be altered by an outside source.
Excellent accessibility and mobility
With a strong internet connection and a supporting device, cloud mining enables you to store any amount of data from anywhere, anytime. This easy accessibility is one of the reasons why cloud mining receives more users and never fails to retain the existing users. Cloud infrastructure is built to guarantee easy accessibility of data, which in turn doubles the productivity of organizations. Cloud mining can be accessed on almost every mobile phone [both android and IOS], which allows you to access them on the go.
Cloud mining revenues are impressively high. The rate is steadily increasing, which implies that you can multiply the funds invested in a single year with time and effort. In addition to that, few projects even allow you to mine crypto coins with very little or no investment at all.
Mine different crypto coins
The cloud mining platform is vast; you can mine different crypto coins on a single platform. This adds to the profit-making factor because you don’t have to get involved in different platforms for mining various cryptocurrencies; almost everything from Bitcoins to Altcoins is accessible in the cloud mining platform. You have the provision for utilizing any resource of your preference to mine there.
Cloud mining offers referral programs to its participants. This is the most efficient marketing strategy; by referring cloud mining to the people you know, the platform receives more users. Not just that, for each lead you bring into the platform, you receive a certain bonus amount or a certain percentage of the profit earned by that person.
The user doesn’t have to worry about equipment installation, maintenance, etc. In addition to that, cryptocurrency mining methods will not impact electricity consumption. There will be zero loads on the wiring, the air will not be overheated, and you don’t have to bear the humming sound of running a farm.
Is cloud mining profitable in 2022?
Now coming to the major part of this post, cloud mining will always be the best option to make a profit without the need to pay for the equipment and related costs, and 2022 is no exception to that. Besides the money-making factor, by mining in the cloud platform, the risk is reduced to a greater extent. Now you know what cloud mining is and why you should choose cloud mining. Without wasting any more minutes, start making money and learn Blockchain technology courses!