What is cloud mining? Becoming one of the common questions for someone who is new to the world of cryptocurrencies. You may already know what the term means, or maybe you are still confused between cloud mining and solo mining. For more details, you can listen to the following review.
Understanding Cloud Mining
Before knowing the meaning of cloud mining, you must first know what the word mining means in the cryptocurrency world. So, the short meaning of cryptocurrency mining is mining, while the long meaning is the process of verifying buying and selling crypto which will then be added to the blockchain.
Miners are required to solve math problems using their mining equipment. Mining cryptocurrency is divided into two, namely solo mining, where miners will mine using their own mining tools. While cloud mining bitcoin or dash/litcoin mining with other people’s tools.
So, it can be concluded that cloud mining is an effort made by someone to mine cryptocurrency without the need for their own mining tools. Usually, people who do cloud mining will hire parties who provide cloud mining services.
Advantages and Disadvantages of Cloud Mining
Often the best option for mining, cloud mining is believed to have several advantages. The main advantages of cloud mining, namely:
Save Space
The equipment used to mine cryptocurrencies requires quite a large space. If you don’t have free space, then you can use cloud mining to mine to save space.
Energy Saving
Besides saving space, you can also save energy because you don’t have to add to the burden of thinking about how to mine it, what if the equipment doesn’t work, and so on.
Not distrubed
The equipment for mining cryptocurrencies is quite noisy and annoying to the ear so it’s not suitable for those of you who don’t like noisy atmospheres. By using cloud mining, you won’t be disturbed by the sound of the mining equipment.
Cost Savings
Cryptocurrency mining equipment is known to use quite a lot of electricity. Then you can use cost savings by switching from solo mining to cloud mining.
Where there are advantages, there are also disadvantages. Cloud mining btc or litcoin or dash or others also has drawbacks that are quite risky, namely that there are many cloud mining service providers circulating who commit fraud or acts of fraud. So, it is hoped that you can choose a trusted cloud mining service well.
How Cloud Mining Works
Surely you are still confused about how cloud mining works, so that it can bring benefits to its users. The following is the flow and how cloud mining works in detail until satisfactory results are obtained.
Paid Cloud Mining
If you use the services of a paid Indonesian or foreign cloud mining company, then you will be asked for money in advance at the beginning of the month or according to your agreement with the service provider. Usually, payments will be requested every month to be used as electricity costs and service fees.
When the service provider has generated crypto, then all the results will be given to you without deducting a penny. If you have a lot of capital to mine, then paid cloud mining is suitable.
Free Cloud Mining
Free cloud mining means you are not asked for an initial fee when using mining services. Then, where do they handle the cost of electricity from mining equipment? Electricity fees and mining services will be taken from your crypto results.
So, when the mining service provider succeeds in producing your crypto, you will not get your full crypto because the service provider will take a portion according to the electricity and service costs that have been spent. The downside of free cloud mining is that there are a lot of scammers.
Trusted Cloud Mining
As cryptocurrency becomes more and more popular, cloud mining’s popularity also increases. The more people are known, the more people will look for loopholes to cheat by using cloud mining.
To avoid becoming a victim of cloud mining scams, you must know how to find or choose a trusted cloud mining service provider. Here are some trusted cloud mining providers:
Hashing 24
How to use it, namely visit the www.hashing24.com page, then create an account on the site. Account registration only takes 2 minutes. If so, then you select the level of hashpower you want. The higher the hashpower you choose, the higher the coins you will get.
The third step, that is, you have to pay for your new contract with the Hashing 24 site. Then, hashing24 will send your order. The fifth step, the mining process starts and you will receive the coins every day.
Genesis Mining
You can visit the www.genesis-mining.com page. This site provides mining for bitcoin, dash, ethereum, litecoin and more. Each type is limited to only a limited number of users.
You can immediately register on the site, then choose the package you want. Usually the available packages have a term of one to two years. Payments accepted are usually in the form of bitcoin, dash, and litcoin.
IQ Mining
You can access the site via www.iqmining.com. What’s interesting about this site is that there is a pro package option, where you can get as much as twenty percent interest and you can also reinvest crypto from mining results.
There are so many contracts that you can choose from, with terms of 1 year, 2 years, 5 years, and for life. If you have chosen a contract, then you will be asked to pay an initial fee.
For more complete information about which cloud mining companies are safe, you can access them through the Foxyrating website.
The Final Word
Those are some important things related to Cloud Mining, starting from what is Cloud Mining? The advantages and disadvantages, how it works, to several trusted Cloud Mining sites that you can use to mine cryptocurrency.
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Author: Muhammad Zaki Fajrul Haq
Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).