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CLICK HERE TO SIGNUP
What is Cloud
Mining?
Cloud (or remote)
mining – is the process of using hardware power to mine cryptocurrency (such as
Bitcoin or Litecoin or other altcoin) remotely. This mining model came to
existence due to the fact that the increasing difficulty of mining has made it
unprofitable for mining enthusiasts to mine Bitcoins at home.
Cloud mining gives
people a unique opportunity to begin mining cryptocurrency without the need for
a large initial investment in hardware or technical knowledge. Despite the
simplicity of the cloud mining model, it is worth elaborating on a few details,
specifically it’s important to highlight that remote mining comes in two forms:
hosted or cloud based mining.
Remote Hosted
Mining
The first form of
remote mining is remote hosting. This model suits users with a high level
mining experience and know-how and who require a high degree of control over
their mining hardware. Under this model, the mining hardware is hosted in a
remote datacentre and the user assumes full control over the setup and configuration
of the mining hardware. Under this model, the miner pays a fee to the hosting
company that would cover maintenance and electricity costs. This helps the
miner handle the risks associated with maintenance of the kit as well as any
risks with the shipment of the hardware. On the other hand, it presents the
miner with risk on the initial hardware investment and requires much more time
and technical knowledge to implement successfully.
It can therefore be
summarised that the benefits of remote hosted mining are tight control over the
mining process, maintenance support and subsequent ownership of the hardware.
The big drawbacks are risks associated with the procurement of expensive
hardware and the very high cost of entry, both in terms of investment and technical
experience.
Cloud Mining
The second, and
more accessible model of remote mining is Cloud Mining, whereby a miner
purchases a part of the mining power of hardware hosted and owned by a Cloud
Mining services provider. The service provider takes on configuring the
hardware, maintaining uptime and selecting the most efficient and reliable
pools.
This option
provides a range of benefits: instant connection (meaning no hardware shipment
wait times and delivery risks), fixed maintenance and electricity fees and no
nuisances associated with mining at home such as noise, heat or space. Another
key point is that this model of cloud mining requires no technical experience.
Obviously, it’s very important that miners understand the mining process,
however this model doesn’t require hardware expertise or significant
configuration / implementation cost. Since customers can purchase any amount of
mining power they wish, this means that the level of investment will depend
only on the miners’ ambition. This means that the cost of entry and subsequent
risk is far lower than in comparison with the remotely hosted model.
Cloud mining is
greatly suited for novice miners who would like to try out mining and earning
cryptocurrency as well as seasoned miners who don’t want the hassle or risks of
hosted or home-based mining.
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