Cryptocurrency mining really doesn’t revolve around mining Bitcoin alone. It also includes other digital currencies as well, and their number is constantly growing. Apart from traditional mining approaches, you can benefit from cloud mining. Thus, there is no need to have mining equipment that you run in your facility/home, nor do you pay for electricity or deal with the noise & heat.
If you’re a newbie to digital currency mining, cloud mining also offers other special advantages, for instance, you don’t require in-depth hardware expertise. Let’s figure out the essence of this method, the way it works, and the distinctive features that make it different from standard mining.
Cloud mining happens in the “cloud.” That basically means that the hardware used for mining is not physically located at your premises, but it is accessed remotely through the internet. Most of the hardware, particularly for mining Bitcoins and other popular coins, is now found in specialized data centers. The goal is to facilitate transactions or generate new blocks of coins by essentially solving complex mathematical equations.
Hardware mining of cryptocurrencies requires large financial investments from a user and might be less beneficial for novice market participants. What is more, with the advent of large data centers built on the use of specialized ASIC devices, the mining process becomes less effective, even if you use powerful equipment at your home.
If you are not ready to invest a lot of money in specialized mining hardware and are looking for a different way to run the business or buy hashing power, you always have an option with such platforms as Xive – a proven cloud mining service provider. Such platforms began to gain popularity about two to three years ago and are still improving their efficiency. The cloud mining method works quite simply: instead of acquiring equipment and creating your own farms, you just buy power from a cloud mining service. The algorithm for its creation and operation is as follows:
- Miners, offering a service, buy equipment, install, and configure it (as a rule, this is a very large data center);
- They introduce all the information about the company, its technical capabilities, prices for services, and the conditions for concluding contracts;
- A user who wants to purchase part of the computing capacity registers on the marketplace, selects mining contracts, and rents these machines for a fixed fee;
- As a result of the transaction, the individual receives hashrate directly to his/her mining pool and receives payouts for contributing to the mining process.
Today, there are many cloud mining services to choose from, and many companies are constantly opening as well. When deciding on a service to use, you should always check the company’s reputation as well as the contract conditions in order to pick exactly what you need.
Unlike individual standard mining, working with a cloud service has a lot of undeniable advantages:
- Large initial investments are not required; of course, ASIC devices are quite expensive, but they are purchased by the company you are renting computing powers from;
- There is no load on the home electric grid and the cost of paying for electricity is usually included in contract price;
- There is no responsibility for the operation and maintenance of equipment on your shoulders; the company takes care of these, so you get passive income only;
- You can mine different types of cryptocurrencies;
- You can receive additional income from referral programs.