All about Cloud Mining In 2022
Crypto mining has changed a lot during the years because the system is changing also and it’s becoming harder to mine some coins. In order to get a certain amount of BTC, you would need to have a rig full of GPUs that will work 24/7 and maintain them. This became a huge problem for some people because it’s more expensive than ever to get the hardware.
The others are paying huge electricity bills just because their country fees are higher so it’s not beneficial to them to main. So, when cloud mining was introduced, it made a lot of people happy when they realized they don’t need to have a whole room full of mining rigs and fans.
The Process of Cloud Mining
The best way to understand cloud mining is to consider it as a renting service where you get someone else’s computing power and use it for a certain coin you would want to get. There are a lot of mining farms that you will be a part of by buying hash power from the platform of your choice. Depending on how much hashing power you bought, you will get the reward in exchange.
Some of the biggest differences involve maintenance, energy bills, heat, and noise which you shouldn’t worry about because the provider takes care of it. When you choose which platform is the best for you, you also need to figure out the contract which depends on your budget. On almost every website, you will have to pay in advance in digital or fiat currency.
How much hash power you can rent depends on the platform so you can probably find any type of contract you want that is reasonable. The contracts will usually last from a month up to 24 months.
Cloud Mining Platforms
One of the most important things to do is to find a platform that offers a good deal and has a good reputation. There are a few coming out every year but some have already been in the business for a few years meaning that they would have more experience. In this case, cloud mining websites are usually good if they exist for a while.
There are a few things you need to check when searching for the best website including online reviews, equipment, community, and packages. Online reviews will give you better insight into their work and who is the best among the best. Check a few websites with this information before you make your choice.
The equipment is also very important because there is hardware that produces much more hash power which means it will be cheaper compared to others. These miners usually cost around $2000 or $3000 even more if they are specially made for a certain company. This has become a trend in mining where large companies order equipment that an individual won’t buy.
If they have a great community where you can share information, it would be a huge benefit for you because someone may provide news that will make you some money. This is a common thing especially as every community now has a discord group where this type of information is being shared. The package has to be according to your needs because your budget will be the determining factor in the end.
What Are Mining Pools?
When you are the only one mining, it would take you forever to generate a block from the blockchain so that’s where the pools come in. It’s the place where the computational resources are shared in order to increase the probability of gaining the coins. Because you have to solve complex problems, you will receive a reward for it which is shared among the users based on the hash power they provided.
Each cryptocurrency has a certain difficulty of mining which represents the amount that can be mined. That is why you will get hundreds or even thousands of coins in one case and only half of the other. There are some pools that have a minimum and maximum share that you can get.
There Are Two Main Plans
There’s an option for you to be a host which means buying or leasing the rigs on your own which may be a bit more expensive but you will have the ability to redirect your hash power where you want. This is a huge deal for those that like to change things each month and those who like to invest their time in crypto.
You will have to pay for the maintenance and set up which won’t be too expensive but you will have the equipment that you can sell. The second plan that is more attractive to people is leasing the hash power. The reason why people choose this option is that they don’t have to think about anything once the deal is made.
Leasing hash power means that you will buy it for a certain period where the company will give you the rewards from the pool they choose. The rewards depend on how much you invested and there is a calculator on every platform. This calculator allows you to check how much profits you can make if the price reaches a certain number.
Things to Consider
Because BTC is the most common choice for cloud mining, you should take into notice the current market state and what is expected to happen in the next 6 months. There are some standard market fluctuations that happen each year which you can use to time the deal. Knowing when you start cloud mining is very important because a 10% increase in the price can be huge.
There are a few coins these platforms will offer that you can experiment with but stick with BTC because it is the most stable coin and has the brightest future. This isn’t a certainty but it has proven to be very trustworthy for the past decade and it’s still very popular to mine it. This may change after the release of Ethereum 2.0.