Mining is considered cost intense activity. Ultimately, there are two ways of mining Bitcoin, cloud mining and hardware mining. There is less expensive way of mining, one of such way is cloud mining. While cloud mining, everything is done remotely with out any physical mining equipment, you don’t have to worry about buying all those expensive devices such as mining rig, GPU’s, internet services or offline services which include housing infrastructure or electricity. The main idea behind this service is to provide everyone, pros or beginners, with an equal opportunity to participate in the word of digital assets. Some of the top-notch cloud mining provider are Genesis Mining, HASHNEST, HASHFLARE.
If you are someone who doesn’t like working with hardware or assembling them, but you still want to mine crypto coins then cloud mining is the best option for you. You can always make a rental agreement with cloud mining providers in any geographical location.
Cloud Mining VS Hardware Mining
Types of Cloud Mining
There are three types of Cloud mining.
- Hosted Mining
With Hosted Mining, you are agreeing with your cloud mining service provider to lease his machines for certain time frame as per your requirement.
- Virtual Hosted Mining
With Virtual Hosted Mining, you can install your mining software on your service provider’s machine rather than leasing a dedicated machine or setting up the physical device. This is best for some of the smaller-cap coins such as altcoins which requires less powerful machines.
- Leased Hashing Power
It is said to be one of the easiest and the best cloud mining process for beginner or those who has less technical experience. All you need to do is buy a hash power (speed) from a cloud mining service provider. It requires less effort on the miner side and requires less investment.
The is just one possible approach of mining Crypto currency. We will talk more about Hardware mining in the next article. Do your research on what’s best for you. Investing in cloud mining is always risky and has never been easier, thanks to common fraud cases and mismanagement.
|Hardware Mining||Cloud Mining|
|1. You must have mining equipment and it requires regular maintenance.||1. Hardware is already rented and setup by the provider.|
|2. You must pair mining machines to the algorithm of your chosen coin (different coin uses different mining algorithm).||2. When mining the cloud mining contract, you choose the coin that you want your provider to mine for you.|
|3. Miner must have some technical knowledge about mining algorithm, GPU, mining software and other aspect of hardware mining.||3. You just need to open a cloud mining account with one of the cloud mining providers and buy hash.|
|4. Miner must integrate rigs and hardware by themselves.||4.Cloud mining provider takes care of majority of technical aspects.|
|5. Expensive to start with – purchase equipments and utilize electricity.||5. Cheaper to start with but need to depend on providers.|
Final Verdict: If you trust the provider, cloud mining is cheaper to start with less budget. But if you are serious about mining, plan properly and calculate the profit here to chose the coin.
Interested in mining RECAP coin. Stay tuned with us and we will update you our mainnet launch for mining RECAP coin.