With cloud mining, you can access the data center's processing capacity and get crypto coins without buying the right hardware, software, spending money on electricity, maintenance, etc.
The essence of cloud mining is that users can get processing power from external data centers.
The whole crypto currency creation process takes place in the cloud. This makes cloud mining very useful for those who don't understand all the technical aspects of the process and don't want to use their software or hardware.
If electricity is expensive where you live, for example, in Germany, outsource the financing process in a country where electricity costs less, such as the United States.
Types of Bitcoin cloud mining:
There are currently three ways to extract the cloud:
1. Leasing mining. Rental of a suction machine hosted by the supplier.
2. Mining activity practically hosted. Create a virtual private server and install your data mining software.
3. Tenant. Rent a certain cutting power without having special physical or virtual equipment. (This is by far the most popular cloud exploration method.)
What are the advantages of Bitcoin cloud mining?
- Do not treat the excess heat generated by the machines.
- Avoid constant fan hum.
- You don't have to pay for electricity.
- Do not sell your mining equipment when it is no longer profitable.
- No ventilation problems with the device, which is generally very heated.
- Avoid possible delays in the delivery of the devices.
What are the disadvantages of Bitcoin cloud mining?
- The possibility of fraud,
- Bitcoin transactions cannot be verified
- If you don't want to create your bitcoin hash systems, this can be boring.
- Low profits - Bitcoin cloud mining services come at a cost.
- Bitcoin operating contracts can allow the suspension of transactions or payments if the Bitcoin price is too low.
- I can't change my software.
Cloud mining risk:
There is a risk of fraud and mismanagement in the world of cloud mining. Investors should only invest if they know these risks - as they say: "Never invest more than you are willing to lose." Learn about social media, talk to previous customers, and ask questions you think are appropriate before investing.
Is cloud mining profitable?
The answer to this question depends on some factors that influence the return on investment. Cost is the most obvious factor. The service charge covers the costs of electricity, accommodation, and equipment. On the other hand, the company's reputation and reliability are crucial factors due to the spread of fraud and bankruptcies.
After all, profitability depends on factors that no company can predict or control: think of Bitcoin's high volatility in the past three years. When buying a mining contract, it is best to take a constant price for Bitcoin, as the other alternative is to buy bitcoin circuit and wait for the price to go up. Another important factor is the capacity of the entire network, which depends on the number of operations per second. Prosperity has grown exponentially in recent years. Growth continues to depend on the value of Bitcoin and innovation in the development of integrated circuits for certain applications.