If you’ve been keeping a keen eye on the world of cryptocurrency, you have probably already heard of cloud mining – a great alternative to classic mining, especially if you don’t feel like heavily investing in expensive hardware that you have to keep in good condition. But what exactly is cloud mining and how does it work? Let’s go over some of the basics, as well as the potential benefits of choosing cloud mining over old-school mining.
Why isn’t regular mining always the best option?
When buying your own mining rig, the costs can quickly get expensive. In order to achieve a Hash Power of at least a 100TH/s, you need to be prepared to spend between $5,000 and $15,000, depending on the manufacturer and your local prices. On top of that, there is the electricity cost that’s unavoidable with mining, as well as maintenance and replacement costs in case anything gets damaged (and that’s always a possibility).
As you can see, mining bitcoin or any other cryptocurrency comes with a heavy investment – one that doesn’t necessarily always come back to you. It’s no longer 2010, when you were able to mine bitcoin with a regular at-home computer. Doing so nowadays would most probably result in losing money over time. There is, however, a perfect alternative – cloud mining.
Cloud mining – get crypto with no hardware
Now, cloud mining is where it gets interesting – it allows you to enjoy the benefits of mining (which is, basically, obtaining cryptocurrency), without actually having to purchase and maintain any hardware. How does it work? It’s actually quite simple.
In contrast to conventional cryptocurrency mining, you don’t have to know a thing about technology and computers to start mining. There is no hardware or software needed – all you really need is a simple contract with the service provider.
How does the service work? By cloud mining, you are basically renting computing power from a third party – usually an extensive crypto mining farm. All the work is done remotely, so you don’t have to worry about maintenance or electricity bills, as well as noise and heat that comes with running a mining rig. If you want to jump on the crypto train while it’s still profitable, without actually having to do any work, cloud mining is the perfect way to do so!