What Is Crypto Cloud Mining? | Notum
Dec 24, 20217 min read
What is Mining?
Mining is the process of adding a new block to the existing blockchain. It’s an alternative to printing money, once everything is online and decentralized, somebody should be responsible for the cryptocurrency’s coming into existence, and those people are miners who share their computing power and solve extremely complex cryptographic puzzles. Miners’ work is financially rewarded, and it could be quite profitable for the one who mines, so you can look at that as an additional or main source of income.
Cloud vs Hardware Mining
Mining could be diverse, try to choose the most suitable option for you, or at least read about the difference just to expand your worldview.
Cloud mining is a way to mine cryptocurrency using remote data centers without buying powerful special hardware and paying high bills for electricity. This type of mining means that there is a company that has all the facilities and equipment to mine and you just join need to the source.
Hardware mining (also called home, traditional, GPU mining) means you’ll get special hardware and software by yourself and take into account all electricity bills you’re going to pay, the noise you’ll get from the mining equipment, and setup fees. The process itself is much more exciting and interesting, but only for those who are really crazy about mining and take it honestly serious.
How to Start Crypto Cloud Mining
One of the undoubtful cons of cloud mining is that you don’t need to set up special hardware that is quite expensive. Just choose a mining pool and rent their hardware and start the process of getting money from the pool.
You need to pick a cryptocurrency you want to mine — will it be Bitcoin (BTC), Ethereum (ETH), or Dogecoin (DOGE) who have the largest mining pools, that’s completely your choice.
It’s quite easy to start:
- Choose a mining pool and a coin you’d like to mine;
- Create an account and sign up, sometimes you need to download special mining software.
Once you’re looking for the best cloud mining service provider to get started, you’ll find out that there are so many of them that you feel dizzy or at least a bit puzzled. To make the best choice you should look at the following features a good cloud mining server must offer you:
There are two types of calculators you might need: the generation calculator and the profitability calculator. The first option shows you an estimate on the amount of time you will need to do mining at the specific hash rate before earning bitcoins. The second calculator shows the estimate of how much profit you can make at the current network and market conditions. Using them will definitely help to make your calculations more convenient.
Pool stats are helpful when you decide which pool will be the most profitable to mine in. Using this, you can choose which mining pool best suits your needs for the specific cryptocurrency you are mining.
Most cloud mining services have wallets to store mined coins, but it’s better to have a wallet on your own. There are several options of wallets — hot, cold, hardware, software, mobile, desktop, web, and paper. People who appreciate immediate and easy transactions chose a hot wallet option, so have a look at a secure and easy-to-use SimpleHold wallet. Maybe it’s that perfect tool you are looking for.
In case you have any questions or problems you should know that there is somebody who will help you to solve the problem as quickly as possible, that’s why it is so essential to be sure that your cloud mining server can offer support and customer service 24/7.
Different Payment Options
A cloud mining provider has different payment options for their users, such as debit and credit cards. That makes all your operations with money smooth, easy, and quick, the more options you have, the better.
Benefits of Cloud Mining
- Almost No Initial Investments
Cloud mining services took care of you and that’s why you don’t need to buy any expensive and powerful mining equipment. It makes it easier and cheaper for you to mine coins. You don’t need to worry about setting up and maintaining a machine. As you don’t need to install the extra hardware, you save on electricity bills.
- Rapid Purchase and Withdrawal
With a legitimate cloud mining service, you can start mining without a delay and get your first payout 24 hours later. Your coins will be transferred to your virtual wallet automatically, and you should be able to withdraw your money immediately after receiving your coins.
- Fixed Fees
Cloud mining services usually have fixed fees that will provide long-awaited transparency. That’s why customers tend to use service providers that are transparent with their fees because they are at ease with how their money is being utilized. Also, you won’t have to worry about unnecessary and additional fees being charged to you.
Crypto mining hardware makes a lot of heat, noise, and dust. Traditional mining at home could be a process that bothers others, but the cloud option doesn’t. It’s calm and cool at home, and cloud mining firms have special chilling towers and machines, so the problem is resolved.
Types of Cloud Mining
This type of mining is when a user leases or rents their cryptocurrency mining equipment from a third-party provider. Provider setups and maintenances settings are required for mining. Users have total control over their equipment remotely. This massively reduces any risk of fraud from the provider because the user controls cryptocurrency solely.
Virtual Hosted Mining
It is when you rent a virtual computer to run your mining software on. Instead of owning and maintaining actual equipment and services, everything is accessible through a cloud provider.
Leased Hashing Power
In this case, a user can rent hashing power of high-powered Application-Specific Integrated Circuit (ASIC) machines that can be offered by a cloud mining server. The hashing rate usually depends on the contract chosen by a user.
Top 5 Cloud Mining Services
This platform is believed to be one of the best for newbies with minimal knowledge of the crypto mining process.
It has a UI interface with animated mining processing that helps a user to perform better and quicker. To start using a platform, you just need a minimum of $100 deposit. From the essential and helpful features, there are the following — the platform provides 24/7 customer support and a calculator. It holds a community of 8000+ crypto investors.
The high power of the system offers high profitability, and if a user is not sure which contract to attain, there is 24/7 customer service that will help to make the right choice.
ECOS claims to be more than cloud mining. The platform offers a range of digital asset products and tools in one place forming an ecosystem.
ECOS offers its customers cloud mining services for only one digital currency: Bitcoin (BTC), the world’s largest and leading cryptocurrency by market capitalization.
The platform offers a wide variety of mining contracts. The minimum deposit for a mining contract is $149. This contract is active for a period of 12 to 50 months. Plus, there are different options available for you that you can use for deposits or withdrawals, such as credit cards or the following cryptocurrencies as BTC, ETH, XRP, and LTC.
The evident advantages of ECOS mining are that new users will get a one-month free promo contract, daily payments, neat transactions history, modern equipment, and a wide variety of contracts.
It is a platform that is really simple to use and understand that would be quite nice once you’re a beginner. The company gives a proprietary algorithm (CHK&I patent) that automatically transfers computer horsepower to the most profitable cryptocurrency like Bitcoin (BTC).
The platform promises a large profit margin, which is defined by the chosen contract. All the information about your earnings is available 24/7. ChickenFast gives great customer service support and a personal manager to each customer to provide timely information and assistance.
Nicehash is one of the largest open market places where you can trade your computing power for crypto mining around the world. It has a profitability calculator that will help you to count the profitability of your mining. It also has its own wallet, so if you need one, you can take that fact into consideration.
The interface is friendly for beginners, fees are quite low and there is an affiliate program. The platform also offers popular hashing algorithms and an opportunity to exchange your funds between wallets.
It supports a vast range of different cryptocurrencies, so you can choose your favorite one and start mining right away. But you should keep in mind that you’ll be paid in Bitcoin (BTC).
The company provides services for cloud mining. It leases equipment for cryptocurrency mining to customers. You can rent any amount of computing power of their servers located in Iceland. It’s claimed that there is no payment for electricity or any other extra fees. A user can choose from the company’s tariff plans or create their own ones by setting the options they need the most. Bitcoin (BTC), but other popular assets are available for mining at Genesis.
It’s easy to navigate, the setup is super simple, to make deposits and withdraws isn’t a problem as well. They also have a great support team, all the issues will be worked out quite quickly. The main point is that the market can’t guarantee a high profit.
Cloud mining is getting popular among those who work with crypto because it’s not that complicated and difficult to find a legit pool, set up the software, and start the process. You don’t need those big and noisy machines anymore, as cloud servers took total care of them.
This kind of mining helps to reduce electricity and equipment costs, but the most challenging thing is that it’s quite time-consuming to find a legit pool for mining but still possible.
Shortly, you act as an investor who provides money, and you pay to a cloud-mining server, and the rest is managed by the chosen marketplace.