How To

How Cloud Mining Works?

When you do not want to manage or install a mining rig by yourself, you can consider signing up for cloud mining services. Cloud mining typically refers to using shared or combined processing power which can be obtained from multiple remote data centers. For cloud mining, there is no need to make upfront investments for buying costly mining hardware; you can start mining with a regular home PC, local wallet etc.

The biggest advantage of choosing cloud mining for mining cryptocurrencies is that you will not have to invest in high-end mining hardware which is very expensive. Secondly, you will also not need to bear the high power costs which are inevitable because miners usually consume a huge amount of electricity. Another huge advantage when you choose cloud mining is that you will not have to make provisions for ventilation of overheated mining equipments. Since mining is a computationally intensive exercise, the machines usually get overheated in the process. With cloud mining, this problem is not there s you are leasing computing power from a third party provider.

So, cloud mining is the best possible solution for people keen to earn rewards but not in favor of installing or maintaining a mining rig. To enjoy cloud mining services you will need to sign up with reputed and trustworthy cloud mining services providers. You can sign contracts with them after carefully reviewing the contracts and checking their credentials and reputation. This is because there are many cloud mining companies out there which are illegitimate and only interested in building Ponzi schemes.
 
During cloud mining, clients get to buy the hash power from providers for certain fees that are paid either on a monthly or daily basis. When the rewards come through, you must pay the cloud mining provider depending on how much hash power you used. When the provider owns a pool, it may also restrict your freedom to select a mining pool. So, when the time comes for rewards, you may have to settle for less in case that pool is not very profitable.

Besides checking for the reputation and genuineness of the provider you should also check for security. It is better to choose providers that deploy dual-factor authentication for extra security. You will find that prices charged by cloud mining services may vary from one provider to the next. Some providers will even offer better prices when more hash power has been leased out from them. High prices do not always mean better quality of services. So, interested clients must always carefully examine the services and not take decisions based on prices alone.

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