Crypto Mining: Correctly Compare Cloud Mining Providers

Cryptocurrency is mined from the network by creating new coins through mining. This can be best explained by crypto currency bitcoin. Each network subscriber can in principle earn money by mining to the corresponding bitcoin address. However, in order to participate in the mining process, different requirements must be met.

“Mining” first performs the necessary control functions on the blockchain. Third-party financial service providers or banks do not confirm transactions carried out in the system. It is also worth mentioning that cryptocurrencies such as Bitcoin cannot be issued twice. Therefore, fraud is almost excluded. Mining within the bitcoin network ensures that all transactions are executed correctly and recorded on the blockchain.

All transactions that take place within the network are sent to all network participants. So every user can therefore participate in the calculation of “block” and “blockchain”. Once the transaction is confirmed and confirmed, users who can solve the relevant math problems will be rewarded in the form of bitcoins. Bitcoin’s system requirements are currently very high, so it’s usually a user pool or a mining pool, not a single user.

Generally “exploited”

In particular, newcomers to the industry think that ‘mining’ creates new cryptocurrencies. But this is only partially true. Best of all, mining protects the blockchain. The so-called “miner” must verify and validate new transactions to keep the network stable. Each individual network participant can confirm the transaction and merge it into a new “block”. Then the completed block is always integrated into the blockchain as a “blockchain” and the mining process also prevents the network from duplicating transactions. Additionally, miners ensure that no one breaks the rules of network protocols.

Increasing problems and lowering of wages

The fact that it is more difficult to own individuals is due to the system. You can mine fewer and fewer coins over time. This slows the growth of money until it is finally stopped. A total of 21 million Bitcoins can be generated. This limit is determined by the bitcoin protocol. The last bitcoin is supposed to be mined around 2140. But experts assume that more than 90% of all coins will be generated 100 years ago.

The decreasing bonus for creating new “blocks” results in mining becoming less and less profitable, especially for individuals. People with limited computing ability are generally no longer able to actively participate in the mining process.

 

How can individuals benefit from mining?

At the beginning of the cryptocurrency Bitcoin (between 2009 and 2010), I could use the Bitcoin network’s own graphics card to count blocks as a regular computer user. At the time, the creation of new bitcoins was still in favor of the individual. On the other hand, it is actually impossible. This is because the computing power required for mining is too high for the average computer user. Even so, you can benefit from participating in Bitcoin Mining as an individual.

• Mining pool: One possibility is to join the so-called mining pool. These are networks that use the shared hash power to calculate the blockchain to get newly generated bitcoins. Mining pools are mainly of different sizes, but also different types of payment for participants.
• Automatic mining: if you have the appropriate mining hardware, you can of course participate directly in the mining process. Miners can use the mining calculator to calculate the computing power needed to calculate the value of their investment.
• Cloud Mining: Another alternative is to contract with a cloud mining provider. It has a server farm and gives users the computing power they need to mine specific cryptocurrencies over time.

The so-called “mining” of cryptocurrencies by cloud mining providers is becoming more and more interesting for individuals. Depending on the provider, interested parties can choose from a variety of cryptocurrencies and their associated algorithms.

Cloud mining contracts can vary greatly from provider to provider, so we recommend that you compare cloud mining providers accurately. In the supplier overview, offers from the most famous companies in this area can be found.

General interim conclusions for mining

Pooled computing resources are especially promising as the mining process becomes more difficult. In addition to mining with your own computer, you also have the opportunity to join a mining pool or use the services of a cloud mining provider. The latter also partially works with mining pools. Available resources are used to effectively participate in the mine.

Cloud mining topics are discussed in detail below.

What is cloud mining?

Gone are the days when individual users could “mine” cryptocurrencies like Bitcoin. In any case, autonomous mining is becoming more and more difficult due to the high computational power required. Anyone who wants to mine cryptocurrency needs a wide range of equipment, not just technical skills. But in most cases it is no longer worthwhile to act as a single miner, so today you can use so-called cloud mining.

Note: Do not confuse cloud mining with mining pools. Here, multiple users work together by pooling computing power. Cloud mining allows users to rent or buy computing power or hardware from cloud mining providers. It is settled by means of a contract. Often maintenance costs are added. However, some cloud mining providers work with other mining pools.

Cloud Mining: the facts

• In “cloud mining”, users buy or rent the computing power or hardware required for mining from cloud mining providers.
• The cloud mining company performs the mining process for the parties to the contract as part of the contract under which the contract is signed.
• Compensation corresponds to the amount specified in the contract. In addition, maintenance costs are automatically deducted from the profits.
• While cloud mining offers attractive benefits, cryptocurrency is an extremely volatile currency, which increases the risk of loss.

Several cloud mining providers have already entered the market to make cloud mining attractive to the end user. Various contracts put users relatively advantageous in the mining process. Depending on the currency you have chosen with the provider, there are lifetime contracts and limited contracts (as long as the contract is profitable). The obvious advantage of cloud mining is that users do not need to provide their own hardware and computing power. This is done entirely by the cloud mining provider.

 

How does cloud mining work?

In the first step, stakeholders need to select a cloud mining provider. Here is the value for the overview of the cloud mining vendor: Then visit the website of the vendor and open the customer account. Cloud comparison is always recommended. Depending on the provider, the offers and conditions can vary greatly.

Depending on the provider you choose, you can draw a conclusion by choosing a mining agreement and its computing power. After the purchase, the hardware of the cloud mining provider immediately starts coin generation. However, for some suppliers, contracts are also sold out quickly, so in this case customers will have to wait weeks and months. More details can be found in the Cloud Mining Provider Reviews.

You can then move the coins mined through cloud mining to your own wallet. Implementation is done weekly, depending on the provider you choose. The leased computing power is connected to that mining pool by a cloud mining provider. In this case, users do not need to worry about anything after completing the Cloud Mining contract.

These benefits are offered by cloud mining

Especially for startups, the entry barriers are reduced by the cloud mining companies. This is because you don’t need the software knowledge you need to install the high-performance computer, and you don’t need the right hardware. Therefore, you don’t need to invest a lot of money before you start mining. As in the early days, those with a small amount of money could exploit again.

Another benefit of cloud mining is the flexibility to use the computing power provided by cloud providers. If the venture is profitable for the individual, depending on the supplier, resources or contracts may be added as needed. It also gives you the flexibility to react to every market situation.

Benefits at a glance

• No prior technical knowledge is required.
• No hardware and software is required.
• Therefore, there is no need to perform installation, maintenance or repair work.
• The cloud mining provider handles the entire transaction after signing the contract.
• Registering quickly and easily on the provider website saves time and is intuitive.
• Depending on the provider, different cryptocurrencies can be mined.
• “Mining” is a fixed contract basis.

This disadvantage is in the exploitation of clouds.

Users of cloud mining providers can lower their investment costs and gain flexibility through their contracts. But in general, you have to pay more for more computing power. In addition, most cloud mining providers are needed because there are contracts with different durations and maintenance costs.

Another problem is the risk of scam mines. Users should always inform themselves about vendors who get computing power. In the cloud mining provider comparison, only reputable companies are listed with the service. Consult the Cloud Mining Experience report for more information about the Cloud Mining Company.

Disadvantages at a glance

• In general, profits are lower than the automatic mining of cryptocurrencies.
• Initial investments usually pay only after a few weeks or months.
• Depending on the vendor, there will be additional “maintenance costs” in addition to the costs specified in the contract.
• As for the volatile digital currencies, there is a general risk of loss.

A common risk and the fact that every achievement is cryptocurrency. It also depends on the success of the mine. Even if the cloud mining provider coordinates the whole process very well and everything is done for the maximum customer satisfaction, all involved should always expect that the value of the chosen cryptocurrency will drop. Therefore, capital loss is possible at any time. But not every digital currency should be (almost) worth it.

How much can I earn with Cloud Mining?

The benefits of cloud mining depend on several factors. First of all, as already mentioned, the price of each digital currency plays an important role. But cost for cloud mining also plays an important role. In most cases, this is a fixed amount determined by the contract. The cost depends on the one hand, on the one hand, on the other hand, on the other hand, depending on the duration of the contract and other fees charged by the proposer.

In addition, the fee for transferring or selling discarded coins must be considered by the user. For example, if a discarded coin is transferred from one’s wallet to another wallet or exchange, the transaction fee is usually charged. This means that in addition to pure costs for cloud mining, there may be additional costs that reduce the revenue. When choosing a cloud mining provider, all costs and fees should be transparent.

Original concept of digital currency

The concept of digital currency dates back to 1998. Wei Dai introduced the basic idea through a cyberpunk mailing list. But at that time there were no technical requirements, so the idea was not implemented. In 2008, Satoshi Nakamoto took the idea back and published the concept of digital currency, Bitcoin (‘peer-to-peer electronic cash system’), in a white paper. The system was supposed to work as a ‘person to person’ without intervention by the state or the bank. The result is an innovative bitcoin network (bitcoin protocol) based on coding.

On January 3, 2009, the first bitcoins were created electronically. It was Nakamoto himself who ‘scratched’ the first 50 bitcoins (until now I don’t know if it’s one person or the whole team).

General information about cryptocurrency Bitcoin

Digital currencies are still young, experimental and at the same time very expensive. The latter especially applies to Bitcoin, an undisputed leader in the market. The cryptocurrency has actually started a new era of payments, at least when it comes to Bitcoin supporters. Even innovative and decentralized currencies like Bitcoin had to overcome some obstacles in the past to gain recognition.

To date, Bitcoin has many advocates, but there are also many critics who speak of threats to the financial system. Reason: Both states and banks cannot interfere with transactions that take place on the Bitcoin network. Digital money has been derided in the past, but it has made a notable upward journey especially in recent years. Read regularly in the media. Banks also have no choice but to consider cryptocurrencies as serious competitors to their existing currencies. This is the goal that Bitcoin pursues. In addition to generating new coins, Bitcoin will have to occupy a permanent position in the financial sector in the future, in which the currency is still not a common means of payment. But other countries have already made bitcoins.

Where can I buy Bitcoin?

Bitcoin (and other cryptocurrencies) cannot be “mined” on the network. Investors can also buy from the relevant markets and stock exchanges on the Internet. Depending on the supplier, the coin is purchased by another individual (barter) or purchased directly from the supplier at the current price. Prices are always determined by supply and demand.

Note: Since cryptocurrency is a digital currency, it really only exists as a file. To hold coins, you need a wallet (digital wallet), which is also used as a kind of account for sending and receiving cryptocurrency.

Compare Cloud Mining Providers

Meanwhile, there are some cloud mining providers serving the market in different terms. It is very important that users know in advance what the service provider’s service and related costs are. To get an idea for a provider, we compared different reliable cloud mining providers with services for readers. This includes two well-known companies, HashFlare and Genesis Mining, which have been successful in the market for several years. Both providers accept different crypto mining in addition to Bitcoin. Various contracts with different maturity levels are offered. Customers must go here beforehand. Once the agreement is signed, the selected cloud mining provider starts the implementation and participation in the mining process.