Christmas is a few short, busy days away! That means that our advent calendar series is running its course… and what a ride that was!
Don’t get sad though, because we saved the best for last. As you have already seen, the topic of tonight’s blog post is cloud mining — a different way to earn regular passive income without using any power-hungry hardware or pricey equipment.
Cloud mining is a logical workaround to a set of a few very real problems in traditional mining, and a quick way for regular users to start collecting some extra funds.
Interested to learn more? Then follow along! Let’s see if cloud mining matches your needs.
Issues of Traditional Crypto Mining
As all things in crypto, mining has evolved gradually.
And while you won’t be able to mine tons of BTC using a flash drive anymore, cloud mining can kick away all ‘ifs’, ‘buts’, and ‘maybes’ that may stop you from trying this gig.
What’s wrong with the old way of doing things?
Traditionally miners had to rely on a homemade doomsday device to carry out large-scale processes. This required some handy work to set up ‘the farm’, some street smarts to get the needed components, and a lot of time to maintain the farm.
If you’re an avid gamer, or tried to become a crypto miner in the past, you might be aware that getting your hands on powerful video cards is a challenge of itself. But even if you got your hands on the needed GPUs, and started heating the entire house with the handmade rig, you could quickly realize that mining can actually burn a hole in your wallet.
Two simple reasons behind it — rising energy prices and falling cryptocurrency prices. A truly deadly combo for those who are not calculating their expenses ahead of time.
Cloud Mining — A Better Way To Make Money?
Now that we have reminded ourselves about the main drawbacks of old school mining, let’s get to reviewing a modern way to earn extra.
Cloud mining is a method of producing cryptocurrency by renting processing resources from a cloud mining service provider. In order to get started and become an honorary member of the mining farm, you first have to decide what type of cloud mining makes more sense to you.
There are two main types to choose from: host mining or renting hash power.
Host mining refers to the purchase or lease of rigs on mining farms. In this case, you may have to pay for the rig’s maintenance and installation. This technology has the advantage of lowering expenses on electricity, and also gives you more control. You may transfer generated hash power to different mining pools to boost your chances of discovering a new block. Finally, you have total control over all obtained money!
And what about the second option?
Unlike host mining, leasing hash power is renting a portion of a mining farm’s hash power. You won’t have to pay any maintenance or setup costs here, but to obtain a percentage of the farm’s profits, you would have to subscribe to a plan. When the farm discovers a new block and receives rewards, the money is split among users based on their share of the hash power.
With both types of cloud mining you don’t need physical space to deploy the rig, and you don’t need to have an in-depth understanding about the inner workings of mining. Seems like a no brainer… But what’s the catch?
Does cloud mining actually give you a fair chance to make some serious gains?
Consider These Risks Before Trying Cloud Mining
You know you’re a certified cryptohead when you start thinking about the reasons not to try something that sounds too good to be true.
Well, as cool as cloud mining can be, it comes with a fair share of risks and reasons to stay away. As you might have guessed, it has a lot to do with humans operating those remote farms. Many cloud mining firms don’t actually exist. Some of them pretend to be mining bitcoin on your behalf, but actually just take your money and show you some tasty numbers on the screen.
Some firms operate in complete secrecy, making it difficult to establish who actually controls the platform. Lack of transparency in some places makes it hard to hold anyone accountable, and that is something miners would like to do if things ‘go western’. Or when their plan subscription costs more than they got in return.
To put it shortly, cloud mining can be nothing else but a bag of ‘magic beans’, since you’re depending on someone else to mine cryptocurrencies, without a real possibility to check if they have the required hardware to run the process. So it’s a matter of choice… What’s best for you — choosing the place with strong reputation and solid customer support and then waiting for a successful cloud mining pool to generate money, or do everything yourself?
The answer will vary depending on your level of experience. But if you’re approaching cloud mining correctly, the game is certainly worth the candles. The Advent Calendar Series are coming to the end, but Kaizen.Finance never stops.
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