After the Bitcoin exchange rate surge, Cloud Mining technology has become one of the keywords related to Bitcoin that users are “hunting”. So what is Cloud Mining? And related information about Cloud Mining will be revealed and shared in the below article.
Cloud Mining is a term combined from Cloud meaning “cloud” and Mining referred to by Crypto experts as “coin mining”. Established since 2017, it is rated by users as an efficient coin mining technology.
Cloud Mining
This technology has been developed to support investors with less experience but wish to operate in the Crypto field. These investors will connect and sign contracts related to coin mining with Cloud Mining service providers. Cloud Mining providers will support the entire coin mining process using their machines. Meanwhile, investors’ task is to pay to upgrade the coin mining speed (Hash Power).
According to the above sharing, users need to buy Hash Power to use Cloud Mining services. Therefore, providers rely on the Hash Power exchange rate to calculate services and assess investment levels with users. As a result, Cloud Mining is divided into 2 types: Investment Cloud Mining and Software Cloud Mining.
- Investment Cloud Mining: This is a traditional form of Cloud Mining with a high safety level. Because many coin mining sites are owned by reputable companies with large capital worldwide. Additionally, these providers use dedicated coin mining machines and tend to develop strongly and stably in highly volatile fields like Crypto. However, there are direct risks affecting these companies. Therefore, to increase safety, providers will allow investors to join their system with some profit-sharing bonus.
- Software Cloud Mining: This platform is rated as quite user-friendly with high optimization capabilities. Both experts and newcomers can use it. However, users need to keep their machines online regularly, and nowadays many platforms use different criteria, making Cloud Mining lose credibility in users’ eyes.
Regardless of the form, when using, both users and service providers must sign a contract. The contract duration can last from 6-36 months or more, depending on the parties.
Advantages:
- A major advantage is that users do not have to buy and run their own coin mining systems. They only need to use this technology indirectly.
- Without using mining machines, users also do not have to pay costs such as electricity fees, machine wear and tear, Internet costs, etc.
- They do not need to prepare a large space to place machines.
- No need to find outlets for the mined coins.
- This helps investors save maximum time and money. The user’s task is just to pay a certain capital to buy this coin mining service.
Disadvantages
- Users do not participate or control the entire coin mining process.
- The earned money will not be as high as direct mining because investors will have to pay a part of their profit to the service.
- Before using the service, users must sign a contract and pay for the service in advance. Meanwhile, users will not own any assets except the signed contract.
- The safety level is also not high. Because users can be easily deceived by the provider due to loose legal issues. This scam situation occurs quite often. Therefore, I will share some reputable and safe coin mining service companies below.
With the above evaluations, do you think mining coins with Cloud Mining is safer than traditional mining? I don’t think so! Because each type has its own advantages and disadvantages, safety and risks. So, for effective investment in this coin mining task, users need to learn more deeply to make truly sound and certain decisions.
After sharing knowledge and evaluations about Cloud Mining, I will now introduce some companies and software that provide safe and reputable Cloud Mining services to users.
– Hashflare Company: This is one of the companies in this field highly rated by users. Hashflare specializes in providing coin mining machine rental services integrated with coin mining technology.
– Genesis Mining Company: This is a quite large coin mining service provider worldwide. Highly rated for reasonable service pricing and proper, comprehensive liquidity for investors. However, transaction speed and liquidity are still slow and not fully optimized.
– Hashing 24 Company: Founded in the early 2010s in Georgia, Iceland. With many years of experience in coin mining, Hashing24 is recognized as a reputable Cloud Mining service provider.
– Minex: Minex is considered a support tool for blockchain projects. Helping investors create a support system across different user interface platforms like casinos, lotteries, clouds, etc.
– Minergate: Considered a type of Cloud Mining software. But it is a reputable and safe platform because it can mine coins simultaneously on CPU and GPU hardware.
In summary, Cloud Mining is an modern and smart coin mining technology. However, to use it effectively, users need to thoroughly understand the providers and surrounding information about Cloud Mining. I hope this article will help users understand more details related to this field. Wishing you safe and successful investments.
More: Proof of Stake
