Cloud mining is a mining process that uses shared processing power running from a data center. This method is much easier than building your own mining rig .
In Cloud mining we rent Hash power provided
by the provider. We don’t need a host or space like a website to host
mining software
For example, if the provider has devices with a total
of 10 Tera Hash, then a cloud mining rental offer will be opened. If all
hashes are sold out, the user must wait for the availability of the next
device.
For cloud mining, usually only a computer or laptop is
needed at home to access cloud mining, certain settings and entering the wallet address that we have.
There are various advantages of cloud mining, here is
a list.
Advantages of Cloud Mining
More Conducive
Situation
Cloud mining definitely doesn’t make the room noisy,
not a single rig standing at home. Everything is controlled remotely with
just a computer.
Cheaper Electric
Expenses
Reducing the electrical load at home, because mining
requires large electrical power. So it is not suitable if it is built at
home electricity rates.
No Need to Worry
about Broken
No need to worry about hardware damage or
replacement. Because everything has been provided by cloud mining service
providers.
We are free to do activities outside the home without
having to think about the condition of the mining rig. No need to worry
about network constraints and frequent power outages.
Cloud Mining Disadvantages
The advantages of cloud mining are tempting, but it is
also necessary to note the disadvantages of this system.
What needs to be questioned, when a service provider
endlessly offers cloud mining.
This is what is sometimes still blurry, there is no
clarity where the mining location is.
And one thing to remember, the devices and sources of
electricity used are quite large in cloud mining development.
Don’t rush with the calculation of cloud mining
profits, there are many cases of scam or fraud out there.
The following problems are most often experienced by
crypto miners when hiring cloud mining:
- Most
often experience fraud or scams, where the web host is
unclear and mining operations are opaque.
- Of
course the profit in mining coins is less or lower than building your own
mining rig. Because some of the profits will be deducted from daily
bills which include maintenance costs and electricity expenses.
- Cloud
mining contracts can suddenly be terminated due to inappropriate bitcoin prices. It all
depends on the market price of bitcoin, too low a value is unlikely to
cover operational costs.
How to Determine Cloud Mining Risks
How to determine the risk of cloud mining, is a
website a fraud or a scam? In theory, cloud mining generates profits no
faster than building your own mining rig.
For example, cloud mining calculations at Eobot are
the fastest to generate profit over 3 years. Calculations are assumed with
the current level of difficulty and bitcoin exchange rate.
If there is a cloud mining provider that offers much
faster profits, you need to question the system. Is it a scam, HYIP, or
maybe it’s a multi-level system. Most ordinary people are
trapped on the lucrative side, after the investment they get is just the
opposite.
Is Cloud Mining Profitable?
Yes, it can be profitable, but funds must be spent
first to pay for cloud mining services. The profit you get will really
depend on the strength of the miner used by the pool miner, if you have good
specifications then there is a possibility that it will generate high returns.
Even though you have the possibility of profit, you still have to be prepared if you experience losses because mining results and miner income often depend on the level of difficulty and fluctuating crypto prices.
Cloud mining is a way to mine more easily without the
need to understand too much about the mining process itself, but it’s important
to pay attention to all the risks involved in this method, because not all
cloud mining service providers are of high quality.