What is Cloud Mining

If you want to start mining, but you want to avoid the headache associated with the management of your equipment, you can always use cloudmining.

Simply speaking, Cloudmining means hiring someone's computing power. All you need is normal home computers.

Benefits of CloudMining:

Silence and cool House - There is no need to have coolers on at home.

There is no additional electricity expense.

When mining isn't profitable any more, you don't have to get rid of the device, you just stop paying rent.

You avoid the problems related to the ventilation system.

There is less chance that the manufacturer of the technique (computers) will spare you.

Disadvantages of Cloud mining:

Fraud risk

Unidentified mining operations.

It's less fun (if you like the hardware set-up and management process).

It is also less profitable - since you have to pay taxes to the Data Center.

Lack of control and flexibility.

Types of cloud mining

Host Provider - You hire technique which is hosted by provider.

Virtual Host Manager - You create a virtual server where you can install your own program. The technique itself is physically different.

Rented Hash Power - the most popular choice. You do not own any physical or virtual computer, you only hire power provider.

Risk vs. Award

When we talk about mining cryptocurrencies, it is important to remember the risks associated with it, but profitability is possible if you make the right decisions.

You will see while testing, that usually the first few months of mining are profitable, but as soon as the difficulty increases, it loses sense. Typically, Cloud Mining profitability lasts 4-6 months. One of the ways to extend profitability is to reinvest the amount received and increase the capacity this way, but it is obviously related to certain risks.

In spite of the risks described above, the greatest risk for Cloud Mining is fraud and mismanagement (from the provider). Consequently, investing in Cloud mining is only possible if you know these risks and are ready to take them. That is why it is said - never make more investment than you can give yourself to lose.

Just like any other types of investment, it is necessary to evaluate the situation well. To evaluate the provider, you need to read various information about their credibility in the forums, to find information on social networking and contact with people who have experience in cooperation with these providers.

This article does not aim to advertise Cloud mining or vice versa. We want our readers to analyze the risks, advantages and make the optimal decision based on their own needs.

Thanks for looking in,

@crypto-z / www.cryptoz.ge