In this text, we will discuss how to rent bitcoin mining. To answer the question of what cloud mining is, let’s first recall what we mean by the word mining. This is the process of mining blocks in the cryptocurrency network, for which the participants in the process – miners – are rewarded in the form of coins. Earlier, we compiled a complete guide that details all the nuances of mining digital assets. This service is good for crypto mining rental.
You can mine coins on your equipment. This requires powerful processors, video cards, or special devices – ASICs. They provide computing power called hash rate.
The choice of equipment, as a rule, depends on the characteristics of the coin that the miner is going to mine. For example, bitcoin (BTC) is most often mined using ASICs and video cards, which, to increase power, are combined into special structures – farms.
How much can you earn on cloud mining? Everyone who decides to invest is worried about when the investment will pay off. In 2021, the relevance of traditional mining is dying out. Nowadays, alternative schemes for the extraction of crypto assets are popular, which allow minimizing risks and increasing potential profits. How do you know if cloud mining is profitable?
Now almost every cloud mining site has a profitability calculator that allows you to make detailed calculations of potential profitability. It is important to understand that you cannot calculate the exact amount that you will eventually put in your pocket.
Cloud mining, like any investment, is a high-risk activity, the result of which depends on many factors. But these risks can be minimized if:
- invest in cloud mining only those funds that you can afford to lose;
- conduct a detailed analysis of the company you plan to work with, choose a reliable and proven one;
- diversify investments by concluding cloud contracts for the production of different currencies, or choose a service that allows you to switch from one currency to another without reducing the hash rate of the main coin.
Before deciding to make money on cloud mining, study the pros and cons of this model of online earnings and determine the budget that you are ready to allocate for it. This is good to rent mining power.
Advantages of rent Bitcoin mining
In this chapter, we will look at all the main advantages of how to rent Bitcoin mining. This chapter will be useful so that you can choose whether to use the lease or buy your own. Further information about how to rent mining rig and how it will be presented.
Types of services by the principle of operation of such services is usually the same – providing a hash rate to the user, but there are still minor differences in the provision of this service.
- Hosting – you rent the power of the equipment installed on the territory of the company with which you conclude the contract. This method is good for mining rig rentals. You can rent Bitcoin miners.
- Shared hosting – the principle is about the same, only you buy a virtual server for the time specified in the contract, for which you can install any software and, accordingly, extract the currency of interest to you.
- Power rental – you get the speed of the equipment. You do not have access to hardware or software, you only benefit from the performance of this equipment.
Almost all major services use the “power lease” operating model. Among the advantages of this type of mining is the ability to earn even with small investments, save electricity, as well as costs for maintenance and placement of equipment before you invest money, the ability to mine several coins at once without losing power.
As noted by many users, the profitability of cloud mining is higher than that of physical mining. And also some companies use referral programs, users get a reward for getting new customers.
- All worries about the selection, installation, and maintenance of equipment are taken by the company providing cloud mining services.
- High-income level. Due to the lower amount of the initial payment, the investment pays off within a few months and brings profit from 200% to 400% per year. A farm in a cloud service has a much higher capacity than a self-assembled one, therefore, it guarantees a high income.
- Uninterrupted operation of equipment, electrical network, and Internet connections. Cloud mining users have access to a potential profit calculator that allows them to calculate the future income from mining each currency and choose the most profitable contract.
- Users can purchase capacities for the production of several cryptocurrencies, and protect themselves from the fall of one of the coins, minimizing the risks as much as possible.
- It is best to invest in two or three cryptocurrencies at the same time.
- Many cloud mining services allow you to convert mined altcoins to Bitcoin.
- Cooperating with numerous companies at the same time, you can constantly find the most profitable offers and automate bitcoins.
- Multilevel referral programs. Inviting a new customer to the service offers many bonuses – getting a certain amount for each new user, or a percentage of his profit. An easy way to scale without taking a lot of time, effort, and money.
Advantages of ASIC miner hosting
Let’s discuss the advantages of ASIC bitcoin mining hosting:
Practical form factor
ASIC miners are much more compact than GPU rigs. They are specifically designed for extracting certain coins while showing excellent results.
Ease of use and monitoring
Manufacturers sell out-of-the-box miners. Here, you don’t have to worry your head with bios, utilities, and firmware. The only thing you need to do is to often pay attention to the presence of a power supply that comes with the device. It is also possible to constantly monitor the state.
Relatively cheap and remote access
Asiki does not cost three kopeks, but there are advantages. First, you do not need to buy additional hard drives, processors, and motherboards to make the device work. This at least saves us time and effort. Secondly, you can save a lot if you order in advance. For example, they charged $11,999 for the May batch of Antminer X3 and $7,599 for the June batch. It also allows you to interact with the thing remotely, which is a definite plus.
High return on investment
The price difference of Antminer X3 is explained by its high return on investment – especially at the beginning of the sale. For example, Antminer A3 for Blake algorithm brought $500 to owners in the early days. The model paid for itself in five days. With each new machine in the network, the profitability became smaller, but still. Owners of graphics cards can only dream of such figures.
ASIC miners accumulate too much mining power in the same hands, creating risks for the decentralization of the network. For this reason, Monero developers will make two hard forks per year. Ethereum’s creators are starting to think about this as well.