Cloud Mining vs Hardware Mining. What Is Better?
Modern crypt space allows not only to entertain and receive a wide variety of knowledge, but also to earn Bitcoins on your computer. Extraction of bitcoins is available to everyone, if only you have a computer. This requires specific knowledge, a kind of mining instruction. Everyone can choose for themselves the best option for mining Bitcoins.
How Does Bitcoin Mining Work?
The word “mining” means “extraction of minerals” and came from the analogy with the gold mining. The more network devices are engaged in mining, the better Bitcoin network is protected from attacks. Owners or operators of such devices are called “miners”. Also, “miner” is the computing device necessary for computing in the Bitcoin network.
Mining is the process of computing the cryptographic signature of a block. A block is an array of data, in which information about transactions that are caught in the network after the creation of the previous block is recorded. Each new block includes a cryptographic signature, formed on the basis of the previous transactions. So the blocks adhere to each other, forming a blockchain.
Thanks to the mathematical theorem from the field of cryptography, which is called Proof-of-Work, the calculation of the block depends on such a programmed parameter as difficulty.
The network participant, who provided the calculation of the cryptographic signature of the block, receives a fee in Bitcoin.
Cloud Mining vs Hardware Mining: Which One Is Better?
Before starting, any person who wants mine Bitcoins should think which type to choose: cloud mining or hardware mining. Before starting, you should carefully learn “cloud mining vs ASIC mining” in order to make the right choice. Your decision influences your earnings and losses.
Hardware Mining: Clue Facts And Principles
Mine bitcoins is the first and only way to extract cryptocurrency. It is unique.
So, how to mine cryptocurrencies with a hardware? The method of earning any cryptocurrency consists in using a personal computer, and its power resources. It works in a rather simple way, the PC must solve mathematical problems, and when the so-called block is found, the miner will receive a reward. To solve the problem, the capacities of video-card is used that’s why this type of mining requires really powerful hardware.
For one block, you can get 12.5 coins maximum, but this is quite a good sum, considering the cost of one Bitcoin. As a result, miners are able to earn an impressive amount of real money. But here the seeker of the solutions, wishing to know how to earn the Bitcoins with the help of a video card, expects the main catch. Modern tasks can be solved only by the newest specialized computers, the cost of which can be up to several thousand dollars. The usual PC cannot cope with the search of a hash. In addition, several hundred of the miners are probably doing Bitcoin mining right at the same moment, solving the same problem. And there is no guarantee that the hash will be yours.
How Does Cloud Mining Work?
The attractiveness of this type of mining is that the miners do not need to purchase the equipment. The question is how to mine Bitcoins in this case? Miner is only investing in ransom or renting the necessary facilities. What is needed for cryptocurrency mining without GPU? The following algorithm describes the typical mining process:
- find a suitable site allowing you to earn Bitcoins or other currencies;
- register there to deposit the necessary amount of cryptocurrency into your account;
- purchase as much power as you can afford;
- start earning Bitcoins or any other cryptocurrency.
In this case, the bitcoins will be mined by you along with other miners. The prize is divided among all in consideration of the invested funds. Of course, considering the way of earning the crypto currency, the profit will be much less than the algorithms of classical mining allow, but the chance of winning will be higher.
Cloud Mining Services: How to Choose the Right One?
There are sites that allow earning cryptocurrency with or without investing your own funds. List of services of cloud mining with a good reputation are given below, so you can find the most suitable and reliable one. Each of the given sites will let you earn cryptocurrency as soon as possible.
Genesis Mining is a cloud mining company providing services of mining Bitcoin, Litecoin, Ethereum, Dash, Monero, Zcash. In addition, it is one of the largest companies in this business, which works flawlessly, reviews about which are the most positive. Genesis Mining is a good choice for those who look for a reliable service of the cloud mining. All contracts for the purchase of crypto mining capacities not limited in time. Now there are 3 places where physical capacities of Bitcoin mining are located in Europe, Asia and America.
Eobot is a full-fledged pool, and at the same time, it’s a cloud-mining service. The American project, which was launched in 2013.
Eobot is a simple and convenient way to earn cryptocurrencies without investing your own funds. Eobot provides a traditional kind of mining with the help of its computer: the program can be downloaded in your personal account. Of course, today there are a lot of similar cloud services, and many trusted reliable pools, but for beginner miners — this is the most convenient and understandable service, which makes it possible to understand how to earn on fluctuations in rates of cryptocurrency.
The undoubted advantage of this project is that the contracts for these algorithms are unlimited. Thus, they give a high guarantee of payback. HashFlare offers SHA-256, Scrypt, ETHASH, EQUIHAS and X11 cloud mining contracts for 1 year with automatic payouts and minimal maintenance fees. Ethereum, Zcash and Dash mining contracts have not additional fees at all. The service has earned the trust of thousands of customers due to its loyal and honest politics.
NiceHash allows you to work with a large number of cryptocurrencies and offers more than three dozen algorithms for the production of tokens. NiceHash Miner, whose configuration is fairly simple, supports all the mining pools that meet the requirements of the stratum protocol and can handle significant capacity.
NiceHash provides a convenient system of payments without any hidden commissions. The withdrawal of the earned money is carried out automatically, as soon as a certain threshold is reached. The earned bitcoins can be exchanged for real money with the help of exchangers.
Cloud mining is the only working way to get a cryptocurrency and minimize its risks with such an investment. This is a modern solution for users who are confident in the stability of the chosen payment method and are not going to do the assembly of the farm and the services of a noisy installation. In fact, bitcoin mining sites are such an analogue of investing in stocks, but with much more favorable forecasts regarding their prices. Given the general tendencies in the bitcoin market, your contract with a huge share of probability will be very profitable — a considerable number of them double the amount invested.