Cloud Mining, Another Mining Alternative
Cloud Mining, Another Crypto Mining Alternative
Many people do not have the budget to get right into a mining operation; they don’t have the funds to purchase miners (GPU or ASIC), rigs and other supplies. There is an alternative to purchasing miners which is cloud mining.
Three Forms of Cloud Mining
- Hosted Mining
- Leasing a machine that is hosted by the company
- Virtual Hosted Mining
- Creating a private virtual server where you install your own mining software
- Hash Power Leasing – The Most popular method based on the current market
Looking at the Positives and Negatives of Cloud Mining
- Cost compared to starting your own mining farm is lower
- Supplies are purchased and managed by the company and not you
- No supplies to sell once you stop mining
- No renovation at home or hosting location to ventilate the operation
- Potential for fraud
- Unable to control the miners
- Mining operations can shut down with drops in the price of cryptocurrency
- Low profitability
Why Do People Still Cloud Mine?
The main reason is expertise! Most people who get into crypto mining do not want to spend a huge amount of time to learn how to set up and host their own mining operation. Most individuals rather get into crypto as soon as possible. With the learning process of setting up a mining operation, they could already be profiting from cloud mining.
What individuals should consider is that they should just invest in a GPU rig or ASIC miners instead of cloud mining. Cloud mining is too risky and returns are too low compared to GPU and ASIC miners. The learning curve is steep but the long-term return is worth the time spent.
Another option is to have companies such as MiningSky host your miners for you. Instead of cloud mining where you do not own the miners, you can purchase your own miners and have a company host and optimize the miners for you.