Miners are responsible for solving complex mathematical problems using mining software. This is how a transaction is verified on the network and sent to the blockchain.
Crypto mining is no longer profitable for solo individuals!
Almost 98.8% of the popularly known cloud crypto mining services have all turned out to become scam somehow.
If you are still looking for the best Bitcoin cryptocurrency cloud mining site, please forget it right away, as am going to let you know the reason, why you wouldn’t find any guide on my blog, suggesting or talking about investing in crypto mining.
A company or scammer can claim to be an authority in profitable Bitcoin cryptocurrency mining company, without any proof of owning a physical mining rig and hardware.
Note: Mining any cryptocurrency is not the fast, or smartest way to have Bitcoin in your possession. The best way to get Bitcoin fast, is buying a desired amount of crypto-coin from CoinSwitch. Otherwise, you are definitely up-to loosing your financial investment.
Despite most blog contents online, that always teach you how to invest in crypto cloud mining, I will explain why you should not try to invest in Bitcoin cloud mining for profit making.
Types of cryptocurrency mining
There are two important types of mining on different consensus algorithms, and that is: Proof of Work (PoW) and Proof of Stake (PoS).
Simply put, PoW requires miners to solve problems, which requires a great amount of computational power. On the other hand, PoS distributes shares to miners based on their existing wealth, which requires less energy and is more cost-effective.
How do you mine a cryptocurrency?
Mining crypto-coins is kind of easy somehow, because the steps to get started are:
- Get a specific computer hardware to setup mining rig
- Setup high ventilated cooling systems for the rigs
- Get yourself a secure cryptocurrency wallet (mostly hardware wallet)
- Install a crypto mining software on the computer system (or server)
- Join a mining pool with the crypto mining setup above
What is crypto cloud mining?
Cryptocurrency cloud mining is a process of mining cryptocurrencies by utilizing a remote data-centre with a shared processing computerized power to generate new coins by hash rates.
This type of cloud mining enables users to mine bitcoins, or alternative cryptocurrencies (Altcoins) without having the required hardware physically.
The mining hardwares and rigs are housed and maintained in a facility owned by these crypto cloud mining companies, and the customer simply needs to register and purchase mining contracts or shares.
Since crypto cloud mining is provided as a service, there is generally some cost attached to it, and this can result in lower returns for the cryptocurrency miner.
Can I mine Bitcoin on my Phone?
Yes you can mine Bitcoin on your mobile phone gadget, but be rest assured that you are slowly killing the phone you are using for this kind of cryptocurrency mining.
Why? Because, mobile phones does not have sophisticated components that can stand the intense heat that comes as a result of high processing power for the crypto mining.
While certain cryptocurrencies such as Bitcoin can now only be mined using specialist software, others like Monero can be mined using the CPU in your Android smartphone and with the right app.
Can I mine Bitcoin on my PC?
The truth here is that you can mine bitcoins at home, using any computer you have laying around in a simple and easy process, but the only thing you’re going to need is a high-end laptop (or desktop) that is connected to the internet.
These kind of personal computers are those types that mostly have high amount of graphics memory for gaming, because crypto mining uses both the CPU (Central Processing Unit) and GPU (Graphics Processing Unit) to generate new cryptocurrencies based on hash rates (i.e. mining speed).
Can you mine Bitcoin for free?
Individuals who do not have financial power to acquire the needed hardware to mine cryptos normally join a mining pool, where they use several others Bitcoin transaction pool resources together to solve these miner cryptographic equations.
The only problem is that the reward would be shared equally by everyone who participated in the mining process. Hence, the pay out may not be as large as using your own mining rig.
Crypto mining software vs cloud mining
Mining software is something you download on your computer. It is the software that controls cryptocurrency mining hardware.
This mining hardware connects to the internet through the crypto mining software, so that it can make hashes and communicate with the blockchain network.
Is crypto mining legal?
Yes of course. Cryptocurrency mining is perfectly legal in most countries. However, there are countries where Bitcoin mining and possession of cryptocurrencies are illegal.
On a global scale, with a few exceptions, mining is considered legal in many places.
Best crypto cloud mining companies
There is not much to say on the best Bitcoin cloud mining companies, because personally, i do not recommend buying any cloud mining contracts on any cloud crypto mining site.
However, you can always check back in to see if any legit cloud mining companies have been found, recommended here on this blog.
Can you make money from cloud mining?
Cryptocurrency mining is no longer profitable as it use to be, because the big players have since entered the space with huge number of computers with massive processing powers.
Mining recent, have gone out of the reach of individuals as companies invested in build crypto mining farms, where there is high efficiency in electricity.
To break even after buying cryptocurrency mining hardware these days, takes very long. Sometimes, it is even hard to make profit that is substantial in the long run.
The difficulty in making money through mining of cryptocurrencies like; Bitcoin, Ethereum, Monero etc., have shown that it is not worth it anymore.
Cryptocurrency space at present is highly unpredictable. It has shown moves that caught almost everybody off-guard. Many of the world’s top leaders are divided on whether, or not cryptocurrencies will make the promised impact on traditional finance.
Despite that uncertainty, it would be wrong to say that Bitcoin cryptocurrency mining is dead, considering the report published by Token Insight.
The consistent demand for mining hardware and their supply is also proof that miners are still bullish on generating profits in this industry, but the mining game is no longer in the hands of solo individual miners.
If your aim of investing in mining crypto-coins, is to earn more Bitcoins and/or alternative (Altcoins) cryptocurrencies easily, then you should learn other ways to earn BTC without investment.
There are also other ways to invest in cryptocurrency projects and passively earn cryptocurrency shares and income periodically.
Do not forget to always store your cryptocurrency investment in a secure crypto wallet, to avoid getting lost due to theft or hack.