How to choose cloud mining company?
Mining, in a simplified way, is a process where a user leases the power of their computing machines to maintain a decentralized coin network. On the technical side of the issue, cryptocurrency is extracted using calculations of unique sequences (blockchain). Miners need to calculate the hash, which includes part of the previous block of the network, a random number and the amount of hashes for the last couple of minutes. In this formula, the machines constantly pick up a random number until the specified parameter is fully consistent with the requirements of the blockchain, and the block is considered calculated. For the fact that the block is calculated, the miner gets a reward. After the process will begin again.
On what algorithm the calculation process takes place, it will depend on what cryptocurrency we receive as a reward. Each time this process becomes more complicated, and to calculate a new block of the network takes more time and computing resources.
Cloud mining is a reverse process when a user leases computing power from a company that is engaged in mining. The whole essence of the process is as follows: the company in large volumes buys equipment for mining, makes adjustments, is engaged in providing, maintains it in working order and provides it for use by its customers. But the company leases not a specific machine, but the conditional speed of calculating blocks or hash speed. Leased, the calculation speed can be increased at any time. So any user of the service is able to extract cryptocurrency without purchasing specialized equipment.
Comparison of cloud mining with physical mining.
One of the differences between cloud mining and physical mining is the low entry threshold. The Deposit for the purchase of the minimum capacity is much cheaper than buying and collecting even the most modest farm. There is also no cost of setting up and maintenance of mining equipment. There is no need to spend electricity for computing devices.
Companies that provide such services are usually located in large data centers. Provide farm professional level. Use commercial networks rather than ensure continuity in the work. Serve these farms are highly qualified specialists. Unlike those farms that create Amateurs at home, where you have to rely on your own experience.
Also significant advantage of a cloud service is that you can rent computing power for mining various cryptocurrencies at once, and it is implemented much easier than manually reconfigure your farm to mining other coins.
It is necessary to understand that such companies do not earn on mining, namely on leasing their equipment. They are interested in providing as much computing power as possible to customers. The more computing power, the more likely it is to calculate the network block and get more cryptocurrency. Due to the fact that the company will produce more cryptocurrency, customers will earn more. Therefore, in order to provide the company with the highest possible quality work of its equipment for the greater benefit of customers.
The main risk associated with cloud mining is the fact that the provider, which provides its capacity for lease, may be dishonorable. The project of such a company may be a bench, which has only the site of the equipment, and after the collection of funds they disappear with the collected funds. Some providers can forge reports from mining returns to pay less to their customers. There may also be cases when the withdrawal is delayed, citing the fact that the order of payments is based on the size of the Deposit. These providers can often change the terms of the contract, reducing the duration of the contract, without notice.
Also unscrupulous provider can be identified on the following grounds:
- the promise of ultra-high-yield
- big payout for a referral link
- there is no reference to a real business, only cloud mining
- do not provide materials confirming their capacity (photos, videos).
Basic requirements for service providers.
Before choosing a cloud mining service, it is necessary to determine the criteria of decent companies to reduce the risk of the project bench and the loss of their funds.
These requirements include:
- Availability of real equipment.
- The company must be a long time in the market
- To make regular payments
- Provide a choice of cryptocurrencies for mining
Taking into account these requirements and carefully studying all the reviews on the thematic sites about the projects of interest to us, you can proceed to the choice of the provider.
Cloud mining in 2018. An overview of the services.
After reviewing numerous reviews and ratings, we can say that market leaders, at the moment, are hashcoins datacenter and Genesis Mining. Let’s take a closer look at these services.
Cloud mining reviews
Hashflare cloud mining
Hashflare is a subsidiary of the company HashCoins. The company which since 2013 makes the equipment for a mining. Hashflare cloud mining has about 450 thousand customers around the world. Hashcoins develops software for the cloud of mining equipment and caters to data centers. Provider offers mining using several bullets. The capacity is bought for a year, but it is possible to increase at any time. Hashflare provide their clients with one of the best prices in the market.
To get started, you need to register and already have open bitcoin wallets for profit. How to open such wallets we have already considered in the article – how to create a bitcoin wallet: an extended guide. Methods of buying bitcoin.
The registration procedure is standard. Go to the official website, click the registration button and fill out the form. Receive an e-mail to confirm registration.
The company offers four types of algorithms:
- SHA-256-the most popular cryptocurrency Bitcoin works on this algorithm.
- Scrypt — lies at the core of the coin Litecoin.
- Ethash-the algorithm used in Ethereum.
- Equihash — provides the zcash for cryptocurrency.
Algorithm and as it to allocate capacity, you should choose after reviewing the trends and feedback on the discussion forums. It is necessary to determine which of them will now be more effective to make a profit. Such resources could be, for example, blockchain.info or btc.com that provide accurate and up-to-date information about the current performance of pools that use the SHA-256 algorithm.
For those who use power pools Ethash, recommended site etherchain.org. Prediction algorithms based on Scrypt implements the resource litecoinpool.org.
Once the user has selected the tariff and decided on the algorithm, it is necessary to proceed to the selection of hashrate power.
It should be noted that in order to withdraw funds from all types of cryptocurrencies, the service there is a minimum withdrawal amount:
- Scrypt and SHA-256 are displayed in Bitcoin (BTC) – from 0.050028 BTC;
- ETHash is paid in Ethereum (ETH) – from 0.1006 ETH;
- ZEC displayed since 0.10003 ZEC.
At the same time, the most extreme figures in all cases are the Commission that is allocated for the blockchain.
The power that the service offers, according to the proposed algorithms, is almost always available. Prices are one of the most profitable on the market. They have been engaged in their activities for about four years, which is a serious period of time for this industry. They are a subsidiary of the company, which is directly related to the physical mining.
Genesis cloud Mining
Genesis Mining company was founded in 2013. Genesis Mining owns one of the largest Ethereum mining farms (Enigma). The company shows complete openness. The site contains the real address of the office and the date of the center. Genesis Mining indicates that everyone can visit them and see the work in the live.
Genesis Mining offers mining of the following cryptocurrencies: Bitcoin, Dash, Ethereum, Litecoin, Monero, Zcash. You can get acquainted with the full tariff grid for each cryptocurrency in the appropriate section on the official website.
Registration and purchase of capacities.
To get started, the user needs to go through a simple registration. In the upper right part of the site click register and fill out the form below.
After the amount accumulates on the accounts above the minimum threshold, the funds can be withdrawn to the cryptographic pins specified in the personal account.
The minimum withdrawal threshold is as follows:
- Bitcoin 0.005 BTC
- Ethereum ETH 0.075
- BitcoinGold 0.01 BTG
Payments can be made in your account, are in the same section.
The company draws attention that at the moment, the waiting time for processing of the withdrawal request is more than 72 hours.
Genesis Mining, like its predecessor, is a fairly experienced company in the crypto market that offers cloud mining. It is directly related to physical mining, as it is the owner of one of the largest Etherium mining farms. The disadvantages can be attributed only to the constant lack of buying capacity on all cryptocurrencies for new customers. But on the other hand, this fact suggests that the company does not draw its indicators out of thin air. Another positive side is the abundance of crypto-currencies for production, again, when there are available free capacity.
In conclusion, I would like to add that, as if advertising on the Internet, did not indicate that cloud mining is completely passive earnings. Since the profit here depends on the exchange rate. It will be a very rash move just to invest in any algorithm and forget about them for six months. It is necessary to constantly monitor changes in cryptocurrency rates and the effectiveness of the selected pools. To calculate the analysis, use the profitability calculators. Pay attention to the growing complexity of calculating the hash on the selected coins. And to do this at regular intervals, as the situation on the market changes every day.