Introduction to Cryptocurrency Mining - Part 2 || Cloud Mining
Thanks to Steemit for the benevolent opportunity to learn and grow, also thanks to every professor that has made this school a great experience for us all. In this post, I will be submitting my assignment on cloud mining, given by @besticofinder. Before I get into cloud mining in detail, let me explain what cryptocurrency mining generally is.
Cryptocurrency Mining
Cryptocurrency mining is the solving of cryptographic arithmetics in other to validate a transaction in a block to a public record where it is immutable. This is called the blockchain.
Mining especially Bitcoin requires a lot of capital, sophisticated machines, and high energy which makes it very difficult for everyone to be a part of it but then, cloud mining/pool mining makes it possible.
Cloud Mining
The ability to mine using rented cloud resources from other people is known as cloud mining. Actually, with cloud mining, you pay for a subscription and get hash power which is leased within a certain period of time, and profit is made while mining in a pool but remotely. Each participant in a cloud mining pool earns profit from what is made in the pool in ratio to whatever is invested into the pool.
What are the best cloud mining platforms?
There are several cloud mining platforms to help regular cloud miners get access to mining, among them are Genesis cloud mining, Hashflare, and so on. For this post, I will be writing on hashflare and Genesis mining.
Hashflare
Hashflare is a cloud mining pool where cloud miners get to mine Bitcoin and other altcoins without leaving their home to a mining farm. Owned by Hashcoins and founded in 2015, it has been a leading cloud mining platform for miners and crypto enthusiasts alike. Hashflare gives access to use different pools, fixed fees, immediate withdrawals, and instant mining after purchasing hash power. source
Genesis Mining
This is one of the oldest cloud mining platforms in the cryptocurrency industry. Founded in 2013 gives it a bigger advantage compared to others, and it is still delivering results to date. To start mining with Genesis mining, all a person has to do is Register on the website, and create an account, fund the accunt with Bitcoin, Paypal, Credit card, Wire transfer, Choose a mining plan. Coins that can be mined includes Bitcoin, Ethereum, ZCash, Monero, Dash, and Litecoin.
Advantagesof Cloud Mining
- Mining can be done instantly,
- Easy to set up.
- No need for a mining rig
- No hardware required, no software required.
Disadvantages of Cloud Mining
- Reward is low
- Could fall victim of scam
- It is centralized and earnings cannot be determined.