Crytpo Academy Week 5 Homework Post for [@besticofinder]

Hello everyone,

Here is the week 5 homework in crytpo academy by @besticofinder about cloud mining.

He has given us three questions in his topc!

1. What is Cloud Mining?

2. What is the best cloud mining plateforms?

3. Discuss the Advantages and Disadvantages of cloud mining?

1. What is cloud mining?

Cloud mining means a process of cryptocurrency mining by using a remote datacenter with shared processing power.
It also means to mine bitcoin or cryptocurrency without any hardware equipments.

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Mining rigs are used in houses to mine cryptocurrencies owned by the companies or customers whereas cloud mining is a service provided.

Cloud mining operations are mining farms, data centers associated with mining, that sell or rent hashing power to cryptocurrency miners. The summary of the service is that a third party hosts the mining equipment and provides access to the rewards associated with the equipment.

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Cloud mining has many advantages and disadvantages. On the one hand, the consumer must trust the cloud provider in a place full of scams and fraud. The user has no control over the device or how it is used.

Benefits Of course, you don't have to fill your home with computer equipment, you do not need to deal with noise, heat, power consumption, mining equipment etc. Basically, you work outersource.

Pool Mining versus Cloud Mining!

So what is the difference between pool mining and cloud mining? In both cases, you are working with third party;

With pool mining, you need your own mining rigs and by using pool softwares you contribute to the processing power of your mining rigs in the mining process. You will need to deal with the purchase and management of equipment, operation of equipment, cooling equipment, maintenance and operation of a strong Internet connection.

With cloud mining, you are primarily an investor in the mining process. What you provide is money. Cloud mining companies enroll thousands of people to invest in the operation and withdraw a portion of the profits. All you have to do is find a known cloud mining process (be careful!), Send them money, and run their day-to-day business while they take care of everything.

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Advantages of cloud mining:

The Pros and Cons of Cloud Mining
In cloud mining, you don't want to keep my blocks (you have to share them) You have to pay a fee to the cloud mining company (but think about all the hassles you avoid) and, as with group mining, the concentration of power here is very low .۔

You can also find it difficult to switch, as some cloud offerings require a long-term commitment. You can't jump fast. Also, at this point, if mining a particular cryptocurrency becomes unprofitable, the trader can cancel the contract.

In short,
In cloud mining, you basically finance a portion of the mining operations and cloud miners do the rest. In fact, you are an investor in the operation as well.

Some companies offer hash rate deals. You buy a fixed hash-rate for a fixed period of the time and then receive a proportional profit based on the percentage of total cloud mining operations that you have financed.

Genesis Cloud Mining.

Genesis Mining sells hash-rate packages. Dash starts at 5000 mH / s for two years, but it can also mine Bitcoin, Ethereum, Monero, ZCash and Litecoin only.

One of the great advantages of these services is that they are completely closed: there is no equipment to buy or manage, there is no need of room, there is no noise in the equipment, there is no heat to deal with. The cloud mining service solves these problems for you in a easy way.

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Disadvantages of Cloud Mining.

However, cloud mining can also be a bit risky. The professionals of many contracted drugs are not profitable and the buyers of these services can, in some cases, lose money in the long term. Consumers may only be better off buying cryptocurrencies that they contract for mining.

Other risks include scams. A common risk in cryptocurrency mining circles is that you have not any control over the keys and not your currency.

The following services are among the best trusted cloud mining operators. However, arbitrators beware, buyers need to be careful. For all services, you have to work hard, find out what the community is saying about them, and make sure they are trustworthy and right.

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Here is the best plateforms for cloud mining:

1. Birth mining
2. Hash nest
3. Back deer
4. Silence burst

This list is short because many experienced miners are comfortable with only a few cryptocurrency cloud mining providers as many others are unreliable and do not offer the services that these plateforms offer.

However, this does not mean that past services always provide lucrative mining contracts. It simply means that they actually deliver the services that they offer and that they deliver the advertised hash-rates for the promised period. But that does not mean that it is always profitable.

The profitability of cloud mining contracts varies widely between services.

Also note that there is an overlap between pool mining and cloud mining. Some ponds will not only use their hashing power, but will also sell it. For instance, once you set up your account with Honey Minor, Pool will try to sell you more hashing power.

In effect, you are connecting your processors to the group node, but you are also providing the group with cash to buy more computing power, which they will organize for you.

Cloud mining is the only option available to credit coin miners. Always do your research before embarking on any cryptocurrency mining attempt to acoid fraud and risk.

Thanks:
@besticofinder

Cc:
@steemcurator01
@steemcurator02

Best Regards:
@azamrai