Steemit Crypto Academy | Introduction to Cryptocurrency Mining Part 2 | Homework task 5 for @besticofinder

Hello friends !!

Today I'm going to make my Steemit Crypto Academy Homework task by professor @besticofinder, Lesson 5 that Introduction to Cryptocurrency Mining Part 2. A very valuable learning. I am very interested in participating in this homework task 5. it's time to do it...

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1. What is Cloud Mining?

Cloud Mining is a mechanism that is used to process cryptocurrency mining remotely using the large computing power available by companies that provide this useful service. This service provider company allows all cryptocurrency miners to become participants who want to save costs and make work easier. Almost all mining processes are handled by cloud mining service providers in the presence of valid contracts.

Cloud mining service providers aim to help cryptocurrency miners around the world by expecting a fair reward. Of course, the company has spent a lot of capital to buy and supply all the machinery and equipment it needs. This is a symbiosis of mutualism, where the miners and service providers will both get a decent profit. By having a large hash power provided, it is hoped that the benefits obtained will be faster and bigger than doing everything yourself.

2. What are The Best Cloud Mining Platforms ?

- Eobot

Eobot is one of the oldest cloud service providers. The owner of the cloud mining service keeps the identity of the company safe as there is no description whatsoever on the company website. This platform offers short lease contracts. This platform is known for having expensive contracts due to high maintenance costs and frequent changes.

- Hashing24

Hashing24 is a provider of cloud mining contracts created by professionals for individuals both beginners and experts in the mining world. This platform provides long contracts to users and emphasizes the world that has high quality service. This platform has the unique feature of actually selling newly minted cryptocurrency.

- NiceHash

NiceHash is one of the largest cloud mining service providers created on the concept of a shared economy. Globally, this platform successfully connects sellers and buyers into two main components that can get huge computing power for crypto mining operations. This platform does not emphasize the nature of profitability, but tries to bring complexity instead.

3. Discuss The Advantages and Disadvantages of Cloud Mining ?

- Advantages

1. It does not require a lot of money for the installation of machines and hardware and high electricity costs because everything is handled by cloud mining service providers.
2. It does not need space in the house or place that you are going to rent for mining activities so that keep the house quiet and not noisy because mining activities are carried out remotely by the cloud mining service providers.
3. Make it easier to carry out daily activities without fear of damage and problems that occur in the mining process because all machines and hardware maintenance will be covered by the cloud mining service providers.

- Disadvantages

1. The danger of fraud which is possible for all cryptocurrency miners because many cloud mining service providers take advantage of the moment to reap profits.
2. The profit is not high for all cryptocurrency miners because it must be shared with the mining cloud service providers which handles almost all mining activities including maintenance costs according to the agreed contract.
3. The contract that has been agreed upon can be terminated if there is a loss due to the drop in the price of cryptocurrency in the near term.

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Thank you for reading my blog, I hope my homework task 5 for this week is useful for myself and all of you...

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