Steemit Crypto Academy | Lesson 5 | Cloud Mining - @besticofinder

Cloud mining is one type of mining that so many people get involved in, while a few others do not agree with but before looking into cloud mining, we need to first understand the word mining.

Mining

The process of validating transactions on the blockchain by solving complex cryptographic mathematical problems/puzzles. In other to mine a block, several guesses have to be made and the complexity of the machine makes it easier to get a chance in mining but then the more miners the higher the mining difficulty.

Mining Difficulty

Finding the right solution isn't an easy task, but it becomes more difficult when there are so many miners competing to mine one block. The more the miners, the more difficult it is to mine a block and the sophisticated tools will be needed to mine a block.

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With this, a lot of people find it difficult to purchase the tools needed for mining and then decide to join pools and partake in cloud mining.

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What is Cloud Mining

Cloud mining refers to the mining of cryptocurrencies such as Bitcoin, Ethereum, ZCash, and so on without the use of hardware such as ASCIC and installations of software, but instead use rented computing powers for the purpose of mining. With cloud mining, everyone is a member of a mining pool and the amount paid to mine in the pool gives the number of hash power the user gets.

What are the best cloud mining platforms?

IQ Mining

This is a mining pool platform that has been existing since 2018. It is a cloud mining platform where users sign up, buy contracts, and start mining for a reward.

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The platform has over 50,000 users, and it is sure a large pool to join with different contract plans available for users which includes Bronze Packages, Silver Package, Gold Packages, and Diamond Club.

You can join the cloud mining platform at https://iqmining.com.

Other cloud mining platforms available are Genesis mining, Shamining, Minergate, Hashing24, and many more.

Discuss the advantages and disadvantages of cloud mining?

Advantages of Cloud Mining

• No need for technical know out.
• Guaranteed profit
• No special hardware or software required.
• Cloud mining, unlike mining solo, there is no heat or noise neither is there high consumption of energy.
• No worries about maintenance.

Disadvantages of Cloud Mining

• No ownership of the equipment
• Profit isn't determined by you but by a central entity
• Money can be lost as the company can go out of business
• It is possible to fall, victim to scams.

Conclusion

Cloud mining is a very profitable option for mining compared to how high mining difficulty goes following the fact that there is a possibility of mining a block.