Steemit Crypto Academy | Homework Task 5 For @besticofinder | INTRODUCTION TO CRYPTOCURRENCY MINING - Part 2 Power Up 100%

If we dig deeper into the world of cryptography during this period, we will notice that cloud mining has become a popular topic and many users are looking for. Cryptocurrency cloud mining is increasingly desirable by users, but you must first know how it works and is it worth wasting your time on it? And what do you need for cloud mining? All these questions I will try to answer them as part of the fifth week homework proposed by the professor @besticofinder. Good reading!

Definition of Cloud Mining

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Cloud mining is a new type and has a lot of advantages, as it is about buying mining units on cloud mining sites, that is, you buy giga hashs and the site is mining and sending profits to your account.

In other words, with a simple explanation that you know that mining has become difficult and a waste of time and needs special mining equipment and even special devices. Even if we bought it from the internet, it will stay for a long time until it reaches for several months, and this is not in our favor because the level of mining difficulty is on the rise, which makes the device that we own useless and not Forget the electricity and cooling expenses ... etc

That is why cloud mining sites appeared and the principle of their work is based on large companies with a very large capital and very modern and sophisticated mining equipment, and instead of these companies selling the devices, they sell us a quantity of Giga to mine, and it is the one who miners.

How does cloud mining work?

Cloud mining refers to the mining of cryptocurrencies through a remote connection to the equipment. This equipment is assigned by a company that will provide its services in mining and will collect it programmatically in a place and one of the company maintains the equipment and that place is called the name of mining farms so that it is always designed to add computer cards, video cards, or ASICs, then the company through its site Or, through direct demand, you provide mining contracts with specific amounts through which you can hire the computer power of that equipment for mining and obtain income from the computer power you have hired.

Let's take a look at how Bitcoin cloud mining came about in context

• The user chooses the computing power provider, the company, or the mining service. And you will find many options in this topic.
• The customer enters into agreements with the company to connect to its cryptocurrency production equipment. The parties discuss all the nuances of work in advance.
• After paying for the computing power, the miner is granted remote cryptocurrency mining access through the rental equipment.

In some cases, the business happens differently: the user transfers money to the company. They are used by representatives of the organization to cover the costs of mining cryptocurrencies and expanding business. The company shares a portion of the mining profits with its investor.

Most often, to work, the user only needs a computer and fast internet. Cloud mining expenses are charged according to the previously concluded agreements between the two parties.

The best cloud mining platform:

A list of the best active cloud mining sites that you can trust in order to earn income from cryptocurrencies, which we researched well before including them in this topic.

Genesis Mining

The Genesis Mining cloud mining platform, with most of its farms located in Iceland, is one of the market leaders. The company was founded in 2013. During its operation, Genesis Mining has gained popularity in the crypto community as one of the most secure options.

Pros :

• The ability to mine a variety of cryptocurrencies including Bitcoin, Ethereum, Zcash, Monero, Litecoin and Dash.
• Genesis Mining is one of the few platforms whose team has never stopped working with digital cryptocurrencies destined for anonymity.
• The company offers users a variety of options for mining cryptocurrency contracts using cloud mining.
• Also, one of the advantages of Genesis Mining is that it offers stable payments and good support.

Cons :

• There is a big difference in the level of benefit from the offers.
• The platform team periodically changes the terms of the contracts.
• Against the background of changes, in the same period of time, users can work under different conditions. At the same time, some lucky customers will get to enter into a more profitable contract with more payments.

StormGain:
The StormGain platform is one of the few digital assets on the market that allows you to work anonymously with cryptocurrencies, cryptocurrencies, and optionally, by yourself. The platform also provides an opportunity to engage in cryptocurrency cloud mining through a recent development in choosing which device to mine or via your device.

Pros:

• If you want to mine through your hardware or other user-viewed devices, StormGain does not use user equipment battery resources.
• StormGain equipment and tools allow you to achieve the highest indicators of mining speed with minimal consumption of user resources.
• The platform has a schedule to distribute prizes and rewards every 30 or 40 minutes. The automated process allows mined cryptocurrencies to be split evenly.

Cons:

• Profits can be extracted and Bitcoin can only be mined.

Kryptex
Cryptex is a platform that seamlessly combines all the mining infrastructure into a single app and platform from start-up mining to getting paid in a continuous flow without any complication.

The user installs the Kryptex app, and the platform prepares the miners and exchanges in a cloud mining community. Pooling offers higher profitability than standalone mining due to economies of scale in exchanges and transactions.

Pros :

• A large collection of algorithms for mining. The app automatically chooses the best hardware and equipment algorithm to maximize profit. If desired, everything can be reconfigured by yourself.
• There are functions for remote farm management and system monitoring. From your personal account, you can change settings and monitor hashing rate, equipment temperature, power consumption and electricity.
• Kryptex also has a mining calculator and a table of the best video cards that will help you make the right choice if you want to invest in hardware.

Cons :

• All acquired coins are incorporated into Bitcoin. This reduces cryptocurrency price volatility, but can scare off traders looking to trade alt currencies on exchanges.

Advantages of cloud mining

You don't need a lot of capital to start your cloud mining mine. Cloud mining requires a small investment for modest profits, or a large amount of investment with large profits with the ability to enter the market quickly.

• No need to connect or purchase the equipment yourself
• Does not require maintenance of equipment and machines.
• No need to search for a place to install equipment.
• The ability to terminate the contract at any time.
• There is no need to sell the equipment if you want to go out of business or have a low mining income.
• No need to race equipment and buy the latest and greatest competition
• You can start mining without special knowledge and skills.
• Low risk on invested capital with returns that may resemble those from private mining.

Disadvantages of cloud mining

• There is a high risk in facing fraudsters. When researching the history of cloud mining companies you can find many unpleasant stories on the net.
• The profits are small, compared to mining on your equipment, the level of income. At the same time, everyone will have their own answer to the question of how much you can earn from cloud mining. The result depends on a number of indicators. For example, in relation to the size of the initial investment, the competency of the chosen partner to operate and the favorable conditions in the market.
• The need to trust third parties. In this case, the provider of computing power.