STEEM CRYPTO ACADEMY WEEK 5 HOMEWORK POST FOR @besticofinder – INTRODUCTION TO CRYPTOCURRENCY MINING - PART 2

Thank you professor @besticofinder for the lessons. I'm also grateful for an opportunity to make an entry for the homework task. Please join me!

Mining is the process of verifying transactions in order to add it (as a new block) to the blockchain. With this, miners who arrive at the solution to the cryptographic equations first earn a token for it and new coins are therefore released into the system.

With the knowledge of this, we'd be looking at a particular form of cryptomining known as cloud mining.

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CLOUD MINING

This has to do with cryptocurrency mining using leased equipments from third parties. In cloud mining, the miner doesn't have to install the equipments and run directly, rather, they can mine under the umbrella of rented hardware and software tools.

The fundamental of cloud mining is minimized energy cost (reduced cost) as mining basically happen through cloud. With cloud mining, a larger amount of participant can access the cloud mining firms.

Cloud computing has emerged as on of the increasing trends in crypto mining as processing and other computing services can be leveraged for increased profit and minimized cost.

BEST CLOUD MINING PLATFORMS

For me, there are various cloud mining platforms that I consider to be Best performing. Some if them are;

BITCOIN POOL

For Bitcoin mining, Bitcoin Pool is one of the best Cloud mining platform which core aim is competitive mining. Bitcoin pool is advantageous due to ease of startup. It supports both Bitcoin core and Bitcoin cash.

With Bitcoin pool, activities can be monitored easily with the Bitcoin pool iOS and Android application. Hence, frequent check on movement of activities is enhanced.

HASHNEST

Launched in 2014 by one of the most renowned producer of mining hardware; Bitmain, Hashnest deals with renting out hardware with some other unique offerings. It also enhance profitability by lowering electricity cost and it is backed up by Bitmain.

EOBOT

This is also easy to understand and simple to operate. It's contracts support a wide variety of cryptocurrencies with lower maintenance fees. It's fee estimator is perfect for users who wish to accurately estimate and determine their daily profits.

ADVANTAGES OF CLOUD MINING

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1. The major advantage of cloud Mining is reduction in the cost of operations. This however enable the day to day investors to mine even when they have insufficient knowledge of mining technicalities.

2. Cloud mining facilitates a calm mining environment as cooling fans and other equipments like chilling towers which tend to prevent overheating are ruled out or eliminated.

3. The cost of running the above mentioned equipment are also minimized thereby increasing profit.

4. Aeration problems are also eliminated as purchase of equipments lies with the cloud mining firms.

DISADVANTAGES OF CLOUD MINING

1. Profit are only generated only based on demand as mining is pivotal to farm.

2. Sometimes, miners of the cloud mining firms tend to share their wallet information and private keys, and this could lead to fraudulent activities like hack.

3. There is no secrecy in their operations, hence activities become vulnerable.

4. They do not have control over their mining activities and there is no flexibility.

Thank you so much for your time. I really appreciate.

Special regards to @steemitblog, @steemcurator01, @steemcurator02, @besticofinder