[Re-Post] Crypto Academy - Cryptocurrency Mining Part II (Score 7)

Link to Original Post:
https://steemit.com/hive-108451/@zheyeng/crypto-academy-week-5-homework-post-for-besticofinder-introduction-to-cryptocurrency-mining-part-2

With the increasing public interest in cryptocurrency and then innovative people started thinking about various business plans and investing to get money. Cloud mining is one result of these ideas. Cloud mining is an interesting topic to discuss because many people are interested in cloud mining and many people want to find out various things about cloud mining.

What is Cloud Mining?

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Cloud mining is a way of mining cryptocurrency using remote cryptocurrency mining services provided by hosts (people/platform who own and sell cloud mining services) who own fields (mining rig facilities). Hosts are usually large companies that offer cloud mining services. If you don't want to buy and manage hardware, software or other necessities, cloud mining is the solution. You can hand over all mining processes to the cloud mining provider. Prospective users will later buy contracts to rent devices owned by the party that provides cloud mining services for a certain period of time. The hardest part here is probably choosing the right host. After buying a cloud mining contract, users no longer need to take care of the device or buy their own mining equipment, which is quite expensive, plus electricity, internet and other maintenance costs that must be considered when buying cryptocurrency mining hardware. As a consideration, always check the hosts background and observe their site. Look at previous user reviews. Check if they have some kind of valid statistical evidence. In another consideration, if hash rate doesn't suit, you can look for another cloud mining host. Whether it's free or paid cloud mining, always take your time in choosing a decent host. One way to do this is to look at their security measures. Some companies offer poor security or even have a reputation for being hacked in the past.

Cloud Mining Platforms

Among the many cloud mining platforms, here are some references to cloud mining platforms that I recommend.

>Bitcoin Pool

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Bitcoin Pool is a cloud mining platform provided directly by Bitcoin.com and is very popular today. Setup is easy and you can start mining right away, either in Bitcoin Cash (BCH) or Bitcoin Core (BTC). Monitoring is also easy to do via the mobile apps for Android and iOS, so you can track your account usage and value over time.

>HashNest

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Hashnest is a cloud mining platform launched by Bitmain in 2014. Bitmain is an ASIC mining hardware manufacturer based in China. Bitmain also operates one of the largest mining pools in existence, Antpool. Currently HashNest specifically leases hardware for mining, currently offers Antminer options, as well as StrongU miners.

>Hashflare

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Hashflare is a Hashcoins subsidiary company that was founded in 2013. Hashflare offers users the opportunity to purchase hashpower for various SHA-256 and Scrypt coins such as Bitcoin, Litecoin, Ethereum and ZCash. You are also free to choose a mining pool. The total payment will depend on the mining pool you choose and how much hash power you have allocated for it.

Advantages of cloud mining

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1. There are no installation fees as the mining equipment is run at the service provider's location.
2. No need to pay electricity and internet fees.
3. Does not require a special room.
4. No need to spend a lot of capital to buy mining equipment.
5. Avoid the risk of fire because of the large power required in the mining process.
6. Maintenance is guaranteed, cloud mining providers of course have costs and workers who can maintain mining equipment properly.

Disadvantages of cloud mining

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1. Some service providers can stop mining operations if profits are too low.
2. The service provider company can go bankrupt and the funds are not returned.
3. Susceptible to the risk of fraud because the promised results do not meet the payment you made because the hashrate has been oversold.
4. You don't have complete control over the mining equipment. Therefore, it is necessary to do good research to use the best cloud mining.

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