Both methods imply remote mining management; only if cryptocurrency mining on the cloud is a virtual equipment rental, then the hosting crypto mining format is the remote placement of the client’s physical devices on a specially prepared platform.
Technically, this is the most affordable way to mine. All responsibility for setup and service rests with the company’s personnel granting the right to rent.
In the case of cloud mining, you do not need to buy the equipment yourself; the service provider provides it under the contract. The miner only needs to create an account on the server, pay for the amount of power and start the process.
Cryptocurrency mining on a hosting model is almost the same, except you have to fork out ASICs and peripherals here. But how to do this if a platform with suitable conditions is located hundreds or even thousands of kilometers away from you?
What to pay attention to when completing an agreement for hosting tools for mining?
It is not required to approve in absentia. It is essential to inspect where equipment is planned to be placed personally or send a trusted person to do this. The contract must include the following points:
- Do the actual data on the location of the equipment coincide with those specified in the contract: address, building parameters, number of rooms, area, etc.? Is the landlord of the assumptions? If not, does he have the privilege to sublease it, and on what requirements? You can sign an agreement only if all the conditions of accommodation prescribed in it correspond to the actual ones.
- The procedure for interaction between the lessor and the tenant in emergencies.
- Possibility of repair, modernization of equipment, and performers of these works.
- Under what requirements does the owner operate the relation to the energy grid and the Internet (is it permitted)?
What can go wrong?
Any human activity is potentially dangerous, and mining is no exception. You can lose invested funds when working with a mining hotel as a result of the following:
- Fraud. Unscrupulous dealers can steal the equipment entrusted to them or reprogram it for their benefit.
- Dishonest work. If the equipment is not monitored or is rarely observed, breakdowns, power outages, or loss of access to the Network will not be immediately detected. Downtime is a lost profit for the miner. The signal that something wrong may happen with the equipment is a sharp decrease in profits and the unwillingness of hosters to get in touch.
Criteria for the ideal hosting
Not only will equipment help miners save money, but it will also be the right place to place it. So what are the standards for discovering the proper hosting?
One of the first items you must pay attention to is how much you will have to spend on electricity consumption. This formation differs by country. For instance, the American Mining hotel commands about 80-85 dollars per 1 kWh. In the CIS countries – several charges of magnitude lower.
Another vital characteristic is service. It is better to find professional hosting to save yourself from unnecessary emotions. For example, they can install equipment, make certain devices work smoothly, and provide security. Hosting workers can monitor the mining process around the clock and ensure that not a single computer fails.
Thus, technical support staff does an excellent job with their tasks, i.e., process control. For more trust, you may even install online monitoring. This will allow you to see at any time how mining works and if there are any problems with devices.
In addition to monitoring, it is essential to have powerful cooling system tools on the hosting. After all, if it is not chilled, cryptocurrency mining will smartly reduce the speed. Plus, mining machines will wear out fast. In other words, bitcoin mining is becoming much less efficient and costly.
And yet, you should pay attention to the fifth aspect when selecting a hosting. It is reputation. Try to discover all details about hosting on the Internet. For instance, what its owner is, what he did before, and other data that can tell about the firm’s trustworthiness. When regarding one of them, please pay attention to the standards we recorded above. And then, we can handle the security of the equipment and your assets.
A final word about available investment methods
What conclusions can be drawn from the above? First, mining has remained the same, as predicted. There is an active interest in cryptocurrency mining, which is growing in proportion to the bitcoin rate.
Second, the mining format has changed. New opportunities have appeared, thanks to which earnings on the production of digital coins have ceased to be a lot of the elite – techies and people with big wallets. Anyone can get their piece of the pie today.
At the same time, the share of “home mining” in the global network capacity is steadily declining. People are now attracted by the prospect of earning 10 dollars a day, taking care of technical support, and operational maintenance for such little money when there is an opportunity to make more easily.
Thirdly, the mining industry is acquiring more and more features of a classic investment product, when an ordinary person can earn a good income by investing in profitable enterprises without deep immersion in the technology of production or commercial processes.
If you choose companies offering cloud or hosted mining services as investment objects, you do not need to understand the intricacies of crypto mining. It is enough to determine the level of trustworthiness of players in this market.