How To Mine Cryptocurrencies Over The Internet
Mining cryptocurrencies is a way to get some of these digital currencies without having to buy them. Some of these cryptocurrencies are still profitable mining them from personal computers . However, you have to have the equipment always on and working, so there is a clear consumption of electrical resources and hardware deterioration that is not really worth it. Mining companies invest large amounts of money in equipment and supplies. What alternatives does the small investor who wants to mine cryptocurrencies have then?
Cooperatives to mine cryptocurrenciesThe easiest way for a person to mine cryptocurrency is by partnering with other miners. Although they are not as fashionable anymore due to the increase in mining difficulty, there was a time when mining groups were very common. Advertisements on different thrift platforms and social networks are an everyday way to create pools of miners . These types of cooperatives use a kind of ' crowdfunding' system.' to buy the necessary equipment. The project leader is in charge of buying and maintaining the equipment in operation and distributes the benefits based on the percentage that each investor has contributed. This team mining system is very interesting but also very dangerous if it is not done in a trusted environment. Scams in this type of business are very frequent, although you can also find reliable and profitable projects.
cloud miningCloud mining is the easiest way to mine cryptocurrencies over the Internet. It consists of participation in a platform that offers us rewards depending on the degree of participation we have in the company . Unlike the mining cooperatives, there is no association in this type of company, rather we are clients of a company that offers the rental of mining power as a service . Therefore, it allows us to mine cryptocurrencies without having to acquire any hardware either by ourselves or by making a group purchase. Within cloud mining there are two large types of mining companies.
Resource consumptionThey are the least recommended, but worth mentioning. These types of online platforms are those in which they put our computer to work for us. By staying logged in on the website or performing some kind of task, they use our computer to participate in the mining process and give us a commission for it. The easiest way to recognize this type of business is to see if the browser or an application must be open for mining to occur.
This way of mining cryptocurrencies is the least profitable and also the least reliable. The minimums to obtain the payment are usually too large for what can be earned. If there is any page of the style that does not comply with these characteristics, it will be the exception. In addition, in the last year the appearance of mining 'viruses' that take advantage of the resources of our computer to mine cryptocurrencies for a third party has become very frequent.
power rentalPower rental is the most widespread way of mining cryptocurrencies over the Internet. These mining companies offer platforms with personal accounts. Clients can register and rent mining power. Normally they work with the rent of the power in 'Hash' during a period of time. They have different plans with different prices and offers and alternatives to invest . The problem with this type of company is that it takes a long time to recover the investment through mining.
In principle, the fact that the investment has a somewhat slow return should not be a problem if we also take into account that Bitcoin and other cryptocurrencies tend to appreciate over time. However, by contracting this type of product we are leaving our investment in the hands of third parties. Checking how long the platform in which we plan to mine cryptocurrencies in the cloud has been active is one of the main recommendations to follow in addition to comparing the profitability plan that they offer in their service.
Advantages and disadvantagesThe main advantage of cloud mining is the savings in the purchase of equipment and supplies. In addition, it avoids other types of problems such as the heat given off by the equipment, the consumption of additional hardware to the mining processor itself, the noise derived from the machinery and the expiration of the mining equipment. Physical mining or through the purchase of equipment has the fact of having to buy the hardware the added problem that this equipment has a very limited life expectancy due to the increase in difficulty in the networks, especially in Bitcoin .
On the other hand, the main disadvantage of cloud mining is the possibility of falling for a fraud. Even reliable companies can go under if they are not profitable and rarely take responsibility for debts owed to customers . It must be remembered that the cryptocurrency market is not regulated and this type of investment lacks insurance. Other disadvantages would be not being the owner of the mining team and lower profitability, since we will only receive a commission from the total amount that the teams mine.