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  4.  | Self mining vs Cloud mining

Self mining vs Cloud mining

Glossary

Mining cryptocurrency is a popular and time-proven method of making money with blockchain technology. Despite the fact that it’s a very reliable way of earning cryptocurrencies, some people consider crypto mining as something that’s far too hard and complicated. Cloud mining is a new type of mining cryptocurrency that aims to be more convenient and accessible. But what is cloud mining exactly, what are the benefits of cloud mining, and how does cloud mining compare to the traditional way of mining cryptocurrency?

Mining Crypto By Yourself

Before we get to cloud mining, let’s explain the traditional method of crypto mining first. Self mining, also called solo mining, simply means that you personally own one or more crypto miners at your place.

In other words, solo mining requires you to buy, set up, configure and maintain a mining rig. These machines can be very expensive, so if you want to mine crypto by yourself you need to be ready to spend a large sum of money up front.

Unfortunately, setting up a mining rig is slightly more complicated than just buying the machine and plugging it in. A crypto miner needs to be properly configured as well, which will require some technical knowledge on your part.

When you have set up your mining rig, you need to take good care of it. Proper maintenance of a crypto miner includes making sure that it doesn’t overheat. If you’d like to maximize your profit, you will also need to change the miner’s configuration from time to time in order to make different types of cryptocurrencies according to the current situation on the market.

Last but not least, mining crypto by yourself requires you to pay the energy bills. If you have access to a source of renewable energy such as wind turbines or solar panels it won’t be a problem, but otherwise you have to get ready to spend a lot of money each month just to cover the electricity cost of your crypto miner.

Cloud Mining: the Easy Way to Mine Crypto

There’s no denying that mining crypto on your own can be very profitable, but as you can see it requires a lot of effort and a huge initial investment. Cloud mining is an innovative type of mining cryptocurrency that allows you to earn passive income with crypto mining much more conveniently.

In case of cloud mining, you don’t actually have to buy a crypto miner. Instead, you only pay for a fraction of a crypto miner’s hashing power, while the miners themselves are located in a professional crypto mining facility.

Cloud mining connects crypto mining companies to investors who’d like to start profiting from mining crypto. Your funds help the mining company to cover the electricity and maintenance cost, and in return you are able to receive a fraction of the bitcoins that the company generates.

In other words, cloud mining turns mining cryptocurrency into a community-oriented process. Simply put, cloud mining means that a group of people gets together to share both the costs and profits of mining cryptocurrency between them.

Of course, cloud mining might not be as profitable as mining crypto by yourself. This is because the cloud mining company also takes its share of the profits.

However, while cloud mining is slightly less profitable than solo mining, it can save you a lot of time and effort. You don’t have to buy and configure the mining hardware by yourself – you simply pay for a specific amount of hashing power, and you receive a reliable blockchain-based passive income in return.

Another advantage of cloud mining is the fact it doesn’t require you to make a huge initial investment. Since you don’t have to buy a mining rig, you can start earning crypto right away while paying relatively small amounts of money.

All these factors make cloud mining a very beginner-friendly way to start mining cryptocurrency. You don’t need any technical knowledge or previous blockchain experience. You simply pay for hashing power and receive a fraction of the bitcoins mined by the cloud mining provider that you decide to use.

Naturally, some people still prefer the freedom and full control that only solo mining can provide. In case of solo mining, you don’t have to share your profits with anyone, and you can configure everything by yourself – for example by choosing which cryptocurrency you want to mine.

Conclusion

So what is better – mining cryptocurrency by yourself or cloud mining? The answer depends on your personal preferences, because both solo mining and cloud mining have their unique advantages and disadvantages.

If you have access to cheap electric energy and some technical knowledge, solo mining might be better for you. It will require a larger initial investment and more effort on your part, but it will provide you with greater profits and an unparalleled level of control and freedom.

If you simply want to start earning passive income with crypto mining in the easiest way possible, cloud mining will be perfect for you. With cloud mining, you will be able to start earning crypto immediately, without having to purchase and configure a mining rig.

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