The army of fans of cloud mining keeps growing every day. It’s no wonder; there are many reasons explaining its accessibility and ease. Let us explain the main points so that you could get max profits out of mining!
What is the difference between cloud mining and the traditional approach? What are the main features of cloud mining? Both cryptocurrency mining processes take place in a similar way. The difference between the two is that in the case of cloud mining, you are not supposed to buy the mining equipment but rent it from large companies. It is specialists from external companies who configure ASICs, video cards, and provide you the service. In other words, the capacity of the mining equipment and its speed are sold to customers.
Cloud mining companies help you pay a manageable fee for mining services, which means that you don’t have to spend hundreds of dollars outright on setting up ASICs at home. Moreover, with the increasing difficulty of mining Bitcoin and Ethereum, solo mining became ineffective. This is where cloud mining services come to the rescue. Thus, you can buy hashing power or rent specialized equipment for this purpose.
Pros of Cloud Mining
You can’t always predict profits. Based on payments and indicators of calculation complexity, you can make a profitability forecast or ask professionals to do it for you. What are other good things about cloud mining?
Among the main advantages are the following ones:
- You don’t require extensive technical skills;
- The ability to buy contracts for several cryptocurrencies at the same time;
- Setting up ASICs and maintaining them is someone’s else responsibility;
- The ability to mine on multiple cloud services simultaneously.
Still in doubt, whether cloud mining is for you? Check its prospects to understand whether it is the field you would like to invest in.
Prospects for Cloud Mining in 2020
CoinShares Research published a mining white paper in December 2019. It draws on the happenings of 2019 and prior years to reveal favorable prospects for Bitcoin mining in 2020. For instance, in the past year, miners have received over $5.4 billion in total revenues, from minting new coins (94.8%) and facilitating transactions (5.2%). It was a rise in revenue of $2 billion up from $3.4 billion in 2017.
The good performance of Bitcoin is like a yardstick indicating the growth of other digital currencies as well. With the consistent increase in revenues year after year, more could be expected in 2020.
If you have a small starting capital, do not want to learn technically difficult mining specs, and want to reduce the risks at max, then cloud mining is an excellent option for you. Its popularity is growing every day, and to get started in 2020, all you need is an account at Xive.io.