The cryptocurrency world looks attractive for those who want to occupy a worthy position in the financial sphere. In order to become a part of it, it’s best to master mining – the process of extracting digital coins. This is not the only way to become a holder of digital money, but definitely one of the most effective ones at the moment.
Cryptocurrency can be mined in two ways: the traditional way with the help of special equipment and the alternative one using the capacities of cloud storage. This makes miners think: “Which one is more profitable?”. So, let’s examine this issue in more detail.
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- What is mining?
- Mining on a home computer
- Cloud mining
- Key differences between home mining and cloud mining
- What is more profitable: home mining or cloud mining
- Features of mining in 2018
Mining refers to the extraction of virtual money, during which new blocks are created in the blockchain for the full operation of cryptocurrency platforms. Block in the blockchain is called a structural unit. After its creation a new digital coin is generated.
If you dive deeper, then mining is a search for a hash in a set of parameters. We want to point out that this is not the only way to create a new unit and support emissions.
Mining of digital currency is possible through a powerful PC or cloud storage capacity.
You will need a farm of ASIC-controllers or video cards for mining at home. ASIC-controllers are specialized devices for mining cryptocurrency. A mining farm is pretty expensive due to the high cost of equipment. As a rule, the cost is paid off during three months or even more.
There exist such unique people who try to mine digital coins using a single video card. Do not try to repeat this if you want to achieve results and not waste money and time. The fact is that the power of one video card is not enough even for basic tasks. As a result, the PC will fail.
Home mining farm has another significant disadvantage, which is related to the cost of electricity. The increase in tariffs for electricity has not been breaking news for a long time and it’s not such a significant problem if we talk about domestic stuff. As for mining, the price jumps will deprive you of profit for an indefinite time.
In addition, mining at home is rapidly losing relevance, as the digital coin extraction algorithm is constantly becoming more complex, which is associated with an increase in the number of miners in the blockchain.
If you decide to start mining, we recommend controlling the temperature of the farm. This is due to the fact that the equipment must work regularly. Sooner or later it will lead to overheating. To prevent this from happening, it must be cooled. Therefore, take care of thermoregulation of your mining farm in advance.
Traditional mining has more shortcomings than advantages, which led to the search for an alternative solution for the mining of cryptocurrency. This solution was mining using cloud computing powers. With its help, miners can connect to the cloud service and extract cryptocurrency without buying special equipment.
Cloud mining and home mining have significant differences, 4 of which are major: noise, configuration, legality and resource consumption.
- Noise. When installing a mining farm at home, prepare for a constant noise from video cards. Cloud mining is silent, as the equipment is located in the company that provides computing power over the network.
- Configuration. All the settings of the equipment are done by specialists of cloud computing facilities. Owners of home farms must choose the configuration themselves.
- Legality. Companies that provide computing power are worrying about paying taxes and other formalities. “Home” miners take responsibility before the law.
- Resource efficiency. The work of traditional mining directly depends on the stability of the power grid, while cloud mining executes computing processes without interruptions.
According to the current realities, cloud mining is much more profitable. The main reason is availability, as well as the following:
- the ability to get a large profit without investing in mining equipment and its service;
- the ability to mine cryptocurrency 24/7;
- no problems with the withdrawal of cryptocurrency.
Before deciding what to choose – cloud or home mining – it is worth checking the relevance of mining in general. In 2018 the extraction of cryptocurrency by mining will be in demand and popular, but it will be accompanied by risks associated with the unstable state of the cryptocurrency market.
We hope no one doubts that cloud mining is much more profitable in 2018. Although, if you have a good startup capital and a free room, then you can select the traditional way of hunting for cryptocurrency.
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