How to be a Bitcoin Miner. Cloud, Home Mining, or Hosting?

Cryptocurrency mining has become one of the most common ways to make money after investing in digital money. Many people think that successful mining is powerful home equipment, uninterrupted internet, and electricity. Others believe that the future of bitcoin mining lies in finding a great hosting facility to host the equipment. And others consider cloud mining to be the main prospect. Who's right? How to become a successful bitcoin miner? And what to choose as a result? This article will help you set the record straight.

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In Simple Words About Bitcoin Mining

Mining is essentially cryptocurrency production. While traditional money is issued by central banks, there is no such thing in the world of cryptocurrency. The only way to get bitcoin and other digital money is by mining. It works based on computers solving complex mathematical problems.

The essence of mining is that computers in many different places around the world perform calculations and thus generate new blocks of the blockchain.

To put it simply, the job of the miners is to pick a single hash out of millions of combinations. It is the result of a mathematical transformation of the block. Many miners are competing for the reward at the same time. Whoever does it first gets the reward.

Bitcoin as the most popular cryptocurrency can no longer be mined without special expensive equipment. A miner's business is essentially processing large amounts of electricity in exchange for bitcoins.

Home Mining

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This type of mining was very popular a few years ago. But today it is increasingly fading away due to several disadvantages. Mining at home on an ordinary computer with a built-in video card is not a good idea. Most likely, the money earned will not even be enough to pay for electricity. To make serious income, a miner needs to have a whole farm, several farms, or ASICs. Setting up a mining farm is not too difficult for someone with even a basic understanding of computer hardware. The only thing to do is to connect all the required elements to the motherboard and provide the required level of cooling.

Remember, it is possible to mine crypto on a portable PC with a decent discrete graphics card, but its hardware and cooling system are poorly suited for this task. At best, you will get a very low income and at worst the laptop will fail. Profits from mining in such a situation will not cover the financial losses.

The minimum suitable computer for cryptocurrency mining looks like this:

1. the RAM capacity of about 8 GB;
2. relatively modern video card with at least 4 GB of memory;
3. clean operating system;
4. efficient cooling system. Keep an eye on your graphics card's temperature while mining. If it goes off the scale, consider improving the cooling system.

Mining Hosting

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Despite the cost of this particular type of cryptocurrency mining, hosting remains one of the most tempting business topics. Most people think that it is enough to find the money for equipment and start earning thousands and millions of dollars. But all these dreams are broken at the first difficulties. That's why choosing a hosting company is one of the best decisions. Plus, mining farms are becoming popular, which we're going to talk about now.

What's Behind a Mining Hosting?

To set up equipment with all the utilities you need, mining hosting is a great solution. Mining hotels offer the right space for such tasks. The stability of the Internet, as well as reliability, is guaranteed. In addition, it should be noted the availability of air conditioning systems, which is important. And the miner has only to place the equipment, as well as create a wallet to successfully mine the cryptocurrency.

Also, the hosting is chosen to avoid a lot of noise, which ASICs deliver. Here the work will not bring inconvenience to you and your neighbors. An equally important part of bitcoin mining hosting is that the electricity system is advanced. Hosting owners responsibly handle the issue of electrification. There are additional automatic machines for quality hosting and also reinforced wiring.

Advantages of Mining Hosting

Even though hosting is quite expensive, because you need to invest in equipment, it has a lot of advantages that put it in the first place among ways to mine bitcoin. Key pros:

reduction in electricity costs, because the equipment is placed in areas with minimal electricity costs.

1. the process is controlled by professionals.
2. lack of your knowledge does not prevent you from working.
3. completely remote control that allows you to make decisions from anywhere in the world.
4. stable Internet, which is essential.
5. installed air filtration system. Ventilation of the hosting rooms is a must-have.

Cloud Mining

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Most first-generation cryptocurrencies use a validation process known as Proof-of-Work. It is a protocol that validates new blocks added to the blockchain. Participating in the protocol through mining is convenient in that miners are rewarded.

Thus, by using this mechanism, miners get a certain amount of cryptocurrency. Nevertheless, such mining of cryptocurrency has one drawback. Mining is very expensive because of the powerful equipment that is required for this process. These are machines with high processing power in addition to powerful servers. Some people prefer to facilitate this process and rent a virtual server and processors for a small cost. Now let's understand in more detail what cloud mining is about.

What Is Cloud Mining?

This type of cryptocurrency mining consists of renting out parts of servers and processors to get processing power and mining at a lower cost. With this method, many cryptocurrencies, including bitcoin, can be mined without having to buy the powerful machines needed for traditional mining. In this case, the miner will be able to monitor the progress of the mining via a website or app directly from his or her computer or smartphone. By renting computing power with cloud mining, the user becomes part of a pool of miners and receives a percentage of the profit based on the rented hash power.

Advantages of Cloud Mining

Cryptocurrency mining is a very expensive operation that, on the one hand, results in earning cryptocurrency and, on the other hand, involves high electricity costs as well as the purchase of powerful equipment. Among the key advantages of this type of mining are:

1. no large investment in the purchase of equipment,
2. there is no need to install, configure and maintain the network, as well as take care of paying electricity bills and cooling the room;
3. the client does not lose time on delivery of the equipment;
4. technical knowledge and skills in building a cloud farm are not needed;
5. equipment in data centers operates 24 hours a day without interruption, thus providing a stable income.

Conclusions

Being a bitcoin miner means investing a lot of money. No matter what type of mining you choose, you will have to spend the money anyway. Home mining is already losing its popularity because of several cons (Internet, electricity, noise, etc). Hosting is one of the most popular ways to mine bitcoin. It guarantees the uninterrupted operation of your equipment, ventilation, and remote control. Cloud hosting is also quite profitable, but you need to choose a reliable company for it.

Samuel Daniel

Update 20 December 2021