Cryptocurrency mining involves mining for digital coins with the use of a mining machine. The coins that you successfully mined can later be exchanged as real money directly deposit into your bank account. They can also be used for purchasing stuff at certain online stores that accept these currencies as payment. There are even a few restaurants that accept bitcoin as payment for the bill.
Many people wonder whether they could really earn a steady passive income from cryptocurrency mining. The truth is that it is possible if you implement the right strategies. There is one instance where a man earns more than $190,000 in cryptocurrency mining. To make a significant income from cryptocoin mining, you must have the latest hardware to compete with others. For small miners, you probably can perform cryptocoin mining as a hobby to bring in a little bit of extra income.
Bitcoins is the most profitable coin with the highest yield of your investment in the shortest time. However, bitcoin is not suitable for beginners who are new to cryptocoin mining. There are other currencies like litecoin and dogecoin with lower mining difficulty levels.
Basically, there are two ways you can mine including using a mining machine or purchase a cloud mining contract. Those who opt to use a mining machine to mine would often prefer to join a pool because it is easier to earn coins when combining the computing power from multiple machines. Before you start to mine, you must first have a bitcoin wallet which will be connected to the pool or cloud mining account.
In addition, you must have good internet connection to see updates on the mining fast. In pool mining, you will get small payout regularly. If you mine alone, you will get large payout more infrequently. Your profits will depend on the fees that the pool mining charges. It isn’t easy to earn a significant income with your own home rig. Mining with your home rig or custom rig can hardly break even the cost. The electricity bill is often higher than expected and the returns you hope will be lower than what you are aiming for. Besides, there is no insurance to protect the investment that you have made in the crytocoin mining.
On the other hand, cloud mining can save a lot of costs on purchasing the hardware, internet, software and electricity. If you choose to purchase a cloud mining contract, you must watch out for scams. It is always best to choose a trustworthy cloud mining provider that already has a large member base. At the moment, Genesis Mining is the top cloud mining for bitcoin and scrypt coins. There are also other providers like Hashflare, BW, ViaBTC, Harnest, and Hashing 24.
There are various types of cloud mining including hosted, virtual hosted and leased hashing power. Hosted mining means that you are leasing a machine from the provider. Virtual hosted mining means that you rent a virtual private server where you can install the mining software and mine the coins on your own. Leased hashing power is the cheapest and most popular form of cloud mining where you lease the amount of hashing power you want instead of the machine or virtual private server.
Cloud mining offers newbies the chance of earning a higher profit because the provider has already provided all the equipment and tools for mining. The provider will optimize their mining machines to ensure a higher output. You don’t have to hear the noisy sound and bear the heat generated from the machine.
Cloud mining does not increase your electricity bill. There is also no need to think of how you can sell away the equipment when cloud mining is no longer profitable to you. In cloud mining, you don’t have to hassle yourself on configuring the hardware. You can save yourself from being disappointed when you fail to configure the equipment.