Cryptocurrency mining has undoubtedly become a real trend since 2015. Hundreds of thousands of miners all over the world use various ways to mine bitcoins, litecoins, ethereum, dash, and other digital currencies. All of them want to find the cheapest and at the same time the most profitable sources of mining. And here the most important question arises. Which way to choose? Cloud mining or hardware mining?
Each of the mining ways has its advantages and disadvantages. Let us have a closer look at the question which is the best type of mining crypto currencies.
What is cloud mining?
When we talk about cloud mining, it means that a mining company purchases special hardware. Then it stores it at their place. After it, you pay the company for using this equipment to mine digital currencies. In this case, your payment mostly includes maintenance and electricity fees which differ depending on the country where the company operates.
What is hardware mining?
Hardware mining means that you by yourself buy own equipment and supervise all the necessary operating costs, liabilities, and setup fees. Mining itself consumes much energy. Moreover, hardware mining is very noisy depending on hardware type and brand. Therefore, hardware miners often join in groups to use various equipment to mine crypto currencies efficiently. Hardware mining is much more exciting but a more expensive process. You need to buy all the expensive stuff by yourself. Sometimes, the delivery can take weeks.
Bonuses and promotions
Plenty of cloud mining platforms offer promo codes with attractive discounts on their services. For example, Tallinn-based mining platform, Hashflare, provides plenty of incredible promos. Hashflare promo code can be quickly redeemed for purchasing a mining contract much cheaper than other services offer.
The most reliable cloud mining services also offer Cyber Monday discounts and lucrative Black Friday offers.
As the owner of hardware mining equipment, you cannot provide yourself with any types of promotions.
Many cloud mining platforms are considered scams. The most reliable ones (Hashflare, Genesis Mining, etc.) use the newest and up-to-the-minute equipment to protect their clients from breaking their personal accounts.
Hardware miners usually have to spend good money for purchasing reliable firewalls to protect their mining equipment from any outside interference. Alongside with this, the considerable part of modern hardware mining equipment already has installed firewalls.
Advantages and disadvantages of cloud mining vs. hardware mining
Every type of mining has its own pluses and minuses. Let`s figure out the most common ones.
Advantages of cloud mining compared to hardware mining
- To start mining, you should just purchase the desired contract. You should not stay in a queue to buy the necessary hardware and buy for the delivery;
- All reliable cloud mining companies always locate their data centers near the cheapest electricity resources. It means that your maintenance and electricity expenses will be quite small;
- Unlike hardware mining, all trustworthy cloud mining companies always offer attractive bonuses and promo codes which can be used to buy contract and hash rates with incredible discounts;
- Steady hash rate. It means that your hash rate will never be reduced over time owing to either environmental factors or waning hardware efficiency;
- An average cloud mining contract lasts two years. It is a projected lifespan of any mining hardware equipment assuming it is working 24/7/365;
- Cloud mining occupies no physical space;
- Cloud mining produces no noise;
- Hardware mining equipment itself is costly;
- While you are waiting for hardware delivery, you keep on losing days of possible mining time. Moreover, you already purchased equipment has already started to drop its price;
- On average, hardware mining equipment costs from $300 to $40,000;
- You have neither to spend your free time nor extra money on dust cleaning, cooling, and hardware performance monitoring;
- Efficient mining pool management. If you did it by yourself, you would have to spend much free time of proper hardware set up;
- You must not think about any risk that you might order wrong mining rig parts or break them while setting up the hardware. You pay only operating costs;
- In many countries hardware mining is prohibited;
- All payouts (manual or automatic) are conducted every day.
Disadvantages of cloud mining compared to hardware mining
- Plenty of existing cloud mining companies are scams which can never be relied on;
- Mining hardware owner is the only holder of all his incomes;
- Hardware mining is much more interesting than cloud mining. In cloud mining, you just sit and wait for payouts. While hardware miners get an unforgettable excitement from fiddling with hardware, setting up own mining rig, and finally getting all equipment to work;
- Hardware miners are more educated as this type of mining requires more research work about blockchain in general and various types of digital currencies;
- Given that cloud mining is a purchased service, you have to pay operating costs, which results in lesser returns for the miner;
- You are the hardware owner and have the right to put it on the market any time to recover your capital;
- Only you decide whether to mine or not.
To sum up
Now you know all pros and cons of cloud mining compared to hardware mining. All in all, both types of mining will finally bring you some income. It depends on whether you have free time and resources to invest in buying expensive hardware. In this case, cloud mining looks more attractive. This type of mining is the hottest and the most profitable one regarding incredible payouts. So, you would better jump on the train while nobody is aware of it. No matter which type you choose, you will make the right choice, because crypto currency mining is the future of the world financial market.