Mining is the surest way to earn cryptocurrencies. But before you start, you should consider the cost of purchasing equipment and electricity. The extraction of not every virtual coin is able to cover these costs. But there is an alternative - cloud mining.
Cloud mining is a method of obtaining virtual coins by leasing the power of data centers, farms or individual miners. The user does not need to buy equipment for his own farm, maintain it and determine the power consumption.
All these responsibilities are assumed by a third-party company. The user simply rents its equipment and extracts coins. At the same time, the principles of mining of the chosen cryptocurrency do not change. Miners still confirm transactions, form blocks and receive coins as a reward. They just are not responsible for setting up and maintaining the equipment.
Cloud mining has gained popularity due to the rising cost of conventional mining, investment in its infrastructure and the maintenance of a growing number of devices.
Features and benefits of cloud mining
Cloud approach is preferred by people who do not have the technical skills to arrange the farm.
Cloud mining is divided into three types:
· Power rental without access to equipment.
· Remote hosting - the equipment is located in a special center, but the user completely controls and configures it. Technical devices are rented or bought. This type is more expensive due to the cost of equipment and electricity. Technical skills are also needed.
· Virtual hosting - the participant rents a virtual server on which the necessary software is installed.
The most popular type is power rental. Calculation of production profitability is not an easy task for this method. Much depends on the selected contract, coin and company. However, this type of mining can be much more profitable than traditional mining, especially if you use genesis mining code for a discount when buying contract.
Service charges are one of the factors affecting profitability. Before signing a contract, it is advisable to get acquainted with this indicator, otherwise there is a chance to spend on cloud mining no less than on ordinary mining. This is especially worth considering for the residents of countries with cheap electricity.
You should also analyze these indicators of mining company before choosing the best option:
· support of different cryptocurrencies;
· service fee;
· cost of service itself;
· the duration of the contract offered;
· minimum withdrawal amount.
How to store earned cryptocurrency
If you are serious about your cryptocurrency investments, you need to pay attention to security, because there are many different scammers, phishing websites, malware, hacking tools and other tools that can be used for stealing your earnings.
It is best to use a hardware wallet - a device that was created to provide an additional level of security when interacting with cryptocurrency. Usually you use your unique key to move funds, but the problem is that if your computer has been hacked by malware or infected by a virus, these secret keys can be captured and used to steal currency. With a hardware wallet, private keys are stored on the device and never transferred to a computer, which means that even if malicious software gets on it, your private keys will remain safe.
If you use ledger wallet coupon code, you can purchase a hardware wallet at a bargain price and be confident with the security of your cryptocurrency savings.