Cryptocurrency has been around for quite a while and it has made a huge difference when it comes to making everyone’s lives easier.
Cryptocurrency is a type of virtual money made to work as a medium of exchange that uses strong cryptography to do the following:
Now that you know what cryptocurrency is, let’s discuss the other thing that makes cryptocurrency great. Enter Blockchain technology. Nakamoto designed this ‘chain of blocks’ to be resistant to the modification of data. According to Nakamoto, Blockchain is ‘an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.’
In other terms, Blockchain is an unhackable digital ledger that is made up of ‘blocks’ linked together using cryptography. Each transaction has a cryptographic hash of the previous transaction.
The blockchain network is decentralized. It means that it has no middlemen to maintain and control its system. Transparency and immutability are in Blockchain’s very nature. All the information in the Blockchain is open to the public without the risk of being tampered by hackers.
Aside from the Bitcoin brand, there are other coins that exist in the cryptocurrency market called Altcoins. Altcoins generally mean cryptocurrencies other than the Bitcoin brand. As of today, there are more than 2000 altcoins active for purchase/trade. The following are among the most popular altcoins worldwide:
Litecoin is produced by Charles Lee. Licensed under the MIT/X11, it is a peer-to-peer cryptocurrency and open-source software project. The Litecoin Network’s goal is to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes. Litecoin’s claim that this allows their cryptocurrency to have faster transaction confirmation.
XRP is produced by Ripple Labs Inc. It is described as a live gross settlement system, money exchange and remittance network. As of September 2018, it was the second-largest cryptocurrency by market capitalization.
Dashcoin is authorized by Evan Duffield. It is an open-source altcoin and a form of Decentralized Autonomous Organization (DAO) operated by ‘masternodes’. It is virtual money that was based on the Bitcoin brand. Dashcoin authorizes fast and untraceable transactions.
Ether produced by Vitalik Buterin, Gavin Wood and Joseph Lubin. It is an altcoin made by Etherium’s Blockchain. Ether can be transferred between accounts and can be used to pay for mining nodes depending on their mining performance.
Zcash is produced by Matthew Green. Its goal is to use cryptography that can provide reinforced privacy for its users. It gives private users the option of ‘selective disclosure’, granting a user to have proof of payment for auditing purposes.
The number of options for getting bitcoin is increasing. Everyone can choose the option of buying/earning bitcoin that suits their needs. Here are ways to get bitcoin:
It allows buyers and sellers to trade with each other without having to trust a third party to process their trades. With this option, it enables you to keep transactions anonymous.
Despite it being a new concept, Bitcoin ATMs are being installed in major cities worldwide. These machines provide users with the most private Bitcoin purchasing experience. However and understandably so, these machines charge a commission on top of the normal exchange price.
It is a process of adding transaction records to the Bitcoin’s public ledger, Blockchain. Bitcoin miners’ jobs are to confirm every transaction and making sure every one of them is legitimate. Every time a new block is fully mined or ‘sealed off’, miners get a reward for accomplishing it. As of today, The bounty stands at 12.5 bitcoins per block.
Now that you have understood the basics of bitcoin and other means of obtaining it, let’s understand what cloud mining is. The definition of cloud mining is the process of bitcoin mining, but you are utilizing a remote data centre with shared processing power.
This type of mining allows you to mine Bitcoin and/or Altcoins without handling or creating a bitcoin mining rig. These mining rigs are contained and maintained in a facility owned by a bitcoin mining company. You can simply register a mining contract from the company to acquire your shares.
Users of bitcoin mining rigs can either lease for a Physical Mining Server or a Virtual Private Server. Instead of leasing a dedicated server, some services offer hashing power hosted in data centres for sale. Users can either choose the desired amount of hashing power and a time period for the user.
If you are investing your money into bitcoin mining, then you should know that investing in a bitcoin mining rig will be very expensive and at the same time a bit of a hassle due to its maintenance. Luckily for you, cloud mining is available and is an easier option when it comes to earning bitcoin. Here are some facts that you need to know about the advantages of using cloud mining:
The reputation of a cloud mining service is vital. Always make sure that the operations are done easily and that the company is not trying to exploit the ‘bitcoin fad’. It is highly recommended that you always read bitcoin-related news from different sources to make an educated decision.
The price of operations is important. Most bitcoin companies tell you that you’ll break-even within months. You can choose which mining rig you can rent, so you can really put in as much investment as you want.
Eobot is by far the best cloud mining service right now. It offers you a solution like any other. With its service, you can purchase fractions of a ‘cloud instance’. You can pay with Paypal or any other cryptocurrencies and mine a wide variety of Altcoins such as LiteCoin, Ethereum, Bitcoin Cash, DogeCoin, Ripple, and among others.
This bitcoin mining service is a popular provider since its launch in 2014. Hashflare offers a customizable pool mining solution. You can choose which mining pools you want to mine to make the most bitcoin possible. With transparent fees and commissions, you can always keep track of how much you make, with the fees included.
Genesis Mining offers various pricing packages based on what cryptocurrency you are interested in mining as well as the amount of hash power you want to use. Their service is a bit more expensive than other services out there, but their high-quality support and expertise makes up for it.
Hashing24 is an established cloud mining service since 2012. They served thousands of satisfied users with their top-notch service and support. Using modern ASICs from Bitfury, they make sure that they are using efficient and powerful hardware. They also guarantee 100% uptime. You will never wake up at night just to check any downtime or errors.
Minergate not only grants cloud mining but also mining software so that you can mine bitcoin easily using your computer. As with the previously mentioned services, Minergate also clearly shows you all included costs and potential profit calculations.
It is run by Bitmain, the ones operating the Antminer line. Hashnet offers a top-notched cloud mining service. Currently, they have over 600 Antminer S7s to rent out. Also, since it is owned by Bitmain, they can re-stock in an instant just in case they run out of stock.
Nicehash is more of a marketplace than a cloud mining service. With this service, you can meet sellers of mining capacity. If you want to sell capacity, you can connect with buyers using this service. The best thing about Nicehash is that you can cancel your subscription at any time without a cancellation fee and that the rates can be a bit cheaper in this service than with data centres that rent out space and maintenance service.
For four years, ShansiS is engaged in leasing facilities for the mining of crypto-currency. The location of data centres in Shanxi Province is selected due to the location’s extremely cheap electricity expenses. With ShansiS, they can offer you excellent cloud mining services.
Right now, cloud mining cryptocurrency is one of the easiest ways to earn Bitcoin/altcoins that have small risks in terms of investment. This can be a solution for users like you who are confident in the stability of their chosen service. Today, cloud mining services are akin to invest in stocks, but with a much higher return and favourable forecast in terms of prices. Given the popularity of using cryptocurrency nowadays, The cloud mining service that you have chosen is very likely to succeed and profit.