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What is Cloud Mining? Learn the basics of Cloud Mining

  1. 1. What is Cloud Mining?
  2. 2. Features of Cloud Mining
  3. 3. How does Cloud Mining Work?
  4. 4. Advantages and disadvantages of Cloud Mining
  5. 5. Should you mine Bitcoin with Cloud Mining?
  6. 6. Risks when mining Cloud Mining
  7. 7. Notes on using Cloud Mining

What is Cloud Mining? How does this mining work for users? How is "Coin Mining" done? The issues you are wondering about will be answered in detail by BHO Network through the information below. Let's refer to the article's content to understand better the knowledge related to the cryptocurrency market!

1. What is Cloud Mining?

Cloud Mining means mining Coins in the cloud or "cloud mining.” This activity allows users to earn Coins remotely without going through any mechanical device.

2. Features of Cloud Mining

What do Cloud Mining components include? What role does each element play in Bitcoin's operating chain? The following content of BHO Network will help you learn more details.

  • Mining Service Provider: This unit provides mining or selling hashrate remotely. Today's units providing this service are Minergate, Hashing 24, Hashflare, and Genesis Mining.
  • Service users (investors): According to the contract, these users spend money to rent or remotely buy miners for the corresponding Coin.

Besides the components included in the system, Cloud Mining also works based on two ways as follows:

  • Renting a remote excavator.
  • Buy Hashrates.

3. How does Cloud Mining Work?

Cloud Mining's operating system is like a storage cloud service. Still, this system conducts Coin mining when connected to the internet and doesn't store photos on servers as you usually see.

  • Users pay for the right to buy hashrates of miners.
  • The reward that the User receives is the Coin mined by the machine.
  • Users need to pay a service provider fee.

Read more: What is STO (Security Token Offering)? A details guide

4. Advantages and disadvantages of Cloud Mining

Currently, virtual currency players have many ways to earn Tokens. However, most users choose Cloud Mining to operate. The system possesses many advantages that you cannot ignore when it comes to such as:

  • You do not need to spend money to invest in buying an excavator.
  • It takes no time to operate and maintain the excavator.
  • No need to rent a workshop or a warehouse to place excavators.
  • No monthly electricity bill.
  • No need to think about how to mine coins efficiently.

However, in addition to the advantages that Cloud Mining brings, the system still has some disadvantages that you need to pay attention to, such as:

  • Users will not know precisely about the status of the Coin miner.
  • Users can get less profit than what they spend.
  • You have to make an initial investment to earn a profit.
  • You may not own a single Coin miner.
  • When the Coin miner is liquidated, you will not receive any money.

5. Should you mine Bitcoin with Cloud Mining?

Cloud Mining has a significant risk that players participating in the project need to pay special attention to fraud and money scams. The service provider that receives investor funds only operates for a while and then "disappears." Even on the project's system, there are no diggers. In Vietnam, there are currently two Clouds you can join: Sky Mining and Asama Mining.

6. Risks when mining Cloud Mining

The most significant risk when investing in Cloud Mining is a scam project. The player can run away with all the investors' money. Therefore, you should check the project's credibility before deciding to participate.

Read more: What is IDO? Should I invest in IDO?

7. Notes on using Cloud Mining

Any activity in the cryptocurrency market carries risks. Therefore, players must carefully learn about the terms and related issues when signing a contract. So what problems should players "mining Coin in the cloud" pay attention to?

Mining hash rate in Cloud Mining

The miner's hash rate represents the ability to compute Mining a coin. The higher the hash, the stronger the machine, and the more cash can be mined. Therefore, when renting an excavator, you need to find detailed information such as device classification and how much Hashrate to optimise. For the rental case, the User should find out what the hash rate is.

Cloud Mining rental price

Rental price Cloud Mining rental includes machine rental costs, incidentals and operating costs. Service providers will offer many options for users to find the right package for their needs.

Cloud Mining Contract

Paying attention to the terms in the contract, such as liquidity, rights and obligations of the parties, will help you feel more secure when mining Coins.

Hashing 24

Hashing has been operating since 2012 and focuses on using the latest ASIC miners. Hashing 24 also has a Vietnamese interface. The system is divided into two sub-categories:

  • Hashflare: The system focuses on renting BTC miners remotely and is at the top of the most prestigious Bitcoin mining Cloud Mining.
  • Genesis Mining: The system operated in 2013 and needs to focus on the Vietnamese market to attract users.

Besides, you can learn about some other Cloud Mining that issue Tokens to learn and make better investment decisions.

Related posts:

"Mining Coins in the Cloud" is quite simple and can increase players' profits in a quick time. However, players need to learn carefully before investing in getting the most Tokens. Hopefully, through the information BHO Network shares on the issue "What is Cloud Mining?" Helped you to solve your problem. Users should consider before "mining the cloud" to avoid financial loss.

Published on February 02, 2022

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