When you are mining cryptocurrency with rented facilities of another company, it is called cloud mining. You can place the equipment anywhere on the earth and the miner will be able to gain online access through the control panel while taking care of maintenance and placement of the facilities. Miners in this mining industry act as the Bitcoin network nodes validating transactions –the method is, therefore, similar to Bitcoin mining as here you have to invest resources and time adding to the overall asset value. Without using your own hardware, bitcoins can be mined here and you can also choose the amount of hash power along with the contract period. OXBTC is such a cloud mining platform that offers mining of various cryptocurrencies by selecting suitable mining assets.
How Does Cloud Mining Work
You need to open an account or register yourself to participate in this mining process remotely. As everything occurs over the cloud, you can be assured of equipment maintenance and direct energy cost. Generally, you might have to pay for hardware rent as managing it is free. Powered by PoW or Proof of Work algorithm, mining of the coins is determined independently by the user with tariff plans, as in OXBTC. The large data center is located at the center of this mining strategy and these farms are purposefully built to reduce energy consumption while delivering computational power as required. Here, you lease hashing power to get rewards per block. You do not have to maintain mining equipment as the data center is responsible for it. Apart from Ethereum and Bitcoin, OXBTC also supports various other coins and the list is updated regularly.
Types Of Cloud Mining
The following mining types are currently seen in this crypto mining industry:
- Physical farm rental is where you rent a whole server or a particular farm in a data center.
- Virtual farm rental, where you can rent a partial farm and make settings for the management by yourself.
- Computing power rent, which is the commonest method of remote mining and where you can rent cloud comprising tens and hundreds of whole or partial farms.
Advantages Of Cloud Mining
Whether you want to **buy BTC** or Etheruem, cloud mining can be a great option. The advantages are:
- Ease of setup is time-saving as you need to log in to any mining platform like OXBTC and start the transaction.
- Cloud mining is not dependent on electricity primarily and as more platforms are nowadays using energy-efficient and non-conventional eco-friendly sources of energy, your carbon footprint is reduced.
- It supports a wide variety of coins starting from Ethereum, Bitcoin, Litecoin, Dogecoin, Ripple, etc. Apart from Bitcoin mining some platforms like OXBTC offers you to switch mining efforts automatically according to the profitability and network.
- Almost all crypto mining platforms are reliable with legal status.
- Monitoring or configuring the equipment is not needed.
- You can select any resource that has the most profitable contract.
- Revenues in this mining will be very high and you can also increase funding invested annually. If you consider the increasing rate, profit also increases and some platforms also offer bitcoin mining in small amounts without investment.
Disadvantages Of Cloud Mining
There are also some drawbacks of cloud mining, including the mining scams that often happen as you are not in charge of the equipment. Other disadvantages include :
- Bitcoin rate can decline at any time
- Formation of websites that are too-good-to-be-true are there with flashy advertisements and false promises like 250% profit that is not possible
- Each signed contract will expire after the stipulated time and you have to renew it.
With the ease of investment and flexible investment options, OXBTC is standing out as a reliable and beneficial mining platform. There are many pros of this mining industry such as cool and carbon-free homes, higher profits, zero equipment maintenance, and so on. If you can be cautious of the scamming efforts, cloud mining is easy and ready to use.