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What are the precautions of cloud mining for cryptocurrency in physical mining machine and cloud mining?

What are the precautions of cloud mining for cryptocurrency in physical mining machine and cloud mining?

​With the popularity of blockchain in recent years, many people have come into contact with blockchain and cryptocurrencies. The most representative ones are Bitcoin (BTC) and Ethereum (ETH). This article mainly focuses on mining these two cryptocurrencies and the precautions of cloud mining for cryptocurrency.

How to obtain Bitcoin and Ethereum?
At present, there are two main ways to obtain Bitcoin and Ethereum. The first is to purchase directly at cryptocurrency exchanges with fiat currencies; the second is "mining" and is currently the only way to obtain Bitcoin and Ether at a low cost. Fang's way.

What is mining and cloud mining for cryptocurrency?
To make it easy to understand, there is no need to use official language to express it. Mining is to mine cryptocurrency through special mining machines, like the latest Bitcoin mining machines: Whatsminer M30S++, Ant S19Pro, Avalon A1166Pro, SingDong T4+, and so on. These mining machines are the latest models of mining machines currently on the market, with low power consumption, high computing power, and high coin production.
Ethereum mining machines are mostly graphics card assembly mining machines, and AISC chip mining machines are also available, but they are small in scale. There are several kinds of mining machines: A card, N card, and other graphics card assembly mining machines and AISC chip mining machine Ant E3, etc., and mining is done through the above special machines. Mining Bitcoin and Ethereum.

Several ways of mining
1. Buy the mining machine directly and dig at home
Many people are stupid after buying a mining machine. When buying a mining machine by yourself, you need to pay attention to the following points:
Electricity fee: As we all know, civil electricity is calculated according to the ladder. The more electricity you use, the higher the electricity bill will be, and the income will be less and less.
Noise: The noise of the mining machine is very loud (there is no concept about the noise of the mining machine, please look at the video below), if it is placed at home, you have to find a way to separate the noise and not disturb the people...
Maintenance: The mining machine needs to run 24 hours a day, and the loss is very large. The average life of the mining machine is 2-3 years. This is based on the very good maintenance of the mining machine. The operating environment of the mining machine must be ventilated and dust-free. There is another temperature that is also very important. If the temperature of the mining machine is too high, dusty, and not ventilated, the life of the mining machine will be greatly reduced.
Maintenance: During the operation of the mining machine, there will be problems. It is not recommended to do this if you leave it at home, because the mining machine is damaged, mining stops, etc. You need to find professional maintenance personnel to help you repair it during this period. Find someone-send it for repair-repair it-send it back after repair-on-board debugging to link the mining pool. This period will undoubtedly waste your huge time cost.
Finally, do you have to think about the extra cost you will spend during the above period? So do you think the cost of digging at home is low?

2. Mining machine hosting
Advantages: You don’t need to own operation and maintenance, management, etc., eliminating the thorny issues of "electricity, noise, maintenance, and repairs digging at home". All you need to do is to pay electricity and management fees in advance on time.
For my lack of operation and maintenance capabilities, it is unlikely to send special personnel to mine operation and maintenance. The operation and maintenance are all handed over to the mine owner. There are various pits in this area. Pick a few typical pits and introduce them.
At the same time, there are the following risks:
Mine power outages: Generally, mines require regular overhaul or maintenance. The overhaul period of 1-2 days a month is normal. However, there are also many small and medium-sized mines taking the excuse of power outage overhaul and other excuses to steal users’ computing power. Mining for yourself.
Exchange accessories: Some mines may use bad things to exchange your good things. Such as hashrate boards, power supplies, and even complete machines. If it is a new machine, these are some common hidden risks.
Operation and maintenance capabilities: The operation and maintenance capabilities of mines are also what we should focus on. Operation and maintenance capabilities mainly reflect risk prevention, exception handling, and response time. If the mining machine has been poisoned, there is no good solution for inferior mines, and network isolation cannot be done well. Some mining machines have been poisoned. Without network isolation, profits cannot be guaranteed.
False reporting of power consumption: The official website of the mining machine manufacturer will have the power consumption data of the mining machine, the actual power consumption temperature, and other environmental factors, so the official power consumption data is also a range. This provides some unscrupulous mines with the convenience of falsely reporting power consumption. Some unhealthy mines took the opportunity to report 5% or even more power consumption and charge users more electricity bills. For example, the actual power consumption of the mining machine is 3000W, but the power consumption is calculated at 3200W. This link is opaque to users, and it is very easy to step on the pit.
When choosing mine hosting, research before hosting is very important. In summary, we need to focus on the following points:
1. Choose a mine that is compliant and has low operating risk
2. When choosing a mine, you must take into account the safety of the site and the convenience of transportation
3. The price of electricity and the stability of electricity should be considered mainly, and the decision should be made according to the situation of the mining machine
4. Infrastructures such as mine network and temperature control
5. The scale, reputation and operation, and maintenance level of the mine

It is difficult for new miners to have the ability to systematically investigate. For this part of miners, it is recommended to choose a joint mining service provider who has a long-term operation, a large scale, is very concerned about goodwill, and has a good reputation. But also because of this, high-quality mines have certain scale requirements for hosting machines. Mining machines range from 50W or more to millions of funds.
If you don’t do screening when you are in the beneficiation field and host the mining machine to some bad mines, it will be inevitable to step on the pit. It just hasn't "attacked" yet.

3. Cloud mining for Cryptocurrency
Cloud mining (also known as cloud mining) can theoretically enable a win-win situation between cloud computing platforms and users. Large-scale mining farms usually provide computing power rental and sale services, and users can purchase computing power contracts to earn cryptocurrency mined by corresponding computing power. Save your own mining machine purchase costs and mining machine operation and maintenance costs, as well as the above-mentioned custody and personal mining problems. Cloud mining greatly reduces the investment threshold for mining. The platform can also lock in profits in advance to reduce risks.
Because the mining machine and the mining farm are the platform itself, maintenance, maintenance, and repair are all responsible for the professional team, and the user who purchases the cloud mining is only responsible for collecting coins every day and checking the status of the account.
The biggest advantage of cloud mining is the "stable" 7*24*365 days of non-stop mining of cryptocurrency, and there will be no power outages, stop mining, repairs, maintenance, etc., but correspondingly, the price of cloud mining is higher than The price of the mining machine's computing power is slightly more expensive, but in a comprehensive situation, this gap in computing power has been made up by the annual non-stop income, and the output is much higher than the output of the mining machine.
So what are the risks of cloud mining for cryptocurrency?
1. Fake platform
Some unknown platforms are not supported by actual mines and mining machines. They are slogans of creating mines. After a while, he ran away with his capital. Such scam companies usually chant the propaganda slogans of "high yield" and "low requirements", and investors are required to keep their eyes open and distinguish them.
2. Shutdown price
Shutdown price refers to the currency price when the output is equal to the electricity bill or the output is not enough to deduct the electricity consumed by mining. It can also be understood as the mining cost price of mining Bitcoin or Ethereum. If the currency price falls below the shutdown price, then mining will lose money.
For example, if the cost of mining a bitcoin is 50,000 yuan. If the bitcoin price is lower than 50,000 yuan, then the output from mining will be equal to the electricity bill and there will be no profit, or zero profit, then it is necessary to shut down and stop the loss at this time.

The market opportunity for cloud mining for cryptocurrency is that it provides individuals with a more "neutral" investment method, with lower thresholds than self-built mines, lower risks than short-term operations, and lower costs than market purchases; it also allows mines to share costs and Risk, to obtain more abundant cash flow, the main risk of cloud mining lies in the authenticity and stability of the platform behind the contract. Some small and medium-sized mines often have power outages and the computing power is unstable, so relevant inspections must be done to avoid entering the pit. All miners can choose a reliable cloud mining platform such as OXBTC to begin mining.