Crypto mining isn’t black and white. In fact, there are two different types of mining available to start earning crypto: Cloud-based, or hardware-based. The latter refers to the more traditional way of self-mining, or solo mining, whereby miners own one or more ASIC machines at their own location.
Hardware Mining
Solo crypto mining requires you to buy, set up, configure, and maintain your own home-based mining rig, which can cost (more than) a pretty penny. You also need to be fairly tech-savvy and know how to prevent your hardware from overheating. Mining alone can be more profitable, seeing as miners are the sole recipients of any rewards they earn.
However, working alone isn’t ideal for beginners with scarce resources.
Solo crypto mining also makes you solely responsible for the energy bill that you’ll be slapped with at the end of the day. The good news is that hardware mining puts you in total control of your experience, and you could always consider joining a mining pool to increase the chances of finding rewards.
The Dawn of Cloud Crypto Mining
As opposed to its physical counterpart, cloud-based crypto mining is exactly what it sounds like. You don’t need to own or maintain a physical mining rig to reap the rewards of crypto mining. Instead, miners contribute remotely to the hashing power, typically based at a bitcoin mining facility.
If you want to profit from crypto mining, without the hassle or expense of owning your own rig, then cloud crypto mining might be the way to go. You can also enjoy the convenience of mining crypto from anywhere on the planet, with peace of mind knowing your transactions are secured in the cloud.
However, as with anything in life, convenience comes at a cost.
It’s no secret that cloud-based crypto mining is significantly less profitable than solo hardware mining, seeing as you aren’t the only one earning. The mining company will take a share of their profits too, but one of the biggest perks is how much time and energy you’ll save.
Cloud-based crypto mining also requires a smaller investment upfront, making it a user-friendly option for cash-strapped beginners and for those who don’t have broad technical knowledge or blockchain experience. By simply covering a small amount of hashing power, you can start earning crypto immediately.
The Risks of Cloud Mining
There is always the chance of a bitcoin mining company committing fraud, failing to maintain transparency regarding its operations, or even becoming insolvent. Cloud crypto mining can be risky if you don’t do your homework first – make sure you choose a trustworthy cloud mining provider.
In Conclusion
While solo hardware mining can be more profitable, it also requires a far more significant upfront investment – and it’s much less convenient. On the other hand, cloud mining is more beginner-friendly, but don’t expect to become hugely profitable if you’re sharing your profits. The choice you make depends on your own resource availability, finances, goals, and individual circumstances.