The majority of people get into cryptocurrency cloud mining after learning about Bitcoin. As you should know by now, Bitcoin is not the only cryptocurrency. Since the release of Bitcoin in 2009, there have been more than 7000 cryptocurrencies. Some of the cryptocurrencies are superior to Bitcoin in terms of speed, privacy, and scalability. However, Bitcoin is the most popular cryptocurrency as of today because it was the first decentralized cryptocurrency.
Cloud mining Bitcoin or alternative coins is one way to earn cryptocurrency. If you want to learn other ways of earning cryptocurrency, check out here. But today, in this article, we focus on cloud mining cryptocurrency.
The majority of people that get into cloud mining are newbies. Cloud mining is attractive to newbies because it requires little to no technical skills to start cloud mining. There is also an increased number of newbies that get involved with cloud mining as a way to earn money. All cloud mining services that guarantee high returns are scams. Earning a positive ROI with a cloud mining service is never a guarantee.
Cloud mining cryptocurrency can be the only way of obtaining cryptocurrency sometimes. This is because the majority of new coins and some old coins aren’t listed on cryptocurrency exchanges. The only way to obtain such coins could be to cloud mine. If cryptocurrency exchanges are banned in your country, cloud mining is an alternate way to obtain cryptocurrency.
Before you learn how to cloud mine cryptocurrency, it is important to understand what cloud mining is.
What is Cloud Mining?
When you utilize a remote data center with shared processing power to mine cryptocurrency, it is referred to as cloud mining. A cloud mining service hosts mining equipment and allows users to access mining equipment for a fee. The user of this mining equipment can keep all the profits associated with it for himself.
A hash power marketplace, on the other hand, allows users to rent their mining equipment or buy hash power from other users. A hash power marketplace is just a place to meet buyers and sellers of hash power. These services also charge a service fee for finding buyers and sellers. You can also mine cryptocurrency by buying hash power and allocating that power to mine at a pool.
Using a hash power marketplace to mine cryptocurrency is a better way to mine cryptocurrency than investing in a cloud mining company.
This is because a hash power marketplace allows you to alternate between mining different cryptocurrency or stop your mining contract whenever you want without losing your initial investment.
A cloud mining company, on the other hand, requires you to pay a one time fee for the entire period of the mining contract, at the start of the contract. This fee is non-refundable.
What is great about hash power marketplaces is that you can buy a small amount of hash power for a little amount of time. This is perfect if you are a newbie and want to test the waters of cloud mining. This is also a good option if you want to cloud mine with a low budget.
Now, if you want to mine cryptocurrency using a hash power marketplace, there are few options available. The most popular service is Nicehash:
How to Cloud Mine with Nicehash
Nicehash is the biggest hash power marketplace as of today. Using Nicehash you can mine almost any cryptocurrency in the crypto universe. Before you mine at Nicehash, there are few things you need to know.
When you place a buying order at Nicehash, you are required to give the details of the mining pool. So, you need to join a mining pool before buying hash power.
All cryptocurrencies that are mine-able have mining pools. So, you must join a mining pool for your selected cryptocurrency. You can check out the best mining pools for different cryptocurrencies here.
After joining a mining pool, you must take note of your pool details. For example, if I’m mining Bitcoin at Poolin mining pool, my pool details would look like this:
Pool URL: stratum tcp://btc.ss.poolin.com
Pool Port: 443
Pool UserID: cryptoaddict
Worker Name: 003
Worker Password: 123
Depending on the pool you choose, mining details can slightly vary. For example, anonymous mining pools don’t have usernames. The username is your wallet address. All mining pools have detailed instructions on how to join their pool.
If you are mining at a pool like Poolin, your mining payouts are accumulated in your pool account. You must set a withdrawal threshold to automatically withdraw your coins to the wallet.
So, now that you know how to join a mining pool, now you need to know the mining hash algorithm used by your selected cryptocurrency. You can check out the mining hash algorithm for all cryptocurrency here.
Now you have all the details needed to buy hash power at Nicehash.
This is how you buy hash power at Nicehash:
- Create an account at Nicehash
- Deposit Bitcoin to Nicehash account
- After BTC deposit is confirmed, go to Nicehash marketplace.
- Select the mining algorithm of the coin you want to mine
- Select between fixed and standard order
- Input how much Bitcoin you want to spend
- Enter pool details correctly
- Place order
- Check the mining pool dashboard to see if mining has started
That is how you mine cryptocurrency with Nicehash. Similarly, you can use a service like MiningRigRentals to mine cryptocurrency.
How to Cloud Mine with MiningRigRentals
MiningRigRentals is similar to Nicehash in many ways. The biggest difference here is that you can surf through all mining rigs and select a specific one. MRR also has a rating system to rate all mining rigs available for rent.
What is great about MRR is that they don’t have minimum order requirements. And they also support buying hash power with a few different cryptocurrencies.
If the mining rig you rented underperforms, they refund the prorated amount upon request.
So to cloud mine at MRR, you need to know the pool details and the cryptocurrency mining algorithm.
You already know how to get these details, so you know how to mine cryptocurrency with MiningRigRentals.
Cloud Mining Companies
So far we’ve only learned about mining cryptocurrency using hash power marketplaces. Another popular way to mine cryptocurrency is to invest in a cloud mining company. These are some of the best cloud mining services available today:
The biggest downside to investing in a cloud mining company is its initial cost. You have to pay a one time fee for the entirety of the mining contract. The number of coins you are allowed to mine is also limited. But nevertheless, these companies are very popular among newcomers to the crypto world.
All mining equipment used to mine cryptocurrency is owned by the company itself. The size of your mining payout depends on the amount of hash power you have bought from the company. To invest in a cloud mining company, you do not need to know anything about mining, mining pools, algorithms, and other details. The websites that offer cloud mining services are designed in such a way that anyone lacking knowledge about cryptocurrency mining can easily start cloud mining. All you have to do is set your cryptocurrency wallet address and withdraw mining payouts.
Cloud mining is just one way to earn cryptocurrency from a myriad of ways to earn cryptocurrency. You can check out here for other faster ways of earning cryptocurrency. This article explains what cloud mining is and how to cloud mine any cryptocurrency. If you are wondering if cloud mining is profitable, check out here.