Currently, there are two ways on how you can mine bitcoins- Hardware mining and Cloud mining. But the question is, which is best for you?
Let’s take a quick look at Cloud mining vs. Hardware mining and see what the pros and cons are for each one.
This method of cryptocurrency mining pertains to a more hands-on approach to mining bitcoin. You will be in charge of buying the necessary equipment needed to mine as well running the operation and supervising the whole mining process.
The downsides to hardware mining is that it eats a whole lot of electricity and the hardware creates so much noise. To downplay these disadvantages, miners often join like-minded groups to mine bitcoin more efficiently. All in all hardware mining is a more exciting endeavor as compared to cloud mining because you will be the one to choose the hardware, set up the equipment and oversee the operation. This type of mining will cost you more than cloud mining.
Hardware Mining Pros
- You are the sole recipient of all the mining you do on your own hardware. The money you earn doesn’t pass through 3rd parties.
- You get the excitement of building a mining rig using brands and equipment of your own choosing. Also, you play an active role in the mining activity as compared to just signing a contract and sitting back and waiting for the payout. In a way, it’s more rewarding hands-on work.
- Hardware miners are more knowledgeable about how mining works in general and how some hardware can be more efficient in mining than others. You also get to understand cryptocurrencies in general and know which type of digital currency is worth mining for.
- You own the hardware and you have control over whether you want to sell it to recover initial startup costs.
- You can set up your own mining schedule according to your preference.
- You won’t have to risk signing a contract with a fake cloud mining company and lose your hard-earned money.
This method of bitcoin mining pertains to using a 3rd party company who has the necessary mining equipment to collect bitcoins for you. You earn digital currency and pay for services, which include electricity, hardware maintenance, operation, etc. The fees may vary because of changing variables, i.e., electricity may be more expensive in one country than another.
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Cloud Mining Pros
- Anyone can do cloud mining. All you need to do is to buy a “contract”. You won’t need to save up for initial costs of buying the needed hardware and having it delivered.
- Electricity and maintenance costs are much lower as these cloud mining companies’ data centers are located in countries that have low electricity bills.
- You can get special promotions and offers from legitimate 3rd party cloud mining companies, which means you can get access to special hash rates and contracts at low prices.
- Cloud mining doesn’t suffer from a declining hash rate. Hardware efficiency and environmental factors allow for a steady hash rate over time.
- You get the maximum hardware lifespan of 2 years assuming the rig is working non-stop 365 days a year.
- You won’t need to clear up space for the mining rig.
- You won’t have to deal with the noise a mining rig generates.
- You won’t have to maintain a mining rig and making sure it works properly. You won’t have to dust or spend extra time cleaning the hardware.
- You can start bitcoin mining right away without investing heavily to build a powerful mining rig.
- You can bypass country restrictions where cryptocurrency mining is prohibited.
- Payout is automated each and every day.
By now you should know the difference between cloud mining and hardware mining. You should also have an understanding of the pros and cons of each bitcoin mining method. The good thing is that both mining types will bring you extra income. Factors such as time, initial investments costs and space will determine whether hardware mining or cloud mining is best for you. As of now cloud mining looks to be better than hardware mining because there’s virtually no initial hardware costs and the payout is profitable. You should get a headstart on this type of bitcoin mining because it won’t be long before others take advantage of it. Choosing either one guarantees success because cryptocurrencies are the digital money of the future!