The cryptocurrency world is a place filled with innovations and
opportunities. In fact, crypto coins are now considered to be the currency of
the future as more people are starting to realize how worthy the cryptocurrency
market is going to be in the nearest future. While there are a lot of
cryptocurrencies on the market, some of the most populous and versatile ones
include the almighty Bitcoin, and what crypto professionals have termed Bitcoin
2.0, in the form of Ethereum. In this article, we'll be talking about what
Ethereum is and one of the best way to get your hands on it. So without further
ado, let's get down to business.
WHAT IS ETHEREUM
In order to understand the concept of Ethereum cloud mining, we
first need to understand what it is. As we noted earlier, Ethereum has been
tagged “the improved version of Bitcoin”, which is the first and most powerful
cryptocurrency in the world right now. Ethereum was conceived and built in 2013
off the Bitcoin idea. It has its own blockchain just like the Bitcoin, and you
can also trade its basic unit known as Ether (or ETH) just like you can trade
BTC. But there's more to Ethereum than being just a cryptocurrency.
While it is similar to bitcoin in a lot of ways given the fact
that it operates off a blockchain and can also be mined, Etherum offers more as
it can be used as a platform to create applications that are not just based on
the Bitcoin idea. In other words, Etherum is building its own distributed
financial ecosystem.
The reason why a lot of crypto experts consider ETH as an improved
version of Bitcoin is because it was built to correct some of the problems
associated with BTC such as the centralization incentive of mining through
pools, which can lead to 51% attacks and selfish mining, and long confirmations
made by the BTC blockchain.
Ethereum has gained a lot of ground over the years. In fact, this
digital currency has seen a massive growth of over 5000% since its inception.
It's no wonder a lot of cryptocurrency investors are trying to get their hands
on some of it. Well, now that you know a little about what Ethereum is, let's
tell you about one of the best ways to get your hands on some.
ETHEREUM CLOUD MINING
While the idea of mining ETH is a nice one, it can also be a hard
process most especially if you are not tech savvy, or all you have to mine with
is your PC. While it is not advisable to mine with your laptop as the process
might make your PC breakdown without providing you with the kind of profit you
imagine, you can engage in it if you want to do it for fun or to get an idea of
how mining works, but not for business.
So for those who can't afford the expensive specialized hardware
that are used in mining cryptocurrencies, those who are not tech savvy, and those who are not in places with cheap or
green electricity, how do you get your hands on ETH if you are not going to
trade or mine it yourself? The answer to this question is cloud mining.
Now, what is cloud mining? Simply put, cloud mining is the process
of mining cryptocurrencies through a remote datacenter which has shared
processing power. This way, you'll be able to mine cryptocurrencies like
Ethereum, Bitcoin, and the likes, without actually having to invest in the
expensive equipment used to mine them or paying huge amount of electricity bills
every month. And to make things better, what you invest in cloud mining is
usually lower than what you pay when you purchase specialized mining hardware.
Cloud mining has been going on for quite a while. It obviously
started with bitcoin and now, there are competent providers who have built up
their reputation and have earned the trust of many people. So there's no need
to be afraid that they'll run away with your money. Some of the reputable
providers out there include;
·
Genesis Mining
·
Hashflare Mining, and
·
Minex Mining.
As a matter of fact, Genesis Mining was the first to start
handling out Ethereum contracts where all you have to do is make a payment and
they set up your Ethereum miner. This is how easy it is to use a cloud mining
service; you don't have to worry about the maintenance of any hardware, huge
electricity bills, software headaches and command prompt issues. Just pay a
onetime fee (depending on the contract you choose) and you'll have your
Ethereum miner set up for you in no time.
HOW ARE CLOUD MINING PROVIDERS ABLE TO OFFER SUCH SERVICES?
This is the question a lot of people are going to ask so we
thought we should answer it once and for all. Ethereum cloud mining providers
are able to offer these services due to the fact that they purchase their
graphic cards in bulk which allows them to enjoy massive discount. They are
also able to place their mining machines in areas that are low cost, such as
Iceland. The combination of these factors provides them with low operating
costs, thereby allowing them to pass the savings of an Ethereum mining contract
to their users. Some of these Ethereum cloud mining services make use of green
energy, which simply means better results for their users.
HOW TO GO ABOUT IT
Once you have selected the cloud miner you want to use, all you
have to do is select one of their contracts, make your payment, and your
Ethereum cloud miner will be set up for you. Most cloud mining services offer
contracts of one year, although there are usually different options to select
from and some can even tell you there's an infinite plan (it's better to choose
the one year as most machines won't be effective after 18
months according to Moore's law, which simply translates to if the rate of
network hashing power continues to increase, mining companies would be
operating at a loss in the nearest future). And to make everything better, most
cloud mining services guarantee one hundred percent uptime, which simply means
that your miner will not go offline for the whole year.
There are Ethereum cloud mining providers who issue shorter mining
contracts, six months for instance. Once you have made your payment and your
miner has been setup, you'll get regular amounts of ETH into your personal
Ethereum wallet.
You need to ensure that you are careful about the cloud mining
providers you select because they are some that will charge you all through
your plan period after you have made the upfront payment. This can disrupt the
metrics or make you be at a loss. So ensure that you carefully assess whichever
cloud mining service you are going to make use of.
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