How to Start Cloud Mining – 5 Steps

Cloud mining is one of the best ways to make money from cryptocurrencies because it frees the user from 24/7 control, high electricity bills and other difficulties of classic mining. It can be used to mine Bitcoin, Litecoin, Ethereum, as well as other digital money depending on the service. Unlike classic mining, where you have to buy the equipment yourself, cloud mining involves the use of special cloud services that accumulate capacity in their data centers. The idea is to rent the capacity of an existing company, thus avoiding problems with power bills, excessive noise in the apartment, and heat generation.

For mining digital money to be successful and depending on its type, there is the following equipment:

• CPU. The main function is to perform a chain of instructions in the shortest possible time. The CPU is designed to execute multiple chains simultaneously or to split one stream of instructions into several and, after executing them individually, merge them back into one, in the correct order.
• GPU or video card. The main function is rendering 3D graphics and visual effects. The GPU receives polygons as input, and after performing the necessary mathematical and logical operations on them, it outputs the coordinates of pixels. In fact, the work of the GPU reduces to operating on a huge number of tasks, independent of each other.
• FPGA. It is a chip which is used to create its own structure of digital integrated circuits.
• ASIC. This is a device that performs only one task: mining cryptocurrency. Because it focuses on only one specific application, it is much more powerful than conventional processors or video cards for mining. Therefore, ASIC is capable of mining more coins. Each type is only capable of mining certain types of cryptocurrencies. These are determined by the hashing method. When you choose an ASIC for mining, it is important to evaluate each of the devices by the hashrate, power consumption, price, energy efficiency, which currencies can be mined, and the place where you will install the ashik for mining.

Software is what mining is not possible to do. There are a lot of programs on the web, but the best are considered the following:

• ECOS   
• EasyMiner
• CGMiner
• BFGMiner

Pools are services that bring together miners from all over the world to produce some cryptocurrency. Pick a pool based on the following criteria:

• Rating. When it comes to online services, the rating plays a key role. It determines the trust level of a certain pool.
• Total hashrate. More is better. The amount of hashrate determines the speed and the probability of the block solution.
• Power. If it is small, the reward will be low. But the payback includes not only the cost of hardware, but also your electricity bill.
• Reviews. They form the rating.

Besides, there are other criteria for dividing pools. They practically don’t play a role in the choice, but you can go over:

• functionality;
• type of cryptocurrency;
• availability of commission and its size;
• power requirements .

To start investing in crypto-assets, you must create a personal bitcoin wallet. This is essentially the electronic equivalent of an ordinary wallet, which will be used to store your cryptocurrency. A bitcoin wallet consists of a set of numbers and letters. It stores information about the amount on the currency’s circulation. When a wallet is formed, two keys are formed – a public and a private one. A special seed phrase consisting of 12-24 words is also formed during the creation of the storage. If the users lose the private key and the seed phrase, they can forget about the bitcoins from the wallet.

Software wallets are most often chosen for mining. These bitcoin wallets function on computers, smartphones or tablets, which must necessarily be connected to the Internet. The process of creation will depend on your program choice. But we assure you that it will not take much time.

The key to successful mining is to be up-to-date and always be aware of the latest news. So you will be able to choose a perfect mining hosting and make a profitable investment in order to get fabulous amounts of money further on. Always be on the lookout for information, learn something new and be attentive.

Cloud mining is gaining more popularity, because it allows you not to spend money on expensive equipment, but only to turn to professionals in hosted mining bitcoin and get the benefits. But for this activity it is also important to know all the subtleties of the crypto business, and to be able to choose a reliable team, which will be engaged in mining digital mo