Own hardware: Bitcoin Cloud Mining or Altcoin Cloud Mining can be rented equipment for mining cryptocurrencies. Here’s how it works:
The mining of cryptocurrencies became a business model, in particular for bitcoin. Especially if, for example, as in Cloud Mining, you do not have to buy your own hardware, more and more digital enthusiasts are jumping on the bandwagon. But how exactly does cloud mining work and is it worth it?
This is how cloud mining works
Cryptocurrencies mining works according to a transparent scheme: by solving complex computational tasks with adequate computing power, coins are generated – and miners rewarded afterwards. This works on specially purchased, powerful mining hardware. Meanwhile, there are also companies that make it possible to buy or rent a powerful, designed specifically for mining, equipment in a data center. Thus, the initial investment in special hardware is not so big.
Most Cloud Mining providers rent users equipment for a given duration. At Scorpion Mining, these are two to five years. This can be used to dig different cryptocurrencies. Of course, mining is speculating on a high course so that the digital coins won by the mining have a corresponding value. In the case of Cloud Mining companies, there is also the advantage that not just a complete coin has to be mined, but a proportion of the available computing capacity is paid and the payment usually happens daily. Scorpion Mining also pays out every day and also automatically every Monday to your external wallet that you have deposited in your back office. So the revenue is independent of the Cloud Mining provider.
However, you should exercise caution when selecting the provider. It’s worth looking for reviews first. Many suppliers attract attention by not having any hardware at all, but by promising high returns to users through a pyramid scheme that pays for new users and their deposits. Serious providers, such as Scorpion Mining, can not foresee revenue ahead. That’s why every week our experts analyze the market anew and, if necessary, adjust profitability. This usually happens every Sunday. So choose Cloud Mining company with common sense!
Before you start mining and invest money in equipment, you should think about whether this is worth it for you. Currently, there are various calculators, such as cryptocompare.com, which can calculate it for you. An important factor in cloud mining is that the difficulty of mining increases over time. Thus, more computing power is needed, but the power that you rented from the provider for a certain amount of time, always remains the same. As a result, mining revenues are falling. After all, the more computing power available to the entire network, the higher the so-called “Mining Difficulty“, i.e. the difficulty of mining, for example, bitcoin.
However, Scorpion Mining offers a great advantage over other providers: We are constantly analyzing the market and are always on the lookout for the most profitable crypto currencies. If we realize that there is one currency making the most profit, we do not keep that for ourselves, but inform our customers who can choose and switch to the coin we have proposed.
Computing power is reported in most Cloud Mining contracts in kilo, mega, or peta hashes per second. The number indicates how many hashes can be calculated per second to find a new valid block. The higher the hash value, the higher the payout will be.
It is also worth paying attention to the running costs. Some providers charge ongoing fees in addition to the fixed costs. These should be taken into account so that they do not destroy the entire mining yield directly. Scorpion Mining, charges no additional costs! All costs are shown transparently.
CONCLUSION: So, if you’re thinking about starting to mine cryptocurrencies, you should first calculate the exact cost and revenue, and see if it’s worth it or not. The experts at Scorpion Mining will be happy to advise you!