If you’re reading this, you probably already know that mining Bitcoin or other cryptocurrencies can be a profitable business idea in 2023. Binance mining and Dogecoin mining is the most profitable these days. We have covered everything here which will help you to get started.
Traditional mining consumes lot of electricity and produces a lot of heat. You have to buy powerful equipment and set it up to run 24 hours a day, 7 days a week. But what if you didn’t have to do it? Well, that’s pretty much what Cloud Mining is. A company that rents out hash power and mines cryptocurrency on your behalf. So, you don’t have to worry about buying and taking care of the equipment or paying too much for energy. This is called cloud mining. Throughout the article, we will learn in detail. Keep reading.
Cloud mining has been around for a long time, but not all cloud mining services are the same. So lets talk about how cloud mining works and which one if for you. We will also talk about some of the pros and cons of this method. Next, we’ll talk about some of the bigger companies that offer these services, and then we’ll show you an easy, free way to start cloud mining right away.
By the end of this article, you should have a pretty good idea of what Cloud Mining is and the most up-to-date information on what it will be like to do it in 2023. This will help you decide if you want to get involved or not.
Types of Mining We Have
- Cloud Computing
- Cryptocurrency Mining
Let’s explain the two elements that it’s based on, namely cloud computing and cryptocurrency mining. Cloud computing is a popular service in recent years in which users can access the processing power or storage capabilities of massive computer systems that are maintained by the companies that own them.
You’re likely already familiar with this technology in general, as it powers many modern apps on both mobile devices and PCs.
- Cryptocurrency mining, on the other hand, is the process by which cryptocurrency transactions get validated and new coins get created.
- Cloud mining is where these two companies involve. Companies will set up massive mining farms much larger than any individual could ever hope to do. They’ll then begin mining bitcoin or another cryptocurrency using these systems.
These companies can offer contracts to potential customers who can purchase a percentage of the hash power for a fixed period of time and subsequently earn the cryptocurrency mind using the company’s machines. Those running the operation handle all the maintenance and housing, but of course, this is working to the price of each package. There shouldn’t be much more for the user to do than choose the plan they want, make the initial payment and direct the returns to a specific wallet. Most of these contracts pay out regular, such as daily, so that these companies can offer customers the ability to begin accumulating cryptocurrency almost immediately.
There are two different models of cloud mining
There are two different models of cloud mining. One is hosted mining. In this model, users run the actual mining hardware itself and take their profits directly. These contracts are generally organized around which type of cryptocurrency miner you wish to take profits from.
And of course, the company will also be taking a cut. The other model is leased hash power. Though similar in premise, the idea here is that instead of renting the hardware itself, the user leases a fixed amount of hash power.
The amount of hash power rented will be proportional to the level of payout received. Of course, the hash power of the entire network and the price of the asset being mined will also affect profits. But this is impossible to control and it’s true for all forms of mining.
In essence, miners run powerful computers designed to crunch the numbers required to create new blocks on the blockchain. This process is competitive, and the more powerful systems will, on average, successfully create more blocks than the weaker systems.
Sometime last year, Dogecoin was the talk of the entire crypto community. It was such that it attracted several miners to its network, and more investors started buying into its ecosystem. However, the main question is, how easy is it to mine or buy Dogecoin, is it profitable, and what do you need to get started?
A Complete Guide to Mining Dogecoin
It is safe to say that Dogecoin began as joke crypto after the meme coin “Shiba Inu” made waves. It was engineered by Jackson Palmer and Billy Markus to identify as funny as possible. Along the way, it has become one of the top 20 crypto assets with a $22 billion market cap with a huge fanbase.
The rise of Dogecoin in the first half of 2021 was orchestrated by Tesla CEO, Elon Musk when he took a surprisingly significant interest in the project. This took dogecoin mining to a new six-year high. Currently, mining dogecoin is less competitive than mining bitcoin, although it’s still somewhat difficult.
How does Dogecoin mining work?
The same way Litecoin and bitcoin add a new block to their ledger and reach an agreement between their users is the same way Dogecoin works. It runs in a PoW (proof of work) mechanism where organizations or individuals compete for rights to add new blocks which have pending transitions to the ledger using specialized computers.
Miners create a hash with a value equal to or lower than the value of a new block known as the target hash. So, whosoever can create the winning code wins the exclusive right to add new transaction data to the next block and gets rewards in newly minted coins.
However, this process involves trial and error since every hash is generated in a completely random manner. Dogecoin, unlike Bitcoin, doesn’t have a maximum supply cap. So, its circulating supply will continue to increase as new coins are minted via mining.
New blocks are created every minute on the dogecoin blockchain with a 10,000 reward per block. Dogecoin uses a hash algorithm different from bitcoin, although they both run on the proof of work mechanism.
The hashing system it uses is known as Scrypt, which is less complex than bitcoin’s (SHA-256). This means that you get to mine Dogecoin faster with less energy consumption than bitcoin. This could also be one of the reasons why you should buy Dogecoin.
Few Companies That Offering Cloud Mining Services
- Genesis Mining. Genesis Mining has been around for years and is a fairly trusted name in the field. They can offer mining for bitcoin and Ethereum.
- Mining Monero. We should mention that due to their popularity, they frequently sell out of their contracts. But check back often and you’ll likely be able to find a plan that works for you.
- ViaBTC Pool for mining — Another name that’s been around for some time. Via, BTC, offers a range of different coins to mine, and they also have a good amount of educational content to get beginners up and running, making this potentially a more versatile starting point for some users.
How to mine Dogecoin
During its early days, mining dogecoin was much easier because there were few investors on its network. However, as it grew in popularity and adoption, its mining process became difficult and stressful, causing mining to develop mining pools.
A mining pool, however, is a group of miners mining a crypto coin as an entity or node by increasing their computing power. The reward earned are then distributed amongst the individual miners with an amount proportional to the computing power of each mine.
What this means is that everyone gets the opportunity of mining the coin individually. You can mine Dogecoin in three different ways, and they include;
These are those who mine Dogecoin for fun. It could be achieved using a GPU (Graphics Processing Unit) via software like easy miner. GPU is a specialized processor that helps improve image processing on a computer screen.
It is worth noting that solo mining could be difficult and rarely profitable unless you shell out a huge sum of money on specialized computers and electrical bills.
As explained earlier, if you’d like to make a fortune from dogecoin mining, you might want to find similar miners like you to create a mining pool with. Once this is done, you can have a high computing power which would help in turn increase rewards.
However, before jumping on mining pools, ensure you are ready to pay about a 3% fee for the privilege to participate. Most importantly, always review the pay-out terms and conditions for members before joining the pool.
You can mine Dogecoin through cloud mining, although it’s not regarded as mining often. It involves getting computing power from a data center and paying it back monthly or annually. The mined coin is shared between you and others based on the computing power you subscribed to with the data center.
With cloud mining, most contracts are timed-locked. And what this means is that you can lose your investment if the doge price drops below the operational and electrical cost associated with the mining.
So, before going into any form of mining, be sure you understand the advantages and disadvantages.
We did mention an easy and free way for you to get started with cloud mining immediately for that offer. You’re gonna want to head over to the storm gain cryptocurrency exchange. Storm Gain offers not only one of the hottest upcoming exchanges out there, but also several valuable perks, such as a loyalty program, bonuses for referrals, annual interest on crypto deposits, and using the official app, you can even begin cloud mining cryptocurrency for free today.