Cryptocurrency is extremely popular since 2015. Millions of miners and traders from all corners of the world look for the best ways to get bitcoins, ether, dash, litecoins, and other currencies. Not only the best ways, but also the cheapest. And here the main question arises: which way is the most profitable? Is it a good idea to buy super-expensive equipment? Or maybe one should join the cloud mining service and combine powers with other enthusiasts?
Obviously, each way has advantages and disadvantages. Today we will discuss both in details.
What is cloud mining and how it works?
Cloud mining doesn’t require buying your own hardware. There are companies that own it and store at their space. When joining cloud mining, you pay for renting their hardware for mining coins. Thus, the money you pay include both maintenance and electricity, which may be different depending on the region where the company is situated.
However, some cloud mining services don’t own any hardware, but allow other users that have equipment provide it for rent. It means that cloud mining websites act as in-betweeners for those who provide hardware and those who need it for mining. They create platforms to connect users with various needs.
What is hardware mining?
Hardware mining means that you buy equipment on your own and pay all setup, liabilities and operating fees. The main problem is that hardware mining requires too much energy and takes significant space in your flat. Also, it is extremely noisy, especially when you buy cheaper types of hardware. By the way, mining equipment costs a lot of money by itself, disregarding large electricity bills you will get.
Which one is secure?
Well, it depends. Of course, cloud mining is associated with more risks, since there are platforms that are considered as cheaters. However, the reliable ones (like Genesis Mining or Hashflare) provide efficient equipment and protect their customers from hacker attacks.
Hardware mining requires reliable firewalls to protect users from any outside interference. The newest hardware usually have in-built firewalls, so you won’t need to spend additional money for that.
Reasons why cloud mining is better
- All you need is to buy the contract. You don’t have to spend your time trying to find the most suitable hardware and wait for it to arrive (sometimes, it takes weeks or even months);
- You don’t have to pay large electricity bills;
- Cloud mining services usually offer discounts, promo codes and bonuses to attract new clients;
- The hash rate will stay stable and never be reduced over time due to environmental issues or waning efficiency;
- You can own a contract for a couple of years, which is an average lifespan of all mining hardware that work 24/7;
- Cloud mining doesn’t produce any noise;
- Cloud mining doesn’t require physical space;
- Hardware is really expensive ($400-$40,000)
- You will have to wait for your hardware to arrive and therefore lose your mining time;
- Hardware requires additional costs and time for cooling, performance monitoring, and dust cleaning;
- If you are not technically educated, hardware set up might become a real challenge;
- Also, if you don’t have any experience, than you risk to order wrong mining rig details or set them up in a wrong way;
- In some countries, hardware mining is not legal.
Reasons why hardware mining is better than cloud mining
- Choosing a reliable and safe cloud mining service may become a problem, since a plenty of them are not honest;
- If you own mining hardware, than you are the only one to control the process as well as your incomes;
- Hardware mining is complicated, but much more exciting than cloud mining. If you are found of fiddling with hardware, than it is your best choice;
- Hardware mining requires research and deep knowledge of blockchain technology, which will make you more educated and experienced than any cloud mining option;
- Cloud mining requires additional fees for services, so you will receive lesser returns;
- If you don’t want to mine anymore, you can give your hardware for rent and receive money anyway.
As you can see, both types of mining will bring you income, if used wisely. If you have free time, costs and interest – you are welcome to buy hardware and be the one to control the entire process. This makes hardware mining really attractive. You are the one to decide whether to mine or not. On the other hand, cloud mining will free you from all complexities and inconvenience connected with hardware. No matter what type you choose, make sure to reflect on your personal needs and aims. So weigh the pros and cons and good luck!