The world of cryptocurrency does not stand still, in addition, it develops insanely fast. When it first appeared, no one paid much attention to it, and some even scoffed at it. At that time, when cryptocurrency began its growth, everyone was cautious about it, and some thought it was a scam. Now that the cryptocurrency sphere is at the peak of popularity, many people want to work with it. But the most interesting thing is that there are a huge number of people who are interested in mining bitcoin and other cryptocurrencies. But, if before it was possible to do it even on a home computer, now everything has changed. The complexity of cryptocurrency networks is much higher than it was a few years ago, so it takes a lot of power to mine. Entire mining hostings are being created, and new technologies and equipment are appearing, which requires awareness and keeping up to date.
In this article, we will tell you what hosting is and how it works. We will do it using the example of the mining hosting service at minery.io to make it much easier for you to understand. We will consider their advantages, the technology used and of course pay attention to their disadvantages. And, no doubt, we will decide whether it is profitable to use their services or whether it is better to mine cryptocurrency yourself.
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What is Mining Hosting ?
If we explain the concept of mining hosting in simple terms, it is a colocation center where you place your equipment or rent it. This is a very convenient solution, because you can use a huge space to install your hardware for quite a small amount of money. In addition, with these services, you get a full guarantee that everything will be set up correctly, and get rid of unnecessary worries. Yes, that’s right, you will not have to do anything, it will do the hosts, they do all the hard work for you. Depending on your requirements and budget, there are many hosting companies to choose from.
What is colocation? Colocation is essentially hosting. When individuals or businesses place equipment in a data center, it is called colocation. Then they have remote access to control and monitor the machines. Thus, such services are ideal for ASIC bitcoin mining for most people because of the convenience and large territory. It’s all placed on special racks, each with an Internet connection as well as power and cooling. This is a great way if you want to be sure your equipment is safe and secure.
Hosting is a cost-effective and convenient option. In fact, mining hosting has just a huge list of advantages, we will describe only the main ones:
- Electricity costs are reduced, as hosts place sites in areas with minimal electricity costs.
- There is no need to spend time and money on finding, buying and renting equipment and premises. All this is already there, working and bringing income.
- Mining is controlled by professionals who know how to get the most out of current market conditions. The client’s lack of knowledge is not a hindrance to making money.
- Remote control and management allows the investor to make decisions about mining parameters from anywhere, regardless of the distance to the farm.
- Direct conversion of mined cryptocurrency into fiat eliminates the hassle and worry associated with the realization of virtual currency.
The final value of a cryptocoin mined on a mining hosting service is objectively lower than a coin obtained by an individual miner in a garage, and the mining conditions turn the process into a convenient investment product, not inferior to classic formats by the level of customer service.
As for the minuses, there are not many, you can even say they are individual. One of these, of course, is the requirement for a not insignificant investment. After all, mining, which exists today in its form, is very demanding in high-quality equipment and large computing power, and it costs a lot. Of course, you can reduce the costs if you just rent all the equipment or use a cloud mining service, but for some people, it may still be unaffordable.
Well, of course, no one cancels the risks associated with unscrupulous service providers. Therefore, you should be very careful in choosing the service with which you are going to cooperate. No one can rule out the possibility that your money or equipment could be stolen. But it’s even difficult to attribute this to any minus because it can happen simply because of the human factor.
As you can understand, mining hosting is quite a useful thing today. These services will not only help you make money but will also make this task as easy as possible. You can even say that bitcoin mining at its current industrial stage almost certainly requires the use of hosting services. In the end, we can say that mining hosting is definitely a useful thing that you should try. However, we recommend that you carefully research your hosting options before using these services.