Bitcoin cloud mining is a method in which you make a monthly payment to a bitcoin cloud mining company and ask it to do mining bitcoin for you. Bitcoin mining has grown from a simple task that could be done even with a home computer to a multi-billion dollar industry.
The price of bitcoin has increased about 50,000 percent and is now one of the largest segments of the financial world. Such growth tempts anyone to join the Bitcoin mining group.
If you want to start bitcoin mining, you need to know exactly what is done with crypto mining and what equipment is needed to do so.
What is done with bitcoin mining?
Bitcoin is a decentralized currency and network and is not affiliated with any particular country, institution, or company. Bitcoin decentralization means that no one owns the Bitcoin network and no one can control it alone. So anyone anywhere in the world can be a part of it by connecting to the Bitcoin network. In general, it can be said that Bitcoin is in the hands of its users, and one or more specific people do not manage it.
If you do not have the opportunity to learn the basics of Bitcoin mining, it is recommended that you join bitcoin cloud mining.
What factors make the Bitcoin network secure?
Bitcoin is a decentralized network, when you send bitcoins to someone; people named Miner support your transaction for transfer and approve bitcoin transactions. By joining bitcoin cloud mining, you will not have to worry about the security of your capital.
The reason miners do this is that they provide their devices and hardware for the Bitcoin network. Then the BTC network rewards them in exchange for maintaining network security. This reward is the same bitcoin that is generated from the mining process. With their hardware, miners help not only keep the bitcoin network secure but also carry out network transactions.
The scientific name of mining is “Proof-Of-Work”. During mining operations, miners must compete with each other in a complex process to solve mathematical equations. As soon as a miner responds, bitcoin is generated and awarded to the winning miner as a reward.
The BTC blockchain requires miners to prove that they are loyal to the network by devoting their processing power to solving mathematical problems. Processors require a lot of power. With the help of this process, if a person wants to attack the network, he should have more processing power than 51% of bitcoin miners.
How is the decentralized distribution of cryptocurrencies done?
Mining allows bitcoin units to be generated in a unique way and according to a predetermined schedule. Unlike the national currencies issued by central banks, in Bitcoin, everyone can cooperate in the issuance of money, which is the same as Bitcoin units.
To maintain network stability and to prevent all bitcoin units from being mined too quickly, there is a standard in BTC called “mining difficulty”. The blocks of the BTC blockchain are the same packages containing transactions and are generated every ten minutes.
Every four years, or after the production of every 200,000 blocks, during an event called Halving, the production rate of new bitcoins suddenly halves. This mechanism increases the scarcity of bitcoins. Currently, 6.25 bitcoins are generated every ten minutes. By joining bitcoin cloud mining, you will not need to know about the technical concept.
What equipment do I require for bitcoin mining?
The type and number of miners vary depending on the volume of your earning. For example, the miners required for home mining vary from the equipment required for a farm. But to do bitcoin mining, you need the following:
- Dedicated mining devices or ASICs,
- Bitcoin wallet,
- Stable Internet (ADSL or TD-LTE),
- Appropriate electricity, cables, and electrical equipment,
- Ventilation equipment.
By joining Bitcoin cloud mining, you do not need to buy and supply the above devices.
What devices do I need for bitcoin mining?
At the beginning of Bitcoin, mining was done with CPU or ordinary processors so that with a personal computer you could mine more than fifty units of Bitcoin per day. Today, the efficient mining of bitcoins is possible only with special devices.
If you want to make money from bitcoin mining, using ordinary laptops or cellphones only harms this hardware and has no other income.
For bitcoin mining to be economical, you need to purchase specialized devices called ASICs. If the cost of providing the device is high for you, it is better to cooperate with a bitcoin cloud mining company.
To install these devices, you need technical knowledge that you should get help from technical companies or experienced people. People who do not have technical expertise in setting up these devices are recommended to earn money from Bitcoin instead of mining this currency, try to register in a bitcoin cloud mining company.
What should I do before buying a miner?
To buy a miner device, it is necessary to do thorough research in this regard and proceed to purchase according to your conditions. The most important factors to consider mining devices are:
- Device Power: Your bitcoin mining hardware generates a few hashes per second. The more powerful miner has the higher hash.
- Power Consumption: Power consumption directly affects profitability. The higher profitability depends on the lower power consumption and the higher power of the device.
- Miner device price: This factor should also be considered with your capital. Return on investment is directly related to the price of the device.
The cost of purchasing powerful ASIC devices is high, and the less expensive way is to join a bitcoin cloud mining company.
As a result, the most efficient miner device is one that has more hash power and less power consumption and generally has a faster payback time.
Always try to get devices with reputable brands that are widely used on an industrial scale and have been successful in the market.
What else is needed to set up bitcoin mining?
As follows, bitcoin mining requires a lot of accessories. Those interested in earning money from Bitcoin without any equipment can easily register in a Bitcoin cloud mining company such as Minerland and earn daily income.
- Bitcoin wallet: As a miner, you need a bitcoin wallet to store your income in it. Since Bitcoin is the market-leading cryptocurrency, there are plenty of suitable wallets for it. Bitcoin software wallets are free and you can install them on your laptop or smartphone. For an overview of reputable Bitcoin wallets, see an article on the Minerland website.
- Internet connection: For bitcoin mining, the device must be connected to the Internet. The speed and volume of the Internet are not so important but it should be constant stability without interruption. ADSL and TD-LTE internet services are appropriate for this.
- Suitable electricity power and electrical equipment: The most important thing in mining bitcoins is the power supply required by the devices. Miner devices consume a lot of power, and you must have the right electricity and electrical equipment to be able to operate both legally and safely. By joining Bitcoin cloud mining, you do not need to provide additional equipment for mining.
- Ventilation equipment: In addition to making a lot of noise, mining devices get very hot, and a solution must be found. It is very important to have cooling equipment to maintain the life and efficiency of the device.
If you want to make money from Bitcoin without having to deal with the purchase, installation, and maintenance of mining equipment, it is better to subscribe to a Bitcoin cloud mining company.
Do Bitcoin price fluctuations affect mining?
The current price of Bitcoin is another very important factor in mining profitability. For example, in 2018, when the price of bitcoin reached $ 3,200, many miners turned off their devices because mining profits did not even cover electricity bills.
When the price of bitcoin goes up, the number of network miners increases, in which case the difficulty of the network increases.
Network difficulty is a parameter embedded in the bitcoin network so that bitcoin blocks are created approximately every ten minutes. If you sign a contract with a Bitcoin cloud mining company and determine the profit you receive, you will not get caught up in the price of bitcoin going up and down.
For miners not to be able to produce new blocks and bitcoins at once with the high power of their hardware, the more processing power miners have, the more difficult it is to extract, and vice versa.
So if the price of bitcoin is low, and the network difficulty is high, it can drastically reduce profitability.
Can I mine other cryptocurrencies with a bitcoin mining device?
Most mining devices only support a specific encryption algorithm. For example, the bitcoin mining algorithm is SHA-256. So with bitcoin mining devices, you can also mine other cryptocurrencies that use the same algorithm, including bitcoin, bitcoin cash (BCH), Bitcoin SV, and a few unfamiliar cryptocurrencies.
It is possible that in the future there will be models that support other algorithms in addition to SHA-256, in which case several different currencies can be mined with one device. In addition, a miner cannot mine two or more cryptocurrencies simultaneously. Users who want to increase their profits by mining several different currencies at the same time can easily join a bitcoin cloud mining.
How to join a mining pool?
Today, bitcoin miners have become powerful, and a lot of money has to be spent on buying mining hardware. Small miners can no longer make a profit without joining a mining pool. Only some large mining farms with tens of thousands of devices can handle solo mining.
After preparing the device and selecting the Bitcoin wallet, you must connect to the mining pool. As the mining industry has developed rapidly, you need to connect to the mining pool to profit from bitcoin or other cryptocurrencies.
The mining pool is not a physical place, but a virtual space where miners gather their processing power and everyone tries to mine a block.
In this method, each miner benefits based on his processing power. By subscribing to the bitcoin cloud mining, the same company will connect to the pool and provide services for you.
Connecting to a mining pool requires technical information and care for mining devices, the easiest thing to do is to join a bitcoin cloud mining company.
How does bitcoin cloud mining work?
Mining bitcoin and most cryptocurrencies at home are difficult and expensive. People are looking for cheaper solutions that do not involve consuming as much electricity as equipment. These devices quickly become obsolete and lose their efficiency. So you have to pay again to buy the device. Also, be away from the noise of the devices and do not need cooling equipment.
To get rid of all these problems, bitcoin cloud mining is an alternative solution. By subscribing to bitcoin cloud mining, you rent powerful hardware with high hash power stored in a convenient environment. The bitcoin cloud mining Company is responsible for the maintenance of the equipment and shares the profits from the mining operation with you.
Proper profitability in partnership is possible with bitcoin cloud mining. But a reputable cloud mining site like Minerland sells hash power and does not claim astronomical profits.
How to choose a reliable cloud mining company?
To find a reliable bitcoin cloud mining company, it is better to research yourself. In your research, pay attention to the following:
- Research the company from which you intend to enter into a partnership agreement. Make sure this bitcoin cloud mining company is a real company and has a physical location. Check out the Minerland website for a full review of this bitcoin cloud mining company and make sure it has enough credibility.
- Start with a small investment. If you want to get into the realm of bitcoin cloud mining, invest step by step and never, ever invest more than you can afford. Minerland is a reliable bitcoin cloud mining company that has made it possible for its subscribers to sign a contract for at least $ 15.