Getting started mining is an investment move many people would like to make but are constrained by the mining hardware and the cost of maintaining the setup. Other than that, most users are not entirely knowledgeable about the technicalities of mining or the intricacies of managing the cooling facilities that mining requires.
Cloud mining, however, addresses all of these challenges, making mining easy for beginners. It is a simplified mining technique that absolves you of electricity costs, software configuration, having to maintain a 24-hour surveillance, and the many other complexities that come with employing the conventional mining methods.
Cloud mining eliminates the need for a huge financial budget for high power costs and is much more profitable and financially logical for the end user than keeping the equipment at home or renting a separate room for it.
To begin cloud mining, there are a few things that you need to keep in mind. Below are five useful tips for the beginning cloud mining enthusiasts to help us get started.
1. Determine your mining profitability
The first thing you need to do before starting cloud mining is to find out if mining is even profitable for you. The fact is, since the inception of cloud mining, more and more miners have emerged with the latest cloud mining resources, thus making cloud mining more and more difficult each day.
Therefore, as a beginner, you will need to perform thorough research to determine your mining profitability. You can do this through the use of a mining calculator. Cloud mining calculators will enable you to confirm how long it will take for you to break even or make a profit.
Cloud mining calculators vary depending on their capabilities. Some of the best mining calculators that are great for beginners include the following:
- CryptoCompare – this calculator offers default values for several entries but enables you to customize the hashpower, oer consumption, cost per KWh and mining pool fee.
- Anything Crypto – This calculator lists the profitability of various Bitcoin ASIC miners such as optimistic/skeptical predictions for future profitability.
2. Get yourself a Wallet
Cloud mining is internet based and so is the currency generated from it. Therefore, after ascertaining your mining profitability, you will need to get a wallet where you can store your cryptocurrencies for safekeeping. Ensure that you also get your wallet address, which is a long sequence of letters and numbers.
You will need it to transact with other cloud miners and crypto traders. Make sure you have a copy of the wallet.dat file on a thumb drive and print a copy out and keep it somewhere safe. The reason is that if your computer crashes and you do not have a copy of your wallet.dat file, you will lose all of your crypto earnings forever.
Here’s a list of the top five bitcoin wallets by techradar.com:
- Bitcoin Core - the original and definitive Bitcoin client;
- Electrum - a popular ‘thin’ wallet client worthy of your attention;
- Jaxx - store multiple cryptocurrencies with an easy-to-use interface;
- Rippex - easy to set up wallet for Ripple;
- Exodus - multi-currency wallet that offers customization with different skins.
3. Find a mining pool with a good reward structure
As a cloud miner just starting out, if you really want to start earning quickly you may need to join a mining pool. A mining pool is a group of miners that combine their computing power to make more cryptos. With a mining pool, you will make a more consistent amount of cryptos and will be more likely to receive a good return on your investment.
There are various types of pools and these pools have their unique fees and reward structures for each miner. The larger the pool, the more frequent the returns can be expected.
Before joining a mining pool, however, you will need to find answers to the following questions first:
- Proportional/Pay Per Share/Score Based/PPLNS
- What fee do they charge for mining and withdrawal of funds?
- How frequently they find a block (in other words, how frequently I get rewarded)?
- How easy is it to withdraw funds?
- What kind of stats do they provide?
- How stable is the pool?
We at Hashtoro use a total of 35MW power capacity in our data centers which allows us to place 25000 Bitmain Antminer S9.
4. Get a cloud mining software
It is important that you get a cloud mining program for your computer so as to be able to control and monitor your cloud mining activities. Some of the most popular cloud mining programs for computers are BFGMiner and 50Miner. If you’re using a mac, you can go for a program called MacMiner.
5. Make sure you have all the necessary resources in place before starting
Once you have everything all set, you can power up your computer and start mining. The first thing you do is to log into your mining pool by entering your username and password. You will actually start collections shares which represent your part of the work in finding the next block. According to the pool you’ve chosen you will be paid for your share of coins.