A cloud mining
Dwain Ross
04 / April / 21
Visitors: 230
Not much time has passed since the first crypto currency came about but the process of mining digital money has already undergone a certain evolution. Mining with a central processor quickly gave way to crypto currency mining using video cards. People started connecting additional graphics processors and started building mining farms. Then, the main crypto currencies began to be mined on an industrial scale and ordinary miners had to cooperate to gain profit.
What is a mining pool?
Crypto currency mining is based on the processing power of graphics processors - video cards. After they are connected to the system, they participate in decoding and creating a new block. Anyone who discovers it receives a reward - a few coins-tokens. Given the processing power of the whole system and the part one user plays, the might have to wait several months for the coins. In this situation, crypto currency is connected to pools.
The principle of their action is simple - the computing power of all participants is co-operated, which makes it possible to receive coins for decoding blocks more quickly. Money transfer is carried out in a shared wallet, after which it is distributed in proportion to the contribution of each participant. Being in a mining pool brings a small but steady income. This option allows you to quickly recoup investments and receive regular crypto currency accruals. When choosing such a pool, take into account certain factors affecting mining efficiency and generated revenue.
How to choose a pool
You need to approach selecting a pool with seriousness. After all, profit from your investment depends on your choice. Before you go for a particular service, you need to study a large amount of information on the Internet as well as feedback from other users in detail. It is not best to choose those crypto currency pools mining which were created recently. Below are a few tips, following which, you will not be mistaken with a service for mining crypto currency:
· First of all, evaluate the characteristics of your personal computer and also check whether they are suitable for crypto currency mining. It is worth noting that mining pools are based on video cards power. If your device came out several years ago, then in this case it is not worth investing since the profit will be insufficient.
· It is necessary to pay attention to possible ways of withdrawing money. For example, some services charge a commission per withdrawal but each pool is different.
· It is necessary to take into account such a factor as the revenue distribution. There are not many pools that distribute the revenue equally among all participants when power characteristics of your PC are not important. Generally, there are services that distribute revenue between miners in proportion to their investments. Each service contains a different calculation system so before you sign in, study this factor.
· If you live in places where electricity plans are expensive or mining requires an expensive video card, then in this case it is better not to mine yourself because it will not bring a proper profit. In order to pay less for electricity, mine coins at night when electricity tends to be cheaper.
· When choosing a service for mining, you need to pay attention to the regularity of payments. This characteristic mostly depends on the exchange rules. For example, Polonix is allowed to output 1 etherium.
Rewards for Mining
There are many different methods that are used in pools to estimate your earnings. The most known are PPS, PROP and PPLNS.
· PPS - pay per share. You receive income for every found part that your equipment can generate at a certain constant speed. In other words, it is very beneficial and convenient for a miner because they set the equipment and, given the complexity of the network, can calculate how much money it will bring. But it is extremely risky for the pool: not every part will be used to create a block but they will already have paid for it. If the pool is unlucky, it can lose money with this way of reward distributing. This method has the highest commission.
· RBPPS (Round Based Pay Per Share) is almost identical to PPS but you do not get paid until the block is found and until it is inscribed in the blockchain. If the network does not accept the block, then you do not get paid. This method is beneficial if you have been using the same pool for a long time since the reward will come to you unevenly in the short term. The commission for the RBPPS approach is the lowest.
· PPLNS - if a block is found, miners who provided N shares before that receive income. I.e. when a pool finds a block, revenue is distributed the between vendor miners. It is beneficial for both miners and pools.
It is necessary to distinguish crypto currency cloud mining, mining pool and cloud mining pool. All options assume similar principles and certain cooperation but differ in their essence. Being in a crypto currency mining pool involves connecting your own equipment to the total capacity. Cloud mining is an investment in the large data centers equipment. Participants conclude a contract, usually no less than a year, pay the rented capacity and make a profit at the expense of it. It requires no investment in your own equipment - with cloud mining you use equipment that was purchased by other companies. Thus, any person who is interested in mining can sign up instantly.
One of the most reliable cloud services is Hashflare. You will stumble on exclusively positive feedback about this website. This is not surprising because it has been working for quite a long time. Before trusting any service with your money, it is very important to read all the comprehensive information and HashFlare does not hide anything. You will find there various photos as well as the characteristics of the hardware.
If the option of cloud mining is not suitable, then choose a usual pool to mine digital money on your own. The list of mining pools depends on a crypto currency. Getting one bitcoin is already unprofitable even with joint efforts and, therefore, the main options are alternative coins and forks.
ZCASH (ZEC)
The list of pools for ZCASH mining is presented by numerous services, the most promising of which are listed below.
FlyPool offers the following features:
· servers are located in the US, Europe and China;
· commission is 1%;
· the minimum wallet payment is 0.001 ZEC;
· the computing power of hash rate is 60 MH/s;
· anonymity with instant payments;
· detailed statistics and accounting.
SuprNova is also one of the prominent services in ZCASH mining, which offers the following options:
· servers are located in the US, Europe and Asia;
· commission for charges are 1%;
· payments from 0.001 ZEC;
· hash rate is 7 MH/s;
· anonymity and fast accruals.
Similar parameters are offered by NanoPool. Its capacity is 8 MH/s, payments are done several times a day from 0.01 ZEC. This server for mining ZCASH closes the top three.
Of the other options, CoinMine has a processing power of 1.5 MH/s and DwarfPool - 680 KH/s. Both services provide payments starting from 0.003 ZEC but the latter is well-known due to the convenience and favorable terms of cooperation.
Ethereum
The following services are the most suitable pools for Ethereum mining:
· ETHpool - the first and official web space, its capacity is 68 GH/s, which is 20% of the capacity of the entire network, payments are done every 12 hours starting from one ETH, commission is 2%;
· NanoPool is an extensive service providing 121 GH/s (37% of the entire network), payments are done every 12 hours with a 2% commission;
· SuprNova - 13.4 GH/s, instant payments from 0.01 ETH, 1% commission;
· EthereumPool - 6 GH/s, daily payments from 1 ETH, 2% commission.
Golem
Golem crypto currency is developed on the basis of the Ethereum blockchain. Despite the experimental status and the risks associated with it, some exchanges already trade this currency. It is not extremely popular; however, this does not prevent users from expecting the rate growth and wondering how to start mining Golem. There are no separate pools for Golema mining. It is done on the basis of services offering access to various crypto currencies such as DwarfPool.
An meaningful aspect is whether the service is multidirectional. Most servers mine several crypto currencies but the processing power and the proportion of the total hash differ from each other. Subsequently, one service may occupy different positions from the statistical point of view. Be careful when you decide. The Internet is full of scammers, ready to benefit from unsuspecting miners.
