How Ethereum Cloud Mining Can Be More Beneficial

By Sahil Arora - February 13, 2018

Mining on the cloud is the best way if you are not technically skilled or do not wish to make huge investments on the procurement of hardware. Ethereum cloud mining is a process where the miners do not use their computers and rather buy the mining power from third-party servers that are placed in data centers in remote locations.

You enter into a contract with the providers and can start mining. Ethereum is a very popular cryptocurrency after bitcoin. You can sell bitcoins and exchange for ethers also. Ethereum uses the blockchain technology to replace the control that certain third parties have over the internet.

You must pay a fee to the cloud service provider for which you get several benefits in return. Cloud servers are away from your workplace. They assure you of near to 100% uptime and are more reliable than what you can have in your hardware- based mining done from your home or office. Cloud scales on demand. You can adjust the capacity as per your requirements with ease.

Lower in cost:

A significant advantage of Ethereum cloud mining over mining on your own is the low investment requirement. If you do mining on your own, the costs associated with a mining rig can become very high. There will be a lot of time and money wasted when you may have to sell old equipment and buy new hardware. If you continue to mine with your existing hardware, you will lose to your competitors.

Although you share a part of your profits with the providers, you have huge savings on your energy bills. Electricity costs vary from one region to another. The data centers are in strategic locations either in cool environments or in low power cost regions. Ethereum cloud mining will also eliminate noise that is generated, purchase of cooling and ventilation system required to run the computers.

No technical issues:

Cloud mining eliminates such risks. You also do not have any worries about hardware maintenance. The mining providers will be responsible for the equipment, uptime, electricity and other infrastructure. You can become a miner by entering into a smart contract and paying for the hash power in advance. Generally, the contracts are valid for a year and there are no other fees that you pay for in the period.

How to start Ethereum cloud mining:

Look for a good and reliable mining pool. You must buy ethers from an authorized exchange. As mentioned earlier, sign a contract and you are set for mining. Cloud allows you to focus completely on mining without bothering about the technical aspects.  You can opt for hosted mining where you lease a mining machine or you could build a virtual machine and install the software on your own or there is a third option where you take the hashing power on lease which will reduce the costs as you need not have any computer servers of your own.

Calculation of mining profitability:

Obviously, everyone will be curious to know if their investments are yielding returns or not. There is no point in doing mining if you are not getting some profits. If you want to know the profitability of your Ethereum cloud mining, it may depend on factors such as the Ethereum market price prevailing at that time and the cost of mining which is the value of the rent you are paying to the provider for the infrastructure. Consider the ethers that you are getting back in return during the period.

However, the calculation is only an estimate and not the final accurate profit margin. It may never be the same always because of the volatile nature of the industry.

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