It’s not easy to find the best bitcoin mining company because there are lots of them, and each one offers different things. For example, some have better customer support; some offer more coins for less money. Some have cheaper electricity rates. Therefore, it can be hard to know the best cloud mining service provider in 2021 without much research.
This article will help you compare and contrast two types of cloud mining providers: hosted vs. self-hosted miners. We’ll take an in-depth look at their costs and benefits so that you can make an informed decision about which is right for you!
What is the best cloud mining provider in 2021?
There could be many different reasons someone would want to own their cloud miner rather than rent one from someone else. For example, if you are interested in learning the ins and outs of mining – starting with cloud mining would probably be a good idea. Also, there are loads of information about different altcoins to mines on the internet. Still, it is better to start with bitcoin rather than another currency because it requires significantly less computing power and technical knowledge than other coins.
Hosted vs Self-hosted cloud miner
The company hosts hosted miners, and you pay them to mine for you, whereas with self-hosted miners, you own the hardware but have to maintain it yourself. There are pros and cons to each.
Costs And Benefits Of Each
Self-hosted miners: Pros – As mentioned before, you own the hardware, which means that when it performs well, you earn more bitcoins than with hosted miners.
You also have complete control over your hardware. If you want to upgrade it later on, that’s up to you! You’re also not at the mercy of any company or its maintenance: if there are any issues in their cloud, they can take a long time to fix them.
On the other hand, the downside of self-hosted miners is that they require technical knowledge and some level of hardware expertise to set them up (although, as this guide will later show you, this is not so hard!). They also cost more upfront: you need to buy the equipment and pay for shipping, which can potentially be a significant expense (the mining equipment price varies from a few hundred to several thousand dollars). You should also factor in the electricity cost.
Hosted miners: They’re relatively easy and low-risk if you are not tech-savvy or don’t have time to set them up. A company will host your miner, and you’ll pay for the hash power (and any maintenance fees).
The main benefit of hosted miners is that they are easy to start with. You don’t need any technical knowledge, but it’s not as profitable as self-hosted miners because you have no control over your hardware or software, so you get less profit share.
Read Also: Compare Ethereum vs Bitcoin
Which One Is Better For Different Types Of People And Situations
So now that you are familiar with the pros and cons of both hosted vs. self-hosted cloud miners, which one is better? It depends on your circumstances and preferences. So let’s go through some scenarios together!
Someone who doesn’t have any technical knowledge: I’d recommend starting with a hosted miner. It’s relatively easy to start, and you can still make money from it!
Someone who wants to learn about mining: If you decide to host your equipment, there are many online tutorials about building one on an old computer or a Raspberry Pi. However, if you’re set on starting with a hosted miner, I’d recommend Hashnest. It’s relatively easy to use, and you can get started without any knowledge of Linux or server management.
Someone who wants to earn as much money as they can: For someone looking to invest in bitcoin mining long-term, self-hosted is the way to go. Remember that in the long run, it is always better to own the hardware. It’s also possible for companies to “steal” your hash power and prevent you from getting any rewards (although that rarely happens).
Someone who wants passive income: Hosted miners are a good choice because they require less maintenance! With self-hosted miners, as mentioned before, you need to maintain your hardware and pay for electricity.
Someone who wants flexibility: hosted miners are great because they work on most platforms! Even if you don’t have a computer with a graphics card, mobile apps let you earn bitcoins from your phone. As long as it has an internet connection (e.g., iPhone), you can mine from it.
Someone who doesn’t want to worry about maintaining the hardware: Self-hosted mining is for someone looking for long-term passive income from their bitcoin miner. With hosted miners, you need to pay maintenance fees which means that there are months where your hash power may not be earning anything at all! However, because you have complete control over your hardware, you also don’t have to worry about the company going out of business and taking all its users’ money.
Someone who wants more updates: If you are self-hosted, I’d recommend joining a mining pool! They act as intermediaries between the miners (that’s what we are) and the pool owners (the people who own the hashing power and decide how to distribute it). By joining a pool, you’ll get more frequent updates on your mining progress, and you can also earn from other people via the shared fees.
Some additional tips: The cloud mining industry is pretty unregulated right now, so many scams are out there. So be careful and make sure to review the cloud mining company thoroughly before signing up!
Solo Mining vs Pool Mining
A mining pool is a group of bitcoin miners working together to solve a block and share its rewards. Without mining pools, solo mining would be nearly impossible because it requires so much processing power.
Although solo mining offers steady payouts, the payouts will be tiny because you get only a portion of the total reward. So if you can’t mine profitably on your own, joining a mining pool is much better because you’ll get regular payouts and smaller but more stable profits!
Self-hosted miners are better for people looking for long-term passive income. They’re also good if you’re not tech-savvy or don’t have time/don’t want to set up hardware. Hosted miners are more flexible and easy to use, so they’re a good option if you want to start mining without prior knowledge of hardware and software.
I hope this article has been helpful for you! All the best in your journey =)