What are crypto currencies, i.e. Bitcoin and other altcoins?
Crypto currencies were developed as a form of digital money of the blockchain technology providing a secure and decentralized way of authorizing two parties entering into a contract/transaction without the need of authorization of a third party.
Since the creation of Bitcoin in 2009, the blockchain technology has become almost revolutionary in terms of its ability to secure and record transactions by using collectively created, secured and supported digital currencies. The blockchain technology and crypto coins are fully created and supported by a peer-to- peer network, thus, eliminating the need of a central authority. This in return means that crypto currencies are not issued by a central organization and their value depends solely on the supply and demand or the price that one is willing to pay for it.
Since early 2013 crypto currencies, more particularly Bitcoin, have garnered growing interest from investors and the media due to huge increases and drops in their value on the crypto currency exchange market. Bitcoin still remains the most traded crypto coin but other altcoins such as Ethereum, Dash, Lite, Monero and Zcash have attracted much attention and have become appealing to investors as alternative investments. There is no doubt that the popularity of crypto currencies as means of smart payments will only become more widespread as nowadays even offline stores start to accept payment in crypto currencies and new type of crypto debit cards can be used for offline transactions. For this reason the value of crypto currencies is growing rapidly and coin mining has seen a huge interest from investors wishing to generate more coins.
What is crypto coin mining?
New coins are generated by a competitive and decentralized process called “mining”. Mining process involves using mining hardware and software for generating new coins – Bitcoin and numerous other altcoins, e.g. Ethereum, Litecoin, Dash, Monero, Zcash. These coins are given as rewards for miners’ effort to solve algorithms that approve transactions and ultimately secure the peer-to- peer network.
Initially coin mining was reserved to enthusiasts that had set up miner machines at their home. But nowadays personal coin mining can be very costly as it requires large investment to acquire the right hardware, software as well as ensuring fast bandwidth and paying the ever increasing electricity bills. Therefore more and more miners choose to work together in a shared mining effort forming a mining pool.
Why choose a managed cloud mining service?
The answer to the inconveniences of personal mining is cloud mining – an easier, faster and hassle free way of investing in crypto coin mining. Essentially you buy a share of a miner’s processing power or hashrate that is set to mine a particular coin, e.g. Bitcoin. All miners participating in mining the same coin share the rewards according to the amount of hashrate they have bought.
A managed cloud mining service is run by remotely hosted data centers that provide equipment and manage all processes needed for efficient mining. Miners are already set up and running therefore investors wishing to join a cloud mining service only need a crypto wallet (more info: FAQ) to purchase a share of mining capacity and start receiving rewards immediately. Miners are working non-stop therefore moments after the approval of payment you can start receiving your daily payouts whose amount depends on the mining difficulty and market value of that particular coin.
Minersale coin mining calculator is an easy way how to predict your rewards taking into account the variables of the moment of purchase – amount of hashrate bought, coin mining difficulty and coin market value against fiat currencies (e.g. USD).
In general setting up a profitable personal mining equipment could cost at least 2000$, while to start mining with Minersale cloud mining service will cost you as little as 25$ for an entry level investment. This makes cloud mining a very low entry investment with steady daily returns that at the current crypto market state can recover the initial investment even in less than 6 months time*.
*Initial investment in mining Bitcoin with Minersale in October 2017 could have been recovered in less than 6 months.