What is a bitcoin mining contract and how to implement it

What is a bitcoin mining contract and how to implement it

What is a bitcoin mining contract? Bitcoin mining is carried out in two main directions. When there is a farm, huge or small. The second way to extract bitcoin is to use the services of cloud mining. Then you do not need to buy your equipment, and the company will provide you with remotely use it. You can sign a contract for the use of cloud mining. They come in several types, usually for a year or more. The price of such cloud mining for the production of bitcoin is from $ 18 per year to nine thousand dollars for one year’s contact and even more.

Table of content:

  • What is cloud mining
  • How it works
  • Cloud mining and computers
  • Types of cloud mining
  • How to start the mine in the cloud
  • Mining of bitcoins
  • Services that offer cloud mining
  • Risks use of cloud mining
  • Conclusion

If you want to use the purchase of cloud mining under the contract, then you need to contact one of the well-known resources for such services. Also, you have to open a wallet and fill out the registration data about yourself, enter the purse data in the cloud-mining.

  • When you buy a contract for a year for $ 18, you get a profit of about $ 2.5 a month, for $ 172 per one year’s contact you will get a profit from the production of bitcoin $ 28 per month, for 1650 annual contact the profit will be $ 287 per month and buying an annual contract for 9000 dollars, your profit will be about 2800 dollars every month from twelve. Bitcoins in the Military Technical Cooperation will come to your bitcoin wallet.

What is cloud mining

  • Cloud mining is an opportunity to make money using the processing power of data centers. In this case, the miner does not need to buy expensive equipment and software. The user can simply buy the power of equipment that is installed in remote centers and extract crypto currency in the “cloud”.
  • This makes it possible to crypto currency people who live in countries with a high cost of electricity, as well as those whose technical knowledge is insufficient to assemble the equipment and customize the software.

How it works

Miners who connect to the “cloud” accelerate the extraction of cryptocurrency and earn on it. Services that leased equipment, earn on commissions and on rent charges. The essence of transactions has not changed. The operation is confirmed when it becomes part of the block. Search for one block takes 10 minutes, thanks to the huge capacity and a whole group of people who are pooled.

Cloud mining and computers

Transactions are confirmed in the chronological order of transactions in the network. Exchange or cancellation of the transaction is not possible. The capacities process the resulting block and connect it to the longest chain. Any distorted block system rejects, so fraud is not allowed. Moreover, mining takes place in a common “piggy bank”.

Types of cloud mining

Some companies provide cloud free mining – the capacity can be used without a rental fee. In fact, these are ordinary cranes.
Paid – the company earns on commission and rent for the given capacity. By type, there are three main forms of cloud mining: Hosting – rental capacities that are installed at the supplier; Virtual hosting – rent a virtual server and install your software; Rental capacity – rent without physical access to hardware and software.

How to start the mine in the cloud

  • Before you start a mine in the “cloud”, you need to study reviews about companies and choose the one that seems most reliable to you. It is necessary to understand such concepts as speed of hashing, what algorithms there are.
  • After that, you need to decide how much power you need and for how long you want to sign a contract. Companies mainly offer a contract for a year, some offer 6 months to 2 years or unlimited. Next you need to pay an advance and sometimes an additional commission. The rest will be taken care of by the company.

Mining of bitcoins

Mining bitcoins – this is the most successful investment to date, given the constant growth of the value of the crypto currency. But not all services give the opportunity to kill Bitcoins at their expense. Below, we will list the services that allow Bitcoin mine, in addition to the most popular of them – Genesis-mining.

Services that offer cloud mining

  • In the list below, you will find reliable and proven services that enable you to mine both bitcoin and various altcoins. By signing a contract with the service, you yourself choose the cloud of power you need.
  • The most reasonable solution is to register on all services, as they often give out bonuses. This is an excellent opportunity to invest in crypto currency and earn income without spending on expensive equipment and paying bills for electricity.
  • HashFlare is a service that allows you to mine bitcoin and altcoins at a reasonable price. It is easy to use and automatically makes payments. In addition, the tariff plans on the service are not limited.
  • The data center Heshflaer is located in Tallinn and belongs to the company HashCoins – the world producer of miners. On the service you can buy SHA-256 and Scrypt (forever) and Etherhash and X11 (for a year). Buying equipment, the user himself chooses a pool of the required capacity.
  • You can calculate as bitcoins, or any currency through Webmoney. Cloud mining on this service can begin, even with a small amount of money. The yield is from 50% to 140% per annum, depending on the algorithm.

What is a bitcoin mining contract? Genesis Mining is the most famous service that allows Bitcoin mine and other advanced cryptocurrencies. In the market it has existed for more than one year, it has many positive reviews. He is trusted, as payments are made every day. Data centers are in Europe, America and Asia. You can easily contact the support team. The contract can be purchased, starting at $ 26 – the cheapest option that gives you 100 Gh / s. Profitability is from 80 to 150% per annum, depending on the investment.

  • BitMiner owns several huge centers with ASIC devices. On this service, purchased capacity can be sold on the exchange at any time. Attracts reasonable prices and high profitability.
  • GigaHash is a service that extracts from the Scrypt and SHA256 algorithms. Script currencies immediately change to Bitcoin, payments occur every day.
  • OXBtc is a service that sells cloud mining Bitcoin and Ether. Offers current and fixed deposits, so you can quickly return the invested funds.
  • EOBot is a service that offers to install software on your computer. Here you can mine, like Bitcoin, and a lot of other cryptocurrencies.
  • SkycoinLab is a service with a good reputation and reasonable prices for capacity. Has a clear interface, payments are made on request.
  • POW88 is a Chinese cloud service with a heavy registration process and an incomprehensible interface. But it is considered one of the most reliable with normal equipment prices. The capacity can be sold to other users.
  • Hashing24 – service with the lowest prices for capacity. Use the algorithm SHA-256. Only the Bitcoins can be killed.
  • NiceHash – a service that operates on the basis of the exchange. Here you can buy and sell capacity, prices are set by the market.

Risks

  • To cloudy mining it is necessary to approach with the same care, as well as to any investments. You need to invest as much money as you are not afraid to lose. The possibility of fraud, hacking is also difficult to exclude. Before investing money, study user feedback about the cloud company, learn all the available information about it on the Internet and social networks.
  • The maintenance fee covers the costs of the cloud company for electricity, hosting and equipment. How much you can earn depends on the reliability of the company. In addition, earnings depend on fluctuations in the exchange rate, which no one can predict. If the value of the crypto currency begins to fall sharply, the cloud company will suspend the work and stop paying for time.
  • Also, earnings depend on the power of the entire network, which depends on the number of hashing operations per second. Everything again depends on the course of the cryptocurrency.

Considering all the above factors it is worth considering, or maybe it’s better to just buy a crypto currency and wait until it grows up. To earn this way is less risky.

Conclusion

What is a bitcoin mining contract? Cloud mining cryptocurrency is a great way to invest your money and earn a crypt without spending on expensive equipment without paying bills for electricity without listening to the noise of coolers. The invested money can be returned, depending on the chosen service, for 2-3 months. The main thing before you get started, learn the basic algorithms, find out what is hashing and read reviews about cloud companies. Be vigilant and be able to have a good extra income every day.

 



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