Pool Mining vs Cloud Mining: What’s Better For You?
Pool mining and cloud mining are two terms that are often being mistakenly used as if they referred to the same thing. However, this could not be farther from the truth. Cloud mining and pool mining are completely different things based on different principles. But what exactly are the differences between the two, and which of these two forms of crypto mining will be better for you?
What Is Pool Mining?
Pool mining is a process in which a group of crypto miners join forces to increase their competitiveness and profitability. In other words, miners combine their hashing power, and share the profits from mining crypto proportionally to the amount of hashpower they have contributed to the mining pool.
For an individual crypto miner, it would be almost impossible to solve the entire block on the Bitcoin blockchain and reap the entire block reward. Joining a mining pool is a simple yet effective way of turning crypto mining into a steady, reliable source of passive income.
In other words, mining pools are intended for crypto miners. If you already own some mining hardware or if you plan to start your crypto mining enterprise, using mining pools will almost certainly be beneficial or even necessary for you.
If you don’t own any crypto mining rigs and you don’t have the time, knowledge, and funds needed to start mining crypto on your own, pool mining has nothing to offer you. The thing you might be looking for is likely cloud mining.
What Is Cloud Mining?
Just like pool mining, cloud mining is also a community-oriented way of mining crypto. But while pool mining is exclusive to crypto miners able to use their hardware to provide hashing power to the common mining pool, cloud mining allows everyone to contribute to the process of mining cryptocurrency and to share a portion of the profits.
Mining crypto is a complex endeavor that requires many different resources to succeed. Setting up a mining rig requires a lot of time and skill. Paying for electricity and maintenance of the mining hardware can consume a lot of money.
Some investors would like to start earning blockchain-based income with crypto mining but have no technical knowledge or no time to configure mining rigs by themselves. On the other hand, some crypto miners might be running a successful long-term operation but struggle to pay electricity bills on a day-to-day basis.
Cloud mining enables both of these groups of people to meet together and join forces. Investors can lease a specific amount of hashing power and benefit from the long-term returns of crypto mining. Miners can sell a portion of the hashpower generated by their mining hardware in order to stay in business.
A huge advantage of cloud mining is the fact that it can provide all parties within the crypto mining ecosystem with a safe environment for buying and selling hashing power. Specialized hashpower platforms such as GHPEX allow people to trade hashing power in the form of futures and spot contracts. It’s one of the easiest and secure ways for the investors to start benefiting from crypto mining, and for the miners to lease their hashing power to others.
Conclusion
Pool mining and cloud mining are not necessarily exclusive, competing solutions. Both of these types of community-oriented crypto mining are very different from each other, they have entirely different premises and most importantly are aimed at different demographics.
Pool mining is only intended to profit actual crypto miners. Furthermore, only the miners able to contribute a significant amount of hashing power to the pool will be able to truly enjoy the benefits of pool mining.
If you’re not a crypto miner, pool mining is not for you. If you ever see a website promising high mining pool rewards without having to actually contribute hashing power, be very careful — mining pools like these which promise high profit for everyone are very often scams.
If you’re looking for a way to start earning blockchain-based passive income with crypto mining without having to actually own mining hardware, cloud mining is the right thing for you. It allows you to invest in crypto mining in an accessible and convenient way, and using hashpower platforms like GHPEX means that you can easily avoid scams and profit from crypto mining in a secure, stable, and reliable way.
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