The cryptocurrency mining solution offered by hosting miners companies is a dedicated GPU server. The advantage of renting (leasing) is that it saves you from building your cryptocurrency mining machine since the components are regularly developed and represent a subsequent investment.
With a data center dedicated server rental solution, you can always be equipped with the latest generation of features to optimize performance.
In addition, it frees you from electricity bills, which is an important consideration when mining cryptocurrencies. You don’t have to pay fixed monthly payments by not paying for electricity, making it easy to calculate profitability.
The Xeon GPU comes standard with an 8GB NVIDIA GeForce GTX1070 graphics card. The video card has excellent performance. This will allow the processing of blockchain algorithms. You can add a second identical graphics card to double the mining performance.
You manage the server and configure it yourself. This is the default server management choice. Where services are monitored with proactive response in the event of an unexpected server failure, here all technical issues are solved by technical specialists.
This allows you to focus on your online business. We also offer weekly backups to a separate backup server. CentOS or CloudLinux with cPanel is required for primary and complete management. Total management is only applicable to servers with two or more disks.
When buying a dedicated server for mining, you get one physical server with the maximum level of access and complete freedom to use it.
Unlike cloud VPS, there is no virtualization layer on dedicated hosting servers, so all its physical resources are available to you. A dedicated server also allows you to manage its configuration and settings fully.
Most large organizations are still completing their first steps in the bitcoin hosting market. Small hosts are taking the lead, and while some provide phenomenal hosting solutions, others are a recipe for disaster. The news is that several large hosts accept cryptocurrency.
Simple mining schemes that were effective a few years ago included the following equipment: 2-3 video cards, a motherboard, a processor, RAM, permanent memory, and a power supply.
To connect to the system, it was necessary to install the freely available software. An important resource consumed in the mining process in large quantities is electricity.
Currently, many different programs have been developed that can be used to mine cryptocurrencies. The choice of a specific product is determined primarily by the capabilities of the user’s computer. Obviously, the efficiency of different programs will be different for different configurations and computing power.
The easiest mining option is to use a cloud pool. In this case, the capacities of a specialized company are rented or purchased along with the software installed on them. However, the cost of renting or acquiring resources is relatively high in most cases.
It is essential to understand that with the growing popularity of virtual money, making a profit from mining becomes more problematic.
This is explained by the increase in the number of participants and the appearance of substantial economic resources in this market segment.
As a result, mining individually becomes simply unprofitable and unprofitable. Another potential danger is the fact that some cryptocurrencies that have appeared recently do not provide for the possibility of mining. Such virtual money includes, for example, Ripple or IOTA, which have shown stable growth in recent years.
Hosted Mining vs. Cloud Mining vs. Home Mining
Cloud mining is another alternative that, like hosted mining, exists to make mining more accessible.
Although cloud mining and hosted mining have some common goals, there are a few significant differences between them.
The most immediate difference is that the user does not own the mining hardware with cloud mining. Instead, users directly buy the hash rate from mining operations.
While purchasing hashrate remotely can significantly reduce entry costs, this form of mining carries additional risks. Users own nothing but an agreement to share mining profits proportional to the hash rate they rent. Historically, the lack of tangible ownership of cloud mining has unfortunately allowed scams to increase in this space.
While more feasible than it used to be, there is still a group of passionate homemade bitcoin miners. In-home mining, the purchase of machines, the creation of the facility’s infrastructure, and the performance of maintenance are entirely the user’s responsibility.
Thus, the user experience is a necessary prerequisite for home mining, but even an experienced home miner faces a number of problems. Retail electricity rates are significantly higher than those available to colocation sites, so if a home miner has a free or plentiful power source, a small margin can quickly shrink in a bear market.
All this does not mean that home mining is devoid of any advantages. Firstly, it is possible to purchase used cars at a lower price than offered through hosting services. In addition, home mining allows you to purchase bitcoins without KYC; as mentioned earlier, a desirable trait for privacy-conscious miners.
Done right, the home miner has the most control over their profits. However, some home miners are more motivated by privacy and the desire to maintain the network than to maximize profits.