Even in today’s bear market for cryptocurrency, miners continue to flourish and thrive; because of this, there are a wide range of choices for those wishing to mine Bitcoin and other cryptocurrencies. In this volatile market, efficiency in your mining operation is essential; the right tools will help you gain as much revenue as possible from your investment and activity.
In the early stages of cryptocurrency mining, it was easy to set up a GPU rig and begin mining from home. An increase in the competition for mining rewards meant that miners need to be both fast and cost effective – a typical home setup today is more for hobbyists. You can no longer earn real revenues or competitive rates with this rudimentary setup. This leaves a few options for those wishing to enter the mining game;
- Open a data center to hold your dedicated miners
- Opt for colocation, and have your dedicated rigs hosted securely
- Try cloud mining, and pay to use someone else’s rigs
Miners need significant resources and know how to set up an efficient and operational data center, from the actual physical property to the time or employees to watch over the system and keep everything running. Most of us are left with two options; colocation or cloud mining.
Today, we are taking a look at these two easily confused terms and highlighting the differences between the two. This is also a heads’ up for new miners, as “cloud mining” is often used by scammers hoping to cash in on your inexperience.