How Does Cloud Mining Bitcoin Work?

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DATE: Jan. 15, 2017, 3:56 a.m.

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  1. How Does Cloud Mining Bitcoin Work?
  4. What is Bitcoin?
  5. Why Use Bitcoin?
  6. How Can I Buy Bitcoins?
  7. How to Buy Bitcoin in the UK
  8. How to Store Your Bitcoins
  9. What Can You Buy with Bitcoin?
  10. How to Sell Bitcoin
  11. How to Accept Bitcoin Payments for Your Store
  12. How do Bitcoin Transactions Work?
  13. Is Bitcoin Legal?
  14. Who is Satoshi Nakamoto?
  15. How Bitcoin Mining Works
  16. How to Set Up a Bitcoin Miner
  17. What are Bitcoin Mining Pools?
  18. How Does Cloud Mining Bitcoin Work?
  19. How to Calculate Mining Profitability
  20. How to Make a Paper Bitcoin Wallet
  21. What is the Difference Between Litecoin and Bitcoin?
  22. How to Buy Litecoin
  23. How to Mine Litecoin and other Altcoins
  24. Understanding Bitcoin Price Charts
  25. Bitcoin E-Commerce Services for Merchants
  26. Bitcoin Glossary
  28. 4
  29. 12
  30. If you want to invest in bitcoin mining without the hassle of managing your own hardware, there is an alternative. You can use the cloud to earn your coins.
  31. Put very simply, cloud mining means using (generally) shared processing power run from remote data centres. One only needs a home computer for communications, optional local bitcoin wallets and so on.
  32. However, there are certain risks associated with cloud mining that investors need to understand prior to purchase.
  33. Pros
  35. Here’s why you might want to consider cloud mining:
  36. A quiet, cooler home – no constantly humming fans
  37. No added electricity costs
  38. No equipment to sell when mining ceases to be profitable
  39. No ventilation problems with hot equipment
  40. Reduced chance of being let down by mining equipment suppliers.
  41. Cons
  43. Here’s why you might not want to consider cloud mining:
  44. Risk of fraud
  45. Opaque mining operations
  46. Less fun (if you’re a geek who likes system building!)
  47. Lower profits – the operators have to cover their costs after all
  48. Contractual warnings that mining operations may cease depending on the price of bitcoin
  49. Lack of control and flexibility.
  50. Types of cloud mining
  52. In general, there are three forms of remote mining available at the moment:
  53. Hosted mining
  54. Lease a mining machine that is hosted by the provider.
  55. Virtual hosted mining
  56. Create a (general purpose) virtual private server and install your own mining software.
  57. Leased hashing power
  58. Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the m
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