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Currently, few people mine cryptocurrency using a home desktop computer. This is not financially feasible and requires significant energy costs.
In this regard, the bitcoin mining service is becoming increasingly popular, as well as repair and diagnostic work to restore ASIC miners.
Simply put, this is the placement of your servers in specialized data centers in the so-called mining hotels. Some of them also provide an opportunity to rent equipment for cryptocurrency mining.
The operation of equipment in mining hotels is monitored by specially trained personnel. All that remains for you is to remotely monitor the accrual of tokens to your wallet and pay for the rental of capacities on time. Of course, the final cost of bitcoin mined in a mining hotel is much lower compared to bitcoin mined independently at home. But at the same time, the mining hosting service can save you from many unnecessary worries:
- the cost of renting premises for mining,
- maintenance of equipment
- implementation of virtual currency, etc.
Plus mining hosting
Compared to the disadvantages, the use of mining hosting has many more pros than cons:
- You can buy the equipment yourself.
- Reduced energy and rental costs.
- Saving time.
- Free equipment repairs and investment insurance avoid additional financial losses.
- The simplified virtual currency conversion process.
- Possibility of long-term planning of investments and expenses.
- Constant consultations with qualified specialists will help to improve financial literacy.
- Environmental safety.
- Hosting places bitcoins in economically prosperous regions.
How to increase cryptocurrency through trading
Crypto trading is the primary way to earn money through cryptocurrency transactions. In its essence lies the usual speculation on the difference in prices. To make money, crypto traders can enter into short-term, medium-term, and long-term agreements. Their purpose is to gain as much as possible.
Purchase and sale operations take place on unique platforms – cryptocurrency exchanges. Cryptocurrency trading is more profitable than mining and investing.
Crypto trading usually uses the same instruments and assets as regular trading. They are called derivatives. When buying derivatives, neither party owns the asset; speculation takes place around the rights to implement the contract. The main types of derivatives are distinguished:
Futures guarantees that in the future, you will be sold cryptocurrency at a fixed price at a specific time. But at the same time, no one guarantees that the cost of an asset in the foreign market will stay the same – it can both rise and fall.
An option is a warranty that provides you the right to purchase an investment at a specified cost but is not binding. In other words, this is the same future, only with a possible change in the decision.
A swap is a double contract. You will be sold a crypto asset if you promise to sell it back to the same trader on certain conditions.
Before you start trading, you need to evaluate the market itself – which cryptocurrencies are the most popular, their volume, and liquidity. Also, cryptocurrency exchanges can act as platforms where bidders can sell digital assets to each other.
Each exchange has its listing – a specific set of cryptocurrencies and trading pairs that users can exchange. The most popular pairs are BTC/ETH, BTC/LTC, USDT/BTC, and ETH/LTC.
The largest cryptocurrency trading platform is Hong Kong-based Binance. It allows you to exchange cryptocurrency both between cryptocurrency pairs and for money.
Forex, as the largest and most liquid market in the world, has begun trading with cryptocurrencies in recent years. Forex trading allows you to buy cryptocurrencies at the current rate. The main difference between cryptocurrency exchanges and Forex is the absence of brokers.
With the development of the decentralized finance market, the number of new projects that can be invested in is steadily growing. If you still decide to trade on a cryptocurrency exchange, start with small amounts. Potential losses often accompany high profits. Choosing the right strategy will protect you from possible risks. To plan a long-term and profitable activity, it is essential to devote a lot of time to learn this craft.
Is Mining Hosting the Right Choice?
Mining hosting is always a great choice if you want to produce cryptocurrencies but need more space to host the hardware.
There are several aspects to contemplate when choosing the best company. First, it is the price of electricity. Choose a company that is located in regions with cheap electricity prices. So you have to spend less money to pay for it.
Also, pay attention to the company’s location and equipment placement in colder areas. This will ensure timely cooling and ventilation of the equipment.
Pay attention to the team. These should be professionals who have been working with mining for years.
Make sure the company offers equipment insurance.
The presence of additional functions, such as stores with appliances, will also be a plus because you can buy the necessary devices without additional payments.
If you decide to mine or not, then the answer is, of course, YES. You need to think through all the processes and be sure you are investing the right money. The most proven method is mining hosting, where everything will be done for you: they will place equipment and control the operation and cooling and ventilation systems. All you need is to pay a fixed fee and mine cryptocurrency.