Bitcoin mining and other crypto mining have become increasingly popular of late. This is partly due to the recent price increases of most big cryptocurrencies.
Crypto mining, or cryptomining, creates new cryptocurrencies by utilizing mining hardware to make difficult computations to try and ‘find’ the new block. The one that finds the new block gets the block reward that corresponds to the block. This makes crypto mining a potential way to invest in the crypto market without directly buying cryptocurrencies.
Depending on many factors, including market conditions and costs, crypto mining can either be lucrative or won’t make that much money. Additionally, it takes a lot of upkeep and storage space in order to run mining hardware to mine crypto currencies.
How to mine cryptocurrency without buying all the hardware
Perhaps you like the idea of mining cryptocurrencies. But local electricity prices are too high or there is no room to store and manage the mining hardware. This doesn’t mean you can’t profit from mining. There are several options for you to still do mining in some way.
Three of the most common ways to mine crypto without owning the hardware are:
- Use a cloud mining contract to gain a certain amount of hashpower in a specific algorithm and use that to mine cryptocurrencies.
- Buy or rent hashpower directly from crypto miners using websites like NiceHash.
- Invest in publicly traded companies that are mining cryptocurrency.
| Cloud mining | Rent hashing power | Invest in a publicly traded company | |||
| Pro | Con | Pro | Con | Pro | Con |
| Can start at low price point | Potentially hidden costs | Can start with a small amount | On average prices > profit | Can buy 1 individual share | Don’t mine crypto yourself |
| Very easy to start | Several scam projects | Can stop at any time | No ownership of the hardware | Ownership of the company | No payout in crypto |
| Different algorithm options | Hard to make profit | A lot of different algorithms | Prices can fluctuate | Traditional investment vehicle | Traditional investment vehicle |
| Easy to understand dashboards | No actual ownership | Own choice of where and which coins to mine | Dependent on those supplying the hashing power | Transparency due to being publicly traded | Potential P/E premium due to hype around crypto |
Crypto mining hosting: An alternative method to crypto mining
As can be seen above, there are pros and cons related to all methods of crypto mining without actually doing it yourself. The alternative to those methods is crypto mining hosting. This is the process where machines owned by the client are hosted and managed by a hosting provider. That’s what we offer at Elite Mining Inc.
Pros of crypto hosting at Elite Mining Inc (EMI):
- Ownership of the crypto mining hardware: You can even sell the equipment at a later date.
- Very low electricity and maintenance costs: Prices start at 4.3 cents per kw/h.
- Management by the experienced EMI team: Meet the EMI team here.
- No storage requirement: The machines will be in the EMI facility, which already has the electrical infrastructure to support large quantities of machines.
- Use of EMI’s custom-developed immersion mining technology: This helps increase the lifespan of machines, decrease costs of cooling, and enhance overclocking capabilities.
Cons of crypto hosting:
- Not possible to start small: A decent-sized initial amount of machines is required in order to be hosted.
Conclusion
There are several methods to start in the crypto mining industry if you are not looking to mine at your own home. Cloud mining, renting hashing power, or investing in a publicly traded company are all options. Most of the options have pros and cons, which include what you actually own, the potential profit, and the trustability of the companies. Given the risks, the investment could be unprofitable.
Luckily, there is an alternative. Crypto hosting with Elite Mining Inc provides low costs and actual ownership. Just as important, we’re a trusted, USA-based incorporated company. So, if you want to get into crypto mining but don’t want to deal with the hassle and issues of managing and maintaining the hardware yourself, consider EMI. Click the link below to get started.
Start Crypto Hosting with EMI