By now, surely you are familiar with different types of cryptocurrencies, Bitcoin being the most popular one. In addition, you may have heard of Litecoin, an early bitcoin spin-off that was launched in 2011. Even though it is nearly identical, still there are some differences that make it more appealing to the people.
If you have already entered this world, you probably know some basic things about mining and how it works. But what about cloud mining? It seems that every day more and more people engage in this activity, which is why we have decided to provide you with some basic information about it. In this article, we are going to introduce you to Litecoin and tell you about some of its features, and also discuss some basics aspects of cloud mining. However, if you want to learn about it in more detail, you should visit the Binaryx website.
What is Litecoin?
As already mentioned, Litecoin is in a way derivate of Bitcoin, but the main difference is that is decentralized and this cryptocurrency has its own blockchain. What does this mean? It means that it has no central leader and that anyone can participate in its development. Another significant feature is that it is rather quicker than Bitcoin, four times actually. Litecoin processes a block every 2.5 minutes, while Bitcoin does this every 10 minutes.
The main features of cloud mining
The main benefit of opting for this type of mining is that you do not have to invest in equipment, which can be very pricey, as you probably already know. The only expense that you have when it comes to cloud mining is the price that you have to pay for a mining rig. What is this exactly? Well, basically, it is a collection of computers that only work on mining cryptocurrencies. Naturally, the more computers you have in a rig, the more successful you are.
When it comes to renting a rig, you will work with hosts i.e. people who offer this kind of service. Usually, these are big companies, so the chances of finding a single person who does this, are quite rare. They own a few farms which are actually facilities where the rigs are located.
There is one thing that you have to know. When renting the rigs you are not only paying for the service and equipment, but also for space, maintenances, and management. This means that additional costs like electricity will be taken out of the amount you earn, and the rest will be moved to your crypto wallet. These expenses are calculated in different manners, depending on the company, so it is definitely a thing you should inquire about. When it comes to the period of time, you can rent the rigs for anywhere from a few months to an indefinite period of time, although this is very rare. Many companies allow you to pay the fee every month instead of paying it all at once.
Why is cloud mining beneficial?
This type of cryptocurrency mining has numerous advantages, and we are going to discuss some of them. Firstly, it doesn’t require any technical knowledge which makes it perfect for beginners. You do not have to know how to use the tools and what protocols to utilize. Secondly, it is quite cost-effective, because, as already mentioned, you do not have to purchase any piece of equipment. All you have to do is to employ a company that offers this service, and that it is. In addition, most hosts offer some additional features to their clients, which is always a good thing. What’s more, it is also extremely beneficial to the hosts, because by earning money they have the opportunity to improve their farms thus offer better services and ensure that the cryptocurrency stays in demand.
Why opt for Litecoin cloud mining?
Now that we have explained to you some basics of both this cryptocurrency and cloud mining, let’s discuss why this should be your choice. The main reason why you should choose Litecoin instead of Bitcoin is the fact that is faster. The biggest issue with the latter is the entire process can be quite complex. It requires a lot of time and energy to mine an appreciable amount of Bitcoins. Taking into consideration how popular this cryptocurrency is, it comes as no surprise that more and more people want to get in, which means that the entire process is only going to get slower and more complicated.
On the other hand, as you can assume, due to the fact that Litecoin is not as popular as Bitcoin, meaning that demand is not as high, it actually makes it more accessible. This is a high supply of this cryptocurrency, and since people are not very interested in it, the mining is much easier thus Litecoin is more profitable.
As already explained, when it comes to cloud mining, you can do everything online meaning that you have to find a host and pay for their services. The first thing that you have to decide is whether you want to use free or paid packages. As you can imagine, the former one, even though they sound appealing, have numerous drawbacks such as poor customer service or slow mining process.
Next, you have to do research on the company before employing them in order to check how secure they are. The last thing that you want is to give someone your private information such as PayPal or credit card data and realize that they stole from you.
Furthermore, check the hash rate of the rigs. If these are really low, and for some reason, the host asks for an enormous fee, our advice is to look for another company. You can always investigate the average hush rates for certain rigs, just to understand what is appropriate.
Finally, investigate the company you are considering. Visit their website and read about the way they conduct their business. Learn about the people who work for them or in any way collaborate with them and so on. Feeling comfortable with a host and being able to trust them is of utmost importance.