Pools VS Cloud Mining

What is cloud mining?

Cloud mining is one of the ways to get electronic money without purchasing personal equipment. Work with the service is carried out remotely, and all technical equipment is located in special computing databases.

The user pays for the cloud storage and uses the services that are provided to him.

Pros and cons of cloud mining

Advantages:

• There is no need for equipment costs, constant software support, payment of electricity bills. All this will be the work of your landlord.
• Support for popular cryptocurrencies. Cloud mining supports such popular cryptocurrencies Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Dash, Zcash and Dogecoin.
• You can start with any amount, even if it is $1. Low cost results in high income.
• Thanks to the affiliate program, you can increase your income by involving other people in your business.

Disadvantages:

• Financial pyramids that are encrypted under cloud mining. Many attackers try to impersonate mining while hiding criminal activities.
• Dependence on the company where your cloud is stored. The rental price can go up at any time. If the company decides to close, the money you invested cannot be withdrawn. 
• Lack of further edits in the settings. If the contract is concluded with one cryptocurrency, then it is impossible to switch to work with another cryptocurrency.
• Well-known companies are often hacked by cybercriminals. Amazon Web Services (AWS) and NiceHash servers were hacked, but NiceHash was able to recover all losses to its customers.

Earnings on cloud mining

Cryptoworld exists thanks to mining. The main purpose of which is to earn money on investments. For the convenience of average people, cloud mining was created, since it does not require large finances.

In order to start mining, you need to choose a reliable service with which you will cooperate and carefully read the policy of its work. After choosing a service, you need to decide on the amount of your investment. One of the advantages of cloud mining is that you don’t need a large amount to start to make a profit. Weigh the pros and cons and start mining!

If you want to make money without investments, then you need to look for exchanges that pay small amounts for visiting sites, but it is important to remember that you cannot earn large amounts without investments.

What is a pool?

A pool is a service or several interconnected services that control cryptocurrency transactions between miners connected via the Internet.

Pros and cons of mining pools

Advantages: 

• Any miner is eligible to join the pool.
• Ability to adjust security settings.
• The mining pool allows miners with lesser power to contribute their investment in block creation and get paid for it. 
• The ability to get loot in a pool is much higher than alone.

Disadvantages: 

• Payouts may be lower due to the rather large pool size.
• Complete centralization. The administrator is authorized to control all capacities.
• Compliance with and dependence on all rules regarding the conditions of the pool.
• Be sure to share profits with other private traders, paying for commissions.

The best pool for mining

We have prepared a list of pools for you so that you can choose the best one for you.

1. Binance Mining Pool is owned by the Binance crypto exchange. It is one of the most reliable mining pools.
2. EMCD is a commission-free mining pool from EMCD Tech. It has a reward system - FPPS + and the Donation function.
3. Miningrigrentals - they say that this service has no drawbacks. Available statistics and a small commission attract more and more miners.
4. Minergate is a powerful pool that mines not only bitcoins, but also cryptocurrencies such as: ethereum, dash.
5. Zpool - bitcoin exchanges in automatic mode without registration. Convenient for beginners.

Pools or cloud mining

Recently, cloud mining is no less popular way to earn money than pool mining. The cloud mining pool differs from the usual mining pool in the absence of the need for its own expensive equipment. At the same time, the mining service leases its computing power to you for a certain amount. Simply put, you buy a hashrate. Such companies have at their disposal huge data centers located in countries with the lowest electricity tariffs or where alternative energy (obtained in a “green” way) is used.

Some platforms, in addition to paying for capacities, charge an additional commission to cover their mining and electricity costs.

What mining method to choose?

If you do not have the funds to install and maintain powerful expensive equipment, then you should stop at the choice of cloud mining, because the purchase of capacity will be relatively inexpensive. This option is the best fit for a beginner. In addition, you will save well on electricity if there are high tariffs in your region or country, with which mining will be elementary unprofitable.

In another case, if there is excellent equipment available, then it makes no sense to pay for the rental of capacities and commissions.

As you can see, there is no clear answer to the question of which of these types of mining is better. You make your own choice based on the possibilities. To make a decision correctly, it is better to make accurate calculations and take into account all possible costs. Fortunately, there are special calculators on the official websites of companies providing pool or cloud mining services that make it easy to calculate profits.