Difference between cloud mining and hosted mining?

Ben Barubal

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

For your information, they have the same principle. They mine the same digital currency using remote hardware.
But their difference is still big.

In hosted mining, the investment is very expensive, because of its mining hardware, and it will cost a lot of money.
That does not include the inevitable repairing mining equipment.

Cloud mining is the opposite of Hosted Mining. It's just that at this time it's not profitable like it was in 2017, but it can still be said that it's profitable based on my research.

tjtonmoy

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Both cloud mining and hosted mining can be useful for people who want to participate in the mining process but don't want to go through the hassle of setting up their own hardware. However, it's important to do your research on any provider before signing up for their services. There have been many instances of fraudulent or unreliable providers in the cryptocurrency mining space.
Although it is possible, because the concept is right. But I doubt there are any legit services available out there which provides the legit thing. To me, "You can not call it mining unless you are doing it yourself."

FP91G

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Quote from: blockchaintek on December 18, 2022, 07:51:46 PM

So I have a mine and trying to get smaller customers (MOQ 24 units) to fill our facility. 1,600 total slots in the United States. 5.75 cents with profit sharing component and ZERO security deposit required - no matter the size.

Should I just start a new thread and add pictures? I am trying to avoid scammers but also want to reach people outside of the normal broker channels.

What do you all recommend??

What coin are you going to mine?
If this ASIC is for bitcoin with a minimum batch of 24 units, then I would probably buy bitcoin now and wait for a new price increase. But if you have very comfortable conditions for the price of electricity, then it is easier to find partners among miners who cannot continue mining because of expensive electricity.

blockchaintek

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So I have a mine and trying to get smaller customers (MOQ 24 units) to fill our facility. 1,600 total slots in the United States. 5.75 cents with profit sharing component and ZERO security deposit required - no matter the size.

Should I just start a new thread and add pictures? I am trying to avoid scammers but also want to reach people outside of the normal broker channels.

What do you all recommend??

Ben Barubal

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

My question is how much is your budget for this investment thing you are talking about mate? Because if you're not too far away from buying a brand new Bitcoin mining rig, maybe it's better to just buy it instead of risking your capital in Bitcoin mining.

Since it has been several years since it has been unprofitable to make any cloud mining apps a source of income in the crypto space mate, we should be careful than to lose our capital with no return of profit.

Lida93

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

Cloud mining are like Ponzi schemes where you will have to pay a certain amount of money for a particular mining machine that is said to be mining for you but unfortunately it's just a ghost mining figures. I remember falling for a numerous of them all while in my early stage in crypto as a newbie feeling so eager to make some big bucks within a short frame but instead I lost more than I could imagined and I am glad I have leant my lesson only that it was through the hard way.

Very a few of host mining are legit though only that it's quite expensive to run. Just like the word implies "host" mining a situation where mining company mine on your behalf while you pay for electricity and equipment charges.

FP91G

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Quote from: Artem Sereda on November 08, 2022, 11:13:16 AM

Quote from: FP91G on October 23, 2022, 07:05:18 AM

Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

You can also invest $50 in cloud mining. And each mining hosting has a minimum amount of equipment that you should have, for example, 10 ASICs at least. Both options are very risky.

You invite a person to invest money without explanation? How will this help him understand the technical side and the differences? He's asking about something completely different.

Where did you see investment proposals in my post?
I always say that you need to mine only on your equipment.You will not recognize the technical side and differences if you sit in front of a computer or phone monitor. For security reasons, you will not be allowed to enter the mining farm.
There are a lot of scams with such mining in Russia
https://irk.today/2022/12/14/organizatory-mayning-otelya-v-irkutske-predstanut-pered-sudom-za-krazhu-oborudovaniya-u-svoih-klientov/
https://secretmag.ru/criminal/v-rossii-aferisty-sozdali-maining-otel-dlya-krazhi-oborudovaniya-24-06-2022.htm

NotFuzzyWarm

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@Xal0lex
Re the scammer and his amusing conversations with themself promoting their scam pool, you can check this for why they are now gone Wink

https://bitcointalksearch.org/topic/m.61423936

fennic

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Cloud mining is a type of scam where they show you that you have bought actually mining power but in real it is full time scam. And also they force you to buy Mining power with higher APY, and you do not know at when time they will exit and all your money will be gone too.
And regarding hosted mining, you can consider if you have local miners you can invest in there and than you can earn and that can be legitimate. And this can be a scam mining too if they offer you buy more hash power.

Xal0lex

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That's why I want to hear from this fellow, how long he has been in this cloud mining and how much money he has invested there. He writes about the alleged "financial independence" that this service gave him

If this is the site I mentioned, there is a profit calculator and you can check how much you can get from a certain amount. Well, of course, I also checked the age of the domain. I'm very interested in what his response is.

NeuroticFish

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Quote from: Xal0lex on December 09, 2022, 02:32:00 PM

Quote from: ?? on ??

Now I discovered Bit3 for myself and only there I earn. This platform gave me financial independence, I recommend it.

How long have you been earning in this cloud mining? And how much, if not a secret, of course, have you invested in this cloud mining?

If you look to that account's history you'll see it's used for advertising (guerilla marketing) that platform.
And since he doesn't come with a ref link, I'd say he is either part of the team, either hired for marketing.

So my bet would be that his "financial independence" will come if/when they get to cash in (ie scam) some deposits from gullible people and if he won't also get scammed with false contract/false promises.

And since this post is a good TL;DR; I'll quote it for visibility:

Quote from: NotFuzzyWarm on December 09, 2022, 02:34:59 PM

Their site is 1 month old and the 'three' folks posting about it are no doubt the same person shilling their SCAM.

NotFuzzyWarm

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Quote

P.S. Is this service in question - bit3-mining.com (not advertising)?

Their site is 1 month old and the 'three' folks posting about it are no doubt the same person shilling their SCAM.

Xal0lex

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Quote from: ?? on ??

Now I discovered Bit3 for myself and only there I earn. This platform gave me financial independence, I recommend it.

How long have you been earning in this cloud mining? And how much, if not a secret, of course, have you invested in this cloud mining? I ask this because in my many years in cryptocurrency, I have never met a service that didn't turn into a scam within a few months.

P.S. Is this service in question - bit3-mining.com (not advertising)?

Artem Sereda

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Quote from: FP91G on October 23, 2022, 07:05:18 AM

Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

You can also invest $50 in cloud mining. And each mining hosting has a minimum amount of equipment that you should have, for example, 10 ASICs at least. Both options are very risky.

You invite a person to invest money without explanation? How will this help him understand the technical side and the differences? He's asking about something completely different.

FP91G

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Quote from: NotATether on October 26, 2022, 06:42:57 AM

Quote from: FP91G on October 23, 2022, 07:05:18 AM

You can also invest $50 in cloud mining. And each mining hosting has a minimum amount of equipment that you should have, for example, 10 ASICs at least. Both options are very risky.

Why take that particular risk when the profit margin with that amount is going to be very thin (assuming a legit cloud miner) and small?

To me, it's just not worth making a few dollars net profit per month out of $50, as it won't cover any expenses.

Many cloud services offer to buy not a whole ASIC, but only a part of the hashrate, for example, from 5 or more terahash for bitcoin mining. This will attract many customers who are afraid to immediately invest, or the service will pay a reward in this way to partners who attract new users. I invested a little in such services and was deceived because the services for maintaining and paying for electricity after a year were more than the profit from mining.

NotATether

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Quote from: FP91G on October 23, 2022, 07:05:18 AM

You can also invest $50 in cloud mining. And each mining hosting has a minimum amount of equipment that you should have, for example, 10 ASICs at least. Both options are very risky.

Why take that particular risk when the profit margin with that amount is going to be very thin (assuming a legit cloud miner) and small?

To me, it's just not worth making a few dollars net profit per month out of $50, as it won't cover any expenses.

FP91G

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

You can also invest $50 in cloud mining. And each mining hosting has a minimum amount of equipment that you should have, for example, 10 ASICs at least. Both options are very risky.

Daltonik

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

Well, you haven't even indicated which coins you are investing in, it's possible that they have nothing to do with mining, and if I were you, I wouldn't rush to invest in cloud mining, usually it's not who they pretend to be, so be careful with that. The difference between cloud mining and hosting is that in the first case you just buy virtual capacities, which may not be available from the seller, in the case of hosting, you place your devices, for example, in the nearest data center and just pay rent.

joniboini

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Quote from: buyerfryer on October 16, 2022, 06:53:32 AM

My brother is into hosted mining and from what I have heard he has been making a decent amount of profit. We don't talk anymore so I have no idea where he gets it done from..

I think you should ask him even if it feels awkward since you're risking your money here. At least you have someone with experience to learn more directly. But always be cautious because the risk is always there. Sometimes a scam service gives you a "decent" profit for a few months, then asks for another deposit later, and then ditches you.

buyerfryer

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Quote from: BitMaxz on October 14, 2022, 10:36:55 AM

Why don't you just buy a miner and run it in your home it would be much safer because you have them physically.
Both Cloud mining and hosting have risks cloud mining is most likely a scam while hosted mining is risky unless you know a legit company but right now it's hard to find a legit company that offers cheap Electricity.

So to avoid the risk buy a miner and mine on your own without any 3rd parties but the problem is if you have cheap power because you won't make any profit if you mine with an expensive electricity rate it would be better to invest in bitcoin/altcoin than burning your investment in paying the Electricity bill.

I don't have access to cheap electricity or the time to maintain a miner on my own, which is why I thought I would look into these options... :/
My brother is into hosted mining and from what I have heard he has been making a decent amount of profit. We don't talk anymore so I have no idea where he gets it done from..

Queentoshi

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

but I'm curious about the differences between the two in case I decide to start mining.

As a safety tip and advice, you should also be careful so people don't take advantage of your curiosity, get into your PM, and offer to help you get started. Majority of them may have bad intentions for you. For any of the options, do your own proper research to know better and make a choice.

BitMaxz

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Block halving is coming.

Why don't you just buy a miner and run it in your home it would be much safer because you have them physically.
Both Cloud mining and hosting have risks cloud mining is most likely a scam while hosted mining is risky unless you know a legit company but right now it's hard to find a legit company that offers cheap Electricity.

So to avoid the risk buy a miner and mine on your own without any 3rd parties but the problem is if you have cheap power because you won't make any profit if you mine with an expensive electricity rate it would be better to invest in bitcoin/altcoin than burning your investment in paying the Electricity bill.

joniboini

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Quote from: ?? on ??

The simplest way to explain this is that cloud mining is cost-efficient, whereas remote (hosted) mining gives you more control.

Such a nice way to summarize it, while probably ignoring the majority of the issues. OP, don't get trapped by marketing words like this. Not saying they are lying, but there are dozens of businesses that scam their users in the end while promising cost-efficient mining. Even if they are honest, the risk outweighs the benefit.

FYI, your link doesn't work.

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

In theory the difference should be that in case of cloud mining you buy (any) hash rate (which you may also able to resell to other users if you no longer want to mine), while for hosted mining you buy actual miners and that may not be so easy (availability, more expensive, ...). Especially in case of hosted mining you'll have to pay for all the expenses, from electricity to maintenance. And you also don't get your hands on the machines.

In reality cloud mining means websites that have no miners, display some nice numbers and offers to attract unsuspecting newbies into investing and they don't pay (or even more, they ask for more money pretending you need to pay in order to get your money). Plain scams.

In reality hosted mining is also dangerous since you cannot be 100% certain the host will keep his promise. I've seen stories with the host simply making some day all the miners mine to his own wallet and not answering to calls any longer. Of course, if you have a good contract and the identity of the host was real, you can start (a costly) lawsuit.

As @mocacinno said: it's better to avoid both (unless you have very reliable information you can react legally if they attempt to scam you, information most won't give, or not a real one).

mocacinno

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Quote from: buyerfryer on October 14, 2022, 03:32:49 AM

I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

Cloudmining is either a scam or is making you take all the financial risk in exchange for a small piece of the profit, hosted mining is either a scam or hosting your actual mining rig.

Basically, most of the cloudmining company's discussed on bitcointalk are either an obvious scam or later on turn out to be a scam. The "honest" ones run their own hardware in their own datacenter, and you pay all their costs in exchange for a part of their income.

On the other hand, hosted mining company's usually let you run your own miner, you still pay all the costs, but because it's your hardware you also get all the income.

Personally, i wouldn't invest in neither of these options... Maybe i'd dip my feet in hosted mining IF i could find a reliable company in my own country AND the math proves it would be profitable... but still... for me it would either be home mining or not mining at all (and at the electricity prices we've been paying for years, home mining is no longer a viable option for me)

buyerfryer

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I have no idea what the difference between the two is because I am not involved in mining. I directly invest in coins, but I'm curious about the differences between the two in case I decide to start mining.

Topic: Difference between cloud mining and hosted mining? (Read 473 times)