Is it possible to mine Bitcoin without using any hardware? Yes. There is another option. In fact, there are individuals who choose to earn this crypto currency but not by means of mining. It is a way of avoiding the high cost of electricity for powering the systems. Take a look at the different ways of mining Bitcoin without any miner.
Mining of Bitcoin currency is a competitive niche. The difficulty level in mining becomes harder as more miners using modern hardware jump into the bandwagon. Yet, it is important to conduct due diligence to determine if mining can be a profitable venture. Also, look for a Bitcoin wallet. It is currency based on the Internet so you need storage for your coins.
You can mine using the cloud. In simple terms, you use collective processing power operated from remote data hubs. Only a personal computer is required for communications purposes plus a local Bitcoin wallet which is not compulsory. Three types of cloud mining are the following:
- Hosted – Lease equipment from the hosting provider.
- Virtual Hosted – Build a virtual private server (general purpose) and install mining software personally.
- Leased Hashing Power – Lease hashing power minus the dedicated virtual or physical computer. This is the most prevalent approach in cloud mining.
There are Paid-to-Click Sites and advertising platforms like BTCClicks that make payments for each advertisement you visit on their sponsor sites. Advertisers get quality traffic while members have the chance to earn Bitcoin. The “miner” must view advertisements for a specific period and rewarded with Bitcoin.
Payments and Donations
Bitcoin is accepted as payment system for legal trading of online and offline merchandise. Start-up businesses can save on mining hardware. You can offer services or goods for free and ask for contributions if consumers like them. Bitcoin donations are effective but very simple and less scary compared to traditional currencies because of exchange rates. Some programmers are capable of creating popular apps like Adblock which are basic alternatives in Bitcoin mining.
Perform Minor Tasks
Some websites (like Coin Worker) allow users allowing users to execute small tasks like fundamental analytical assignments, watching videos or other websites. Miners will be rewarded with a particular amount of Bitcoin depending on the time-span and level of difficulty. Experience is needed in finishing the work fast and correctly.
There are Bitcoin users who lend to peers for profit to bring in profitable returns. Choose a crypto currency banking model wherein you place deposits with sites that pay fixed interest rates. However, you lose investments if you fail to perform the job correctly. Good sites promise to produce consistent returns.
This technique is similar to stock market trading. The miner can use the Bitcoin to earn money by way of Arbitrage. It is purchasing and selling currencies, commodities or securities simultaneously in derivative forms or markets. Traders maximize varying process for one asset. In terms of digital currencies, you purchase and sell right away for higher costs in a different location. Try to check out sites like Bitcoin Stack Exchange. This is a question and answer website for Bitcoin buffs.
Avoid Mining Scams
Fraud comes in many kinds even in the form of websites. Mining scams have proliferated as of late. There are a few sites that offer methods in earning Bitcoin which is not associated with real mining. One scenario is a website that does not fulfill its commitment to pay because of financial issues or inefficient management. Refrain from investing in sites that you cannot trust.
Computation of Profitability
How do you compute mining profitability? Profitability calculators like Genesis Block require data on electricity costs and start-up hardware investment. If the provider pays for electricity, you have to input the monthly mining fee instead. Yet, the process of conversion is not really clear-cut. For hardware miners,
it is possible to calculate monthly operational cost by multiplying the electricity charge by the unit’s power consumption and conversion factor of 0.744. This is the ratio of seconds every month to energy joules for every kilowatt hour (KWH). The opposite happens when it comes to cloud mining calculation since providers provide a running cost per month. Compute the equivalent cost for every KWH and input in the mining calculator. Divide monthly running cost by the same conversion factor.
Risks and Rewards
Risks are always present if you attempt to engage in various types of virtual currency mining. On the contrary, profitability is always highly possible provided you make the right decisions and choices. Read online articles that give tips to prospective Bitcoin miners. Conduct test computations to determine options like cloud mining services. As hardship level of Bitcoin goes up, losses will start to come within four to six months and further than that.
To rectify the situation, you can reinvest to maintain a competitive rate for hashing even as some say this is too speculative. It was discussed earlier that there is the risk of hoax as well as mismanagement. Invest in mining only if you feel comfortable despite many risks. Avoid investing more than what you are capable of losing. Check all social media networking sites. Talk to people who have already invested about their experiences in investing. It is necessary to implement the same due diligence required for any form of investment.
There are multiple alternatives which can be considered viable for as long as you know how to open out your portfolio. Opt for mining alternatives only when the probability is high for generating returns on investments. You have just seen ways of mining Bitcoin without even buying expensive hardware and paying electricity costs.