Frequently Asked Questions
Mining cryptocurrencies
What is Bitcoin Mining?
Bitcoin Mining is a peer-to-peer computer process used to secure and verify bitcoin transactions—payments from one user to another on a decentralized network. Mining involves adding bitcoin transaction data to Bitcoin’s global public ledger of past transactions. Each group of transactions is called a block. Blocks are secured by Bitcoin miners and build on top of each other forming a chain. This ledger of past transactions is called the blockchain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is Cloud Mining?
Cloud Mining is a service that lets anybody become a miner and take profits for Bitcoin mining. In cloud mining model you don’t need to buy or set up special computer equipment. You also don’t need to take care of maintenance, pay high electricity bills and get rid of excessive heat or noise that is generated. You just simply buy a contract for mining computing power and take the mined currencies. Please have a look here to know more about advantages of cloud mining [link to how it works]
How Does Mining Create New Bitcoins?
The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce bitcoins into the system. Miners are paid transaction fees as well as a subsidy of newly created coins, called block rewards. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining
What is Proof-of-Work?
Bitcoin Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply. Individual blocks must contain a proof-of-work to be considered valid. This proof-of-work (PoW) is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses a PoW function to protect against double-spending, which also makes Bitcoin’s ledger immutable.
What Are Bitcoin Mining Pools?
During the last several years an incredible amount of Bitcoin mining power (hashrate) has come online making it harder for individuals to have enough hashrate to single-handedly solve a block and earn the payout reward. To compensate for this pool mining was introduced. Pooled mining is a mining approach where groups of individual miners contribute to the generation of a block, and then split the block reward according the contributed processing power.
How can I Make Money on Mining?
Miners get paid for securing and confirming cryptocurrency transactions. To make money you need highly specialized computer that is able to make millions of cryptographic operations per second. There are 2 ways you can start:
- You buy a mining machine (or machines), set up it, connect to internet, pay electricity bills (that can be very high due to high power consumption), take care of excessive heat and sound (you cannot live in the same room with the machine – it’s very noisy).
- You buy a contract for mining hash power on our machines and don’t worry about all the things listed above. In other words you rent the mining power from us and get your profits everyday. We take care of all the technicals.
Mining contracts
What is Mining Contract?
Mining contract is a contract where you rent mining hash power and mine cryptocurrency with that power. You decide what currency you want to mine and how much mining power you need. The more power you buy the more coins you will mine with that power. And the more coins you get the more money you can make. Mined coins are transferred every day to your wallet and you can decide what to do with it. You can sell them right away or hold them expecting bigger profits in the future.
What cryptocurrencies can I mine?
Please have a look at our offer to check what mining contract are currently available. Our offer is here.
How long is the contract?
The contract is usually for 24 months. But we also offer open-ended contracts where we mine coins for you as long as profits are enough to cover the expenses (mostly electricity costs). Please check the chosen mining contract details for more information.
How do I make money?
After you buy a contract our machines start mining coins for you. Everyday you get the coins that were mined by your rented hash power. The amount of mined coins depends on current mining difficulty and your hashing power. The more power you buy the more coins you will mine with that power. And the more coins you get the more money you can make. Mined coins are transferred every day to your wallet so you can sell them and get money right away. You can also hold them expecting bigger profits in the future.
How much will I earn?
The amount of mined coins and your earnings depends on current mining difficulty and your hashing power. The more power you buy the more coins you will mine with that power. And the more coins you get the more money you can make.
Where can I see my earnings?
You can see your earnings in the client panel. You will get your private login and password so you can watch how much coins you mined everyday.