A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
Since the creation of Bitcoin in 2009, the blockchain technology has become almost revolutionary in terms of its ability to secure and record transactions by using collectively created, secured and supported digital currencies. The blockchain technology and cryptocoins are fully created and supported by a peer-to- peer network, thus eliminating the need for a central authority. This in return means that cryptocurrencies are not issued by a central organization and their value depends solely on the supply and demand or the price that one is willing to pay for it.
Since early 2013 cryptocurrencies, more particularly Bitcoin, have garnered growing interest from investors and the media due to huge increases and drops in their value on the crypto currency exchange market. Bitcoin still remains the most traded cryptocoin but other Altcoins such as Ethereum, Dash, Lite, Monero and Zcash have attracted much attention and have become appealing to investors as alternative investments. There is no doubt that the popularity of crypto currencies as means of smart payments will become more widespread as these days even offline stores start to accept payment in cryptocurrencies and new type of crypto debit cards can be used for offline transactions. For this reason the value of cryptocurrencies is growing rapidly and coin mining has seen a huge interest from investors wishing to generate more coins.
New coins are generated by a competitive and decentralized process called “mining”. Mining process involves using mining hardware and software for generating new coins – Bitcoin and numerous other Altcoins, e.g. Ethereum, Litecoin, Dash, Monero, Zcash. These coins are given as rewards for miners’ effort to solve algorithms that approve transactions and ultimately secure the peer-to- peer network.
Initially coin mining was reserved for enthusiasts that had set up mining machines in their homes. These days personal coin mining can be very costly as it requires large investment to acquire the right hardware and software as well as ensuring fast bandwidth and paying the ever increasing electricity bills. Therefore more and more miners choose to work together in a shared mining effort forming a mining pool.
The answer to the inconveniences of personal mining is cloud mining – an easier, faster and hassle free way of investing in cryptocoin mining. Essentially you buy a share of a miner’s processing power or hashrate that is set to mine a particular coin, e.g. Bitcoin. All miners participating in mining the same coin share the rewards according to the amount of hashrate they have bought.
A managed cloud mining service is run by remotely hosted data centers that provide equipment and manage all processes needed for efficient mining. Miners are already set up and running therefore investors wishing to join a cloud mining service only need a crypto wallet (more info: FAQ) to purchase a share of mining capacity and start receiving rewards immediately. Miners are working non-stop therefore moments after the approval of payment you can start receiving your daily payouts whose amount depends on the mining difficulty and market value of that particular coin.
HelixxMine coin mining calculator is an easy way how to predict your rewards taking into account the variables at the moment of purchase – amount of hashrate bought, coin mining difficulty and coin market value against fiat currencies (e.g. USD).
In general setting up a profitable personal mining equipment could cost at least $2000, while to start mining with HelixxMine cloud mining service will cost as little as $25 for an entry level investment. This makes cloud mining a very low entry investment with steady daily returns that at the current crypto market state can recover the initial investment in less than 9 months.