The world of cryptocurrency does not stand still, in fact, it is developing at a rapid speed. That is why many people have a great desire to try themselves in this business. In addition, mining has been gaining tremendous momentum lately. And with that came the need to use different locations for the equipment.
That’s why we’re going to look at such an interesting topic as hosted mining, and break down everything that goes along with it. We will also pay attention to the concept of colocation and tell you everything you need to know about it. And, of course, we will talk about the right choice of hosting provider.
Mining Hosting and its Advantages
We are not going to delve too deeply into this concept, but just to say in simple words what it is and what it is for. Roughly speaking, when you host your servers and equipment, you use a colocation center. When you use this service, you are completely relieved of all worries. After all, specially trained staff will take care of everything.
Yes, convenience is one of the main advantages of such hosting services. In the end, the hosting staff does most of the hard work, and you relax and enjoy the results. For example, you no longer have to worry about electricity, cooling your equipment, and so on. There are many options for ASIC colocation hosting, which you can choose from depending on your needs.
What is Colocation
If you’ve ever wondered what colocation is, we’ll answer it now. In essence, it is hosting. Colocation is a service that is the placement of your servers in a specially equipped place, namely a data center. This is physical hosting, that is, you place the server and choose the software and hardware.
Why do You Need It?
First of all, this service is necessary for companies or individuals who have their own server equipment, but do not have the space to install it.
Of course, comfort and availability of ample space. Convenience lies in the fact that you place servers in racks and cabinets and all in one place. They are all connected to the Internet and have power and special cooling systems. In addition, all of your equipment is secure. It is in one place and no one can get unauthorized access to the data.
ASICs or GPUs?
ASIC is a device that performs only a single function: mining cryptocurrency. Because it focuses on only one task, it is much more powerful than conventional processors or video cards for mining. Therefore, it is capable of mining more coins. Each kind of this equipment is only capable of mining certain types of cryptocurrencies. They are determined by the hashing method. Because of the high energy costs associated with using ASICs for mining, these devices are profitable to use only for coins with high capitalization. For example, bitcoin, etherium and so on.
Other devices can also be used, but they are not powerful enough to make a decent profit. ASICs are much more powerful than other options and therefore produce a lot of noise and generate a lot of heat. That’s why one of the best options for using this equipment is mining hosting.
As for video cards, they are also good for cryptocurrency mining because they can do repetitive work for long periods of time. In addition, they are much cheaper than the same ASIC miners. However, you should always keep in mind that you won’t make much money with just one graphics card, you will need a significant number of them. GPUs are more suitable for home mining.
Mining Hosting is the Right Choice?
As cryptocurrencies grow in popularity, the number of companies offering placement services also increases. Therefore, choosing a good service provider is not an easy task, but we will help you to decide and make the right choice. That is why we have selected for you several important criteria that your chosen mining hosting must meet.
High-Quality Equipment Service
You need to pay attention to the quality of the services provided. There is no middle ground here, you don’t need good quality, you need the best, otherwise you are taking a risk. The service must have everything you need to service your equipment.
Personnel and Customer Service
You should consider the fact that you are putting your equipment in someone else’s hands. That’s why it’s a good idea to make sure that they have professionals who know their business. Usually, you can tell this by the reputation and reviews of the company that provides the service. In addition, a very important factor is a high level of technical support.
You also need to make sure that the center where your equipment is placed has high security. The colocation center must have an organized access control. It must be impossible for unauthorized persons to enter the territory or the technical premises of the data center. There must be a guard shift and regular rounds, as well as a signed contract for the departure of armed guards. The personnel on duty should have a panic button.
Bitcoin mining on an industrial scale experiences stresses far from the gentle standards of conventional office counterparts. Hence the progression of hardware failures and, as a consequence, the drop in the profitability of mining due to downtime and repair costs.
Therefore, try to find a company where internal insurance covers everything in such cases.
A big plus will be if when choosing a mining hosting service there will also be a hardware store. In some companies, if you buy equipment from them, the purchase price will include the connection at once, and there may be good discounts for long-term cooperation. In addition, if there is a need to terminate cooperation with the company hosting will easily buy back your equipment for adequate money.
Now that we’ve looked in detail at all the most important stages of choosing a mining hosting service, you know what to do. However, it is always worth remembering that this question should be approached very carefully. In order to reduce the risk for yourself, try to always contact only companies with a good reputation.