Cryptocurrency mining is a complex and not cheap business. Mining crypto requires miners to invest in ASICs and graphics cards to set up their own crypto farms. Of course, there is always the option to mine Bitcoins on rented hardware, such as a VPS or dedicated server.
However, this method has one obvious drawback: a limited choice of hosting providers that allow cryptocurrency mining on their servers. If you do not want or simply cannot buy and maintain a crypto farm and are looking for the right option among the variety of hosting services, consider using a VPS to support a node.
What are hosting nodes for mining on servers?
Hosting nodes for mining on servers is the process of installing and running nodes of a cryptocurrency network on remote servers. Nodes play an important role in the operation of the mining network by verifying and confirming transactions, as well as supporting the stable operation of the blockchain.
Node owners receive rewards for their work in the form of new coins or transaction fees. Hosting nodes on servers helps ensure a more stable and reliable operation of the cryptocurrency network, especially in cases of high load and computational power requirements.
This process usually requires a dedicated server or a virtual private server (VPS) with an installed operating system and the necessary software for the node to function. Node owners also have to worry about the security of their servers and regularly update the software to support the latest version of the blockchain.
Although hosting nodes on servers may require additional expenses for renting a server or VPS, it can be a profitable endeavor, especially in the case of successful mining or receiving rewards from the cryptocurrency network.
Choosing a VPS server for mining
The first thing to know is that you can rent not only a VPS but also a VDS (Virtual Dedicated Server). There are no fundamental differences between VDS (Virtual Dedicated Server) and VPS (Virtual Private Server). In any case, the client acquires a portion of the physical hardware’s capacity, which can be used for any tasks.
When selecting a provider for mining cryptocurrency on a VPS or dedicated server, it’s essential to prioritize understanding their usage policy beforehand. The majority of providers are against crypto mining and, if they detect any signs of mining, they block access to the equipment and cancel the subscription.
Obviously, if you have decided to mine, these companies are not the right fit for you. However, among the variety of hosting providers, you can find a company that allows mining. One such company is PQ.Hosting. This hoster allows the use of their servers for crypto mining and also supports running nodes.
Renting a VPS server
To rent and set up a VPS for a node, you just need to pay the subscription fee and establish remote access, after which you only need to install the necessary software. It is important to follow the rule of mature node runners: “one server – one node”.
This is done so that you can work with multiple crypto projects at once. Alternatively, you can focus on just one project that you are confident in.
Creating an account.
To create a personal account, follow these steps:
- Open the provider’s website and click on “Sign Up”.
- Choose a registration method and fill out the form.
- Connect your bank card or electronic wallet for purchasing computing power (hosting provider PQ.Hosting offers more than 30 different payment methods).
Connecting to a VPS
Now that your account is created and you have a personal dashboard, you can easily rent equipment. Pre-configured setups will be available within 10-20 minutes, while custom setups may take 1-3 days. Finally, you’ll need to configure remote access and install specialized software.
How to connect to the server?
You should have a static IP address and an installed Linux OS, as most crypto projects work on it. To work on the server, you need to install software that allows you to access it and start the process of setting up your node. There are many programs available, such as “MobaXterm” or “PuTTY”; you can choose any suitable application.
Which nodes are currently worth running?
Let’s consider a few examples of projects that are currently available for installation. All you need to do is spend some time studying and researching independently (following the principle of DYOR – Do Your Own Research).
Here are a few projects worth paying attention to:
- Minima: A cryptocurrency project that offers low energy consumption and secure blockchain. It provides the ability to create decentralized applications (dApps) and issue your own tokens. Explore the possibilities that Minima offers and the advantages it can bring to your business.
- Massa: A platform for creating and deploying decentralized applications and contracts based on blockchain. It provides flexible tools for managing digital assets and offers various opportunities for developers. Explore the functional capabilities that Massa offers and the business sectors that can benefit from it.
- StarkNet: An Ethereum scaling protocol that allows processing a large number of transactions with minimal delay and low fees. It provides a solution to the scalability problem faced by Ethereum. Explore the advantages that StarkNet can offer and how it can improve transaction processes in the Ethereum network.
How much can you earn from nodes?
Here it is—the section that everyone has been eagerly looking forward to.Recently, there was an interesting example of how a group of users was able to earn around $2,100 with a node in the crypto project Aptos, while expenses amounted to only €96. In the Moonbeam project, participants received 50 MOVR tokens, equivalent to over $24,000. In the Avalanche test network in 2020, participants who launched a node were able to earn 2,000 AVAX tokens, which peaked at an estimated value of $268,000.
There are dozens, possibly even hundreds or thousands, of examples of earning through maintaining a node. Your income will depend on your resourcefulness, ability to understand crypto projects, and a bit of luck.
You can also save money by using the services of hosting provider PQ.Hosting, which often runs promotions and offers discounts on Dedicated Servers, VPS, VPN, and ispmanager.
FAQs
What is NodeMining?
NodeMining redefines cryptocurrency mining by providing a platform that eliminates the need for expensive hardware. By leveraging their cloud-based mining infrastructure, users can mine cryptocurrency effortlessly, regardless of their location.
How does NodeMining work?
By joining a NodeMining pool, users tap into a network of miners and combine their computing power. This collaborative approach empowers users to mine cryptocurrency effectively, leveraging the strength of the collective mining community.
What are the benefits of using NodeMining?
NodeMining eliminates the requirement for expensive hardware as it utilizes a cloud-based mining infrastructure. Getting started with NodeMining is effortless, requiring users to create an account and begin mining cryptocurrency. Additionally, NodeMining charges low fees, allowing users to retain a larger portion of their earnings.
What are the risks of using NodeMining?
1. Volatility of cryptocurrency prices: Users should acknowledge the fluctuating nature of cryptocurrency prices, which could result in potential financial losses if the price of the mined cryptocurrency decreases.
2. Technical difficulties: Users might face technical obstacles when using NodeMining, impacting their ability to mine cryptocurrency effectively.
3. Security risks: Similar to other online platforms, there is a possibility of security breaches. Users should exercise caution when sharing personal information with NodeMining and implement necessary safeguards to protect their data.Is NodeMining profitable?
NodeMining’s profitability is contingent upon factors like cryptocurrency price, miner’s hash rate, and associated fees. In most cases, NodeMining proves to be a lucrative option for individuals interested in cryptocurrency mining.
Conclusion
If maintaining a node wasn’t a profitable endeavor, few would engage in it. Yes, it requires effort, and sometimes hours must be spent on the server to install network updates released by the developers of the crypto project.
But in the long run, your efforts will surely be rewarded. It doesn’t matter which project brings you profit; the key is to maintain multiple nodes in different projects, and one of them will inevitably yield the expected financial result, compensating for all expenses on server rentals and allowing you to earn well.
