Cryptocurrency acquisition methods

In the cryptocurrency market, there are various ways to obtain digital assets, mainly including fiat currency purchase, free acquisition, and mining.

Fiat currency purchase is the most direct way to own cryptocurrencies. Investors can exchange fiat currency for cryptocurrencies through centralized exchanges, crypto wallets, P2P transactions, etc. Free acquisition generally includes activities such as Crypto Faucet, Airdrop, X-to-Earn (such as Play-to-Earn, Move-to-Earn), and users can also receive cryptocurrencies through gifts from friends or communities. However, these methods usually come with relatively small returns, suitable for beginners to experience, and are not suitable for long-term investment strategies.

Mining is one of the important ways to obtain cryptocurrencies. Compared to direct purchase or gifts, mining has higher technicality and investment threshold, requiring hardware equipment, electricity costs, and professional knowledge. However, it also provides a relatively stable long-term income model. In recent years, with the evolution of mining models, new mining methods such as cloud mining have gradually reduced the entry threshold of this industry, allowing more investors to participate.

The way to acquire cryptographic assets (Image source: https://tokeninsight.com/en/tokenwiki/all/how-to-get-cryptocurrencies）

What is Cloud Mining?

For ordinary investors, traditional mining has high technical and capital thresholds. The complete mining process includes finding mining farms, purchasing mining equipment, eliminating noise interference, equipment operation and maintenance, as well as bearing high electricity and maintenance costs. In addition, since mining involves technical decisions such as selecting mining machines and mining pools, non-professional users often face significant challenges when entering the market.

To reduce the barrier of entry for mining, a cloud mining model has gradually emerged in the market: users can mine by purchasing cloud mining contracts, which essentially lease a certain amount of computing power for mining. It is a form of revenue product that allows users to receive mining rewards based on the agreed profit-sharing ratio during the contract period.

Compared to traditional mining models, the advantage of cloud mining lies in: no need to purchase mining machines, saving hardware costs; no need for operational maintenance, platform manages devices uniformly; flexible contract period, users can choose short-term or long-term computing power leasing plans based on market conditions.

Operation mode of cloud mining (Image source:https://www.gate.io/cloudmining#market）

How to mine on Gate.io?

Different platforms have differences in computing power costs, mining revenue distribution, mining pool resources, and technical support, so it is crucial to choose a platform with good reputation and market recognition. Among them, Gate.io, as a leading cryptocurrency exchange platform, provides high-quality cloud mining services globally and has grown into one of the largest and most reputable cloud mining providers in the market. The specific operation steps are as follows:

1. Register and log in to your Gate.io account:

VisitGate.io Official Website, if you do not have an account yet, please register first.

1. Access the Cloud Mining page:

After logging in, navigate to the top menu of the website and select the “Cloud Mining” option under “Sesame Finance” to enter the cloud mining product page.

1. Choose the right Cloud Mining product:

Investors can browse the available mining contracts, and each product lists key information such as computing power scale, contract period, and expected returns in detail. Based on their own capital budget and income goals, they can reasonably select and choose the most suitable mining products to optimize investment returns.

Gate.io Cloud Mining Mining Product Example (Image Source:https://www.gate.io/zh/announcements/article/26789）

1. Purchase cloud mining contracts:

Click the “Buy Now” button for the selected product, confirm the order details, including computing power, price, etc., and click “Buy” to complete the transaction.

1. Start mining and earn profits:

After a successful purchase, the leased computing power will automatically start mining. Subsequently, mining earnings will be distributed to the individual account according to the contract terms.

Market value of Cloud Mining

The emergence of Cloud Mining provides ordinary investors with a convenient and cost-effective way to mine cryptocurrencies. With the promotion of professional platforms like Gate.io, the Cloud Mining industry will gradually evolve towards higher efficiency and stronger compliance. Coupled with the scarcity caused by Bitcoin halving every four years, which helps alleviate inflation, leading to a potential increase in Bitcoin prices, further attracting investor attention to mining. In the future, with the integration of the mining industry chain, hardware upgrades, and technological developments such as renewable energy mining, the Cloud Mining market may usher in a broader growth space. For investors who want to enter the mining market but lack technical background, Cloud Mining is an investment model worth paying attention to.

Bitcoin halving cycle overview (Image source:https://xtsupport.zendesk.com/hc/en/articles/1389837）

Risk Warning for Cloud Mining

The core of cloud computing power lies in investors entrusting the leasing rights of computing power to third-party mining pool operators. However, some illegal service providers in the market may lack real mining hardware infrastructure, only attracting investors with high-profit promises, but in reality, they do not actually mine. Due to the difficulty of remotely verifying the operation of cloud computing power, investors cannot directly confirm whether the computing power truly exists or is used to mine the selected cryptocurrency.

In addition, globally, governments around the world have different attitudes towards the regulation of cryptocurrency mining, and cloud mining, as a form of remote hosting, is also constrained by policy compliance. For example, China was once the world’s largest Bitcoin mining center, but in the spring of 2021, the government issued a comprehensive policy banning cryptocurrency mining, leading to large-scale migration of miners and facing the risk of zero computing power and investment losses for many investors.

Therefore, investors are advised to prioritize cloud mining services provided by top exchanges such as Gate.io when participating in cloud mining, to ensure the authenticity of computing power and the realizability of returns, while avoiding long-term lock-up contracts as much as possible, in order to adjust investment strategies in response to market changes and reduce mining cost losses. During significant market fluctuations, it is important to carefully evaluate the investment returns of cloud mining contracts and allocate assets reasonably.

Conclusion

Cloud computing power reduces the technical threshold for ordinary investors to enter the mining market. However, it is recommended that investors prioritize choosing service providers with a good reputation when selecting cloud computing power platforms, such as Gate.io’s cloud mining service, to ensure the authenticity of computing power and the stability of returns. In addition, investors should combine market trends, reasonably evaluate contract terms and investment risks, and avoid losses caused by market fluctuations. In the future, with the optimization of the mining industry and the application of green energy, cloud mining may further promote the sustainable growth of the global crypto economy while reducing carbon footprint.