How to tell if you’re ready for crypto mining colocation
If you’re a cryptocurrency mining veteran, then you likely remember a time when it was feasible to mine profitably out of your own home. These days are no more. What was once a viable venture for people mining with homemade rigs in their basement or garage is now a space that requires a much bigger commitment. Increased popularity of cryptocurrency along with increased competition has led to demanding processing and energy needs that most homes aren’t equipped to handle. Enter the mining colocation service, the answer for any crypto miner who wants to get ahead in the mining space.
What is mining colocation?
Like most other data colocation services, mining colocation allows you to rent space and utilities so you can operate your hardware from a remote location. With mining colocation, your monthly fee will cover the physical storage space for your mining equipment along with internet, electricity, cooling, technical support, and security. In other words, you’re getting everything you need to keep your hardware running at maximum capacity so you can mine the most coin possible.
Am I ready for mining colocation?
Mining colocation might sound like a big step. And it is. It’s the difference between being a mining hobbyist and a mining investor. If you’re considering mining colocation, then you’re passionate about cryptocurrency and the potential it has for your financial future.
The very fact that you’re considering colocation likely means you’ve run into one of the following issues:
- Increasing energy costs – Your energy bills have skyrocketed because of the 24/7 power demands of your mining equipment.
- Insufficient space – You’ve purchased new mining hardware to scale up your operations and it seems to be taking over your house (at least that’s what your spouse says).
- Excessive heat and noise – Whether you’re using ASICs or GPUs, the heat and noise your hardware produces makes it hard for you (and the neighbors) to relax at home.
- Decrease in performance – You’ve been outputting more energy and earning less coin because you don’t have the right resources to keep up with the competition.
If any of the above applies to you, then it’s time to move those rigs out of your house and into a colocation facility.
Let’s dive a little deeper into some of the best reasons to switch to cryptocurrency mining colocation.
You’re Ready to Move from Mining as a Hobby to Mining as an Investment
If increasing energy costs, insufficient space, excessive heat and noise, and decrease in performance don’t bother you, then you can’t stop reading. You are a mining hobbyist and not ready to take your operations to the next level. If the thought of being a “mining hobbyist” makes you cringe, then colocation is the move you need to make now. You’re looking to bank as much coin as you can and you love the pursuit of mining. In order to become a true mining investor, you need to move your operations to a space that won’t limit your earnings and will allow you to scale rapidly. Mining colocation gives you exactly that.
Cryptocurrency mining is no longer an at-home affair. Unless you’re a pure hobbyist looking to earn a few dollars worth of Bitcoin or Ethereum each month, you need to move your operations out of your basement and into a facility that’s built specifically for mining.
You’ve Been Cloud Mining and Want to Get to the Next Level
Mining colocation isn’t just for people looking to get out of their homes. It’s also a great option for anyone who’s been cloud mining. While cloud mining might seem like a great deal because of its turnkey nature, its business model is designed to limit your potential investment. With cloud mining, you’re making a percentage of the profits and leaving the control to someone else. With colocation, you’re in full control of your hardware and your mining efforts. When you’re paying for the space and the service like you are with cloud mining, you simply can’t operate at true investor potential.
You’ve Never Mined Before and Want the Best Point of Entry
If you’re just now getting into the crypto game, you should skip the DIY step that many of today’s most successful miners have abandoned. Realistically, it will take you 6-12 months to build up a system in your home that’s even slightly profitable, and by the time you do that, you’ll be ready for colocation. It doesn’t matter which coin you want to mine or which hardware you want to use. Mining at home simply doesn’t make sense unless you’re looking to earn a few pennies a day. For anyone serious about mining–whether you’re a beginner or a seasoned expert–colocation is the best solution both today and in the long run.
Colocation Is Significantly Cheaper
A mining colocation center is designed specifically for mining: the right amount of power for the right cost without any of the extras. Your home isn’t built to continuously operate power hungry GPUs or ASICs at a cost-effective rate. Traditional data centers with their redundancy and unnecessary layers of advanced security that don’t apply to miners aren’t designed for profitable mining either. Colocation facilities are often located in remote areas that have very low energy costs and plenty of renewable energy options. This strategic positioning gives you all the power you need for large-scale operations at a fraction of the cost you’d pay if you tried to do it on your own.
Colocation Is More Secure
If you’ve been running mining rigs out of your home, then just about anything else will be a security upgrade. Colocation facilities are designed to be secure. With a strong combination of physical and network security that you simply can’t afford in your home, colocation ensures your hardware and your coins are safe from both physical and online threats.
Getting Started with Mining Colocation
Finding cost-efficient colocation space in the crypto mining market is becoming increasingly tough. Facilities often sell out within weeks of opening, and it can sometimes take months before the next cost-competitive facility opens. While you don’t want to rush into a decision, you also can’t afford to wait. Fortunately, Compute North is rapidly securing new space designed and built by miners to provide cost-efficient power that can handle the biggest mining operations. Contact us today to learn more about how easy it is to switch to colocation.