What is Cryptocurrency Colocation Mining?
Cryptocurrency mining continues to evolve at a rapid pace and remains hyper-competitive as we head towards the end of 2018. Today, if you want a real shot at scoring high cap currencies like Bitcoin, then you need to consider collocating your miners. What is colocation — and how can it be used to maximize your cryptocurrency mining revenues? Read on to see what our experts have to say about colocation and how it can help you boost your ROI on your mining investment.
What is Colocation?
Many of our clients opt for colocation after trying out mining rigs at home. For some, the noise generated may be too much to deal with in the home, while others are simply seeking a passive, hands-off experience that still generates cryptocurrency. Colocation is simply the act of renting space in a data center and is best explained with an analogy. A colocation rental is similar to owning a high-end condominium as a residence. Technically, the property is yours, but you pay a company or association to maintain it for you. You use the condo as you wish, while the building owners make sure everything is secure, well maintained and that you the tenant are looked after in every way possible.
That’s exactly what happens with server equipment in a colocation mining agreement. You will own the physical hardware, but you have a rental agreement with the company who runs the data center. They take care of the infrastructure and physical maintenance, so you don’t have to.
What Equipment Can Be Used for Colocation?
Both ASIC and GPU rigs can be set up in a colocation space and take advantage of the benefits of having your equipment in a secure facility under the supervision of an IT professional. At MiningStore, our innovative and secure hosting facility is operated in strict accordance with industry best practices and overseen by our CIO, Robert Walther, a 20-year IT veteran with unsurpassed levels of experience in the tech and mining realm.
Whether you opt for ASIC or GPU miners, the challenges of setting up and running rigs at home can rapidly become overwhelming, and the time required to set up, optimize and manage your machines can easily cut into your revenues. Many of our hosting clients come to us having already tried a home or office setup that simply did not suit their needs or allow them to mine productively. Some miners end up spending thousands of dollars trying to modify a home environment by upgrading electrical infrastructure, cooling, and network — only to find that they simply can’t maintain their miners at home at a level that makes sense or is efficient.
From noise concerns to heat and energy use, the typical residence is simply not set up to support a mining rig, let alone a setup with multiple rigs. Noise and heat remain the largest concerns; the noise level of a typical mining rig is about that of an older vacuum or hair dryer and most people tire of it quickly.
In addition to offering a noise-free way to mine in a secure setting overseen by one of the top minds in the industry today, a dedicated space has a commercial cooling system with built-in redundancies to protect your equipment and allow it to operate at peak capacity.
Why Is Colocation Better than Self Hosting?
Both ASIC and GPUs are more cost effective and far more hassle-free when run at a dedicated hosting facility. This specialty equipment simply can’t reach its full potential in your basement or office networking closet. Colocation gives your hardware access to state-of-the-art infrastructure. Just some of the most important benefits look like this:
- Physical Security. Digital locks, 24/7 security guards, video surveillance and everything else you would expect to guard a high-end data center is standard.
- Network Security. Ultimately every data center has to consolidate traffic through one or a few pipelines. This makes the best possible network security more cost-effective.
- Cooling. Simple air coolers will not let you reach peak mining performance. Industrial liquid coolers can service entire racks for a fraction of the cost.
- Up Time. Unless you have an IT pro on hand in your home, you’ll experience significant downtime when you encounter a problem. When you host your rigs with MiningStore, you get a fully staffed center that has round the clock support and instant attention to problems.
- Convenience. Good ASIC miners are hot and noisy; the heat is enough to make your home uncomfortable in the summer months — and put a lot of wear and tear on your HVAC system, too. Even if you don’t mind the heat, the constant racket and noise can render your home uncomfortable for your family and guests.
- Concierge Level Service: You don’t have to worry about support, getting the help you need or getting set up. When you opt for colocation, it’s like having your own skilled tech team on hand 24/7 and incredibly easy to get answers to any questions or concerns you have.
It’s an old principle. If you split major costs with a group, you improve access. That’s the primary goal of colocation. If you’re serious about profitable mining, you need to give your equipment a chance to compete. If you’re new to the game, you can also look to bundle your expenses. Many colocation renters also sell mining equipment. A one-stop shop can get you mining faster and with promising returns.
Get Started with Colocation
At MiningStore, our state-of-the-art ASIC hosting facility has been designed to meet the needs of cryptocurrency miners of all sizes. Whether you are just investing for the first time or want to improve your returns by maximizing your uptime and efficiency, we can help. Contact us today to learn about our innovative, customer first approach to colocation and to begin reaping the rewards of a full-time mining operation without any of the drawbacks of going it alone.