There are quite a few terms to know and understand when it comes to cryptocurrency mining, and it is true that there are some terms that seem very similar to one another. In fact, they will often seem like they are interchangeable, and you will find people who have been in the field for years who do use the terms interchangeably, even though there certainly are some differences that should be understood. Below, we will look at miner hosting and miner colocation to determine what each of these terms truly means.
What Is Miner Hosting?
Miner hosting often refers to companies that are going to offer one or more different types of hosting at their facility. This might include shared hosting on the same server, access to a dedicated server for mining, or cloud hosting for mining. Any of these options could work for those who want to get into mining digital currencies and who do not want to invest in ASIC machines of their own. The work is essentially done through the servers offered up by those companies.
There are many companies that offer these types of hosting services for many different needs, but it is very important to remember that not all hosting companies will work with Bitcoin miners and other cryptocurrency miners. The reason for this is simple. Those types of services tend to take up a substantial amount of resources, and not all companies are equipped to handle them. Therefore, when you are searching for a miner host, you will need to make sure that they will work with miners such as yourself. If you don’t, they could cancel your account without even telling you.
What Is Miner Colocation?
Another option, and one that is very popular today, is miner colocation. In fact, some of the miner hosts can also offer colocation services, and this is often where the confusion begins. With colocation, you are going to buy ASIC miners, which you will then have be kept at the colocation center. They are the ones who are supplying the power, and often, they will even be able to set up and take care of the machine to make sure it is in good working order.
The companies lease their rack space, their power, and their bandwidth for the miners. This tends to be a good option for those who want to have their own mining devices, but who do not want to house them on their own property. A colocation center is going to provide redundancy, safety and security, and a cooler operating environment for the machines. It tends to be more cost effective, as well, since you can choose a colocation host that is located in an area that has lower power costs.
When you are choosing a miner host or a miner colocation provider, you will always want to make sure that you check their capabilities, what they allow and can work with, and their reputation. You need a company that can provide you with great uptime and great overall service.
Now that you have a better overall understanding of these two terms, and their differences, you should have a better idea of which you think might be the right choice for you. There are pros and cons to each, and of course, there is always the option of hosting the mining machines at your own property if you prefer and you have the space and ability to keep the machines cool. Take some time to explore your options further and them make a choice that will fit well with your digital currency mining endeavors.