One of the possibilities to get Dash is by mining it. There are two main mining options:
- mining it by yourself using your hardware
- mining it by renting shared device in the cloud data center also called cloud mining.
This article provides the information about the Dash cloud mining (also cloud hashing or X11 cloud mining).
Recommended Dash cloud mining providers
- HashFlare has been involved in cryptocurrency mining since the inception of Bitcoin and has years of experience in this field. Since auguts 2016 they also offer one year Dash mining plans with no maintenance fees and the payouts in DASH. The minimum order amount is very low, so you can start with low investment and see how it performs (1 MH/s costs a few coffees). Use discount code HF17PLUSBTC3 for a 3% discount. Buy with credit card, wire or Bitcoin.
- Genesis Mining is the largest and most trusted Bitcoin and Ethereum cloud mining provider in the world. For Dash mining you need to buy 2-year mining plan, there are no maintenance or electricity fees. Payment is made upfront for the 2 years and everything mined during this period will go to the contract owner. Their Dash mining facility is in Iceland. Update: back in stock (June 30, 2017).
We have Dash mining contracts with both mining companies, and as long as they are on this list above, they pay every day and are reliable!
What is cloud mining?
If you want to invest in Dash currency, cloud mining is an attractive option. It enables users to purchase hashing power from hardware in data centers, without managing hardware, software, electricity or other issues to mine crypto-currencies. It will save you all the trouble to run a miner on your own, and probably bring you more rewards instead, especially if you are not a hardware expert. Dash requires miners to have a GPU or ASIC to mine the currency profitably and even if the user is ready to buy one, ASICs are often sold out, and they require a certain amount of knowledge and work to maintain.
Cloud mining offers a unique way for mining with a low cost of entry as well as minimal risk and expense, which is opposite to traditional mining models that involve maintenance and configuration of specialized hardware. You can start mining Dash immediately after the purchase of mining contract. You can earn extra revenue with little risk and frequent payouts.
Dash mining algorithm
Dash uses X11 algorithm, which is a chained hashing algorithm. It is utilized for the “Proof of Work” calculations which secure the network for Dash cryptocurrency. It is named “chained algorithm” because it uses 11 different algorithms which are linked together. The use of 11 different algorithms among other things increases the security of coins against brute force attacks. A multi-hash system means that for the system to fail, all eleven hashes must fail at the same time (the probability for this event to happen is very close to zero).
As it was designed specifically for cryptocurrencies, it has one of the most sophisticated cryptographic hashes in use. It is suitable for both CPU mining and GPU mining. The first coin to implement it was Darkcoin, which has since rebranded itself to Dash.
Cloud mining profitability and ROI
Profitability of your contract depends on a few different factors, the most important are Dash coin market price, mining difficulty and mining contract price. In general, you need to compare how much you pay to rent the hardware and how much coins you get in return.
Our mining plan at HashFlare has 100 MH/s mining power and gives us 5.5 US$ daily (DASH price is 290$ and there are no maintenance or electricity fees). Currently, you pay for the same contract 580$ (withouth discounts). If the price and difficulty stay the same, you will get your investment back in about 3 months. As the contract lasts a year, there is a 9 month profit!
Please note that you can not predict the price and mining difficulty in advance (the higher the Dash price, more miners will join in mining and difficulty increases). Calculators like this will provide an information on your future revenues. Once again, they can not predict the future with 100% accuracy.
Other Dash cloud mining providers
- BitMiner – little is known to us about this cloud mining provider and the website is difficult to use, so please use them at your own risk. 1 MH/s of X11 cloud mining currently costs 0.0019 BTC and the contract lasts until it is profitable. Their mining farm seems to be located in China.
- Eobot provides hardware for SHA-256 and Scrypt mining that is mostly used for Bitcoin mining. If you want to get Dash, they convert newly generated Bitcoins into Dash automatically. So, this is not pure X11 mining plan, and rewards are lower.
- NiceHash is a live marketplace for hashing power. It uses an orderbook to match mining contract buyers (miners) and sellers (hardware providers). The minimum amount of hashing power you can order is 0.30 GH/s. It is more difficult to use and is recommended for advanced users only.
Cloud mining downsides
The main disadvantage of cloud mining is the risk that mining becomes unprofitable with your rented hardware and you just can’t do anything about it as you paid it 100% upfront. That is also why most of the cloud mining providers are not keeping profits for themselves and are rather selling contracts in the first place.
Usually, this happens when the value of your coin gets low for some reason or new equipment with better performance comes out. Your cloud mining provider will turn your device off as it consumes more energy than are mining rewards. You also don’t own any hardware after your renting contract ends, which means you cannot sell it.
Then, there is a significant risk that the company that provides cloud services will just disappear – many cloud services can even start out as a legitimate business and get greedy after a while, or do not keep up with the ever constant pressure to upgrade and invest in their hardware. Some of them oversell what they have.