Nowadays, there are a lot of videos on the Internet, what is cloud mining and how to work with it. Many of these videos consider low profitability of cloud mining and drive you to the conclusion that this type of mining is not worth trying. Partially these conclusions are correct, however there are exceptions, which I'm going to write about.
Some cryptocurrency coins change their difficulty level after a certain number of successfully mined blocks, depending on the coin 100, 200 or even 2000 blocks (PGN, RVN coin) required to be mined before the difficulty change. Inexperienced users almost always pass by without paying attention to this interesting feature, but this feature is potentially profitable in cloud mining.
Here I will explain why these coins might be interesting for cloud mining applications. The fact is that experienced miners "shake" the mining difficulty of the coin in such a way that the difficulty fluctuates with the maximum amplitudes. A good example of that kind of behavior is famous Pigeon coin that used to change difficulty level every 2016 blocks and miners rocked its difficulty so much that the low diff value was 4-5 times less than the high. This allowed cunning miners to enter every 2-3 weeks for a very profitable mining, which usually lasts only for about a day. During this day, they gain 4-5 times more profit than if they were continuously mining Pigeon coin. Today, this coin's difficulty changes every 360 blocks and highly profitable mining lasts only a few hours.
And here comes the benefit of cloud mining, which will allow you just in a few hours to get x4-x5 of the amount that you are going to spend. Let's say you have deposited 0.01 BTC, and as a result you will get 0.03-0.04 BTC. So how does it work? During the difficulty drop, you pour the leased cloud mining power into particular coin with low diff.
Interestingly, it seems to be so simple that ordinary users think that there is no point doing so, that everything is already occupied by other miners. However, that is not entirely correct this field is barely occupied.
Those who hand over power to Nicehash notice that at some point some algorithm shoots for profitability. Obviously, someone started to use your computation power in this type of coin with variable difficulty. Often professionals find such coin, with difficulty difference between low and high diff with only 5% or so. And they rocking the coin - filling hashing power at low diff and switching off at high diff which makes it very enjoyable and profitable. It's great when the diff can drop by 6-fold, it is almost 6-fold benefit in a short period of time. An ordinary miner with his home rig will also benefit, but not as much as when mining using Nicehash power mining it on low coin difficulty.
Just recently x16r algorithm was added on Nicehash and this algorithm is used for Raven coin. Speaking of the coin Raven, its difficulty is fluctuating now and the difference in diff is only 2.5-fold, but I think in a couple diff change cycles the difference between high and low difficulty might reach 3-4-fold difference
Finally, how can you make extra profit mining Raven coin - while the difficulty in its upper peak, mining is not profitable, however every 2016 blocks the diff will changes and you need to power on all the available computational power to get the maximum benefit that will last a for few hours or even for a day.
Have a good mining!
ps: in another article, I will tell you how cloud mining can be used to mine on the Neoscrypt algorithm
Not the best mining:
Raven coin: diff 33600
Raven coin - transition from 12400 to 33600
RVN diff 33600 pool Suprnova: waiting for the change of difficulty to 12000
