The Pros and Cons of ASIC Mining Hosting: Is It the Right Choice for Your Mining Operation

The intricacies of cryptocurrency are the norm of the day on the internet, and almost every enthusiastic person knows how digital money operates. Accurate information about mining, buying, and selling cryptocurrencies can set you a notch higher and improve your income. However, crypto mining is not a new phenomenon but has attracted more people in recent years.

As more people continue joining the mining bandwagon, new advancements in the infrastructure continue to rise. A few years ago, mining was just a hobby that people operated from the comfort of their homes. It has revolutionized to become a multibillion-dollar venture attracting powerful companies to invest in the quest to amass more coins. 

An application-specific integrated circuit (ASIC) is dedicated to easing mining activities and reducing production costs while maximizing profits. However, with the entry of capital-intensive mechanisms, the mining sector is becoming inaccessible to most enthusiasts. To counter the barriers and open the industry, hosted mining ensures a leveled playing ground for miners. 

Before disclosing the pros and cons of mining hosting, we need to understand how cryptocurrency systems operate. First, cryptocurrency structures are decentralized. Thus, no particular person is responsible for managing or writing the chain. The blockchain depends on the miners, who also benefit by finding blocks. Many participants contribute to finding solutions, but the reward goes to whoever is the first to find the answer. 

The process of mining digital coins is now completely automated. The user’s work is to turn on the machines, put in place proper mining software, and wait for the system to generate coins. 


Mining hosting 


The mining hosting phenomenon is when a client purchases the mining equipment and gives it to a third party to host it. The mining equipment remains the client’s property, while the hosting company receives monthly hosting fees for the power drawn. 

Besides the electricity fee, the client pays for the space the equipment occupies and other auxiliary services that cater to the seamless running of the facility, like monitoring, security, and customer operations.  

Reputable hosting companies provide clients with almost 95% uptime for their machines, as specified in the contracts. The host ensures minimal or no interruption of the machines to maximize earning cryptocurrency. Dependable hosting associates synchronize repairs and upgrades with on-site technicians who provide the machines are up and running quickly. 

Hosting contracts mostly have fixed timelines, but a customer might request a withdrawal from a host at any time since the mining machines remain the customer’s property. However, mining hosting companies are entitled to charge a fine to clients who initiate withdrawal before their time elapses. 


Well-organized mining hosting site. Source: Meta-Luban 


Dictates of mining hosting 


The choice of the cryptocurrency mining procedure highly depends on the user. Depending on the budget, you may do it using CPU, GPU, or by ASIC. Using ASIC is highly preferred if you want to make considerable profits. 

ASICs are programmed to perform a single task which is cryptocurrency mining. They are dedicated and equipped with SHA-256 algorithms that enable users to mine coins within the algorithm. The ASIC machines are efficient and are dozens ahead of other mining methods

However, the ASIC has setbacks such as loudness, being expensive to purchase, and shakings when in operation, but mining hosting is here to deal with the challenges. The hosts offer a proper environment for the machines away from clouded areas. Additionally, if you need more money to buy ASIC equipment, some hosts provide rental services for their equipment. 


Detailed pros of mining hosting 

With mining hosting, crypto miners can venture into the fast-growing digital industry without too much sweat. Here are some of the benefits that arise from hosted mining. 


Reduced cost of electricity and rent

Power costs are the attributes that contribute to profit-making in crypto mining. Hosted mining reduces the costs incurred on electricity significantly because hosts use colocation sites where the electricity rates are below costs in the residential areas. The benefits of cheap power are then passed down to the clients, thus improving the economies of scale. Miners utilizing host mining are destined to profit more from mining cryptocurrency than their counterparts who mine from their homes. 


Time-saving and improved equipment care 

The host is responsible for most activities on the site. Since services offered by the host determine the time a client can spend in the facility, hosts work hard to maintain a healthy relationship. The hosting company ensures the client gets the best experience and does not waste the customer’s time. 


Accessibility of mining 

The location of the miner determines the profit attracted. Most aspects, such as the noise of the machines, the heat emitted, and space, also affect the miners’ operations. Hosted mining provides an avenue for the miners to access better ways of mining crypto without too much jostling. 



Mining hosting associates are known for providing high levels of convenience to their clients. The crypto mining industry is a blossoming environment where a miner might face unforeseen expenses or problems requiring expertise. Although the primary challenges are the costs of machines and electricity, miners have realized that some optional intrigues become lethal while mining. 

Things like proper cooling systems are crucial to ensure that the temperature of mining machines is under control. Mining hosting has enhanced cooling systems designed for ASIC miners. Other than the heat, the noise from the devices can be handled effectively since hosts are located away from residential areas. 

Additionally, having a single entity to handle every detail of the mining operations is convenient as it minimizes damages and enhances productivity, thus making hosting preferable. 


Specialized equipment repair and monitoring 

Machines’ wear and tear nature calls for repairs and maintenance that might expense a miner. Hosting associates have better ways of handling damages by prescribing the best repair parts, whereby most of the parts and technicians are domiciled in the hosting facilities. Therefore, making the repair process easy and quick, returning the machines to productivity as soon as possible. Additionally, most repairs are free, while others are covered by insurance. 

The host also provides a 24-hour monitoring service to check how the machines operate and the nature of hashing. It will become tedious and impossible for a residential miner to monitor the mining device 24 hours daily. 


                                                                                                                                                                         Meta-Luban US repair center. Source: Meta-Luban 


Makes crypto mining interesting 

There comes joy when you have peace of mind while the machines are mining coins through hosted mining. Customers know their machines are in good hands and earn crypto without too much involvement. The client is left with the opportunity to strategize how to utilize the revenue from the devices other than tiring in maintaining the revenues. Mining hosting turns the mining environment from an activity to a luxurious investment. 

Hosts provide clients with a way to monitor the performance of their machines through an application or website. A client can easily track the income from the mining machines and see how they are hashing. The operation is continuous and exciting to clients as they collect crypto while hosting associates manage day-to-day operations. 


Cons of mining hosting 

Although hosted mining is crucial and makes mining efficient and convenient, there are some bottlenecks in the blossoming technology. 


Cost of delivering mining machines 

Delivery of machines to the physical hosting site can be expensive to the client because most mining sites are situated away from residential areas. Customers must cover the costs of shipping the equipment to the site and sometimes incur costs of untimely ending the hosting term limit. The lengthy procedure of withdrawal might affect productivity due to machine downtime. 

Losing coins and incurring delivery costs makes the process expensive. Customers must be careful when choosing a host partner with a brilliant and outstanding track record to minimize withdrawal requests. 


Defiles anonymity 

Mining hosting companies require clients to follow the know-your-customer (KYC) process. The core motivation that makes many people engage in crypto mining is the anonymity feature and receiving virgin bitcoin, but with KYC requirements, clients have to disclose their personal details. In this case, the client must be KYC-compliant to onboard their machines into the host’s infrastructure. 


The miner relinquishes all the mining power to the host 

Bitcoin ecosystem upholds the philosophy of self-custody whereby an individual has the keys that open the wallet holding the coins. With mining hosting, custodial ownership is given to the host to determine the operation and reliability of the machines. You will likely face severe drawbacks if you cannot choose the best mining hosting associate.  



Blockchain technology’s main principle is decentralization. The Bitcoin community argues that hosting miners might lead to centralization, raising fears of consolidating the hash rate to a few locations other than having a wide area. Merging miners into specific places can make crypto mining vulnerable to activities like regulatory suppression, natural calamities, and liquidation. 

However, the current nature of mining hosting does not threaten decentralization because hosts are placed in different areas. It remains a fallacy, as many are waiting for it to take effect. 


Is mining hosting the Right Choice for Your Mining Operation?


If you are a crypto mining enthusiast ready to make money but do not have enough space to place your machines, then hosting mining is the right choice. Hosting will spare you much and enhance your revenue.

The services received from mining will depend on the company you choose. 

Before selecting the mining hosting company for your lucrative cryptocurrency mining venture, you must consider some factors.


What facilitates mining hosting? 

Electricity price

Always select a company situated in areas that enjoy cheap electricity rates. As explained earlier, cheaper electricity costs will lead to reduced costs of production and enhanced economies of scale. 


 Source: Meta-Luban 


Location of the hosting company

You need a location that is colder for the equipment to function correctly. Colder areas lead to timely and adequate ventilation to deter the equipment from overheating. 


Composition of the hosting team

A highly experienced team of professionals will make the work easier and more efficient, thus maintaining the health of your machines. In this case, always check the professionals’ history and the firm’s reputation before deciding to host your mining machines. 



Ensure that the mining hosting company offers insurance to the equipment before signing the deal. 


Availability of repair parts and accessories 

Hosting sites equipped with accessories and repair parts for the ASIC machines are preferable because you will minimize repair and maintenance lags. Additionally, you will escape surcharges while purchasing virtual devices. 


Parting shot

Cryptocurrency mining is a lucrative venture when you use proper investment methods. The mining exercise becomes easier when hosting services from distinguished companies with efficient machinery and a workforce that facilitates mining activities. A miner must choose a company that can withstand market downturns, forcing many companies to face insolvency. Therefore, the reputation of the mining host company, security, location, and cost of electricity is among the major determining factors when choosing a mining hosting company.