How Colocation Can Minimize Cryptomining Costs to Maximize Your Gains
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How Colocation Can Minimize Cryptomining Costs to Maximize Your Gains

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How Colocation Can Minimize Cryptomining Costs to Maximize Your Gains
March 5th, 2019NewsComments Off on How Colocation Can Minimize Cryptomining Costs to Maximize Your Gains

Are you a cryptocurrency hobbyist or professional looking to expand your mining operations? If you’ve successfully made profits by mining bitcoin or other cryptocurrencies, you must be now looking to expand your operations.

Cryptocurrency Mining is a lucrative option for many crypto enthusiasts. This is because, despite market fluctuations, the value of popular cryptocurrencies has steadily increased over time. And consequently, cryptocurrency mining has evolved at a rapid pace and remains hyper-competitive. The value of virtual currencies has escalated over time; however, the challenges associated with mining have also increased.

As a crypto-miner, your ultimate goal is to minimize the risks and costs associated with crypto mining to earn maximum profit. So, if you want a real shot at scoring high cap currencies like Bitcoin, there can be nothing better than renting space in a data center. Mining colocation is a feasible option to cut your crypto mining costs, in addition to offering numerous other benefits. Now you may ask what exactly colocation is and how it can be used to maximize your crypto mining revenues. So, let’s take a closer look at mining collocation and how it can boost ROI on your mining investment.

What is Colocation?

If you had mining rigs at home, you must know how annoying it is to deal with the loud noise and heat. Colocation, also known as “colo” is the practice of renting space in a data center for your servers and other computing hardware. You don’t need to keep servers in house, or offices. You can simply rent space for your equipment in a colocation center. These data centers not only rent out space to install your hardware, but will also provide power, bandwidth, IP address, and cooling systems that you need to deploy your server. Simply, in colocation, you will own the physical hardware, but you have a rental agreement with the company who runs the data center.

How Colocation can maximize your profit?

If you opt for colocation, you can set up both ASIC and GPU rigs, and your equipment will be hosted in a secure facility under the supervision of IT professionals. When you choose self-hosting, your equipment can’t reach its full potential in your basement or office networking closet. Setting up and running rigs at home pose various challenges which result in cutting your revenue. You may even spend thousands of dollars to upgrade your home environment but maintaining electrical infrastructure will soon become overpowering. Here are some of the biggest benefits of opting colocation:

  • Convenience

ASIC miners generate a lot of heat and noise which can make your home uncomfortable. Moreover, the noise can be annoying and unbearable in long-run. A typical residence simply can’t support a mining rig as it puts a lot of wear and tear on the HVAC system. Most people prefer colocation because if offers expert services, freedom from noise and heat, as well as a commercial cooling system to protect their equipment.

  • Redundant Power, Cooling & Network

Colocation gives your hardware access to state-of-the-art infrastructure. The hosting facilities have surplus power, cooling system, and network feeds to keep your equipment running at all times. This will help you reduce power costs because the data center will take care of the massive energy requirements in the most efficient way. Moreover, the hosting provider also provides significantly higher uptimes.

  • Better Security

Most hosting facilities are designed to meet the needs of cryptocurrency miners of all sizes. The data centers are extremely secure to protect your expensive equipment and valuable data. A good colocation facility employs 24×7 security personnel and installs CCTV cameras, as well as biometric scanners.



The cost of equipment and mining requirements can be a significant investment. GPUs and ASICs consume vast amounts of power and the cryptocurrency network requires a stable network connection for the mining operation. Considering this cost and risk of mining, colocation is the best way to make the most profit