But what if you still don’t know how to do it, or you simply don’t have the time/will?
Then cloud mining Bitcoin may be the perfect solution for you.
What is Cloud Mining?
Simply said, cloud mining is a way to mine Bitcoin and other cryptocurrencies in the cloud.
Instead of using How to Setup a Bitcoin Mining Computer or ASIC, you just sign up for a contract, pay the fee and rent the mining equipment, running 24/7 for you, without any action needed from your side.
There are certain things to consider though, like:
- You can’t cloud mine only when it’s very profitable. You usually sign a contract period, which often comes as a 1 or 2 years period.
- Most cloud mining providers come with a maintenance fee, which you should take into account when projecting your profits.
- They may or may not make you a profit, depending on how the market goes.
- You can’t mine all coins with cloud mining that you can with your PC, but “major” ones are usually supported(Bitcoin, Ethereum, Monero, Dash, Litecoin, etc).
- This is crypto and anything is possible.
Is Bitcoin Cloud Mining a scam?
The unfortunate truth from the last bullet on the list above should always be on your mind.
Everything in crypto is possible, and when something sounds too good to be true- it’s often a scam.
If some cloud mining provider offers you 3, 4 x time returns on your capital, he’s probably going to take your money.
Cloud mining is for those who believe in crypto potential, yet they wanna do it as an investor and don’t wanna bother with the actual mining process, equipment, etc.
This is especially true for larger investors, who prefer investing money over hard work, which is perfectly fine.
But it also works fine for small investors, who can invest proportionally less and earn almost proportionally the same.
A sign of a good cloud provider(among other things) is the price that gets you on a zero in the moment of making a contract, a small projected profit, or even a small loss.
This is because real companies won’t offer you something they can’t fulfill.
You rent their equipment and infrastructure, based on their expenses and profit, and they have their calculations in place.
But you on the other hand get paid in cryptocurrency.
This means no one can guarantee you a profit.
You may get rich over 1-2 years, but you may also lose your investment.
What are the Cloud Mining benefits?
I’ve already mentioned the main benefit of cloud mining compared to mining with your PC(s)- you need less knowledge and less work invested.
But behind that, certain things make cloud mining adorable:
- It’s scalable. One of the greatest things is scalability. This means that no matter how much money you want to be invested, the effort on your side is going to stay the same. Whether you invest $100, or a million dollars, you just pay and the miners start mining. Anything else is not your part of the agreement:
- No hardware purchases. Buying a couple of GPUs and other mining equipment may turn out a pleasant experience for you. But how about buying thousands of GPUs and every other part of the mining rig? More often than not, buying large amounts of anything takes time and knowledge.
- No variable electricity costs. I don’t know how your electricity bill is calculated, but I know how mine is- in my country, spending a “regular” amount of electricity is pretty cheap. But after a certain point(like having 1 or 2 rigs among other home appliances), the electricity price goes much higher. Higher enough that having more than 2 rigs in my house becomes unprofitable. This means I couldn’t scale my mining operation as I can with cloud mining.
- No space is needed. Even with zero electricity price, you can’t place an indefinite amount of hardware inside your house. But you can have an amazing amount of hardware via cloud mining.
I’m in, how to start Cloud Mining?
If you understand that cloud mining can be risky but also lucrative, and want to proceed, a natural next step will be to pick the best cloud mining provider.
When picking the best cloud mining provider, I like to take a look at several things:
- Servers uptime. The servers you rent will mine for you 24/7. If they go down often, that means less profit for you.
- Reputation. Servers can be up 24/7, but that won’t help you if they run out with your mining profit.
- Ease of use. I truly believe that cloud mining should be as easy to use as possible. After all, the point of cloud mining is to give you an effortless way into Bitcoin mining- you pay and you wait, no further action needed.
- Profit. Last is the actual profit of your cloud mining contract. It may go either great or terrible, but the price is usually realistic, and you’ll get some profit only if the market stays the same or goes up. If you wait and don’t withdraw for 2 years though, many things are possible, both ways.
Armored with the wisdom I just shared, here are some top choices to get you started:
Cloud Mining Contracts Worth Checking
This is a company connected to investor Roger Ver and is among the most recognizable brands connected to Bitcoin and cryptocurrency in general. Besides cloud mining, they are an organization that provides Bitcoin and Bitcoin Cash wallets, mining pools, and many other things related to Bitcoin. If you search Google for “Bitcoin”, Bitcoin.com will show up within the first few results.
All this, backed up with ease of use and a 100% server uptime makes them my very best choice for cloud mining. Some notable Bitcoin.com contract properties:
- You can rent the contract with BTC(Bitcoin), BCH(Bitcoin Cash), or bank transfer(for orders bigger than $1000).
- Multiple contracts are available.
- They guarantee 100% server uptime. Even if they fail to do so, they will pay you the full profit calculated with your contract time/hashing power.
- Coins you can mine are Bitcoin and Bitcoin Cash
- They have 3 plans- 6 months, 1 year, and 2 years.
- The minimum hashing power you can buy is 4 TH/S for a 6 months plan, and 2 TH/S for 1-2 years plans.
- The price is very realistic- with a maintenance fee included, ordering 4 TH/S for 6 months will cost you $187.96, which is almost the same as what you would earn for mining BTC for 6 months if the price was the same as at the moment. Of course, the price can go both up and down, and you can hold the coins if you don’t like the current price.
They are the second on my list only because Bitcoin.com comes with such a reputation. But when it comes to cloud mining, Genesis Mining is even longer in the business.
They started their mining operation in 2014, and being up and running after 8 years in crypto is speaking for itself.
If not before, most shady companies lost their heads after the latest crypto crash in 2018, and even though new ones are popping up often- we can be certain that Genesis Mining isn’t one of them.
I can personally vouch for them, and since I’ve been working with them for some time, you can use this coupon to get a 3% discount on any of their offers- “KvI5iz”.
Before doing so, here are a few things about Genesis Mining:
- They have two mining farms, one located in Iceland(2014) and the other located in Sweden(2018).
- Biggest coins support- you can cloud mine Bitcoin, Dash, Ethereum, Monero, Litecoin, and ZCash.
- Bitcoin contracts usually come up with 9 months, while other coins mining is contracted for 2 years.
- They get a lot of orders, so sometimes you can’t get involved, but sometimes you can find a great deal(at least from the current perspective). For example, the only available coin at the moment is Dash, but you can buy 5000 MH/s over 2 years for just $57,50. With 5000 MH/s and a maintenance fee included, you can mine around $100 worth of Dash(with the price the same as at the moment).
- They also do offer a 100% server uptime.
- At the moment, the mining contract can be ordered with Visa, Mastercard, Bitcoin, Litecoin, Dogecoin, Dash, and Zcash.
Hashing 24 is a newer player in the cloud mining field, yet it does look promising and realistic, and its first snapshot on archive.org goes back to 2016.
The company is based in Dublin, Ireland, and seems to have worked fine since then(not marked as scam).
Let’s have a look at how it works with them:
- Hashing24 can be used to cloud Mine Bitcoin, no other coins are supported at the moment.
- They have two types of contracts- a maintenance fee, and zero maintenance fee(what you see is what you get).
- Both types are with 12 months.
- Both types can be paid in BTC(Bitcoin), US Dollar, or Euro.
- The least amount that you can order is 100 GH/s while the maximum seems to be 1000000 GH/s.
- 100 GH/s can be bought for $9.90 which does seem realistic. It would get you $13.61 after 12 months, on a zero maintenance fee.
Final thoughts on mining Bitcoin with cloud
I like the cloud mining concept, and believe it’s an amazing concept to scale your mining business.
Furthermore, the amount of effort and difficulty to start mining this way is extremely close to zero.
Still, cloud mining does not offer you any security in case things go very badly.
If prices suddenly drop a lot, you may lose a lot of money as you end up with coins that aren’t worthy anymore.
On other hand, mining with your hardware is security itself- you’ll always be able to sell your mining equipment that can be used for gaming or ordinary PC work.