Understanding Bitcoin Cloud Mining

Understanding Bitcoin Cloud Mining

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Blockchain

With an exponential increase in Bitcoin prices, there comes an equivalent interest in mining them. If you have little knowledge about Bitcoin and Blockchain, you might know how mining requires a large number of resources. These include expensive hardware, software, electricity etc. to earn coins through.

As a result, it has become very difficult to attempt mining as an individual. Moreover, people are preferring to take assistance of mining pools where several participants meet and share their reward.

But at the same time, mining pools also requires separate individuals to bring their own hardware and solve blocks. Comparatively less hectic than solo mining but still needs lots of patience.

However, if you are someone who still wants to invest in bitcoin without indulging into the hassles of managing hardware and other resources, there’s a way out. It’s Cloud Mining!

mine cloud bitcoin
Image Source: Vector Stock

Breaking Down ‘BTC Cloud Mining’

Putting it very simple, cloud mining requires users to own NO mining hardware or have any technical expertise. It so easy that anyone can do it, its cloud that makes mining possible and accessible for beginners.

Either miners can rent the mining equipment, or they can do mining with shared power resources aided by remoted data centers. They only should have a home computer for communication, for having wallets and so on.

It’s a good alternative to have maximum efficiency and limiting the usage of expensive hardware and security that is required every month.

How To Begin With Bitcoin Cloud Mining?

The process is damn simple, just open an account with a trustworthy BTC Cloud Mining company > Choose the best mining plan, hashing power (the more hashing power you lease, the more coins you can mine), contract period, and other requirements > Register yourself and you’re good to go.

Start Mining!

Though worth to mention that these cloud mining companies requires an initial investment per day in order to have frequent returns. But some people take advantage of it to create scams and propose users to invest much and have fast ROI.

Therefore, it becomes very difficult to identify which cloud mining service providers are legitimate.

So, keep in mind the following factors before you choose any of the mining service:

Factors To Keep In Mind To Avoid Scams

  • Check its Data Centre photos
  • Verify the authenticity of mining company address
  • Don’t get into the claims of providing limitless processing power
  • Don’t sign with the company that doesn’t allows to withdraw balance
  • Do check for the domain contact details
  • Don’t forget to turn on 2FA
cloud mining bitcoin scam
Image Source: 99Bitcoins.com

There are legitimate cloud mining companies and then there are pyramid schemes and scams. So, make sure you keep in the mind the aforementioned points before buying into a legitimate contract with reputable firm.

Types Of Cloud Mining

The three most common methods you can opt for cloud mining are:

  • Hosted Mining

User can lease a mining rig that is hosted by the service provider.

  • Virtual Hosted Mining

You can create a virtual private server and you can install your own Bitcoin or other crypto mining software.

  • Leased Hashing Power

The most popular cloud mining form is leasing an amount of hashing power without depending on any physical or virtual mining rig. Just on the cloud platform!

hashing power of bitcoin

Pros & Cons

With Cloud Mining there comes many obvious advantages, like:

  • No electricity cost
  • No excess heat
  • No expensive mining rigs
  • No humming of fans
  • In case mining is not profitable anymore, there’s no requirement of selling equipment.

With some great benefits, there are certain disadvantages as well:

  • No fun to use
  • Always exposed to fraud
  • Opaque mining operations
  • Contractual warnings
  • Lack of control

Best Bitcoin Cloud Mining Providers

There is plethora of websites that makes mining available to everyone irrespective of their age, investment, location, technical expertise or experience. The best ones you can rely on are:

  1. Genesis Mining

Most reputed name in the cloud mining field.

  1. HashFlare

Allows users to buy hash rate for different cryptocurrencies.

  1. Hashnest

Have verified data centers.

  1. Eobot

Comes with built-in mining calculators to estimate profits.

  1. CCG Mining

Easiest, cheapest and best way to mine BTC and other cryptocurrencies.

Some other sites that determine the best cloud mining ROI are: Hashing24, Bit Miner, Hash Gains, BTCsweet, OctCoin etc.

Bottom Line

There’s no denying in the fact, that cloud mining would be the future in the coming years, because of high feasibility, convenience, and effectiveness.  You can merely start mining with one gigahash. What else do you need?

Just choose the most reliable cloud mining providers who have their own Bitcoin mining farms. As, there are plethora of fake cloud mining providers who sells a non-existing service. So be very careful!

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