Cloud mining is a way of referring to a host company who owns a Bitcoin mining hardware and runs from at a remote location. You pay the company and lease out the mining hardware usage. In view of the measure of hash control you lease, you will procure an offer of installments from the cloud mining organization for any income generated by the hash control you bought. Below are the pros and cons of using a cloud mining service
- You have the opportunity of having a noise free home as a result of not running fans and cooling machines
- No issues with ventilation, as a result of running electrical equipments
- No extra incurred electricity costs
- No risk of selling off equipments when mining becomes unprofitable
- A very high risk of being swindled
- Non-transparent mining operations
- Cloud mining is less profitable as the operators’ charges are quite high compared to the bitcoin earned
- Cloud mining does not give the opportunity for control and flexibility.
Unfortunately, for the sake of trials, no company would give away free cloud mining; this is basically giving away free money. If there is any company offering such, especially when you need to give out payment information, is most likely a scam.
Due to the rising risk of being swindled in the cloud mining space, Investors should only invest in cloud mining if they are comfortable with the above mentioned risks. There is a saying that says: “never invest more than you are willing to lose”.
It is advisable to make investigations on social media, search engines, talking to friends in the cryptocurrency community and ask pointed questions of operators prior to investing. Ultimately, you should practice the same kind of due diligence that you would for any investment, be it digital or fiat.
There are some cloud mining service companies that can be recommended due to their reliability:
- Genesis Mining: Genesis Mining is the largest Bitcoin and cloud mining provider. The company offers three Bitcoin cloud mining plans that are reasonably priced.
- Hashflare: Hashflare is one of the most reliable cloud hashing companies. It offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in bitcoin. Customers must purchase at least 10 GH/s to use their service.
- Hashing 24: Hashing24 use modern ASIC chips from BitFury to deliver the maximum performance and efficiency possible. They have been into with Bitcoin mining since 2012. They have remote facilities in Iceland and Georgia.
- Minex: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. With Minex, users purchase cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Usually, cloud mining companies accept fiat currencies in form of credit and debit cards and PayPal. Some also receive bitcoins or some selected altcoins as payment methods. It is good to be vigilant and be careful in order not to be swindled of your hard earned money because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back.
Disclaimer: This article should not be viewed as an endorsement of any of the services mentioned. Please do your own research before considering investing any funds via these services.