If you're into cryptocurrency mining, you probably know how much of a hassle it is to invest in hardware and all that fuss. Thus, you may have considered the other alternative - mining in the Cloud. But what is it really, and how do you do such a thing?
In simple terms, Cryptocurrency mining in the cloud is an alternative to classic mining. It's a mechanism used to mine a cryptocurrency. However, it uses a rented cloud computing power. With such, you won't have to install and directly run the hardware and software. For this reason, it reduces issues such as equipment maintenance or energy costs.
It's a promising option for many people since you won't need to invest in hardware and energy costs to mine a cryptocurrency like bitcoin. Instead, you'll just need to rent and start mining.
While it's such a great option, it also comes with downsides. If you want to get into cloud mining, you may want to read more. In this article, we'll cover all the downsides and everything else you need to know about it.
Without further ado, let's get into it!
What is cryptocurrency mining in the cloud?
Cryptocurrency mining in the cloud is a simple mechanism that allows users to mine without investing in hardware. From the name itself, it lets users mine crypto assets using a rented cloud computing power.
Thus, you can mine cryptocurrencies like bitcoin without buying, installing, and running hardware. Moreover, this method makes mining accessible to people who like to mine but don't want to do deal with the hardware.
While it sounds so good, it also comes with many downsides. For instance, most cloud mining providers charge hidden maintenance and energy fees. Such fees usually cut away the profits.
Indeed, you may be free from hardware costs as well as its maintenance and energy. However, you need to shoulder the fees required by the cloud provider.
It's also ideal for people who want to mine but lacks the technical knowledge to run hardware.
Is crypto cloud mining legit?
Crypto cloud mining is legit, but most of the ones that offer such are scams. Thus, you need to be careful if you would pursue this path.
In general, crypto cloud mining is legit, a great alternative to classic mining. However, note that it's easy for companies to take peoples' money and then not pay out.
For instance, companies can claim to be cloud mining companies. Further, they can do so without any proof of actually owning any hardware. For this reason, almost 99.9% of cloud mining companies are actual scams.
If you're looking for legit cloud mining providers, you may want to check out the popular ones such as Hashflare, Genesis Mining, and IQ Mining.
These companies are by far the best cloud mining providers. If you'd read on, you'll see a list of the ideal cloud platforms you may consider.
Still, it would be best to make sure that you search and figure out everything before Investing.
Is crypto cloud mining profitable?
Yes, crypto cloud mining is profitable. The modern mining hardware makes it successful in a certain amount of time.
While many companies are boasting fast break-evens, the expected results are usually within 12-16 months.
Indeed, it may seem like a long time. However, any business that does so within 12 months seems to be doing something right if you think about it.
Further, it also depends on the price of Bitcoin or whatever cryptocurrency you mine. If the price goes up, the total revenue will follow as well.
One thing to note with cloud mining is that you may need to invest quite a lot to see some returns. If you can invest more every month, you can enjoy better returns.
What cryptocurrencies can you mine in the cloud?
You can mine in the cloud any cryptocurrency as long as it is mineable in any hardware.
Usually, these digital coins must be on a blockchain architecture. Such a mechanism is the one that supports proof-of-work (PoW) mining.
Among these cryptocurrencies are:
One thing to note is that mining bitcoin on an individual computer is no longer possible. However, there are other cryptocurrencies you can mine at home.
Of course, it only goes as long as you can put in the effort to do so. Regardless, crypto mining at home is still an option for some other cryptocurrencies.
Which cloud mining is best?
If you've already decided to pursue cloud mining, you may want to avoid the scam companies and choose from the best among the rest. Thus, you may consider doing in-depth research on these best cloud mining companies:
- Eobot
- Hashflare
- Genesis Mining
- Hashing 24
- Minergate
- Hashnest
- Bitcoin Cloud Mining
- NiceHash
Each company has its fees and expenses. It would be best to grasp everything you need to know about your choice so it won't be a problem in the long run.
Summary
Cryptocurrency mining in the cloud is an excellent alternative if you want to mine but have no knowledge and money to invest in hardware. However, it also comes with its unique downsides.
For instance, most providers lead to scams, so it would be best to be careful with it. Moreover, it would also be ideal to have in-depth research before getting into one. This way, you'll be confident and avoid unwanted incidents from happening, especially ones that concern your assets.
Published: 03/09/2021