What Is Cloud Mining?
In fact, in 2019, making even a small investment in the cloud mining is considered the most wise and fruitful way of multiplying and preserving your assets stored in the form of crypto-currency. But what is this? It is the production of Zash, Bitcoin, Litecoin, Ethereum, Dash, and other types of currencies (currently there are more than 1400), using special cloud services, accumulating capacities in their data centers and farms.
What makes it different? In fact, it is the same way of producing altcoins or bitcoins with the help of computing power but what makes it different – it does not require having your own equipment. What does it mean? With cloudy coin mining, equipment is leased from different companies (websites) that have powerful data centers with farms for the production of crypto currency.
This is a new earning model, which creates mining pools, with the main purpose of generating more revenue compared to the usual distributed mining, due to the management of equipment on the part of the contractor, which solves all issues on technical and software components.
How Does Cloud Mining Work?
Here is how everything works:
- Find trusted company and register – you register an account in the selected cloud-mining service and get to your personal profile.
- Purchase of capacities – you buy a certain number of capacities for a regular currency or a crypto currency and the purchased power begins to make a profit immediately.
- Accumulation – every day, a crypto currency is credited to your balance sheet; you can reinvest it for additional capacity, or just accumulate.
- Withdrawal of funds – when a positive amount accumulates in the account, you can withdraw it to your crypto-purse.
- Exchange for money – you exchange the derived crypto currency for real money through one of the exchange offices.
What Are The Cloud Mining Advantages?
- The user gets rid of all the disadvantages of a usual mining: monitoring of cloud mining, setting up equipment, hardware, and paying bills for electricity.
- High profitability. This is one of the biggest advantages because such services allow you to receive on investment of 200% to 400% of revenue for the year.
- Most companies have a legally registered status and make legitimate cloud mining contracts with clients.
- As a rule, using a single platform, you should be given a possibility to purchase contracts for all sorts of crypto-currencies, which is a sort of protection from an occasional fall of one of them. This way, your risks are lower. How? A wise distribution of investments between different types of currency will likely reduce the overall expected profit, meanwhile reducing the risk of damage to the minimum.
- Funds that you have mined, you could spend at casinos with bitcoin payment option.
- The ability to carry out automated production of bitcoins on a large number of resources at the same time, searching for the most profitable contracts without any restrictions.
- Referral programs. These programs assume that you can rely on a fixed amount of remuneration for the invitation of new users to the service. This is not a significant income, but still a small bonus.
- Quick and easy scaling – of course, this is an extremely important aspect that is not fundamental at the first stage but critical in further development and thus, it is a good advantage as well.
- Profit can be predicted: investing in contracts is protected from force majeure, due to the average complexity of the network and the exchange rate.
What Are The Cloud Mining Disadvantages?
Despite the fact that there are many obvious benefits, of course, there are also some cons that have to be taken into account:
- There is a possibility of a drop in the rate of bitcoin itself, as it was in 2010 and 2013.
- There are almost no companies with ROI politics.
- The site of the company with an online purse is always a subject to hacker attacks and services of cloud mining too. If such situation happens with the site – the money that is not deduced will disappear in an unknown direction.
- The seller of contracts may be unfair. The great demand for this way of earning has activated a number of scams offering non-existent production capacities. It is worth using only proven services with numerous recommendations.
Best Cloud Mining Services
Here the list of the best companies to take a look at:
Hashflare – the best cloud mining service in 2019. Has the highest yield – <200% of the value of the contract. The most important is that Hashflare has an impeccable reputation. Trust is practically the main requirement for the cloud site since the profit is high enough for all services, but not all of them are honest.
Shansis – the company ShansiS Systems for 4 years is engaged in leasing facilities for the mining of crypto-currencies. This is one of the old-timers. The location of data centers with equipment in Shanxi Province is selected because of extremely cheap electricity. This company is one of the cheapest sites in this field. It also offers very good conditions for customers.
IQ Mining – was founded in late 2016 by a team of experts in the development of detachment and IT; the uniqueness of the IQM service is the fact that the algorithm monitors the performance of the mining.
Genesis Mining is a well-known service. It offers cloud-based Bitcoin mining and other advanced crypto-currencies. Irreproachable feedback from the miners and daily payments, as well as numerous photo and video confirmations of their huge data centers, which make a confidence.
AlienCloud was created to allow professionals and newcomers to access the same quality resources as industrial miners. It is also a good choice. AlienCloud is a platform that combines cloud-based mining, a currency exchange and a wallet for storing user’s funds.
Cloud Mining Scams
Are there many scams? Like any earnings on the Internet, it has a big scam problem. On the Internet, there are a lot of sites (companies) that are deceiving their clients, so it is important to remain vigilant and follow all the rules when choosing a company. Read carefully this article again, surf MiningDuck.com for more information and make the right choice for your investment!
Cloud Mining Companies Reviews
We have many honest reviews. On our website, each of you can find lots of information about different services that should help you avoid making a mistake. Thus, everyone should find something interesting here!
Making our top cloud mining reviews, we stopped on Hashflare. It is a service where you can buy a share (contract) with minimal investments (from $ 2.2) and receive passive income in proportion to the rented capacity. Below you can see more information on it.
- Power on the algorithms Sha-256, Scrypt, Etherhash, X11 is bought for a year, with the possibility of increasing at any time of the contract (with each payment a new contract for a specified period).
- The work goes through several pools. It is possible to select which pool mining will go through or distribute its power among several pools.
- If you buy Scrypt power, then LiteCoin will be extracted. Then they will be automatically exchanged for Bitcoins and you will receive the income already in Bitcoins, and, after that, you can withdraw funds to your personal wallet or to the exchange.
- There is a possibility of reinvestment. It will be interesting for those who are going to invert into the crypto currency for the long term.
- And most importantly – the prices of Hashflare are some of the most profitable in the market; usually, the capacities are sold at basic prices, but sometimes there are discounts and promotions.
- After passing the registration, you can calculate the return on investment in the HashFlare calculator and make a comparison. It is an important step that should not be neglected. The calculation is available for the extraction of four coins: BITCOIN, ETHEREUM, LITECOIN, DASH.
The withdrawal of funds in HashFlare has its own peculiarities. You cannot set up automatic payments: each time you need to manually confirm the application. In addition, for each withdrawal of money, the bitcoin network charges a commission of 0.0002 BTC. The users who changed the purse number are temporarily blocked to protect from the unauthorized hacking of the account. The period of “freezing” is exactly 2 weeks. After this time, a new account will be automatically available for withdrawal.
At the moment, cloud mining is the only working way to get a crypto currency and minimize the risks with such an investment. This is a new solution for users who are confident in the stability of the chosen payment facility. In fact, such services are close to investing in stocks, but with much higher returns and reliable forecasts regarding their prices. Given the general trends in the bitcoin market, your contract is very likely to be very profitable. According to statistics over the past year, the return on investments was 300-800% (depending on the contract and the algorithm) and now, at the beginning of 2019, the rate of return is approximately 200%-400%.
How To Decide For A Cloud Mining Company?
- Time – this market is quite young, and the company’s existence time here means much more than in more established niches.
- Capacity – the total volume of capacity that the company has and, as a consequence, the number of service users.
- Publicity – photos, blogs, video with equipment and employees.
- Multicurrency – the ability to obtain various crypto-currencies within the same service, it is important because the rates can change dramatically.
- Price – the price should be reasonable but remember, not all cheapest cloud mining sites are the best ones.
You can read our reviews and choose the best company!