Bitcoin cloud mining has made mining accessible to a range of new people with a range of different skills. It is the process of mining new blocks/facilitating Bitcoin transactions by solving complex mathematical equations and collecting new Bitcoin and transaction fees as the reward, but solely through the cloud.
Mining in the past has required a large initial investment into expensive hardware and electricity in order to be successful. But with this new method of ‘cloud mining’, you don’t need any of your own hardware or electricity to mine Bitcoin. Instead, you can mine exclusively in the cloud, by registering an account with a cloud mining service. These services work by selling certain amounts of ‘hash power’ and splitting the reward between their users when a new block is successfully mined. The more hash power you buy, the bigger share of the reward you get. Read on to find out how Bitcoin mining works, what the benefits are as well as some of our trusted cloud mining sites.
How Does Bitcoin Cloud Mining Work?
The concept of cloud mining is built on the idea that a miner can access specialized equipment (such as ASIC rigs) through the cloud, rather than keeping them at their own address. The kinds of people who benefit most from cloud mining services are those who want to get into mining but don’t have the funds, time, or room for their own setup. This type of mining started gaining traction around 2 or 3 years ago and is still changing and innovating to optimize their process.
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Most cloud services are based in large data centers, where they run their equipment from, unfortunately, with these large scale mining operations, mining as a whole has become less accessible for small scale home operations.
Here is the basic cloud mining procedure:
First, a cloud mining service will install and run high powered ASIC mining rigs within a large scale data center. A user will then sign a mining contract that suits them best, ‘rent’ out one or more of these machines, and contribute ‘hash power’ to the mining pool. This user will receive a reward proportionate to the amount of hash power contributed every time a new block is mined. And that’s the basics of cloud mining.
The Benefits of Cloud Mining
So, why should you choose cloud mining rather than setting up your own rig? Well, cloud mining has a tonne of benefits. Firstly, it requires a very small investment in order to get started, you’ll only need the renting fee, if you were to set up your own rig, it might set you back hundreds or thousands of dollars and not end up being profitable. Plus, if mining doesn’t work out for you, you’ll be left with a rig you’ll need to sell at a loss. Cloud mining negates the cost and hassle.
You won’t run up a huge unpredictable electricity bill with cloud mining, your electricity cost will usually be upfront and included in the price on your contract.
Thirdly, you won’t need to worry about wear and tear, maintenance cost, or your machine breaking down on you. Your cloud mining company will take care of this while you sit back and enjoy passive income.
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Another great bonus of cloud mining is that you can choose to split your hash power between multiple different cryptocurrencies, and you can hike up profits by referring your friends like most other crypto projects.
The Best Cryptocurrency Cloud Mining Services
In the video above, you can check out a quick breakdown of the best cryptocurrency mining services!
Cryptocurrency is an unregulated space, so it definitely pays to make sure you’re using legitimate sites, especially for something like cloud mining. Some of our trusted cloud mining sites include:
Genesis Mining is one of the largest and most trustworthy cloud mining sites out there, with huge data centers in Iceland and a massive customer base their contracts start at $139 for 3T H/s (3 trillion hash per second). They also require users to sign up for 1-year contracts.
Some benefits of Genesis Mining include referral programs, promo codes, and upgrades for long-standing customers that can help you increase your hash power or profits.
The site has a very simple and straightforward interface and system that cuts back the hassle of mining. As well as the option to split your hash rate between multiple currencies.
Before signing up with Genesis, here are a few things you might want to consider: though Genesis does give out a monthly report about where your hash power has been delegated to, it doesn’t go very in-depth. For those who want more control over their mining, this might not be ideal. Genesis also doesn’t give out fee statements so you can closely track your mining progress month by month, this might be seen as suspicious behavior by some.
Register to Genesis Mining here!
If Bitcoin isn’t your thing and you want to look into other types of cryptocurrency, then Hashflare is a great Ethereum cloud mining service you might want to look into. There are a few different packages available for more customized contracts, and they always guarantee immediate payments, within a few minutes straight to your wallet of choice.
Register to Hashflare here!
CCG Mining is based in London and is subject to UK regulations. This is great for anyone living in England, or just for that piece of mind. They have a simple website that is easy to understand with a great UI. They offer both mining rigs as well as their cloud mining service and offer a range of custom plans to suit your needs.
Pay by credit card, or with cryptocurrencies. You can also split your mining hash power between Bitcoin, Ethereum, ZCASH, Monero, and LTC, or dedicate it all to just one coin. CCG Mining also has competitive rates which are low compared to many cloud mining services.
Register to CCG Mining here!
Cloud mining can be a good alternative for aspiring miners who don’t have the time, funds, or energy to dedicate toward physical mining. The process starts with a company that purchases mining rigs and rents out machines to their users who contribute hash power to the mining pool. Its users, who sign monthly or yearly contracts then collect a reward proportionate to their contribution of hash power. Some trusted cloud mining sites include Genesis Mining and Hashflare, although even these trusted sites are guilty of practices that might come off as dodgy, such as not very transparent mining reports delivered to their users.
Nevertheless, cloud mining can provide a host of great benefits including providing access to people who can’t afford or maintain their own rigs. As well as negating the problem of machine breaking down or unpredictably large electricity bills. Cloud mining can be a great service to use if you want a passive income without the hassle, just be sure to do your due diligence on the company you decide to mine with or risk getting scammed.