Virtual currency mining. What is it?
Cloud mining is a new concept in the mining of Bitcoin, Ethereum, Litecoin and other types of cryptocurrency. You don’t need to buy equipment to join the system. Various portals offer you to enter into a contract for renting their equipment, guaranteeing payments to your personal cryptocurrency wallet in return.
Below we’ll try to answer the questions that people often ask, first encountering crypto-currency mining:
- How does cloud mining work?
- How to earn on cloud mining?
- How to start working with cloud mining?
- Who offers reliable cloud mining?
The emergence of cloud mining
Cryptocurrency mining is when the computers perform mathematical problems aimed at building the blockchain. The days when you could produce bitcoins with your desktop PC are long gone. To get at least one digital coin today you need to have enormous computing powers. And the process is going to become only more complicated in the future.
You have probably noticed that it is impossible to buy graphics cards nowadays. These are the miners who have already bought up the equipment for months in advance to continue their work. Those companies that are engaged in the production of ASICs do not lag behind. In this situation it is very difficult for an average user to join the process and become a full-fledged participant.
That’s how the cloud mining services appeared. They offer the capacity of their data centers for rent for 12 months. You get yourprofit during this period, and the service continues its stable work. You don’t need to spend money on equipment, and the «cloud» has funds for development and improvement.
Why the cloud mining is so popular?
The cloud mining services are considered to be the most profitable way to produce cryptocurrencies in 2018. Huge data centers are located in places with low electricity and heat withdrawal rates. They are directly connected with the largest electronics manufacturers for the cryptocurrency world. Therefore, it is very profitable for them to expand and increase production volumes.
Since the emission of the most cryptocurrencies is strictly limited, the «clouds» work for mining several types of digital coins at the same time. Experts track down the exchange rate jumps and look for promising new things. The cloud services put their ears to the ground to guarantee themselves, and therefore you, a permanent profit.
Users can no longer keep up with the endless complication of mining. It is not profitable anymore to buy, adjust and optimize the equipment. Maintenance and electricity costs no longer pay off. That is why remote mining looks as attractive as possible.
You will not have any issues with the equipment, renting a room for it, neighbors and law, if some distant data centers produce cryptocurrency for you. What you need to do is only check your cryptocurrency account and look for a suitable «cloud» for subsequent investments.
And will I get paid for sure?
If you choose a reliable cloud service, you will get paid for sure. The statistics is as follows: the profit you can get from the cloud mining is from 200 to 400%. Payments are made on a regular basis without any significant delays. To dispel doubts, you can read the reviews. Many respected publications mine on the «cloud» and provide reports systematically.
Remember that the cloud mining of digital coins attracts scammers. Do not get carried away when you see a very lucrative offer that promises you superprofits in the shortest time possible. Many portals are waiting just to get enough credulous users and disappear with their money.
Pros of cloud mining
Cloud mining saves the users from many issues associated with the production of cryptocurrency. Companies take a commission for their services, but even in this situation, it is much more profitable to cooperate with them then to have an independent start.
- Legality. You are always able to know where the data center is located and also get its geolocation data. They are mostly concentrated in the Western Europe. Legislation of many EU countries is favorable to the circulation of cryptocurrencies. There’s no need to be afraid of losing your funds because of a police raid.
- High income. Depending on the cryptocurrency type and its exchange rate, the users get up to 100% per year.
- Сloud mining is not an exchange. There is a possibility to forecast your profit. By averaging the complexity of the networks and the exchange rate, the «clouds» guarantee you the stable payments, without the risk of collapse and delays.
- A large number of contracts. Cloud mining services are continuously developing. You can enter into several contracts with one portal to mine various cryptocurrencies. Thus you will insure yourself against possible losses. There are no restrictions on the purchase of contracts.
- Referral offers. Promoting programs for inviting new participants are very common. This can be a fixed amount or a minimum percentage. It’s the little things, as they say. By popularizing the service, you start earning more.
- Scaling. This feature distinguishes favorably the cloud mining from the usual one. Without additional costs and long waiting you are able to change the production capacity.
The total cloud mining data center power indicators always exceed the maximum parameters of home-based farms.
Cons of cloud mining
Just like any other technology, cloud mining has its weaknesses. The BTC exchange rate jumps in 2011, 2013 and 2017 caused panic among some users. Experts predict a new wave of instability and recommend keeping calm. There’s no need to convert your digital coins to paper money, and it’s better to wait for the best exchange rate. To avoid significant losses, it’ll be great if you mine several types of cryptocurrency at the same time. You can also withdraw your assets to the exchange at an inflated rate, but it is not always effective.
Now, let’s talk about the disadvantages of this service:
- A large number of scams. Cloud mining is very convenient for fraud. By signing a contract, you transfer money to someone’s account at your own risk. There are no guarantees that this is not a thief hiding behind this account. So, do not trust those services without reputation and positive feedback. Be picky, selective and demanding. Read each passage of the contract, consult on forums and specialized public pages.
- Hacker attacks. Cryptocurrency mining is, to varying degrees, connected with the danger of funds diversion. Cloud mining services are not immune to this too. To protect your savings, it’s better to choose those services that make transfers at short intervals regularly. Ideally, store your coins using the «cold» method.
- Changing conditions. There are cases, when the cloud mining service rapidly increased the mining complexity of the cryptocurrency you’ve opted for. This entails a decrease in the number of coins for the power used. This risk is minimal for Bicoin (BTC), Litecoin (LTC) and Ethereum (ETH), but still it exists.
How to choose the cloud mining service?
As already mentioned above, you need to take the choice of your data center seriously. New offers appear constantly, but you should not trust them. Reputation plays a huge role in the digital world. It is the level of user confidence that determines the value of a particular cryptocurrency. The main selection criteria are as follows:
- Openness. The company website should provide detailed information about its production capacities. Various photos of data centers, employees’ photos in production and in the offices. Video blog recordings, useful recommendations and commercials work for a positive image. Do not pay attention to the services, which do not reflect their inner life. Perhaps, it just does not exist.
- Duration of existence. Mining is a new and promising sphere of business. It’s a very competitive sector, and new companies appear every month. Choose those time-tested cloud services for collaboration. They definitely have the necessary equipment, knowledge and experience to stay afloat in the ever-changing digital world.
- Capacity. Your profit is directly dependent on the data center production capacity. Focus on large services that allow you to scale the mining quickly.
- Multicurrency. The cryptocurrency exchange rates are highly variable, that is why many users strive to invest in different digital coins. This guarantees stable profit. Pay attention if the «cloud» offers contracts for all profitable directions and don’t be afraid to invest.
The most reliable service
As of March 2019, the service of cloud mining Genesis Mining proved to be better than the others. They are stable, reliable and safe.
It settled its computing capacities in Iceland. This company was founded in 2013. 4 tariff plans are at the disposal of users, and they differ in price and the capacity level. Electricity cost is not charged. You need only 26 dollars to start, and your profit will be from 80 to 150%. This company is stable and you are regularly paid here.