All You Should Know About Cloud Mining
Read this review to learn what cloud mining really is and how to start investing in hash contracts with high profitability.
16:31 29 November 2021
Cryptocurrency cloud mining has become as popular as traditional hardware mining. Currently, it is a massive topic in the crypto field. And it's the best thing for newcomers and investors that are just getting started with cryptocurrency. Read this review to learn what cloud mining really is and how to start investing in hash contracts with high profitability.
What is cloud mining?
Cloud mining is a mechanism to mine Bitcoin and other mineable cryptocurrencies via the cloud. If you don't get a concept of 'cloud' services, just think about Dropbox, Microsoft Azure, or Google Cloud Platform. In general terms, cloud computing is the on-demand access to computing power without direct management. Many areas work today under the cloud computing technology, such as databases, servers and, of course, software platforms. Cloud mining is one of them as individuals get access to remote mining software operated by third-mining companies.
How does it work?
While traditional mining requires investment in high-cost equipment, cloud technology allows earning cryptocurrency without any gear at all, literally. Users can mine Bitcoins and altcoins by renting hash capacities from the best cloud mining companies. Technically you mine cryptocurrency on a web or mobile platform by paying and withdrawing funds remotely via the internet. To start earning crypto, you have to pay a cloud mining contract with a particular hash rate.
Why is it important?
Cloud mining technology is the only way to start mining crypto for beginners and investors with a lack of knowledge. Since cloud mining providers run and maintain equipment themselves, you do not deal with any service-related issues. The hardware is placed in remote data centers, which are big industrial parks usually located in cold and windy areas. It reduces costs on the cooling equipment (which actually is one of the most vital parts of the Bitcoin mining process). Also, with cloud mining, you should not pay high electricity costs that are an extra challenge for cryptocurrency miners.
Do cloud mining companies mine themselves?
Sure they do. Any cloud mining company has two options. First, a provider purchases gear to mine itself (and it requires massive investments). But at the same time, a company shares its hash rate with a lot of individuals. And it helps to meet the costs on hardware, maintenance, electricity, rent, staff salaries, etc. So it is definitely a win-win model in which both a provider and customers get their benefits.
Is it profitable?
To get the profitability of cloud mining, you should know what it depends on. The main factors are current Bitcoin value, pricing policy, the hash rate under a chosen contract, duration. The average profitability rate starts at 145-150% on the best cloud mining websites. But also, returns strongly depend on the initial amount you are going to invest in a hash contract. Most companies offer income calculator features on their website. So you can use it to calculate the expected return. Also, you have to mind the current Bitcoin prices that can rise very fast.
Is cloud mining a passive income?
Exactly it is. You don't have to worry about equipment, service, costs, crew salaries, etc. Just rent a miner on a cloud mining website and track your income state. Best cloud mining companies allow you to check statistics in real-time, so you always know how it's going. Many crypto investors engaged in cloud mining prefer to reinvest the funds that they get as a reward. It brings the highest profit even if you invest a relatively small amount.
How to start?
The simple start is an extra reason why we love cloud mining. It takes a couple of minutes to sign up and create a new account on the chosen hash-providing platform. To make a deposit, use a cryptocurrency wallet or credit card. Most companies also allow deposits via regular bank accounts. The final step to start mining is purchasing your contract.
The bottom line
Overall, cloud mining is the best way to make passive income without any facilities and technical education. Any person can start mining cryptocurrency with a few easy steps. Finally, crypto-coin mining via the cloud is a really profitable tool for both small and large investors.