I have put very simply, cloud mining means using (generally) shared processing power run from remote data centres. One only needs a home computer for communications, optional local bitcoin wallets and so on.
However, there are certain risks associated with cloud mining that investors need to understand prior to purchase.
Here’s why you might want to consider cloud mining:
- A quiet, cooler home – no constantly humming fans
- No added electricity costs
- No equipment to sell when mining ceases to be profitable
- No ventilation problems with hot equipment
- Reduced chance of being let down by mining equipment suppliers.
Here’s why you might not want to consider cloud mining:
- Risk of fraud
- Opaque mining operations
- Less fun (if you’re a geek who likes system building!)
- Lower profits – the operators have to cover their costs after all
- Contractual warnings that mining operations may cease depending on the price of bitcoin
- Lack of control and flexibility.
Types of cloud mining:
In general, there are three forms of remote mining available at the moment:
- Hosted mining
Lease a mining machine that is hosted by the provider.
- Virtual hosted mining
Create a (general purpose) virtual private server and install your own mining software.
- Leased hashing power
Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)
is one of the most profitable and trusted cloud mining service from all that present on the market.
I have made comparison table with forecasted profitability ofcloud mining service for different mining contracts to make it more easy for you to choose.
- All incomes counted for 1.000$ invested
- For BTC & LTC cost of mining is excluded from the day income, so it’s clear income AFTER maintenance fee, not before as you see in HashFlare panel.
- LTC is automatically converted to BTC, so in table there is BTC values in LTC columns.
- All contracts are for 1 year long.
- BTC & LTC contracts have maintenance fees, ETH and DASH – no additional fees.
- For BTC & LTC contracts if profit became less than maintenance fee, guaranty to work 21 days before close them.
- Profitability in my table is counted like (income – invested)/invested
- Forecast doesn’t count increasing mining difficulty (and changing of block reward in some cases) over time, so on long period income in coins will be smaller than forecasted, may be ever much smaller!
- Price of coins is volatile, none can garantee that it will continue to grow up, not down, so it’s risky investment!
- But ever if price will drop, this doesn’t mean it won’t raise again, ussually much bigger than was before – so patience is your weapon!
- Cryptocurrencies are volatile investments, so don’t invest more than you are ready to lost in worst case.
- Price and profitability for different coins can change over time, so it’s smart idea to diversify your investments into different coins contracts.