What is cloud mining you may ask. This is similar to mining crypto except this is when. A company does the mining for you and they charge you a fee for the service.
This is to offer the option of not having to buy a mining rig and just sit on possible profits and benefits of mining.
To give you An Idea Of Cloud Mining
This is when a business will rent out to you the mining hardware. The business will operate and maintain the actual equipment and do the actual mining. In exchange you pay a fixed fee and take a share of the revenue generated. So you more less do the mining from a remote location and never have to buy any of the equipment or use any electricity.
One thing to consider is there have been several companies offering cloud mining that ended up being scams. or just highly ineffective. Some have lost money or have earned less vs just buying and holding crypto.
I will go over more on cloud mining in this moment. As there are good solutions out there. I will teach you more on cloud mining so you get a good take on it.
What is Cloud Mining?
Cloud mining can be seen as a more affordable way to mine crypto. In this situation you are renting out the hash power from a company, that keeps the equipment in a location that is under a good temperature. The business does all the maintenance on the mining equipment while you share the revenues.
So the decision sounds good, just the question of who to trust. You could do a search engine look and on companies that do cloud mining and you will find a confusing amount of information.
I will say in this passage about the mining companies. Overall it be hard to say what company is best for cloud mining. I will tell you few companies you can look up and do some further research into for cloud mining. In which you can make a final decision.
Three companies you can look into are Genesis Mining, Hashflare and Bitclub Network. Again only use these as ones to research more. This is not a recommendation.
This is one thing to consider. The model many mining companies use is a paradigm on a lose lose situation. If price of crypto goes up then you earn less then if you bought direct. If the price goes down then you can lose more again.
The maintenance fee charged by the companies covers the cost of cooling, storying, hardware and even staff. So keep in mind if the price on coins goes down then your revenue earned may not cover the costs of running equipment. If the price really sky rockets then the mining becomes more difficult and profits hard to reach. I am going to say you are better to just buy crypto and hold it for a while
Scams In Cloud Mining
There have been total scams in cloud mining from companies like OneCoin and Bitconnect. Many had ended up being ponzi schemes and really only a few people at the top of the pyramid got any money.
Seems majority of the cloud mining services out there are more less ponzi schemes so be very careful. Many just offer the rates and don’t have any actual equipment to begin with. Many are just there to collect your money and run. So be careful.
Always Conduct Research
Always do your own research if you want to get into mining. Look for references such as reviews of someone else who may have used that same service. Also look at the site bitcointalk.org as always lots of postings there about mining. Also if you been a victim of a scam, please post to that site and let the community know.
If you do agree to try out cloud mining. Do this, don’t invest more then what you can afford to lose. More less just put in a small amount just in case if you do encounter problems, then the losses will not be too emotional.
More less when getting into any situation in crypto always be aware. Check around the web and the community of any reviews of any companies. Of any situation of anyone encountering scams.
Cloud mining can be quite the risky venture for sure. In general based on the feedback i have gotten. I do not think cloud mining is good idea at all. You are better off mining crypto yourself or just buying crypto and waiting on the market.
In other words always be careful of everything.
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