Bitcoin and mining are making headlines all over the world, so maybe you cannot wait to join the ranks of proud owners of those shiny digital coins. To make sure you make the right choice and avoid disappointment you must understand that no one is going to use a pick and a shovel up in the clouds-digging for bits of digital gold. Just because Bitcoin is so hot right now, it doesn’t mean you will become a millionaire overnight. Those days when some crazy programmer paid 10,000 bitcoins for pizza are gone. Bitcoin is now an investable asset on world markets, same like gold or oil, although with a lot higher promise. The competition is high, but so are the rewards. There are two main ways of joining the cryptocurrency movement: to build your own farm or to start cloud mining.
When you choose a provider of cloud service to mine, the people behind it usually have combined dozens of years in managing cryptocurrencies so you can be sure they have the right expertise to make the whole process more rewarding, despite all currency ups and downs. They also deal with all the trouble (obtaining clearance from financial controlling authorities is the least of their headaches) to let you withdraw your earnings and exchange them into your local currency. Otherwise, you will have to look for a crypto exchange and pray that they are not fraudsters or would collapse next five minutes!
How to Mine Bitcoin in Cloud
Have you ever wanted to mine Bitcoin and other digital currencies but you were put off by technical difficulties, expensive hardware, rate fluctuations etc? Now you can forget about all that, as the cloud company takes care of all the dirty work. With a cloud company, you rent a power of best cloud data centers. This way, you don’t spend thousands up front on equipment and making it a full-time job. All you need is to do the following:
- Open an account at a cloud service
- Install the required software on a computer
- Decide how much do you want to earn. With cloud contract, you won’t have to spend thousands, as the Bitcoin cloud contract price is realistic, especially compared to the expense to mine at home (and what if you have to sell your processing units in case things go bad?)
If you still hesitate whether or not to mine in the cloud, consider these benefits:
- Saving thousands in upfront costs until ROI which may (or may not) be reached
- You also don’t need to manage the unit setup. Cloud companies already have the most advanced hardware available, and a thousand times more quantities than you can afford.
- Cloud mining data centers have capacities that greatly exceed those of individual farms, so it’s useless to try to steal their piece of cake. For successful mining today you need the most powerful processors and cloud miners use top of the line hardware. In fact, their data centers use thousands of GPUs while an individual can realistically afford only a few of them.
- Electricity efficiency is crucial: cloud miners buy electricity at a discount, and some of them even generate their solar or wind electricity making their power really, really cheap. So they pass these savings to you — efficiency makes a really strong point here.
A customer simply has to register at the cloud mining company and select the suitable contract depending on the amount they are prepared to invest and for which period. Contract duration can range from hours to years. Additionally, best bitcoin miner users must pay recurring fees for maintaining cloud mining facility as well as any transaction costs to withdraw the currency.
Before we go ahead on what makes mining in a cloud a perfect starting point for the newcomer in cryptoinvesting, let us examine various options to consider before moving forward.
Cloud mining providers sell the hashing power measured in gigaHash per second (GH/s). Participants then choose a suitable amount of hashing power as they deem possible based on their desired investment and the duration of the contract. It should be expected that the final outcome greatly depends on the actual going rate of cryptocurrencies but currently, nothing suggests that alt-currencies growth is anywhere to stop.
Is cloud mining secure and legal? For most industry experts, it is not any worse any other online banking activity. Not a single financial institution in the world is completely protected from any sort of invasion and intrusion. Hackers can steal your credit card number through phishing emails, or they can simply take money from your account, or lure you into paying a seemingly well-known payer who may later appear to be a fraudster. Same in cryptocurrency world, you must be vigilant so that you don’t fall prey of shady companies with fake promises that are too good to be true.
Is cloud mining immune from cryptocurrency rates fluctuations? Naturally, many variables influence the spikes such as recent skyrocketing of Bitcoin. It’s worth remembering that cryptocurrencies are still a very immature class of digital assets. As more companies accept cryptocurrency as a payment form, so, in turn, it means that the price of Bitcoin would make it even more attractive to mine. These days, you can buy pretty much anything for Bitcoins, from pizza and cold beer to the luxury loft or the famous racing car.
Comparing Bitcoin Cloud Mining Contracts
Here are some of the most popular cloud contracts on the market. Please note that none of these contracts is endorsed and we encourage you to perform your due diligence before signing up.
This cloud mining provider offers SHA-256 mining contracts with regular payouts in Bitcoin. When you sign up you must buy the hashing power of minimum 10 GH/s.
Genesis Mining is the largest Bitcoin cloud mining company. It offers several reasonably priced cloud mining contracts. The company is well-known for its rigorous approach to security which appears to have a deciding factor for many customers.
This company has offered Bitcoin services starting in 2012. With data centers located in Iceland and Georgia they have access to cheap electricity and in case of Iceland naturally cooling units. Thanks to updated Bitfury ASIC chips they combine the benefits of energy efficiency and top performance in Bitcoin generation.
This company practices an innovative approach to blockchain projects packaged in a game format. They offer several sizes of Cloud packs which can be used to build a number of applications from casinos to commercial projects.
This cloud mining company is a branch of Bitmain, the manufacturer of Antminer brand of mining units. They offer mining rigs for rent for a very reasonable price.
As Bitcoin becomes increasingly popular, many people appreciate the easiness of giving mining in a cloud a try, especially since there’s more knowledge now on the subject, and more companies offer attractive possibilities to mine cryptocoins in conditions that safeguard them from losses. Bitcoin has disrupted a lot of industries and investors now make choices that result in cryptocurrencies being very volatile during the next decade at least. Still, a reasonable investor should remember that new Bitcoins will be mined until 2040 as was initially planned, so investing in alt coins may be a smart choice.
So the more investments solo mining requires and as more mature Bitcoin market becomes, regular investors will support the “arms race” for the most efficient and up-to-date data centers. “Traditional” home-base miners and garage “data centers” seem unable to provide the flexibility that cryptocurrencies require during fast hardware upgrade cycles.
Cloud contracts can eliminate most of these problems for the small-scale miner. After all, bitcoin may become the next gold, presenting a better, more secure and versatile digital store of value, but many adopters believe it also has all the potential to become a lot more. So to maximize chances for success, you should treat your cloud investment as seriously as you would do with any proper business deal and not a fad. Only this way you can expect to reap the return on your money investment fully. You also need to accept the idea that six months, a year or perhaps three years is not a great deal of time, especially if you are earning money while you sleep. Spend only as much as you can afford to, and you should definitely spend an hour or two on doing some basic spreadsheets to ensure that you are taking a sound approach.