- September 7, 2017
- Posted by: admin
- Categories: Altcoins, Bitcoin, Bitcoin Everything, Ethereum, Investing, Markets, Other Altcoins, Trading
Before we get into Cloud Mining as a service, I want to point out that there have been many scams over the years which have given Cloud Mining a bad rep. Be cautious when you go out googling different cloud mining companies. That said, there are serious companies as well, like Hashflare and Genesis Mining.
What is Cloud Mining?
Cloud Mining is a service that mines crypto currency for you. You’re renting their hardware and get coins in return. These services aren’t for free of course. You pay for a hashrate and choose a rental period (for example, 1 year).
Dependent on the service provider, you can pick different coins to mine. Some mining is more profitable than the other. In return for your payment you’ll get coins. Hopefully.
Some cloud mining companies also charge you for electricity and maintenance (often on a daily basis), which gets deducted from your mined coins. Or they can charge you upfront. As said before, be careful on what service provider you pick and avoid scams at all costs. Two mentioned service providers are widely known and more trustworthy.
Pros & Cons of Cloud Mining
It’s pretty clear why many people have chosen cloud mining instead of doing it the “old” way of mining cryptocurrency. You don’t have to buy actual mining hardware, which is expensive. And it’s not easy to get the best hardware, as there’s a big demand once something new comes out.
Apart from the buying, you also don’t have to go through the pain of the setup process and monitoring that everything is running smoothly at all times. Plus, there’s no electricity monitoring, or worrying about the heat and noise mining generates.
There are cons to cloud mining though. You don’t control it. You don’t own it. Just like with an apartment. You pay the rent, but do not gain ownership. Of course, apartment holds value much better. You have to make an investment to buy hashrate (maybe even more compared to buying your own hardware, depends how much you’ll buy), without knowing if the company you paid it to will exist for the period you’ve made your order.
Well, it depends really. If you’re serious about mining, then I would suggest to get your own hardware and have full control over the mining process. Especially if you’re technically savvy. And do take into account that you need extra space for mining with good cooling system. Also, if you live in a country where electricity is crazy expensive, most likely it’s hard to make profit as electricity cost eats up your money.
However, if you’re not the type of person who likes to get his hands dirty, then cloud mining is the way to go. It’s convinient and doesn’t require anything extra besides a credit card. It has also gotten a bit safer, as there are few companies that have been on this market for years and have earned a trustworthy reputation. Links to both can be found here (you’ll get a small discount using our links):