Cloud Mining – Is It Worth It?

In case you are fond of mining and staying as far as possible from all the hardware, you will endorse every aspect of the cloud mining idea. In the next few paragraphs, you will get familiar with the main elements to consider and how cloud mining functions. There are also positive and negative sides explained further in the article.

Let me say that mining is a cost intense activity, but there is a less pricy way of doing it. That is the cloud mining option. But how does cloud mining work? Simply, a third party lends you the hardware and mines on your behalf before pay the earned rewards in your preferred coins.

The process is not that complicated. As a start, make a really good research on the top cloud service providers on the crypto scene or simply go through the suggestions in the table below. Then, pick a crypto wallet and install it. It is the access to your funds. When you have picked a third party, all you need to do is sign a contract. Make sure you read the fine print very carefully. Pay attention to the terms, conditions, fees and length of the agreement. When everything is up and running, you will be mining indirectly and get your earnings regularly.

The main idea behind that service is the chance it gives for people with not so much crypto knowledge or investment money, to be able to participate in the world of digital assets. What is more, things like gigantic electricity bills, hardware puzzles plus the produced noise and heat will not be your problem.

Table: Leading Cloud Mining Providers

To take part in the whole renting and earning cycle, you have to pay hashing power charges. They are calculated using the hash rate of your coin of choice plus the time it’s mined for. Each cloud mining service provider has different policies regarding the minimum thresholds for payouts. Moreover, as the hash rate increases, fees don’t wait for a bit to follow that pattern.

In the digital world of crypto, profit and risk are more of alliances than rivals. There are numerous factors affecting the profitability of cloud mining. What is cloud minig`s biggest risk factor? Arguably, this is the service provider – the price and quality. The reputation of each company will help you stay away from scams. Imagine that the time period you have signed a contract for, is suddenly shortened without any explanation and you can even not get payed. More on such shady deals will be explained in the next paragraph.

Furthermore, exchanges are involved in the profitability as well. Their rates can play either with or against you. Let’s not forget that everything is happening online. The number of actions on a network per second, can render influence on the speed things are operating. Nonetheless, you can still do an indicative calculation of the profit from cloud mining using any crypto calculator. Don’t forget to place your monthly tax instead of the hardware price. This way you will know which provider will be more profitable.

Think ahead before deciding which way to go. Here comes the risk factor. As an example, BTC calculations will show eventual profit for the next few months. This coin has constantly rising network difficulty, which will turn the earnings into losses at some point. Investing in cloud mining is always risky thanks to the common fraud cases and mismanagement. This shouldn’t stop you from choosing this path though. If you are ok with the risks, go for it. After all, you should invest only amounts you are willing to lose.