How to earn money with cloud mining bitcoin?
Cloud mining lets you to participat in cryptocurrency mining without the need to invest and maintain the hardware equipment related to mining activity. Once you sign up you can pay a maintenance fee and all the rest is covered by the cloud mining company. At the same time you can earn profit from the miners running in the mining farm in the form of cryptocurrencies.
Cloud Mining
Cloud mining is the process of mining utilizing a remote datacenter with shared processing power often contracted through a Cloud mining company. This type of mining allows users to mine Bitcoins without having to manage their own hardware. Since Cloud mining is provided as a service there are generally some costs associated with the mining activity. Therefore cloud mining can result in lower returns for the miner compared to traditional mining.
A couple of years ago people used their computer CPUs to mine bitcoin, later they switched to GPUs and then ASIC miners came to the market. This resulted in a rapid change of the bitcoin difficulty which led to the start of mining pools, where you share your mining power with other users but you also share the reward you get for finding a Bitcoin. Then the first companies appeared on the market which offered their own mining equipment for hire. Making the mining affordable for more people.
Users of hosted mining equipment can either lease a physical mining server or a virtual private server and install a mining software on the machine. Instead of leasing a dedicated server, some services offer hashing power hosted in data centers for sale denominated in Gigahash/seconds (GH/s). Mining profitability calculators lets users to calculate the expected profit in dollars at a given hashing power.
Users either select a desired amount of hashing power and a period for the contract or in some cases can trade their hashing power.
More and more companies come to the market to offer cloud mining services. However recently started to appear some scam sites as well which are only offering high profits, but at the end there is no profit paid out. It is always advisable to make a background check on the company and the platform, read reviews and customer opinion about the business offering cloud mining services.
Hashflare
Hashflare turns cryptocurrency mining accessible to everyone. There is no need to buy expensive and complex mining equipment, Hashflare wants to make mining accessible for all users around the globe no matter of age or technical background. The clients only need to select the desired hashpower and start generating revenue right away with the purchased Hashflare cloud mining service. Earnings with cloud mining become more predictable with Hashflare than it used to be during traditional Bitcoin hardware mining. The hashrates starts from as little as 10GH/s, so new clients do not need to invest a lot of funds to join the cloud mining business.
Hashflare provides cloud mining on the following algorithms: SHA-256 which is used to mine Bitcoins, Scrypt, which is for Litecoin, ETHASH for Ethereum, X11 to mine DASH.
Fees
The mining process requires energy consumption and human resources for the maintenance. In order to cover these fees all users are charged with maintenance and electricity fees accordingly to their contract type and hashrate.
The maintenance and electricity fee is linear and equals 0.0035 USD per every 10 GH/s of SHA-256 and 0.01 USD per every 1 MH/s of Scrypt per day. Ethereum contracts are not subject to any fees.
Maintenance and electricity fees are not billed in an invoice. Instead the fees are deducted from the customer’s balance at the moment of daily payouts. Despite the fact that balance is accounted for in BTC and the fees – in USD, the fees are deducted in BTC according to the current USD/BTC exchange rate which is beneficial for the customer in case the exchange rate trend is positive – more BTC remains in the customer’s balance.
Reinvest
The Reinvest function allows you to automatically buy additional hashrate as soon as your balance allows it. Activating this function will use your current balance to purchase the maximum possible amount of hashrate at Hashflare. After every payout, the system will check if your balance is enough to purchase at least a minimum amount of hashrate (10 GH/s for SHA-256 or 1 MH/s for Scrypt). If it is, then the purchase order will be created and automatically confirmed.
Genesis Mining
Genesis Mining offers you a smart and easy way to invest your money. Their Bitcoin mining system is suitable for those who are new to the world of crypto currencies, as well as for cryptocurrency experts and large-scale investors. Genesis Mining is the World’s first large scale multi-algorithm cloud mining service offering an alternative to those who would like to engage in Bitcoin and altcoin mining.
They are a team of experts in the digital currency sector, and their Bitcoin mining algorithm is designed to provide the most efficient and reliable Bitcoin mining rentals on the market.
Their aim is to purchase hashpower that you keep for a lifetime.
Fees
There are no pool fees. You don’t have to pay or wait around for shipping. You are not wasting even a second of mining, you start immediately. No downtime due to system crashes.
The fee model consist of three level plans the clients can choose from. The starter plan is available from 30 USD for 200GH/s hashpower. The medium package is charged at 350 USD for 2500 GH/s and the premium plan costs 1950 USD for 15000GH/s mining power.
Mining and supported coins
You can decide which coins to mine with your purchased hashpower. The allocation of the hashpower between coins is completely flexible, and thanks to the great user interface it’s very easy to do so.
Genesis Mining offers the ability to mine Bitcoin, Dash, Ethereum, Litecoin, Monero and ZCash. You choose your package and you can start mining right away. There are 3 different preset packages, but you can also create a custom plan for your own needs. Most of these contracts are limited for 24 months, but there are no maintenance fees. It’s already included in the price.
Regular promotions
There are regular promotions, where customers receive automatic upgrades or promo codes to have percentages added to their hashpower, or to have percentages off of their contract price. With the affiliate program, you could get really appealing upgrades just by inviting friends.
Minergate
MinerGate is a mining pool created by a group of cryptocoin enthusiasts. It is the first pool which provides service for merged mining. This means that while mining in their pool you can mine different coins simultaneously without decrease of hashrate for major coin mined.
They offer a professional approach to Bitcoin mining. The data centers Miner Gate use are equipped with cutting-edge ASIC miners, which are the most effective hardware on the market right now. The data centers are hashing 24/7 and all mining rewards come straight from unlocked BTC blocks.
MinerGate is a pool with 3 years of history. There are more than 500,000 miners with almost 2000 new users joining every day. Each cloud mining contract brings you steady profit and clear contract history allows to easily track your rewards. You can choose a suitable plan with their calculator.
With MinerGate’s Cloud mining platform you can only mine Bitcoin. Starting from 20 GH/s plan you can rent any amount of mining power.
Fees
There is only maintenance fee paid to make up for electricity and mining resources costs. It starts from 0.00033USD per day for one GH/s.It will be withheld from daily earnings for the contract. They don’t deduct any extra money from your account to cover it and you don’t need to send funds to pay the fees in advance.
Overall Summary
Cloud mining is a great opportunity to join cryptocurrency mining for those who do not want to deal with the maintenance of the mining hardware equipment. There is many cloud mining service provider on the market which is offering a wide range of services. Maintenance fee is payable at almost each platform but the plan prices can be very different according to the amount of hashing power purchased. Due to the growing number of scam sites, it is always advisable to check the background of a platform, read reviews and customer feedback about the business doing cloud mining.