How to

The Quick-Start Guide to Bitcoin Cloud Mining

Bitcoin cloud miningCloud Mining offers investors an opportunity to participate in mining without owning the actual mining equipment.

There are legitimate cloud mining companies and then there are scams and pyramid schemes. Make sure you are buying into a legitimate contract with a reputable firm. Two firms to consider cloud mining with are Genesis Mining and Hashflare Review.

Customers of cloud mining typically lease hashing power from a mining company that owns the hardware. Customers at Hashflare and Genesis can buy into a contract for a piece of the revenue generated during the life of the contract.

A mining company leases out its machines to customers in exchange for upfront payment from the investor. The mining company receives a portion of the revenue made by the machine for hosting it and covering the costs of electricity and maintenance. The company gets cash up front, in the form of cryptocurrency typically, in the lease arrangement, this helps the company recoup the cost of the miner and provide capital for growth.

You can see profitability levels for mining crypto currencies, including for Bitcoin, at CoinWarz. The most profitable SHA-256 cryptocurrency coins to mine are Mazacoin (MZC), eMark (DEM), Curecoin (CURE), Peercoin (PPC), Bitcoin Cash (BCH), Bitcoin (BTC) and Joulecoin (XJO), according to CoinWarz.

Hashflare displays your potential reward on its web site. Below are screenshots taken on Jan. 21, 2018, showing the various rewards for $1,000 investment mining Bitcoin, Litecoin, Ethereum and Zcash, at Hashflare. These are one-year contracts. Notice how Hashflare says monthly income ranges from $189.61 Р$242.28 for Bitcoin mining.  At $200 per month, you would recoup your initial $1000 investment in five months, the remaining monthly payments would be all profit.

However, the monthly payment depends on the exchange rates and difficulty levels. Difficulty in Bitcoin mining has been rising rapidly in recent months due to more people getting into mining. Difficulty climbs when more miners are added to the network. This means revenue per miner will decline because you have to share the revenue with more miners.

Bitcoin cloud mining

Bitcoin cloud mining

Bitcoin cloud mining

Bitcoin cloud mining

Conclusion

Be aware that cloud mining may relieve you of the responsibility and risks associated with owning and operating actual mining equipment, but watch your investment like a hawk, make sure the terms of the contract are fulfilled. Make sure you receive regular payments under the terms offered in the contract.

The most profitable way to mine is with a real miner. The Antminer S9 13.5TH/s is arguably the best Bitcoin miner, but needs a climate controlled space and reasonably priced electricity for profitable and safe operation. If you don’t have the space, consider cloud mining.

Remember income from cloud mining is variable, depending on the price of Bitcoin and the difficulty level. If the price of Bitcoin tanks, profitability is going down too.

Yet cloud mining does offer investors a way to participate in the mining business conveniently and still receive monthly returns. If you get your money back in six to nine months, the final months of your contract will be all gravy or profit.

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