What is cryptocurrency cloud mining? Cryptocurrency cloud mining is a method of crypto mining which is distributed on cloud-based servers, rather than on dedicated hardware that you run and maintain yourself.
Cloud mining means renting computing power from remote data centers that run specialized digital currency mining hardware to allow you to partake in bitcoin (or crypto) mining without investing in and managing a mining operation personally.
In exchange for a fee, anyone in the world can start to mine bitcoin or a range of altcoins by purchasing cloud mining contracts from cloud mining providers.
So if you want to get involved in mining without setting up and maintaining your own mining rigs, you might consider cloud mining instead.
Best Cloud Mining Providers
Here’s a look at the most reputable bitcoin and crypto cloud mining providers that you could use to get started with cloud mining.
|Name||Launch Year||Coins supported||Fees||Minimum Investment||User-Friendliness||BMJ Score|
|Genesis Mining||2010||12||$30 USD for 200 GH/s – starter plan; $350 USD for 2500 GH/s – medium plan; $1950 USD for 15000 GH/s – premium plan||As low as $50||5||4|
|NiceHash||2014||50||3% to buy hash power + 0.0001 BTC||0.005 BTC||4||4|
|HashNest||2014||5||15% of each transaction||$150||4||3.5|
|Bitcoin.com||2017||2||$4-$7 for anything less than $10, add an extra $5 for transactions over $10||No minimum||5||3.5|
- Launch Year: 2010
- Coins Supported: 12
- Fees: $30 USD for 200 GH/s – starter plan; $350 USD for 2500 GH/s – medium plan; $1950 USD for 15000 GH/s – premium plan
- Minimum Investment: $50
Genesis Mining has established itself as a market-leading cloud mining provider. Genesis Mining offers cloud mining contracts for several digital currencies and stands out through its transparent approach and user-friendliness. (BMJ Score: 4 out of 5)
- Launch Year: 2014
- Coins Supported: 50
- Fees: 3% to buy hash power + 0.00001 BTC
- Minimum Investment: 0.005 BTC
NiceHash differs from its competitors in the cloud mining space as it is a peer-to-peer marketplace for hashpower where users can rent computing power from other users to cloud mine digital currencies. Not only does NiceHash enable cloud miners to mine a wide range of different coins and tokens, it also enables hashrate sellers to earn bitcoin for sharing their unused computing power. (BMJ Score: 4 out of 5)
- Launch Year: 2014
- Coins Supported: 5
- Fees: 15% of each transaction
- Minimum Investment: $150
Founded by leading mining hardware producer Bitmain, HashNest has emerged as a popular option for cloud mining. The company offers mining contracts for assets like bitcoin (BTC) and Litecoin (LTC) and benefits from the low electricity costs of Bitmain’s Chinese mining operations. (BMJ Score: 3.5 out of 5)
- Launch Year: 2017
- Coins Supported: 2
- Fees: $4-$7 for anything less than $10, add an extra $5 for transactions over $10
- Minimum Investment: No minimum
Bitcoin.com launched its cloud mining platform in 2017 and offers bitcoin (BTC) and bitcoin cash (BCH) cloud mining contracts. This service has become popular in the BCH community as Bitcoin.com is an established company that has played a key role in promoting the asset. Moreover, it is the only reputable cloud mining provider that offers BCH contracts. (BMJ Score: 3.5 out of 5)
How to Start Cryptocurrency Cloud Mining
Starting your journey in cryptocurrency cloud mining can be a simple process. Unlike standard crypto mining, you don’t need to purchase costly, specialized hardware. In addition, you don’t have to store equipment or worry about high energy bills.
Here’s how to get started:
Pick a successful mining pool
Do your research and see which pools provide the most profit and are considered legitimate. This can boost your chances of earning revenue and avoiding problems. Once you pick a site, you can rent the hardware it offers and wait for the mining pool to generate funds.
Pick a currency you wish to mine.
Some of the most profitable digital currencies in the mining arena are bitcoin, Ethereum, and Dogecoin. They house the largest mining pools and are among the oldest, most established coins available. However, there are others if these assets don’t fit your goals.
Sign up for an account on the site you choose
Once you’ve selected a mining platform, sign up for an account. Registering with the site gives you access to the mining tools, equipment, and related services it offers that can help you begin.
Here’s where the fun begins. Here’s when you begin extracting new units of whichever currency you’ve chosen and sit back to see if your decisions lead to increased revenue.
Is Cloud Mining Profitable?
Cloud mining is designed to relieve miners of the many expenses that come with standard crypto mining. They are not required to pay for expensive equipment. They also don’t have to pay anyone to monitor their mining pool. However, as it’s an area virtually anyone can enter, cloud mining is not always profitable unless a mineable asset is trading at a high price.
Profits can also decrease depending on the complexity of a mineable coin’s network. The more complicated a chain, the harder it can be to profit.
What Are the Risks of Crypto Cloud Mining?
Crypto cloud mining can be a great way to enter the mining space and save on upfront costs. However, there are some risks to consider, including:
There is room for fraud
Some mining projects lack transparency. This can increase the chances of illicit actors getting involved. Do your research and make sure that whatever platform you’re considering is legit. Read all you can and see if it’s listed amongst trusted mining sites. See how other users rate the platform and examine the company’s registration process, legal compliance level, and location before finalizing your decision.
Profits can be less than pleasing
As mentioned before, profits can be less than what you might like. Also, cloud mining sometimes calls for less involvement. This can be frustrating for those who want to take a more hands-on approach to their projects or desire more control. Cloud mining largely relies on third-party software. In the end, this can limit your profits and flexibility.
Mining operations can close down without warning
Cryptocurrencies tend to be volatile. Prices can drop instantly, and mining can be less profitable than expected when this occurs. Thus, operations may shut down indefinitely until whatever coin being mined experiences a substantial price rise. This can be troublesome because you may lose funds or have them locked up in a mining pool that remains inaccessible until such a boost occurs.
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