Earning Bitcoin through mining is, in simple words, validating Bitcoin transactions through the verification process. The network gets security by these transactions and the miners are given BTC in return. If the costs to mine them are lower than what the bitcoins are worth, the miners will profit. Still, due to the shifting price of Bitcoin and recent changes in technology and mining devices, this process can now be quite complicated.
This is why cloud mining can be a way to go for some. This term means leasing computing power from a third-party service provider. You participate in a mining farm by buying a certain amount of “hash power” from the original provider. In exchange, you will get rewards in BTC equal to the amount of hashing power you previously bought.
About Cloud Services
One of the greatest advantages of using a cloud service is that you don’t have to worry about computer maintenance, energy bills, heat, and noise. Everything is done via the cloud, so there’s no need for you to do anything – except pay for the service itself. You can also look at it from the perspective of the investor.
First, make sure to find the best cloud mining service, provider. From there, all you have to do is to sign a contract for the desired duration. Usually, making an upfront payment is a must, and most services accept both digital and fiat currencies. Contracts usually range from 500 to 1,000 gigahashes per second, and they are signed up to a year in advance.
Can you make it Profitable?
Mining pools are growing larger day by day. At first sight, it seems to be way more profitable since you’re cutting out the initial expenses on mining rigs and electricity. Still, when it comes to investing, everything is always case-to-case. You have to do your own research on the cloud mining service you want to dive into before you start.
To make it clearer, you need to know how the process actually works. From there, you can decide whether this type of service could be profitable for your goals.
As already mentioned, choosing a cloud service that meets your individual needs should be your first move. Perform enhanced research on the platform and try to communicate with multiple users to determine how everything works and whether it is legit. Read the reviews that are in the public domain and check for how long is the service operating.
Next, you will have to create an account on the platform of your choice. Good thing is that, with most of these platforms, you can register only with your email address. Come up with a strong username and password for better security.
Once you start researching, you will notice that most cloud mining platforms offer you the choice of mining different types of cryptocurrencies. However, each one of them has its own pros and cons, so you will have to do research on this topic too. It is generally recommended to stick with BTC if you’re new.
In most cases, you will be obligated to invest for a certain period. This is usually what you agreed on upon signing the contract. This “Contract Period” dictates how long it takes to have your initial investment locked up.
How much to Invest?
First, take a look at the short-term potential of the coin. How does BTC perform in the open marketplace? Has it been on an upward trajectory for several months now? If so, its strength is most definitely jumping on. This means you will receive profits from mining daily, and you will just be getting more currency you’re mining. Still, the coin’s real-world value will directly impact your ROI, especially if you plan on selling it quickly after the payment.
On the other hand, if you’re more interested in the long-term viability, BTC can also be a great choice since it has a good chance of increasing its value in the future. With this mindset, you will be holding on to your mining profits with a plan of selling everything you have in a couple of years. This could also be a great option for those who’d like to invest more and expect huge profits.
Competitive Environment
At first, it was possible to mine and be rewarded for it with a basic CPU device. Everyone stood a chance of winning a block reward since there was almost no competition between miners. Still, as you probably already know, Bitcoin is now an asset class and its worth is measured in billions. A number of high-end rigs are dominating the mining space.
Due to this fact, some miners actually decide to opt for other currencies. The less valuable coins give miners great chances of winning the block rewards. However, if you want more profit and you prefer a stable coin, BTC is usually a way to go.
Choose a Trusted Platform
The most challenging part of the process is usually choosing a platform you will use in your journey to profit. To make it even harder, the industry operates in an unregulated manner. This opens up a lot of possibilities for scammers, so your money will never be 100% safe. Still, there are a couple of steps you can take before you start using a service.
First, check the launch of the site you want to work with. Usually, the longer they have been up, the better. Also, it is generally recommended to check other websites where miners gather to assess public opinion on the provider you think about working with. Of course, avoid it if there are constant complaints from the past investors about the service.
Check what mining equipment the service is using. You won’t stand a chance of earning any money if the platform doesn’t have a fully-fledged mining rig setup. Last, but not least, the location of the platform should also play a very important role in your decision-making process. If the operation is taken in a country with cheap energy prices – you will profit.
