Cloud Mining – Pros and Cons| How it Works | Best Providers

Cloud Mining We consider cloud mining cryptocurrency – what is this method, how it works, what are its features, the best services that provide this service, pros and cons.

Today, mining cryptocurrency on its equipment is a very expensive pleasure. It is necessary to spend money on the assembly of farms, the purchase of Asikov, arrangement of premises and electrical wiring. Also in the process of mining you will have to pay substantial electricity bills, which reduces profitability and slows down equipment payback. We add here the instability of the cryptocurrency world and come to a not very pleasant conclusion – it’s not only expensive to engage in mining, but also risky, because if the rate drops, the equipment will not pay off. 

Fortunately, there is a more attractive alternative – cloud mining. In the proposed review, we thoroughly consider this method of extraction of crypto money, analyze its features, strengths and weaknesses.

What is cloud mining in simple terms?

Cloud mining (Cloud mining) – mining of cryptocurrency through a remote processing center, providing network members with a lease of computing power. 

Globally, cloud mining cryptocurrency is no different from the classical method. It also uses computing equipment (trusses from video cards or ASICs), which take part in the search for hash for new crypto-network blocks, for which the award is accrued. The key difference is that each user does not use their own equipment. He leases the power of a large company, the equipment of which extracts the crypt, and the tenant receives a commission for this. That is, the miner is required only to purchase power according to the tariff. The company providing cloud mining services is responsible for everything itself:

• equips the room;
  
• purchases equipment;
  
• adjusts all equipment;
  
• engaged in the maintenance of equipment;
  
• pays for electricity;
  
• maintains a stable total power for the production of a large number of cryptomonet.
  

The only thing left to do for an ordinary user is to choose the optimal tariff plan. 

Cloud mining itself can be of 2 types:

1. Free – you rent power without investment. This type of production is needed to familiarize yourself with this method. Naturally he does not bring benefits.
   
2. Paid – you rent power for a certain amount of money. There is a simple pattern: the more expensive the tariff plan, the higher the power and, accordingly, your potential earnings.

All cloud mining companies exist due to 3 sources of income:

1. Paid tariff plans that we talked about above.
   
2. Fees charged when withdrawing funds from the cloud service.
   
3. Directly mined cryptocurrency. This is the most important point to consider. The tenant is not paid all coins mined due to his power. The share that the user receives is not dependent on the company itself.

Capacity rental is the most popular form of cloud mining, requiring only payment at a rate from a person. A kind of alternative is the virtual hosting format, in which the user rents a virtual server, but uses his software. 

So, we figured out how cloud mining works. Now let’s talk about a number of nuances that should be considered if you want to try out this method of mining cryptocurrency.

What should be considered before the start of cloud mining?

In order not to “burn out” on cryptocurrency cloud mining, you need to study a number of issues. Here is what you need to do first:

1. To study the cryptocurrency market. We need to know which cryptocurrencies are most popular today, which assets have the highest value or good prospects for growth in the future. It is recommended not to be limited only to Bitcoin and Top altcoins. By expanding your horizons, you can begin to mine a coin that can “shoot” in the future.
   
2. Assess the complexity of mining and the power of the network of popular cryptoactives. This moment cannot be ignored. With it, you can understand how much power you should rent to get a good income. In addition, it is necessary to take into account the dynamics of complexity. In the vast majority of networks, it grows so that the generation time of the blocks remains unchanged with an increase in the number of active users. This means that the capacity you purchased will eventually bring in less revenue, and if there is a sharp jump, it will be completely unprofitable. To assess the complexity, you can use two popular services: coinwarz.com/charts/difficulty-charts.
   
3. Choose a reliable cloud mining service. Unfortunately, this area is a gold mine for fraudsters. On the Internet, you can find a lot of sites offering the service in question, but few of them work honestly and promptly pay their customers money. Identify fraudulent sites is quite difficult because many of them work on the principle of the pyramid. That is, one person allegedly buys a tariff plan and waits for receipts in a month. During this time, someone else “rented” the facilities, and the commission paid to their very first client is paid from their money. Thus, for some time everyone praises the resource and declares that it honestly pays. But when a large number of customers are recruited, the service simply closes, and most people lose money without receiving anything in return. Often under the name of the cloud mining service, ordinary HYIP projects are hidden. In order not to become a victim of fraudsters, It is necessary to focus on the sites that have been working for a long time (at least six months). Good helpers will be fresh reviews about cloud mining on a particular site. In short, you need to be extremely careful and do not trust your money to unverified platforms, even if they offer very favorable conditions.

Best cloud mining services – TOP-5

It is extremely difficult for many users (especially beginners) to navigate a huge number of sites offering cloud mining. We will facilitate your task. Below are the top five services that provide this service and, most importantly, pay their customers.

Genesis mining

Genesis mining platform home
genesis-mining.ru is one of the most popular platforms today. The site has been operating since November 2014 and during this time he managed to earn a good reputation. As of 10.25.2018, 3 main cryptocurrencies can be mined at the site: Bitcoin, Ethereum and Desh. The purchase of tariffs for Lightcoin, Monero and ZCash is not yet available. The site offers long-term mining tariff plans:

1. BTC for 5 years (hash rate from 1 to 200 Th / s). The fee for 1 Th / s is 285 USD.
   
2. Ethereum for 2 years (hash rate from 25 to 500 Mh / s). For 25 Mh / s will have to pay 525 dollars.
   
3. Desh for 2 years (hashrate 3000-1000000 Mh / s). To buy the minimum power for mining Dash, have to pay 76.5 dollars.

To purchase a tariff plan, you need to transfer from a dollar card. The resulting capacity can be allocated for mining other digital assets. That is, you can buy 1 Th / s and extract Bitcoin with it, as well as Ether, Desh, Bitcoin Gold, Bitcoin Cash, Lightcoin, Dogogin and Zikesh. The power purchased for the Desh mining can be allocated to the production of Monero. 

Payments are made directly to the wallet. The minimum amount to withdraw Bitcoins is 0.0025 BTC. Ether can be output if the sum is 0.04 ETH. To withdraw Desh need to collect on the balance of at least 100,000 dashtoshi.

In general, this is a very good site with a user-friendly interface and Russian-language localization. True, he has his drawbacks. First of all, the site does not have its own mining profitability calculator, so for rendering we will have to use third-party resources (for example, nicehash.com/profitability-calculator). In addition, sometimes there are delays in payments due to network overload, but these problems are quickly resolved.

Crypto-cash

Crypto-cash interface
crypto-cash.cash is a relatively young resource, functioning since May 2018. On the site you can get Bitcoin, Dogykoin, Dash and Lightcoin. The platform provides internal wallets to store earned cryptocurrency. Available recharge in dollars, rubles and euros. The purchase of contracts is made through the internal asset CryptoCash voucher or CCV (as of 10.25.2018, this is exactly 1 dollar).

Initially, the user is invited to buy a two-week demo contract for 8 CCV. After it is over, the purchase of full-fledged tariff plans will be available. The site has a convenient interface. Powered support service. Moreover, the resource is constantly being upgraded. Unfortunately, delays in payments still occur, but in the end, the money still reaches the addressee. For all cryptocurrencies set the minimum thresholds for the withdrawal. For Dogikinov – 10 coins, for the rest of the cryptocurrencies – 0.01 BTC / LTC / DASH.

SelenTrade

Site Menu SelenTrade
for-biz.com.The site, of course, an amateur. It has an extremely simple interface and rather curious terms of cooperation – the contract lasts as long as its yield does not reach 150% (that is, there are no specific time limits). However, the site has been operating since May 2017 and all the time it regularly pays for the established conditions. You can buy a contract for SelenCoin coins (they are on the Exmo listing), via Payeer or AdvCash. After the acquisition on a third-party services, the coins must be transferred to the internal purse of the site (its address can be found in the appropriate section). The minimum deposit amount is 0.01 SEL. However, such transfers are unlikely to be made. The fact is that the cost of one contract is 3.8808 SEL and it corresponds to a power of 1 Mh / s. It means,

There is another fun part. By default, the service is extracted by Dash, but more recently payments are made in Dogykoins (this was chosen by the customers themselves). That is, you will be outputting this cryptocurrency from the site. The minimum threshold for withdrawal is only 11 coins. In addition to wallets for SelenCoin and Dogecoin, the site has repositories for Dash, Bitcoin and Litecoin. You can trade internally by swapping one digital asset for another. By itself, the site is quite convenient, although the pages are loaded long. 

In addition, from the mined cryptocurrency the user receives only 80%, the remaining 20 are spent on supporting the service and its development.

Flymining

Flymining Start Page
flymining.cloud is probably one of the best sites for domestic users. It has been operating since January 2017 and offers its customers very good conditions for cooperation. Bitcoin and Ethereum can be mined on the platform. As of 10/25/2018, the price per 1 TH / s (mining BTC) is 17,500 rubles. The contract is for 1 or 5 years. For the production of Ethereum, 1 Mh / s only needs to pay 490 rubles, although the contract here is only for a year. You can replenish the ruble balance through PayPal and Yandex.Money.

The withdrawal of mined coins can be ordered at any time. There are no restrictions on withdrawal per se, but the commission must be taken into account. The standard Bitcoin transfer commission will be 5,000 Satoshi; for the standard translation of Ether, the system will hold 50,000 gwei. You will have to pay 0.0005 BTC and 0.005 ETH for the priority transaction, respectively.

Agiocrypto

Profile menu on Agiocrypto website
mining.agiocrypto.com is an incredibly convenient service for those who want to mine Ethereum, Bitcoin or Lightcoin through cloud mining. If we talk about Aether, then for the power of 1 Mh / s here you need to pay 8.4 dollars. A more solid hashrate, say, 125 Mh / s, will cost the user 1050 USD.

Normal power for mining Bitcoin (for example, 25 Th / s) costs exactly one thousand dollars. For 848 Mh / s for mining Lightcoin will have to pay the same amount. In the profile menu you can order the purchase of almost any capacity. The main thing is that you have enough money for it and that the site has the necessary hashrate margin. Yes, there is one significant disadvantage – the power reserve is limited. But there is an impressive plus – all contracts are for life. That is, paid 1 time and use. However, there is one condition on the website under which the tariff plan will cease to operate – if the fees exceed the income during the week.

The balance is displayed only in dollars and euros, but it can be replenished in rubles (money is automatically exchanged at the current exchange rate). You can recharge through QIWI, Yandex.Money, VISA and WORLD cards. Please note that the platform has restrictions on minimum and maximum deposits. They depend on the method of replenishment. And finally, another pleasant fact – the site has its own income calculator. You just need to choose power, and the system will automatically give you your potential income (minimum and maximum) for a month, 3 months, half a year and a year.

Separately, we note the fact that all the described sites (except the last) provide referral programs. That is, you will be able to receive a commission not only from cloud mining, but also from the income of the participants invited by you.

Pros and cons of cloud mining

Cloud mining cryptocurrency has its strengths and weaknesses. You can read about them below:

Well, we fully understood what cloud mining means, what are its nuances and what online sites are best to use. As you can see, this method of extraction of crypto money also has its own risks, but with the right approach, you can ensure a good income with minimal investment.

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