Cloud Mining Service: How To Make A Right Choice
Cloud Mining is the rental of computer processing power to receive a reward in the form of cryptocurrency units. All technical management of equipment is made by the cryptocurrency mining companies. Farms and data centers of these companies are built in places with cheap electricity and cooling, and also use specialized equipment — ASIC, purchased at wholesale prices.
Pros And Cons Of Cloud Mining
Like physical mining, the extraction of cryptocurrency with the help of the “cloud” has its pluses and minuses.
Advantages Of Cloud Mining
First of all, we’d like to list the most significant advantages of cloud mining:
- a great way to earn popular types of cryptocurrencies with a minimal investment;
- users do not need to pay electricity bills, set up and monitor the operation of the equipment;
- yield is often higher than the production of cryptocurrency on one’s own equipment;
- some companies offer to use their services in a test mode;
- it is possible to mine several cryptocurrencies simultaneously;
- most services give a reward for attracting new users.
Disadvantages Of Cloud Mining
It is very important to choose the service carefully as the wrong choice may cause a number of difficulties. They may be caused by various aspects which may be named as disadvantages:
- price drop of the extracted cryptocurrency;
- breakdowns on the side of data centers, their providers and other actors involved in the chain;
- transfer of money for a service to a dishonest seller.
Most of these disadvantages, as you can see, are related to the choice of insufficient company. To minimize risks, you can use several services of this kind or invest in one that has the best reviews on the Internet.
What Should You Know About Scammers?
The virtual production of Bitcoins, on the one hand, offers an excellent opportunity for high-yield investments in innovative technologies for the production of cryptocurrencies. On the other hand, the very idea of virtualization of mining attracts different scammers.
Unscrupulous companies and individuals under the guise of cloud mining services can promote conventional financial pyramids — the so-called “Ponzi schemes”. In this case, payment of dividends to investors is made not at the expense of real work of farms, but at the expense of new investors.
As soon as the balance between the arrival of money from new investors and the payment of interest to early investors is broken, such a resource closes, and its owners disappear with all the money.
How To Reveal Trusted Cloud Mining Sites?
How can we protect ourselves from possible fraud as much as possible and choose a really reliable cloud mining service? There are some reliability criteria for the best Bitcoin mining website:
First of all, when choosing a Bitcoin mining service, you need to pay attention to the infrastructure, not the reporting indicators. For example, the period of work is not a reliable indicator.
In modern mining companies, the term of return of investments cannot be less than 6-9 months. So scammers may well be disguised as a real working service and work for a few years before evaporating with customer money.
What You Should Pay Attention To Reveal Top Mining Companies
Ability To Select A Working Pool After Purchase
The presence of this option ensures that you invest in real computing power. Alternatively, the company may not be able to provide individual customers with the opportunity to change the pool for mining, but publicly announce the address of their wallet, which is used to extract cryptocurrencies — so that anyone can estimate the volume of coin mining according to the statistics of the blocks found in the detachment.
Availability Of The Contract Or Official Confirmation
In the market, there is a constant shortage of ASIC miners, and the creation of a large cloud service is impossible without a direct contract with the manufacturers. There is no reason why the manufacturer of ASICs does not confirm the existence of a contract with a large customer. It is a good reason to issue a press release and receive free advertising of their equipment.
Photos And Video Of The Data Center
There is no reason why the owners of services do not publish such photos: it’s simple, cheap and affordable at any time. Such materials will help the user to choose a reliable cloud mining and discard all doubts.
Possibility Of Preterm Contract Completion
The purchase of computing power in the cloud does not differ from the purchase of shares of a conventional enterprise — they can not only be bought but also sold at any time. Of course, in financial pyramids, withdrawal of depositors’ funds is not profitable. Therefore, the lack of opportunity to complete contract beforehand is a negative signal.
Presence Of A Highly Profitable Affiliate Program
A real business does not have the means to pay a 30% fee for attracted users. If you see an offer to attract other users for a very high percentage of their deposit — this is an obvious indicator of the classic financial pyramid.
Pay attention to these five simple rules — they will help you to separate scammers from real companies that provide real cryptocurrency services. With this checklist, you can easily invest correctly in the cryptocurrency and not be disappointed in this area of earnings.
Cloud Mining Services Review
Below you can find a number of the largest mining companies that have already proved their reliability. There you’ll be able to find some key information about these companies in order to choose which one is the best for you.
Genesis Mining is one of the best providers of power sale services for cloud mining. It attracts attention due to high profitability, ability to use its own strategies and distribute the purchased power for the mining of different coins.
In addition, you can get even more than you expect, thanks to a steep affiliate program, the conditions of which are outlined above. The earnings are stable and it can be spent on the mining of a new crypto currency, increasing its initial capacity limit.
The most important thing is that Genesis Mining is developing. The team, despite the million-strong army of users, does not abandon its offspring, but continues to work on it. Thanks to this service is getting better day by day. Sign up and earn on it.
Eobot offers 2 ways to obtain all the currently existing cryptocurrency. The first is to buy your share in the booty. The second method involves downloading and installing on your computer programs for mining.
To put it simply, the whole point of earning on EoBot comes down to buying a server space and constantly reinvesting the money you earned. Thanks to this, the speed of your earnings will constantly grow.
HashFlare appeared in 2015 and quickly won the confidence of users. Service participated in all-different conferences and meetings. The site has detailed information about the company, their legal address, photos of their employees and equipment, a telephone for communication. Thus, the work of Hashflare is completely open to anyone.
NiceHash is widely known as cloud mining, where the equipment providers for this procedure are the users themselves. Buyers on the service choose the crypto currency they want to extract, the pool to which they then join, indicate the price for which they are ready to buy trading capacities, place orders.
The functions of sellers are to ensure the stable connection of their devices for mining to platform servers, accept a warrant from the buyer, receive payment for the purse.
Today, the profitability in the cloud mining market is 0.2-0.5% per day with the possibility of daily profit or its reinvestment. Long-term contracts with cloud mining services provide that once you invest in equipment, you will make profit, while the supplier will receive a net profit from this equipment.
To obtain stable passive earnings with the help of cloud mining services, it is also necessary to have a start-up capital, but a smaller amount is enough. You can start cloud mining from several tens of dollars. If you do not have enough money and for this, microcredit services can come to help, some of which provide the first loan without accrual of interest.