What is Cloud Mining and How Does It Work

(MENAFN- Shamining)

Since Bitcoin price is rising high, more and more people around the world join the global cryptocurrency community. Mining crypto is one of the best ways to make money in this industry. And cloud mining is the easiest way to create passive income. Let's see why.

It's no big secret that mining profitable coins (such as BTC and ETH) is an extremely expensive deal since you have to buy and maintain high-end hardware. The other issue here is sky-high electricity costs that are actually beyond the reach of the most average users. This is why the best cloud mining sites have become more and more popular, as they bring cryptocurrency investors the opportunity to earn Bitcoins and altcoins while purchasing a fraction of the total costs.

What is cloud mining in a nutshell?

In the cryptocurrency industry, cloud mining is a kind of business arrangement where a big company owns and maintains the mining rigs while customers lease hash power generated by them. To put it another way, a hosting company owns crypto mining machines and runs the hardware at a professional facility by itself. That scheme clearly has a lot of benefits.

  • You can start earning cryptocurrency without any technical knowledge.
  • You don't have to buy expensive hardware as well as mining-related software.
  • Any crypto enthusiast can join cloud mining with a really low entry amount.
  • You don't have to install chilling towers and cooling fans to keep these high-resource machines up and running.
  • The extra pro of cloud mining is the fact it's pretty easy to start. Even if you're a first-timer.

Note there are two different models of cloud mining services. The first one is so-called hosted mining that is actually not too easy for beginners. The second model is renting hash power that brings users an opportunity to make Bitcoins with zero skills in the cryptocurrency business. All you have to do is choose a trusted cloud mining website, sign up and purchase a contract. Best cloud mining platforms provide customers with daily payouts. You can use the cloud mining calculator tool to calculate your estimated passive income before you will purchase the contract.

Is it still profitable nowadays? State-of-the-art mining rigs make it profitable, and payback time from this kind of passive income is something about 6-12 months (depending on chosen Bitcoin plan). Note profitability also depends on the Bitcoin price. Most cloud mining websites offer customers to start mining cryptocurrency with a small amount ($200-300 or something of that nature).

Is cloud mining safe?

The biggest issue in cloud mining is scammers who do not own any mining facilities and hardware. As this field is not regulated enough so far, you can find tons of hash providers that turn out to be a scam. So you better pay all your attention while you choose a provider and cloud mining plan. Remember, you can find trusted and reputable cloud mining websites reading expert reviews on cryptocurrency-related sources. Also, take some time to read user reviews. With a legit cloud mining provider, you can create a passive income in cryptocurrency with minimum financial risks.



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