Cloud Mining: What It Is About, Its Pros and Cons
Today you can hardly encounter a single Internet user who has never run into the notion of cryptocurrency. They keep on hyping which means there are people craving for making fortune on it. Mining cryptocurrencies is way to do so.
Obviously mining is familiar to most of crypto users, but cloud one is not. So what is cloud mining and is it worth using such a tool? Let’s sort it out.
What is cloud mining? The technology is in fact entering a contract for a term from 6 to 24 months. Organization that you pay to purchases necessary hardware, takes premises at lease, mines cryptocurrency and pays back interest specified earlier. This way is just for those who does not want to get wise in the matter and spend time and resources for hardware and maintenance or due to high power tariffs. For instance, English or German users prefer this option.
Still, is it worth risking your funds for such a reckless scheme? If you decide to mine on your own anyway, surprisingly enough but you get 100% of all mined cryptocurrency which is better that common bank investment. On top of it, if the market situation changes, you may easily switch to another cryptocurrency so your flow of income won’t stop.
As for risks, however, you have to think harder over it. In case with cloud mining even though you choose the right company and avoid fraudsters the risks are huger and your income may make only 20% of the mined cryptocurrency. For instance, some farms just declare bankruptcy either on purpose or due to their own failures.
In addition, the industry is crammed full of scammers to such an extent that honest mining companies are hard to find. The latter ones are relatively experienced market players and have excellent track record with Hashing24, HashNest S9, Hashflare, Genesis Mining and Hash-miner among them. There are also websites with ratings of these platforms so when selecting a cloud farm you need to check out these lists. Note that rating positions can be just paid for so be careful here.
In any case however we recommend you remaining skeptical about this way, so if you opted for mining , you’d better do it on your own, acquire necessary hardware, calculate costs and approximate income, choose cryptocurrency and room big enough to house a mining farm. It’s not that complicated as it might seem first.
Let us list for you some specific advantages of possessing your own mining farm so that you could grasp the idea that cloud mining is rather unreliable thing.
Variability in choosing hardware
You may select out of your own preference: second-hand equipment if you’d like to economize or brand new one. You can also customize something if you can or use devices you already have like HDDs or RAM. Given all this do not be in haste – scrutinize the market instead and you can be lucky enough to find cheaper hardware.
All devices at hand
Everything is at your disposal which means that it is you to decide what to do with it: everything’s ok – you keep on mining, if not – sell it out. With cloud mining the chances are almost nil that you get a part of the hardware you had purchased.
Only with personal mining farm you have an opportunity of switching cryptocurrencies anytime depending on your priorities and circumstances. Nut if you chose cloud mining of Bitcoin you will be receiving interests from mining only this cryptocurrency.
You could suppose, there must be something good about working with cloud mining companies. Well, there is, if you live in Britain or Germany. Electricity costs there are so high that any personal cryptocurrency farm would turn a lossmaker for you. Another case when cloud services are suitable is that you are rich enough and not willing to get into the peculiarities of the process or don’t have time for that. Otherwise resorting to third-party companies is a risky affair of low profit.