What is Cloud Mining and how it works

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As the price of Bitcoin is on the rise, more and more people around the world are joining the global cryptocurrency community. Crypto mining 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 secret that mining profitable coins (such as BTC and ETH) is an extremely expensive business because you have to buy and maintain high-end hardware. The other issue here is sky-high electricity costs which are actually beyond the reach of even the most average user. This is why the best cloud mining The sites have become more and more popular as they offer cryptocurrency investors the opportunity to earn Bitcoins and altcoins while buying a fraction of the total costs.

What is cloud mining in a nutshell?

In the cryptocurrency industry, cloud mining is a kind of business deal in which a large corporation owns and maintains the mining rigs while customers lease the hash energy they generate. In other words, a hosting company owns crypto mining machines and runs the hardware itself in a professional facility. This diet clearly has a lot of benefits.

  • You can start earning cryptocurrency without any technical knowledge.
  • You don’t need to buy expensive hardware or mining related software.
  • Any crypto enthusiast can join cloud mining with a very low entry fee.
  • You don’t need to install cooling towers and cooling fans to keep these resource-intensive machines up and running.
  • The added benefit of cloud mining is the fact that it is quite easy to get started. Even if you are a novice.

Note that there are two different models of cloud mining services. The first is something called hosted mining which is actually not too easy for newbies. The second model is Hash Power Rental which offers users the ability to create Bitcoins without any cryptocurrency skills. All you have to do is choose a trusted cloud mining website, sign up, and purchase a contract. The best cloud mining platforms offer customers daily payments. You can use the cloud mining calculator to calculate your estimated passive income before purchasing the contract.

Is it still profitable nowadays? State-of-the-art mining platforms make it profitable and the payback time for this type of passive income is around 6-12 months (depending on the Bitcoin plan chosen). Note that profitability also depends on the price of Bitcoin. 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 problem in cloud mining is with crooks who don’t own mining facilities and equipment. As this area is not regulated enough so far, you can find tons of hash providers that turn out to be a scam. So, you’d better pay your full attention while choosing a cloud mining provider and plan. Remember, you can find reliable and reputable cloud mining websites by reading expert reviews on cryptocurrency-related sources. Also take the time to read user reviews. With a legitimate cloud mining provider, you can create passive income in cryptocurrency with minimal financial risk.

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Maria D. Ervin