What is Bitcoin Cloud Mining?
Bitcoin Cloud Mining allows to use the processing power of data centers and mine cryptocurrency without any necessity to buy special equipment, software, spend money on electricity and communications.
The idea of Cloud Mining or hashing is that user can buy capacity of special equipment, which is located far away from him, in remoted data centers. The crypto currency mining occurs in the Cloud.
This kind of mining is ideal way to make money for people, who don’t have technical education or cannot set up equipment or take care of it by themselves. Moreover, hashing is available in countries with high prices for electricity. Data centers are located in places, where resources are cheaper and work of crypto farms will not disturb anyone.
How does Bitcoin Cloud Mining Work?
The essence of Mining is that computers from all over the world try to find solutions of Math tasks. Every found solution, which is also called hash, brings some Bitcoins as a reward.
The process of mining is not controlled by the only center. Allocation of blockchain makes it all more secure.
Bitcoins are extracted by packs or blocks. At the very beginning one block included 50 BTC, but after every 210000 mined packs its capacity doubled. There are nearly 250000 mined packs nowadays, so one block has only 25 BTC. Packs are mined with 10 minutes interval. The whole amount of Bitcoins will never top 21 million. After every 2016 mined blocks their production complexity is corrected.
Anyway, that is only theory. To become a miner your need to complete the following tasks:
- Register on the chosen service.
- Purchase capacity you need using crypto or real currency.
- Get mined Bitcoins every day. Reinvest or save up them.
- Transfer saved currency into a crypto purse or exchange for real money.
Is Cloud Mining Profitable?
Profit, which user can get from Cloud Mining, depends on many factors.
Firstly, he or she should choose service with available prices. Often additional fee covers the cost of electricity, hosting and equipment using.
Secondly, user should mine with help of reliable service with an ideal reputation. Unfortunately, there are too many scams in this sphere nowadays. Of course, there won’t be any profit if company takes money and disappears immediately.
Thirdly, no one can make prognoses about Bitcoin cloud mining rates with 100% accuracy. The best solution is to focus on the constant cost of cryptocurrency.
Finally, the whole network should have a good capacity. It depends on hashing operations per second and influences the profit user may get.
Top Bitcoin Cloud Hashing Services
Although Bitcoin mining is a risky business, there are some services, which you can trust. The most popular are HashFlare and Genesis Mining.
HashFlare is known to be the best pool in Cloud Mining in 2018 year. Its rate of return reaches 200%. However, the most important thing is that its reputation is irreproachable. And that is the main reason to join the service – though many companies can promise a great profit, only some of them are able to fulfil it. Moreover, HashFlare has data centers with innovative hardware.
Genesis Mining is second in reliability. It gets many positive reviews and practices daily payments. Users are able to look at service data centers in photos.
Both of companies regularly offer different discounts and promo codes.
Bitcoin Cloud Mining Scams
Cloud Mining is quite risky. There are too many scams related to this sphere nowadays. They just promise too much, take people`s money and then disappear.
Many users have fallen into a trap of HashOcean and Bitcoin Cloud Services. There are three petitions in the Internet against HashOcean. People who has lost their money through the fault of the service are looking for justice. In addition, some information about Bitcoin Cloud Services dishonesty was provided to Bitcoin Magazine by anonymous.
Thereby beware of scams and choose the mining provider carefully.
Crypto purse is used for Bitcoin saving. Also users can accumulate and get this kind of currency with help of exchanger. Any currency can be converted into Bitcoin. It is possible to pay for crypto money using Qiwi or bank card and special payment system such as PayPal or Minex.
Mining contracts can be bought for the Bitcoin. Also user is able to withdraw currency from the service. For example, HashFlare allows daily operations. The minimal withdrawal amount is 0.05 BTC. This sum includes commission.
To transfer funds user should:
- Choose withdraw option;
- Input needed sum;
- Confirm the operation using recommendations from e-mail.
All steps must be carried out manually. That is a necessary precautionary measure.
Sum must be available in crypto purse in less than an hour.
Cloud Mining is the best way of making and saving Bitcoins. It has many advantages.
Firstly, user saves lots of money. He or she does not need to pay for electricity, area and repair of equipment.
Secondly, user has a great profit from 200% to 400% in a year.
Thirdly, miner has opportunity to join different services at the same time and look for the most profitable contract.
Fourthly, many services use referral program and pay some extra fee for every new customer.
However, most important is that Bitcoins work for their owner without just lying around.