Cloud mining is a way to mine and earn cryptocurrencies like Bitcoin without the need to buy your own hardware or have technical knowledge.
Companies already have mining rigs set up and running and they will sell it to you as a service.
These cloud mining services give anyone the opportunity to mine cryptocurrency with no prior knowledge or large up-front costs.
Cloud Mining vs. Direct Mining
With direct mining, you own, operate and manage the mining equipment yourself. This requires special hardware which costs thousands of dollars, lots of electricity, and technical know-how.
With cloud mining, you don't have to invest in any equipment. You can pay companies that have large mining facilities already set up to do the mining for you.
Pros of Cloud Mining:
Cons of Cloud Mining:
How These Services Work
When selecting a plan, you can use free online mining calculators to help determine if it's profitable. It's important to do the math and your due diligence.
Best Cloud Mining Websites
It's hard to recommend websites because I've tried cloud mining and it was not profitable.
I've also researched many companies, articles and reviews for this post (like this one) and the general consensus is cloud mining is not profitable.
Even though I don't recommend cloud mining, I encourage you to do your own research.
Genesis mining is the leader of the industry and one of the most trusted cloud mining sites.
They were founded in 2013 and have mining facilities in Iceland and Sweden where electricity is cheap.
They offer 10 cryptocurrencies to mine however they are sometimes sold out. Their plans last for 12 months or 24 months.
I've used Genesis Mining for Monero and Bitcoin but it was not profitable. However, you can do your own due diligence.
Tips To Identify Legit Cloud Mining Companies
If you want to research Genesis Mining or explore other options, here are some tips to help you find legit and safe cloud mining sites:
- Stick to reputable companies and avoid new cloud mining companies. The longer they have been around, the better
- See if they have pictures and proof of their headquarters and equipment
- If the offer is too good to be true, it is. Be very skeptical of free cloud mining services with no investment required. There is no "get rich quick" in cloud mining
- Test their support by asking questions to their email and phone number. You definitely want them to be responsive and helpful
- Search reviews, youtube videos and forums like Reddit to see what others are saying
Also, keep in mind, if a cloud mining company is "legit," that doesn't mean it's profitable. Make sure to carefully calculate the math and costs involved.
Final Thoughts: Is Cloud Mining Profitable?
Cloud mining is a cool idea in theory and I wish it worked, but it's hard to be profitable and I don't recommend it.
If your goal is to accumulate Bitcoin or a certain cryptocurrency, the easiest and fastest way is to purchase it rather than mining it.
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This is not investment advice. Invest only what you can afford to lose and always do your own research before investing anywhere.