Cloud mining is a crypto asset mining that is different from the usual mining. What is cloud mining and which cloud mining sites can be trusted? Check out this article!
Cloud Mining
Unlike the mining process for crypto assets in general, cloud mining is a mining process that uses cloud computing to mine crypto assets.
This means that you are mining crypto assets using remote data centers. Cloud mining can be done by logging into a site that provides mining services through a special server.
You only need to rent a mining rig or just rent hash power. Usually, cloud mining sites own and operate mining rig facilities which are usually placed and maintained in facilities owned by the company.
Of course, because you need the help of a third party, you have to pay the third party fee. But on the other hand, you don’t need to buy hardware for the mining process.
Cloud mining platform providers will usually offer users the opportunity to buy or rent some hash power. Mining rig strength has units of Gigahash per second (Gh/s) and Terahash per second (Th/s).
Types of Cloud Mining
There are 2 types of cloud mining methods, Host Mining, and Lease Hash Power.
Host Mining
In hosted mining, users rent or buy rigs at the mining farm and you have to pay for rig maintenance. This system has its own advantages where you don’t have to incur electricity overhead for mining and you also have more control over the rigs you rent or buy.
In addition, you can also choose to divert the hash power of the mining pool to strengthen your chances of discovering new blocks.
You also have full control over the rewards you get. But as mentioned above, you have to pay maintenance to the cloud mining service provider.
Lease Hash Power
In a hash power lease, part of the hash power from the mining farm will be leased. The system, when the farm discovers a new block and receives a crypto asset reward, the earnings will be distributed to the user according to his share of hash power.
You don’t have to be burdened with setup and maintenance costs. Simply put, you just need to subscribe to the plan to receive your share of the benefits.
Advantages of Cloud Mining
The following are some of the advantages of using cloud mining, which is as follows:
- Suitable for beginners
- Reduce overhead
- No need to buy hardware which is usually quite expensive
- Does not require in-depth knowledge of mining hardware
- Not going through the technical difficulties of the mining process such as heat and noise
Disadvantages of Cloud Mining
But behind these advantages, there are some disadvantages that you should anticipate, which are as follows:
- Money in advance
- Risk of loss if the Bitcoin exchange rate drops
- High fraud rate because investors cannot assess mining farms directly making it difficult for users to verify claims made by cloud mining sites
- Vulnerable to pyramid schemes. Pyramid schemes occur when the initial trader is paid with the deposit made by the new trader, which is detrimental to the trader
3 Trusted Cloud Mining Sites
To avoid fraud and losses, below are some trusted cloud mining sites and the best cloud mining sites.
IQ Mining
This legit cloud mining is still relatively new, however, its many users have made this site one that many people are interested in.
Apart from Bitcoin, this cloud mining site also supports Dash, Moner, Zcash, Litecoin, and Ethereum. To get started, you just need to open an account by entering your name, email, password, and phone number. Of course, you have to choose a contract and pay the necessary fees.
This site also provides a referral program where every friend you successfully refer, will get a 10% hash rate. For example, if the friend you referred buys a mining contract for 1000 US dollars, then you will get 100 US dollars on your referral balance.
Hashing24
Hashing24 has been established in 2015 with a site that is simple and easy to understand. Hashing24 has 9 languages of instruction that can be adapted to the needs of visitors.
In addition, the company also cooperates with leading mining providers such as BitFury. Payments are accepted via Visa/Mastercard, Bitcoin, and Altcoins credit cards.
Mining will automatically start at 00:00 UTC and the mined coins will be automatically credited to the user’s balance once a day for the next mining day.
The minimum withdrawal amount is 0.0007 BTC and withdrawals can be made at any time. To start mining, the steps you need to take are:
Register by entering your email address and password and country of residence and agreeing to the terms and conditions that apply
Choose a power plan with a period of 12 months, 18 months, 24 months, or 30 months with a different hash power where the higher the power, the more expensive the cost.
Genesis Mining
Genesis Mining is one of the best cloud mining websites with Multi pool-based mining sites with crypto assets such as Bitcoin, Litecoin, and so on. Genesis was founded in 2013 and built the first mining field in Eastern Europe.
With more than 2 million enthusiasts from all over the world, this site has become one of the largest cloud mining sites in the world.
Genesis Mining offers more than 10 virtual currencies that can be mined through 6 main mining algorithms, namely:
- Bitcoin Mining
- Dash Mining
- Ethereum Mining
- Litecoin Mining
- Monero Mining
- ZCash Mining
Each mine has its own package, for example, for Ethereum mining, the lowest package with a hash power of 12.5 MH/s is priced at US$499.99 and the highest is US$125 MH/s.
One of the advantages of Genesis Mining is the instant mining process where cloud mining will be active 4-5 hours after payment.
Genesis Mining is also active 24 hours and has various payment facilities ranging from Visa/Mastercard credit cards, bank transfers, and crypto-assets such as Bitcoin, Darkcoin, Litecoin, and Dogecoin.
Always Alert!
In addition to paying attention to the credibility of the service provider, you must also pay attention to the profit opportunities from the offers provided. If the amount needed to buy/rent and maintain does not match the hash power offered, you can lose.