Investing in cryptocurrency mining in 2022 remains a simple and reliable way to increase your savings. However, mining Bitcoin and other popular currencies on your own farm requires large investments in the purchase of equipment. Cloud mining allows you to invest in mining in any amount and not worry about round-the-clock monitoring of the farm’s operation. It works simply: you pay for the rental of mining capacity and receive the mined cryptocurrency, and the service takes care of the energy supply and the performance of the capacity. This service is popular among those who want to minimize risks and do not want to invest in video cards and ASICs, which quickly become irrelevant as mining complexity increases.
What is cloud mining
Cloud mining is a type of popular cloud technology. It involves users using computing resources owned by the service owner. In simple words, cloud mining is the extraction of bitcoins, ether, and other coins using computing power accumulated in large data centers. The owners ensure the uninterrupted operation of the farms and rent out power through cloud mining sites.
Renting mining equipment is ideal for investors who do not have time to learn the intricacies of setting up and maintaining their own farm. Cloud mining allows you to enter the mining market without buying expensive video cards and ASICs.
ASIC mining equipment from BITMAIN.
Cloud owners quickly solve any problems that inevitably arise during farm operation:
- configure and maintain video card rigs and ASICs;
- cool the air in the room;
- restore broken connections;
- cope with power outages.
Launching your own cloud farm and monitoring its operation takes a minimum of time and effort. To start mining, you just need to create an account on a cryptocurrency cloud mining service, select a currency, a suitable tariff plan (computing power) and pay the rent. After this, all that remains is to monitor the account replenishment and periodically renew the equipment rental.
Eobot
- capacity location: USA
- link to resource: Eobot.com
Has lost its position a little, but is still one of the oldest and most proven Eobot services. Cloud mining continues to be one of the most profitable platforms, and the number of its users exceeds half a million people. For daily login to the service, the user receives a bonus of 1 Dogecoin.
Advantages: variety of cryptocurrencies; referral program; bonuses; convenient personal account with quick updates.
Disadvantages: the fee for use depends on the MTC exchange rate.
Who makes money from cloud mining and how?
Cloud mining allows both parties to the transaction to earn money: service owners and investors.
Costs for holders of thousands of CPU and ASIC units are reduced due to economies of scale. Due to process optimization, the specific cost of servicing a unit of equipment on a large farm is significantly lower than that of small miners. Cloud Bitcoin mining services are often organized by manufacturers of mining equipment. They receive money for renting unsold devices, and get the opportunity to test new solutions in the field.
Large farms with GPUs and ASICs are located in regions with low energy costs and a favorable climate. Thanks to this, it is possible to significantly reduce the costs of operating and cooling data centers. As a result, it is possible to achieve mining efficiency that is unattainable for a simple home farmer.
Large data center in Iceland.
Reducing costs allows you to set cheap tariffs, allowing tenants to receive high profits after compensating the costs of the owner of the cloud mining service.
The use of cloud mining allows small investors to solve the problem of a high barrier to entry into the market. To make money from mining, it is enough to have a smartphone, tablet or computer with Internet access. Large investors do not have to worry about controlling large mining capacities.
Why can’t companies mine themselves?
You’ve probably asked yourself the question: why don’t cloud mining companies mine cryptocurrencies for themselves, if it’s so profitable?
Who told you that they don’t mine? How they mine! Only by renting out a piece of equipment they insure their costs for their purchase and maintenance. The cryptocurrency market has some characteristics of a bubble. A bubble that may burst sooner or later. Still, most cryptocurrencies either have no practical value or are frankly weak projects.
So what should cloud mining companies do with all these farms and data centers? And by renting out some of them, they recoup their costs and insure themselves in case of a collapse of the cryptocurrency market.
Advantages
- High profitability. Low rates for renting equipment with a high hashrate allow you to quickly recoup your investment.
- Simplicity. Users do not have to worry about electricity bills, monitoring farm operation, repairing and setting up equipment. This is an important criterion for novice miners.
- Legality. Services are registered in Europe and other places with transparent legal regulations.
- Easy way out of business. If the market situation changes, you will not have to sell equipment. It is enough not to renew the contract with the service.
- Projected profit. The difficulty of mining changes gradually, so you can accurately calculate the volume of coins mined for a given hashrate.
- Diversification of investments. Cloud mining allows you to rent power for mining different cryptocurrencies, even on one server. Thus, the fall of one of them will not greatly affect the overall return on investment.
- Easy business scaling. You can increase the capacity of your virtual farm at any time by paying for an additional tariff plan.
Hashing 24
- location of facilities: Georgia, Iceland
- link to resource: Hashing24.com
The stable Hashing 24 service was founded in 2015 and since then has regularly participated in all ratings of cloud mining platforms. The company sells Bitcoin mining capacity and offers unlimited contracts for this purpose. Hashing24 cooperates with the world's leading companies, including the recognized leader in the field of mining - BitFury.
Advantages: automatic payments; 100% guarantee of equipment uninterruption; technical support for users 24/7; profitable affiliate program.
Disadvantages: lack of a registration bonus; the minimum amount for withdrawal is 0.001 BTC; daily fees for equipment maintenance.
Flaws
- High risk of fraud. High demand for the service has activated scammers who create fake services online. They are positioned as cloud mining, but they operate on the principle of a financial pyramid and quickly disappear after collecting investors’ money. You shouldn’t invest in the first service you come across, focusing only on the most favorable rate of return. You can trust money only to reliable cloud mining sites that have been operating for several years and have good user reviews.
- The risk of a sharp drop in the cryptocurrency rate. At the beginning of 2022, prices for bitcoins, ether and other coins fell several times. Some analysts predict a repeat of the situation by the fall. In order not to record a loss, you can not exchange cryptocurrency for fiat money at the time of drawdown, but wait for the rate to normalize. As an alternative solution, you can list coins on a crypto exchange with inflated sell orders. Then they are sold only when a given price is reached.
- Unlike “native” cryptocurrency wallets, cloud services are poorly protected from hacking. If hackers break into your cloud service, you risk losing your earnings. To reduce the risk, you should not choose sites where payments are made frequently and there are no rules preventing the quick transfer of mined coins to a personal account.
- A sharp increase in mining difficulty can greatly reduce the profitability of mining. However, this is only possible for unclaimed coins. Bitcoin, Zcash, Ethereum and other popular currencies are protected from this risk. It is impossible to dramatically increase the power of a network with a high aggregate hashrate.
What should I choose?
Probably the most reliable options seem to be Hashflare and Genesis Mining . Over the years of operation of the services on the network, there have been no problems with payments. Yes, sometimes the rules, prices, commissions change there - but these are the rules of the game. Companies also want to earn money, and their actions are aimed specifically at their own earnings. Therefore, you will have to come to terms with their rules.
Before entering into cloud mining, consider how feasible it is. A lot of investors ended up outsmarting themselves by investing in cloud mining. It turns out that it was more profitable to simply hold the cryptocurrency in the wallet. But Bitcoin and altcoins will not always grow, and the need for mining is permanent.
How to choose a cloud mining service
Tariffs, profitability, withdrawal conditions may vary depending on the market situation and methods of fighting for the user. Before mining bitcoins in the cloud, you should pay attention to five main parameters of the service:
- Number of users. A large number of investors trusting their money to the resource indicates the absence of problems and high real profitability of cloud mining.
- Power (hashrate). The high total power of mining equipment is not typical for fly-by-night sites. Naturally, data on the hashrate of the service must be taken not only from the official website, but also from alternative sources.
- Publicity. You can trust companies that do not hide information about the owners and publish a lot of information on the Internet and the media about the locations of data centers, equipment and employees.
- Multicurrency. When the exchange rate of one currency rises or falls, it is important to be able to switch to its mining or start mining another coin. A large selection of currencies allows you to invest in mining not top-end, but promising tokens in order to make money on their growth.
The last point is not important. There are few coins that can compete in mining profitability with Bitcoin, Ether and Zcash, and developing tokens can simply be purchased on exchanges and exchangers.
Hydrominer
Go to website
Hydrominer offers to mine cryptocurrency in data centers that use environmentally friendly energy from Alpine hydroelectric power plants, but here you will have to immediately buy equipment from the company, and in case of any problems, the organization will send the miner by mail to anywhere on the planet. Another opportunity to make money on Hydrominer is to conduct an ICO with the release of new H3O coins at a price of $0.07, which are likely to increase in price tens or hundreds of times after being placed on large trading platforms by the end of the year.
How much can you earn from cloud mining?
Based on the current exchange rate of cryptocurrencies, the complexity of production and prices for equipment rental, it will be possible to recoup the investment in an annual contract in 8-10 months. The return on the deposit is 20-40% per annum in dollars, depending on the service and the mining algorithm. Bank deposits and investments in shares of domestic companies cannot boast of such profitability.
If desired, you can reinvest the funds and double the profitability. But this will not allow you to lock in profits and may lead to losses in the event of a long-term decline in the exchange rate. On the other hand, you can make a lot of money if the cryptocurrency takes off again. Therefore, the choice remains with the investor: either risk with high earnings, or safe investments in mining with a lower stable income.
Risks and profits
There are risks with any type of cryptocurrency mining, but profitability is possible if you make the right choices.
In your test calculations, you will likely see that some cloud cryptocurrency mining services will be profitable for a few months, but as Bitcoin's difficulty level increases, they will begin to decline after four to six months or more.
A possible remedy for this situation is to reinvest what you have done to maintain competitive hashing power.
As mentioned above, the risk of fraud and opaque hardware management is all too common in the cloud mining industry. Investors should invest in cloud development with these risks in mind: as they say, never invest more than you are willing to lose.
Withdrawal of funds
You will need a wallet of the currency in which you will invest. Offline software wallets or hardware wallets are suitable for storing large amounts. The last option is the most convenient and safe, but you will have to pay $60-100 for the device.
Trezor hardware wallet.
Smaller amounts can be stored in “light” wallets or online services. For quick withdrawals to fiat or active investments in exchange trading, it is better to immediately use a multi-currency account of the selected exchange. It is of little use for other purposes: you will have to pay a withdrawal fee and wait a long time until the money is transferred from the exchange to the address you specified.
Genesis Mining
They have proven themselves well, have been on the market for a long time; Many contracts for different cryptocurrencies; There is a Russian language; There are contracts for Monero;
Often sold due to popularity
As one of the oldest (it dates back to 2013) and largest cloud mining centers, there seems to be no better place to start than with Genesis. Its website offers a live feed of some data centers that are based in Iceland, a country where cheap geothermal electricity is available.
Mining contracts are technically available for all major cryptocurrencies, and you can visit your online dashboard at any time to reallocate your purchased “hash power” (so, for example, you could go for 60% Bitcoin and 40% Litecoin).
In terms of fees, Genesis currently charges $0.00028 per GH/s when mining Bitcoin. The price of commissions for other cryptocurrencies may vary, so we recommend double-checking each time before purchasing new capacities. The website has a Payouts section that you can use to monitor how much you have mined. Due to high network fees, mined cryptocurrencies must reach a threshold before funds are actually transferred to your wallet.
Genesis Mining's simple interface coupled with Genesis Mining's solid reputation means that at times the company can't keep up with the demand for mining contracts (as history tells us). At the time of writing, none of the contracts were available for purchase; if you manage to buy, consider pulling out a lucky ticket. Registration link.
Earning money from cloud mining without investment
It is a common practice to attract users by distributing free computing power. This is presented as mining bitcoins without investments on the machine. However, to use the service, you will have to buy a contract. Therefore, free cloud mining of bitcoins is nothing more than a discount for newly attracted or existing clients.
However, there is a real option for making money on cloud mining without investments automatically and even in Russian. These are referral programs that are offered by any cloud service. They make it possible to earn income for each attracted client who will register when clicking on your link. In turn, referrals receive bonuses upon registration: free power or money into their account. But even here you will have to invest effort and, possibly, money into promoting your link. This kind of income is especially attractive for bloggers with a large number of subscribers. Advertising cloud mining and your referral link on a channel, website or social network page can attract many referrals.
Minergate
- capacity location: Germany
- link to resource: Minergate.com
The Minergate cloud mining service is a unique resource that offers its users the opportunity to work with several coins simultaneously.
Advantages: profitable pool level; combined mining; ease of operation; low threshold for withdrawal.
Disadvantages: no starting bonus, not the highest percentage of income.
Top best cloud mining services
Below we have provided a list of the most popular sites that top the cloud mining ratings. Most of them, in addition to Ethereum and Bitcoin, support Litecoin, Dash, Dogecoin and other promising and undervalued coins. It is better to choose the most reliable cloud mining from the sites on this list.
- Hashflare is the best cloud mining pool. It is highly profitable and has an impeccable reputation. Few clouds can boast such a level of trust and reliability of the service. The terms of some of the existing contracts are deservedly considered the most profitable for June 2022. The company publishes a lot of information about its equipment online and date- class=”aligncenter” width=”784″ height=”466″[/img]
- Genesis Mining is a popular site where you can rent equipment for mining cryptocurrencies based on five popular algorithms. Daily payments, numerous user reviews and a large number of videos and photographs of materials about the company’s data centers. The company is registered in Hong Kong, but its mining facilities are located in Iceland. This is due to the favorable climate and low price of electricity.
- NiceHash is an original cryptocurrency mining pool with the ability to rent user-owned equipment. The value of contracts is determined on the company’s internal exchange. The owners of the service do not interfere in regulating tariffs.
- Hashing24 is a cloud service for mining cryptocurrencies using Scrypt and SHA-256. Clients can enter into long-term contracts with the company or use an internal auction. Profitability depends on the terms of a particular transaction.
- Eobot is a service with Antminer S9 ASICs (S11 model expected) for mining bitcoins. In addition to them, you can mine coins that use the Scrypt and Ethash algorithms. You can enter into contracts lasting from one day to 5 years. There are faucets on the site that allow you to receive Satoshi without investment.
- IQ Mining - the company has been operating since 2016. The service system monitors performance on different algorithms, which allows you to automatically disconnect from mining low-yield altcoins. Data centers are located in Canada, Russia, Iceland, Georgia, Algeria and China.
Hashing24
Go to website
Hashing24 was created to meet the basic needs of novice miners, since the personal account interface is very simple, and all that is required is to pay for the contract at a price of $12.5 and start receiving funds for the internal deposit, and then, when the minimum 0.002BTC is reached, You can withdraw bitcoins to an external crypto wallet. Another important feature of the platform is that contracts are concluded indefinitely, so it is not necessary to immediately invest large sums in the project, and it also uses only one encryption algorithm, SHA-256, which allows inexperienced miners not to be bothered by the choice of tariff plans.
