Cloud (or remote) mining – is the process of using hardware power to mine cryptocurrency (such as Bitcoin or Litecoin) remotely. This mining model came to existence due to the fact that the increasing difficulty of mining has made it unprofitable for mining enthusiasts to mine Bitcoins at home.
Cloud mining gives people a unique opportunity to begin mining cryptocurrency without the need for a large initial investment in hardware or technical knowledge. Despite the simplicity of the cloud mining model, it is worth elaborating on a few details, specifically it’s important to highlight that remote mining comes in two forms: hosted or cloud based mining.
REMOTE HOSTED MINING
The first form of remote mining is remote hosting. This model suits users with a high level mining experience and know-how and who require a high degree of control over their mining hardware. Under this model, the mining hardware is hosted in a remote datacentre and the user assumes full control over the setup and configuration of the mining hardware. Under this model, the miner pays a fee to the hosting company that would cover maintenance and electricity costs. This helps the miner handle the risks associated with maintenance of the kit as well as any risks with the shipment of the hardware. On the other hand, it presents the miner with risk on the initial hardware investment and requires much more time and technical knowledge to implement successfully.
It can therefore be summarised that the benefits of remote hosted mining are tight control over the mining process, maintenance support and subsequent ownership of the hardware. The big drawbacks are risks associated with the procurement of expensive hardware and the very high cost of entry, both in terms of investment and technical experience.
The second, and more accessible model of remote mining is Cloud Mining, whereby a miner purchases a part of the mining power of hardware hosted and owned by a Cloud Mining services provider. The service provider takes on configuring the hardware, maintaining uptime and selecting the most efficient and reliable pools.
This option provides a range of benefits: instant connection (meaning no hardware shipment wait times and delivery risks), fixed maintenance and electricity fees and no nuisances associated with mining at home such as noise, heat or space. Another key point is that this model of cloud mining requires no technical experience. Obviously, it’s very important that miners understand the mining process, however this model doesn’t require hardware expertise or significant configuration / implementation cost. Since customers can purchase any amount of mining power they wish, this means that the level of investment will depend only on the miners’ ambition. This means that the cost of entry and subsequent risk is far lower than in comparison with the remotely hosted model.
Cloud mining is greatly suited for novice miners who would like to try out mining and earning cryptocurrency as well as seasoned miners who don’t want the hassle or risks of hosted or home-based mining.
If you are a beginner, you should know all about the pricing and processes. If you are a newbie, you can start with a 100 GH/s lifetime BTC mining contract that may cost you approx $25-35. This is somehow, you might understand how the cloud mining would work and what are the benefits of using it.
You can look for different coins and different contracts. You can mine BTC, LTC, Dash, Dogecoin, Startcoin, Peercoin and Namecoin for X11 contracts. You can mine BTC, LTC, Darkcoin, Zetacoin and Dash for SHA-256 contracts.
You should also be aware about the factors that make a contract profitable. You should be aware of the changing factors including hash rate, network difficulty and price of a coin. These factors change every day.
Most Bitcoin Cloud Mining Companies are Scams
Like the heading says, most cloud mining contracts are scams. Why?
Because it’s easy for companies to take peoples’ money, and then not pay out. A company can claim to be a cloud mining company without any proof of actually owning any hardware.
So remember: 99% of cloud mining companies are scams.
Which Companies Are Not Scams?
There are only three cloud mining companies we are willing to recommend on this site: HashFlare, Genesis Mining and Hashing24.
Just because they are not scams, however, does not mean that you will make a profit by buying contracts.
Hashflare.io offers a unique option for mining with a low cost of entry as well as minimal risk and expense, which is opposite to traditional models of bitcoin mining that involve procurement, maintenance and configuration of highly specialized hardware.
The answer is simple: HashFlare is a division of HashCoins – a company founded in 2013, known for manufacturing and sale of cryptocurrency mining equipment. Extensive experience and good feedback from customers build trust and guarantee safety of investments.
Genesis Mining is a Hong Kong based company although its founders are from Germany and attend many Bitcoin conferences. You can read more about Genesis Mining on their about page.
Genesis Mining is one of the world’s leading and most transparent hosted hashpower provider.
They are heavily investing in the best available hardware to stay at the edge of technology. For you, it is the easiest way of mining: no need to assemble rigs or to have hot, loud miners in your home.
They are a team of experts in the digital currency sector, and their core service is to provide the most efficient and reliable mining rigs for rent.
No matter which package you choose, you are renting the latest technology, which guarantees profitability for as long as possible. Also, the rigs you rent consume very cheap electricity and are cooled efficiently, thanks to the optimal locations of their farms. To top this, there is no waiting for delivery and no downtime, which means you are not wasting even a second of mining.
GENESIS MINING DISCOUNT CODE: tqIH19
You will get an discount of 3 % on all Hashpower packages
Is Cloud Mining Profitable?
It depends what your goals are with cloud mining. If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all.
You will get more bitcoins for your buck if you just buy bitcoins!
If you think mining is cool and want to try, then cloud mining still is not a good option. Grab a cheap USB miner and run it at home.
Overview of the profitability of the Crypto currency for the last month:
JUST WANT BITCOINS?
If you just want bitcoins, mining is NOT the best way to obtain coins.
Buying bitcoins is the EASIEST and FASTEST way to purchase bitcoins.
Get $10 worth of free bitcoins when you buy $100 or more at Coinbase.
But check back in to see if we find any new, legit cloud mining companies.
A Bitcoin wallet is a collection of private keys but may also refer to client software used to manage those keys and to make transactions on the Bitcoin network. We are willing to recommend Coinbase, Blockchain, Xapo.
Founded in June of 2012, Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin. We’re based in San Francisco, California.
Send bitcoin to friends or shop with merchants who accept bitcoin.
Access all your Coinbase wallets, vaults and transaction details on the go.
Buy and sell bitcoin directly from your phone by connecting your bank account.
Blockchain is the one of the world’s most popular digital wallet. Allows you to send / receive Bitcoins through your browser or mobile phone. This is what’s known as a hybrid wallet – meaning the company stores your wallet online but they do not have access to your private keys. However since the wallet is loaded from their servers some trust in the company is still needed. Recommended for beginners who are trying out Bitcoin.
XAPO COMBINES THE CONVENIENCE OF AN EVERYDAY BITCOIN WALLET WITH THE SECURITY OF A DEEP COLD STORAGE VAULT.
Xapo has raised $40 million from Benchmark, Greylock Partners, Index Ventures, Fortress Investment Group, Ribbit Capital and Emergence Capital Partners.
Xapo is a web-based wallet system, so alls you need to access it is a web browser and Internet connection. Xapo is known for having reasonably advanced privacy and security features, especially for a web-based wallet. The company supports payments through a debit card system, making it easy to spend your Bitcoins. The app is also friendly for newbies, so if you’re new to Bitcoin, give Xapo a close look.
Xapo debit card system allows you to use Bitcoin ATMs and spend at merchants across the world.
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. Bitcoin to USD value online:
Ethereum price value online:
The structure of the ethereum blockchain is very similar to bitcoin’s, in that it is a shared record of the entire transaction history. Every node on the network stores a copy of this history.
The big difference with ethereum is that its nodes store the most recent state of each smart contract, in addition to all of the ether transactions. (This is much more complicated than described, but the text below should help you get your feet wet.)
For each ethereum application, the network needs to keep track of the ‘state’, or the current information of all of these applications, including each user’s balance, all the smart contract code and where it’s all stored.
Bitcoin uses unspent transaction outputs to track who has how much bitcoin.
While it sounds more complex, the idea is fairly simple. Every time a bitcoin transaction is made, the network ‘breaks’ the total amount as if it was paper money, issuing back bitcoins in a way that makes the data behave similarly to physical coins or change.
To make future transactions, the bitcoin network must add up all your pieces of change, which are classed as either ‘spent’ or ‘unspent’.
Ethereum, on the other hand, uses accounts.
Like bank account funds, ether tokens appear in a wallet, and can be ported (so to speak) to another account. Funds are always somewhere, yet don’t have what you might call a continued relationship.