So, you got interested in mining bitcoins or any other cryptocurrencies (Litecoin, Zcash, Dash, Ethereum etc.) by solving complex mathematical problems. Apparently, mathematics is only a half of the issue. The real deal is trying to run the process of bitcoin mining by installing complex hardware, gigantic servers, and software tools. Purchasing and maintaining this equipment is super expensive, not to say you are never 100% sure the investment will be paid off and ultimately bring you profits. Is there a way to make bitcoin mining more affordable?
Fortunately, there is and it’s called the cloud mining. Investing in cloud bitcoin mining is the most reasonable step for preserving and increasing your crypto-currency assets at the end of 2017. Here is what you need to know about free bitcoin cloud mining, including its advantages/disadvantages and a profitability.
What is Cloud Mining?
Cloud mining is a process of a cryptocurrency production using special cloud services. It’s a new earnings conception that creates mining pools (groups) with a purpose of obtaining more revenue compared to a traditional mining. All the data is kept remotely in the data centers that share their power with you. You get an opportunity to mine bitcoins without splurging on electricity costs, 24-hour control, software configuration and other difficulties you face while working with a hardware equipment. To operate the best cloud mining service you need to have a computer, a good Internet connection, and a bitcoin wallet.
Types of Cloud Mining Hosting
The most common types of cloud mining are:
- Hosted Mining: renting a mining machine hosted by a provider;
- Virtual Host mining: creating a virtual private server where your own mining is installed;
- Leased Hashing Power: the most common way of cloud mining allowing you to rent a certain amount of hashing power with no need to own a physical or virtual computer.
Advantages of Bitcoin Cloud Mining
- No problems with heat coming from equipment and fans breakdown;
- No costs for electricity;
- No need to get rid of your hardware for bitcoin cloud mining in case it doesn’t bring profits anymore;
- Legal providers are reliable;
- The user gets rid of all general drawbacks of mining, which are a constant cloud mining control, equipment set up and large bills for electricity;
- High profitability – many services allow you to double the funds you’ve invested during a year, which is quite an interesting offer due to a constant increase of a cryptocurrency rate;
- A total capacity of a remote data center will always be bigger than a capacity of hardware installed at home;
- An ability to purchase contracts for different cryptocurrencies from the same cloud hosting service to protect yourself against occasional falls of one of them;
- A possibility to utilize auto mining of bitcoins without large investments in resources and at the same time searching for the most profitable contracts without any restrictions;
- Cloud mining contactors offer referral programs. The concept of such programs is to receive a fixed amount or a small percentage of profits from an invited user. This way, founders help to spread free cloud mining of cryptocurrency and make it more popular.
Disadvantages of Bitcoin Cloud Mining
- There are many frauds in this business. You should trust the proven services with numerous recommendations and approved by cloud mining reviews. Never trust first bitcoin cloud mining contracts promising you a sky-high interest. A profitability of 250% per year just doesn’t exist;
- Aside from scams, you may deal with shady or unverified Bitcoin mining operations;
- No chance to have a full control of the cloud mining hardware and software;
- Investment in a cloud mining bitcoin rather designed for a long-term use because of possible bitcoin falls in value. So, if you planned to get an instant profit from this form of cryptocurrency and then quit, it will most likely be unprofitable, even when you don’t have to purchase expensive equipment;
- The companies with an online wallet can be attacked by hackers, so from this side, the cloud mining services are not completely protected.
Is Cloud Mining Profitable?
If you are ready to invest in a bitcoin mining cloud, you automatically agree with the possible risks. It’s logical to draw a parallel between gambling and bitcoin mining: you accept the risk of losing what you invested but at the same time you can’t win a profit unless you risk. The biggest risks happen in the beginning but after a while, in case bitcoins grow in value, you’ll make even more money by just holding them.
To make sure you are making the right choice of a contractor, it’s important to look at the best bitcoin cloud mining review. Additionally, you can search for real customers’ feedback and clarify all your questions or concerns with the company before investing.