Aside from investing or trading, cryptocurrencies provide many intriguing ways to earn additional income. This can involve mining, staking, yield farming, airdropping, and other methods. Some are simple enough for novices to try, while others call for more advanced training or costly tools.
In general, crypto mining has always appealed to people looking for a passive income stream. Its importance to the safety of blockchain networks extends far beyond its monetary value. However, the cost of conventional mining equipment and the quantity of energy required to operate it may add up quickly.
Because of this, cloud mining has emerged as a more convenient option. What exactly is cloud mining? Let’s talk about the top ten best cloud mining sites and how they may rapidly increase your earnings.
Compared to conventional cryptocurrency mining, cloud mining is more cost-effective since it eliminates the need for expensive mining hardware. Instead, for a bit of cost, you may simply “rent” the service from a third party.
Simply said, this kind of mining allows you to harness the processing power of server farms remotely. You just pay for the hash power you use, while the distant data center’s owner handles everything else, including hardware upkeep and electricity costs.
Blockchain technology underpins the whole crypto sector, connecting millions of computers across the globe. The computer includes cryptographic hashing in creating each new block to assure the safety and validity of each subsequent transaction block.
In cloud mining, you use someone else’s computer to process a transaction block in exchange for Bitcoins or other cryptocurrencies. These virtual currency tokens may then be spent as desired.
Because of its simplicity, cloud mining has become a popular alternative to traditional mining setups, which require specialized equipment and a high level of technical expertise.
Regrettably, yes. As attractive and lucrative as cloud mining looks, it has become famous for scammers. Sadly, many even consider the whole cloud mining concept a scam. Of course, that’s not 100% true. While fraud is common, many legit cloud mining sites still exist, so first, it’s essential to learn how to identify scammers from the real ones.
Numerous online services employ deceptive practices. Many of these scams operate like Ponzi schemes, where new investors’ funds are used to pay returns to earlier investors. Eventually, the scheme collapses, the providers run out of money, and the cloud mining website shuts down. Those who pay with cryptocurrency have no recourse to recover their investments.
Here are some general tips that will help you spot the ‘criminals:’
If a mining service doesn’t provide photos or videos of its actual mining facility, this could be a red flag indicating that it’s a scam.
Avoid mining sites that haven’t been operational for at least a year. A more extended history usually signals a more trustworthy provider.
Stick with the cloud mining service provider that has earned the trust of the cryptocurrency community and offer reasonable pricing. For example, Genesis Mining is a well-regarded provider with transparent pricing structures.
If the service lacks an “About Us,” “Team,” or “Customer Service” page, exercise caution. Legitimate companies should be open about their operations and provide ways to contact them.
Avoid paying with cryptocurrency when possible, as it can be challenging to recover your investment if something goes wrong.
Considering all the basics we covered, these are the general pros and cons that characterize cloud mining.
Let’s take a closer look at the top cloud mining sites, each offering unique features and benefits to users:
One of the best cloud mining platforms is Kucoin. Featuring lending, staking, P2P trading, futures, spot trading, and mining, Kucoin mining pool aims to become one of the largest mining pools supporting Bitcoin. With no fees on revenue, Kucoin is a solid choice for passive income generation.
This cloud mining site combines mining hosting services and a marketplace, allowing miners to customize their mining terms and sell hash rates to others. Supporting over 30 cryptocurrencies and fiat withdrawals, Nicehash is a versatile and convenient choice.
Established in 2017, HashShiny is a reliable and fast mining company for Bitcoin and other major cryptocurrencies like Zcash, Litecoin, Dash, and Decred. The developers pride themselves on creating a top-notch cloud mining platform with cutting-edge deployment technology.
As a well-established and legal cloud mining service, Hashing24 has been operating since 2016. With a research team focused on cryptocurrencies since 2012, the company offers users unlimited contracts and supports only Bitcoin cloud mining.
Operating since 2018, Crypto Universe provides users with profitable plans and cloud mining contracts through “Cloud Miners” and “BTC Mining.” Users can also buy and resell mining equipment.
The platform mainly provides its services in the Russian Federation.
More than just cloud mining, ECOS is a comprehensive cryptocurrency investment platform supporting Bitcoin mining with various contract options. Contracts start at $149 and can last from twelve to fifty months.
Launched in 2018, BeMine serves users in Russia and CIS countries, pioneering cloud sharing of ASIC miners instead of selling mining contracts. It is one of the largest cloud mining platforms and often a popular choice for its convenient services.
As one of the largest cloud mining companies, Genesis Mining has been offering Bitcoin and altcoin mining projects since 2013. With over 2 million customers worldwide, it’s a reliable and popular option in the market.
In addition to providing cloud mining, BitDeer serves as a multi-brand hash rate market, allowing users to buy and sell hash rates. The platform supports Bitcoin, Filecoin, and several other cryptocurrencies.
Founded in the US in 2018, HappyMiner is a legitimate cloud mining business with a large tech park of specialized Bitcoin mining equipment. With data centers in Iceland, Canada, and Norway, HappyMiner currently pays out cryptocurrencies to over 2.8 million users globally.
After choosing the best cloud mining site, it’s time to settle down on the cryptocurrency you wish to mine. Here are a few popular cryptocurrency examples you can start with.
As the pioneer and most widely recognized cryptocurrency, Bitcoin remains the primary choice for miners globally. At the time of writing, its price is around $28,000/BTC, and it reached an all-time high of $69,000 in January 2021.
Although Bitcoin mining is more resource-intensive and challenging than other cryptocurrencies, it offers unparalleled rewards. The current mining reward for Bitcoin is 6.25 BTC per block, which is expected to halve to 3.125 BTC in May 2024.
Bitcoin mining is considerably more complex and resource-consuming than newer cryptos in the market. However, as the leader in the market, it offers the highest revenues.
If you wish to start mining Bitcoin, here is a quick breakdown of the top 5 Bitcoin cloud mining sites and their rates:
As a highly regarded Bitcoin hard fork, Litecoin provides broad appeal and robust functionality. It consistently ranks among the top 10 profitable cryptocurrencies, making it an attractive choice for users.
The Litecoin network was launched in 2011, and since then, block rewards have been reduced several times, from an initial 50 LTC to 25 LTC in 2015 and 12.5 LTC in 2019. Another halving event is anticipated this year, which will decrease the block reward to 6.25 LTC.
Despite these reductions, Litecoin’s strong market presence and technological stability make it an appealing option for cloud mining.
Originating as a hard fork of Litecoin, Dash has carved out its niche in the cryptocurrency market since its inception in January 2014. With a market cap of approximately $1.07 billion, Dash is renowned for facilitating secure and rapid transactions through its unique features, PrivateSend and InstantSend.
The cryptocurrency utilizes the X11 hashing algorithm, an innovation by Dash founder Evan Duffield. There are around 9.96 million DASH in circulation, with a mining reward of approximately 3.34 DASH per block.
The profitability of cloud mining is determined by the cryptocurrency you pick, the mining difficulty, and the contract conditions. The profit-making likelihood may be improved by diligent study and selecting a trustworthy service provider.
Users can withdraw their earnings to their wallets in the mined cryptocurrency, depending on the provider’s policies.
Users can mine numerous cryptocurrencies with a single contract from some service providers, while others may insist on individual contracts for each coin.
Different service providers may offer shorter or longer contract terms. Before making any financial commitments, it is crucial to review the contract’s terms and conditions.
Most cloud mining services require an advance payment for a mining contract, which includes the rental of mining capacity for a predetermined period.
Cloud mining has become trendy in the crypto world thanks to its simplicity and convenience. It removes the headache of dealing with hardware and lets you mine at your own pace, making it more appealing and potentially profitable. While there are some downsides, cloud mining does make cryptocurrencies like Bitcoin more accessible to the general public. It has a bright future, but there’s still the question of whether it’s legit.
Sadly, quite a few cloud mining services are scams or use ineffective business models. This means you might risk your investment or get lower returns than you should. So, always do your homework and pick a reliable provider before diving into cloud mining.