Cloud Mining Tips

Cloud mining tips and tricks for cryptocurrency contract mining.In recent years Bitcoin and other cryptocurrency mining has increasingly required sophisticated equipment and economies of scale to be profitable. The era of the profitable home miner for Bitcoin and Ethereum is pretty much over and many people who still want to get in on the lucrative crypto mining industry are choosing cloud mining as a solution. Cloud mining basically means hosted mining. You buy the equipment and the hashrate provider is supposed to run it for you. This makes a lot of sense in theory because electricity cost/climate/scale are all major factors in mining profitability. What are some cloud mining tips for those looking to buy hosted hashrate?

Cloud Mining Tips

If you are intent on cloud mining or using hosted mining please keep the following cloud mining tips in mind.

  1. Cloud mining providers are notoriously shady.

    Why continue to mine at a profit for a customer when you could fold up shop and mine for yourself? The only reason cloud mining providers exist legitimately is to raise capital for their own mining operation or as a hedge against a huge downturn in cryptocurrency price. The concept for the owners of cloud mining operations is “take a lesser profit now and avoid losing it all if cryptocurrency prices crash”. Unfortunately many cloud mining providers are scams. Cloud mining is extremely risky.

  2. Do not buy hashrate with cryptocurrency!

    Never pay cryptocurrency to mine cryptocurrency. In other words do not buy cloud mining hashrate with cryptocurrency. You are likely to never see a profit with increasing cryptocurrency value.Paying 0.1 Bitcoin for a contract that ends up only yielding 0.05 in mined Bitcoin because of a huge increase in Bitcoin price and difficulty is not a good prospect. You would have been better off holding the Bitcoin itself.

    Only buy cloud mining with fiat currency and recognize its a gamble. You may make more cryptocurrency mining than you could buy or you may make less. It depends on how fast the difficulty goes up for the particular cryptocurrency you are mining. Cloud mining makes sense if the price is stable.

  3. Do your research into a hashrate provider.

    Hashrate per dollar is not the only thing to research when looking into cloud mining. Ensure the prospective hashrate provider has a great track record by checking various websites. Forums such as Bitcointalk.org are an excellent starting place for this but expand your search to Bitcoin service review websites as well.

  4. Read the contract details fully.

    Know the contract length, maintenance fee, and the minimum withdrawal amount before buying. If the minimum withdrawal is 0.01 Bitcoin and you buy 100 GH/s of SHA-256 hashrate the chances of getting to withdraw are zero. Use a mining profitability calculator.

  5. Consider simply buying the cryptocurrency instead!

    In many cases you are much better off just buying and holding the cryptocurrency instead of cloud-mining. Consider just buying the cryptocurrency and keeping it in safe, offline storage.

    If you are still considering buying cloud mining hashrate please check out our article on our favorite provider Hashflare.

NiceHash Alternative

MinerGate.com logoNiceHash.com was a great choice for people looking to mine with a CPU or GPU. Unfortunately NiceHash was hacked recently and $65,000,000 USD worth of Bitcoin was stolen. A good alternative that is very similar to the “NiceHash Miner” software is MinerGate.

MinerGate offers a number of pools and their own custom mining software for CPUs and GPUs. MinerGate also offers cloud mining solutions though we cannot comment on the service the hashrate per dollar looks fairly competitive. All you need to do to get started with MinerGate is simply sign up and download the software.

Like NiceHash the software will automatically mine the most profitable coin. To get started with MinerGate simply click here. Alternatively you can read a more in depth guide on our dedicated GPU/CPU easy mining guide.

Hashflare.io Downtime Update

Hashflare.io Logo
Hashflare.io has provided services for 3 years.

UPDATE 12/14/2017 for Hashflare.io

Estonian hashrate provider Hashflare.io is down for scheduled maintence. For more info visit their Twitter account. Hashflare.io has been a reliable provider of a good hashrate per dollar ratio and their downtime should be minimal. Tomorrow their domain name does expire (see old article below) but I doubt they are exit scamming since they have adjusted their contract length lately to match the improved profitability of their Bitcoin contracts. Likely they are making security adjustments in light of the $65 million NiceHash Hack and possibly switching some internal systems over to Segwit to try to save some money in terms of Bitcoin transaction fees.

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Cloud mining provider Hashflare.io will be going down for scheduled maintenance the day before their domain expires. Despite operating for over 3 years Hashflare.io has had a lot of trouble lately updating their systems. Hashflare is facing trouble with Bitcoin withdrawals due to the increasing congestion of the Bitcoin network. To help combat this they have increased the minimum withdrawal amount to 0.0107 BTC of which 0.0007 BTC is a network fee. The Lightning Network cannot come soon enough for hashrate providers such as Hashflare and their customers. The only concerning information available is their domain name expires on the 15th of December (1 day from writing). If we assume they have their domain on auto-renewal this is likely not a problem.

All too often when the Bitcoin price skyrockets we see a shakeout of service providers. We have no reason to believe they will not resolve this issue. Click read more to view full-size screenshot of whois data and their Twitter statement from earlier downtime.

Read moreHashflare.io Downtime Update