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.

Hashflare.io: A Legitimate Hashrate Provider

So Where Can I Buy Legitimate Hashrate?

I often point out who is very shady or perhaps incompetent but I do not often promote any business due to the very difficult nature of ascertaining lasting and legit cryptocurrency businesses from those who are looking for fresh bag-holders.

In cryptocurrency you cannot really trust any actors or businesses due to the extremely volatile and high-intensity, profit-driven, scam-filled environment (isn’t that why we are here, down in the mire?).

One company that has consistently provided effective, profitable hashrate is Hashflare.io. In the future I will profile other admirable corporate attempts at cryptocurrency success but for now I can let you know for over approximately two years Hashflare.io has kept its contractual obligations. I have broken even on these contracts (SHA256 and Scrypt) over a year ago! I cannot say anything bad about this.

Read moreHashflare.io: A Legitimate Hashrate Provider