Cloud Mining – How to Make Money Investing in Cryptocurrencies

Over the past few years, the price of Bitcoin has skyrocketed several times. This had a positive impact on investors’ confidence in cryptocurrencies. It has fueled the excitement around everything related to crypto income. A huge number of different investment funds and services sprang up to lure gullible investors with promises of high returns with little effort. Financial success varies, so check out the possibility of FCLOANS.

The vast majority of these entities are scams and pyramids. However, a separate line should be drawn for services that offer the so-called cloud or cloud mining.  

Cloud Mining — What Is It?

Mining is the “extraction” of cryptocurrencies with the help of computer equipment. And cryptocurrency is one of the variations of a unique computing algorithm. It can be very expensive. For example, one of the most popular cryptocurrencies, bitcoin (BTC), costs about $10,000-12,000 per unit.

And the best part is that anyone can start mining. It seems like a great system to make money online due to its high profitability, except for one thing. Cryptocurrency mining is quite expensive due to its popularity. In this regard, cloud mining services emerged. The essence of this method of obtaining cryptocurrency is extremely simple, and it implies that companies with enough resources to create large mining centers allow users to rent mining facilities and the necessary equipment or software for a certain period.

Such companies make money by charging users a commission for providing their resources and a fee for renting equipment. It is more profitable for users to pay a percentage of their income than equip a home server room and suffer the constant hum of fans and other inconveniences. This process is called “cloud mining” in the English-speaking part of the Internet. 

Pros and Cons of Cloud Mining 

So here are the advantages of cloud mining: 

  • Low minimum cost from $1; 
  • No need to understand equipment settings in most cases; 
  • No need to spend time buying, assembling, and maintaining farms; 
  • No need to pay for electricity; 
  • No need to deal with hot and noisy farms.

Disadvantages of cloud mining: 

  • Extremely many scammers and mostly non-transparent working mechanisms of the companies;
  • If the price of the cryptocurrency drops, a cloud company may suspend work or payments;
  • Lack of equipment that can be sold later;
  • Inability to change the software or set up mining for another cryptocurrency;
  • Higher price per unit of hash rate;
  • No guarantee that the cloud mining service will last long;
  • Limited contract term (not always).

The most important thing to always keep in mind is that blockchain, cryptocurrencies, and the technologies used to create them are high-risk investments. Interest and demand alone, without any collateral, are responsible for the high exchange value of some coins. The situation may change at any time. Cryptocurrency should not be considered as a single means to accumulate.

How to choose cloud mining?

When choosing a mining company, it’s important to remember that the success of the investment depends largely on you. You must identify a company worthy of your attention and trust among the many offerings. Investing online is no different than investing in stocks or bonds. You have similar tools at your disposal. Under the guise of cloud-based mining services, unscrupulous companies and individuals can promote traditional Ponzi schemes. In this case, payouts to investors come not at the expense of the real work of the operations but at the expense of new investors.

Signs of Honest Cryptocurrency Cloud Mining Services

  • The operator’s website. It should be attractive, complete, and clear. All information should be available for review. There should be contact information for technical support, which should be more than just an email address. The website should include photos and videos of the provider’s equipment. Project managers should be introduced with photos and social media links. 
  • The length of the project’s existence. The longer an operator has been in the crypto market, the greater the trust in it. Normal projects have an online history: positive and negative reviews on various independent websites.
  • The possibility to invest in the mining of different cryptocurrencies. A good operator will always try to offer as many mining opportunities as possible.
  • Hardware manufacturer contract or official confirmation. There is a constant shortage of miner ASICs on the market, and creating a large cloud service is impossible without contracting directly with manufacturers.
  • Post-purchase option to select a working pool. This option ensures that you are investing in real computing power.