Bitcoin mining is less popular now than it was two years ago, and this can be traced to the long run of poor pricing. However, crypto enthusiasts have kept faith with the market and until now. The recent surge in bitcoin price coupled with some industry expectations that it will keep rising is a bright spot.
This expectation has also helped, leading new people to look into bitcoin mining. The promise here is the fact that you can passively earning an income if you use your mobile devices.
Yes. Bitcoin mining is done in several ways, and with your PC, you can join the scene. Only, it also happens to not be profitable at all during crypto winters. Heavy-duty miners have appeared on the scene, and to most analysts, optional cloud mining pools and contracts could be the best bet.
What are the top 10 cloud mining sites?
As mentioned above, plenty of cloud mining companies are scams. This explains why you should choose a reputable company when deciding on the cloud mining operations that will suit you. If your company of choice has been reviewed by the community, you stand a chance to have a good ending.
Some of those sites are:
Probably the best-known cloud mining company. One of its main offerings is the low entry price, which lends itself to test runs with little to no risk. By giving you the option to decide on the cryptocurrency to mine, it earns our plaudits. However, the services are limited, and sometimes hashing power for some crypto is sold out.
There are concerns about its legitimacy, although, for most the sites, it does seem legit. As to profitability, this is not in the short term. In the long term, it might be. However, the cause is if you hold your coin till a bull run occurs.
2. Genesis Mining
As for mining plans, however, Genesis Mining can’t be considered cheap. There are no standard month-to-month contracts, which means you need to buy long-term subscriptions ranging from 9 months to 2 years. While the prices aren’t too bad once if pro-rated, you’re still looking at paying a lump sum of at least $77 for BTC mining.
Some plans also have to pay “maintenance fees,” so be aware that the cost is actually higher than advertised, even if not by much.
While the legitimacy of Hashing24 has been contested, it has a contract with BitFury, and the underlying operations are considered legit by many. Contract prices are also very low, although once again, we run into “hidden” maintenance fees that make plans actually cost about three times the advertised price. Even then, this still looks cheap.
This service has been making the rounds recently. However, it doesn’t look legit. First, because the offerings are too good to be true – it has a program that promises to make you 1BTC/day. At an entry cost of 5BTC. Which means that you’ll earn back your investment within a week, and then it’s pure profit at the tune of $8000/day.
Allow us to put it in the “too good to be true” basket and heavily warn you against this. Besides the “free” plan, the cheapest one costs $80, and there are reports of this provider demanding an upgrade to a paid plan to get your money after you subscribe to a free one. The Trustpilot profile tells enough of a story here. Stay away unless you enjoy high-risk enterprises or love the warm, fuzzy feeling you get when you’re scammed.
A Chinese company running a cloud mining scheme. While the site itself doesn’t seem to be a scam – it lacks the absurd promises of scam sites – reports state the customer support here isn’t great. Also, parts of the site seem to be in Chinese, so it’s impossible for customers to know for sure what they are agreeing to in full.
While contract prices are cheap when calculated by the month’s average, the standard contract is 5-year, so you’re looking at spending at least $85, in what oddly enough appears as a “discount” from $60.9.
They promise a 500% ROI, but you should be wary of this. Not only is there an added electricity fee, but due to the varying nature of BTC prices and incremental difficulty of the hashes, it’s impossible to accurately calculate such long-term earnings, let alone assure them.
6. The EOBot
EOBot claims to be able to cloud mine a handful of different cryptocurrencies, thus pandering to those who don’t want to put all their eggs on Bitcoin. The website looks notoriously unprofessional, in what is a departure from previously reviewed sites.
The promises you get here, luckily, aren’t big. The site openly states cloud mining shouldn’t be considered a source of income or investment, which goes in line with our findings. Break-even point for 5-year plans comes at about 20 months. So, you won’t see a profit anytime soon, if ever. Still, it’s refreshing to see a website that openly gets conservative with promises.
The first thing that will strike you when visiting this site is the 2017 copyright text that hasn’t been updated. The second thing will be the “lifetime contract.” The third thing is the hidden phone contact for “VIP ONLY”. And the fourth thing, that all the footer links lead to “#”.
This site doesn’t so much raise red flags as it collects them, catalogs them, and displays them proudly on a Red Flag Museum. And it’s not just us, others have also doubted its legitimacy.
Another pretty looking website that is advertising plans that are too expensive to try on a whim or to risk it. This site doesn’t make any promises on earnings, which is good, but it doesn’t look like any trustable crypto sites have reviewed them either. The bittrust profile has plenty of poor reviews, and since the BTC plans on offer are $100 and over, plus maintenance fees, it might be better to use an optional service.
9. Plan – C
An empty-looking landing site with scarce information, Plan-C doesn’t look like the kind of operation we’d put our money on. As at press time, several of the site images were broken, the bitcoin chart in USD showed 0% over the last 12 months, and the contact info said to contact “your sponsor.”
In other words, we’ll give it a hard pass. There’s a chance the site is legit, but there’s an also higher chance that it’s not. The contract plans are said to start at $250, which is huge, although we couldn’t confirm this, thanks to the broken site.
10. JSE COIN
What JSE coin offers that looks distinct from the cloud mining companies reviewed above are the simplicity and hands-on approach. With JSE coin, you will be able to use your PC, MAC, iOS, and Android mobile devices. There is no complicated hardware to use here as mining is executed with a simple Java application that runs behind the scene.
With JSEcoin, you have a simple, easy- to -use mining application that gives you easy access to mining profitability. The tokens mined can be stored in Ethereum wallets and converted for cash using participating sites.
How Cloud mining Works
What many Bitcoin miners who can’t invest thousands of dollars on dedicated miners do these days is deferring to cloud mining companies.
Cloud mining refers to a new method of mining Bitcoin where the mining doesn’t take place in a single user’s CPU or GPU, but it is instead outsourced to Bitcoin farms. A ‘farm’ in this case means a huge array of servers, much like those that power internet clouds.
Under this method, instead of investing thousands of dollars on equipment and then paying hundreds of dollars a month on electricity, users instead hire processing capacity on a bitcoin cloud. The money they spend becomes an investment, and they receive the amount of bitcoin created relative to that amount of processing each month.
Other methods of cloud mining include leasing a mining machine or a virtual private server you can then configure to run a miner of your choice. However, the most common method includes simply leasing processing power. This method allows companies to charge low amounts, thus allowing people who might not want to invest much or who don’t know how to set up a miner to do it in quick and easy ways.
In most cases, the payment is made once, and services rendered for a defined timeframe.
What are the advantages of bitcoin cloud mining?
The main advantages that cloud mining brings are purely economic. In other words, with cloud mining, you don’t need to invest in computers, electricity, or an internet connection. This drives the price of mining bitcoin way lower, although you should still expect to pay a considerable amount of money each month if you want to see bigger earnings.
Other advantages of bitcoin cloud mining online include not having to take much care of the mining equipment. Just as well, you won’t have to deal with the noise bitcoin miners often make. And if you wish to jump out, you just cancel your cloud mining contract – no need to sell expensive equipment or risk losing the investment.
What are the disadvantages of bitcoin cloud mining?
While the advantages are mainly economic in the form of smaller investments, the disadvantages aren’t merely economic. There are economic disadvantages to this, namely that you’ll only get a cut of the profits since the owner of the cloud needs to make money too, but there are bigger considerations.
First, you can’t know if the cloud mining contract is a scam. Even if you receive some sort of profit, it’s impossible to know if that profit is coming from bitcoin mining. Worse, you can’t know exactly how much money is being made from your investment even if the operation is legit. Bitcoin cloud mining is basically a trust contract since there’s usually no way to be sure you’re getting what you pay for.
There are also other points that, while not huge, are still disadvantages. Since you’re renting somebody else’s server – or somebody else’s processing capacity – you don’t have any control over the operation. Whether the servers are running optimal hardware or not, you can’t verify. And no matter what you’re told, you can’t be sure that is true.
That’s a really big point since the effectiveness of bitcoin mining depends a lot on the hardware being used. Processors with similar stats will often vary in their BTC yield per day, simply because some are better optimized for mining than others. Since you also can’t choose the software being run, you’ll be flying blind.
Could I get a free bitcoin cloud mining trial?
Yes, you could. Several companies offering cloud mining contracts also offer free trials. These free trials often come in the form of a certain amount of processing power you’re given for “free.”
However, caution should be exercised when browsing for these services. Free trials are common in markets where you’re rendered a service at little to no actual cost to the provider. Sites like Netflix or Amazon can give you free trials of their premium services because the added cost is small, and you’re expected to subscribe if you like the convenience.
For cloud mining, it isn’t quite like that. Cloud mining is supposed to yield a profit, rather than being a service. As such, the only acceptable return for a “free trial” would be Bitcoin. Since free trials are often abused by signing up from many email addresses, that would pose a problem.
In order to “deal” with that problem, it’s quite likely the company offering the free trial will ask for some kind of identification on signup… or for certain unique data like, say, credit card numbers. They could dress it up as just a way to know you’re not signing up several times, but in the end, they’d be getting your personal and financial data.
This could expose you to fraud. It might not happen right away – in fact, in order to catch you in a net, they might give you some BTC at first as “returns” from your free trial. Then you sign up, start paying them and… the monthly amount you receive is much smaller than at first. In fact, your ROI is negative in most months.
And then, six months later, strange charges appear on your credit card. You’ve been a victim of credit card fraud.
While it is possible some companies do offer free trials that aren’t scams, be very wary. Most reputable cloud mining companies don’t for a good reason.
What ROI should I expect from cloud mining? Is it profitable?
In all truth, cloud mining is rarely profitable. However, whether you’ll get to make a profit or not will depend on many things besides just the service you’re using.
Specifically, the times when mining has been the most profitable were within bear markets or coin price hikes. In fact, BTC mining has rarely ever been profitable since the price slump. Back in 2011, when very few people were mining BTC and you could buy a whole coin with a lunch’s worth of money, it still wasn’t very profitable. As in, you’d be lucky to make a dollar a day running your computer 24/7.
Most people who made a profit mining BTC were either investing huge sums of money (and potentially installing farms in countries where power is cheap) or holding their earnings. In fact, most people who made thousands of dollars overnight didn’t make them by mining. They made them by holding them until the 2017 bull run that drove the price above $15000.
This is why it’s difficult to tell whether cloud mining will be profitable. It won’t be profitable today, so if you want a get rich quick scheme, you may as well forget about it. But if you’re not investing a lot and just want to slowly amass some BTC in hopes of another bull market, it might work. Bitcoin prices have been rising, after all, and some analysts predict a huge price hike before the year is over.
Just remember, the immediate ROI is likely to be very low, with a risk of it being negative. When you cloud mine BTC, you’re betting on the future price of the coin, not the current one. It will never be massively profitable right away.
Bitcoin mining contracts, pools, hashing power. What’s best?
There are reputable sites for cloud mining out there, and those are precisely the ones promising the least. With the rise of ASIC miners, it would appear that bitcoin coin mining pools appear to be the way to go. However, using your PC or mobile gadget can also be profitable when you store your rewards and wait for a surge in price.
Any site promising to increase your investment tenfold within a year (or within a month, as one of the sites we looked at did) is definitely a scam. So if you decide to jump in, go for the sites that the community knows to be legit and tamper your expectations. You know as they say, “good things come to those who wait.”
Cloud mining is a legit way to make a bit of crypto and earn some rewards. It might not look promising when the market is depressed, but when crypto prices surge, you will be glad.
Still, we’d recommend that you treat cloud mining in the same way you’d treat mining crypto from your PC or mobile. With patience, you will likely earn a reward as coin and tokens prices always rise and fall.
- Genesis Mining
- Cloud Mining
- Cloud Mining Scams
- Bitcoin Price Surge
- ASIC MINERS
- Crypto Winter