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Best Cloud Mining Providers in December 2022

If you want to delve into the world of cryptocurrency, cloud mining is the best way to go. You can mine any cryptocurrency without directly installing and running the hardware and software.

7 Listed services

3,719Analyzed reviews

372Suspicious reviews

Service

Price

Currency

Minimum

Payouts

Mobile App

24/7 Support

1

Hashmart logo
Truely score heart icon

4.3/5

61 reviews

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$52.40

500 Gh/s, billed once

Bitcoin,Ethereum

26 $

Daily

Visit site

2

Hashshiny logo
Truely score heart icon

3.9/5

1,705 reviews

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$0.13

per 10 SOL/S, 2-year contract

Bitcoin,Ethereum,ZCash,Litecoin,Dash,Doge,Decred

10 $

Daily

Visit site

3

Hashing24 logo
Truely score heart icon

3.9/5

29 reviews

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$82.40

per year

ZCash,Dash,Ethereum,Litecoin,Bitcoin

0 BTC

Daily

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4

ECOS logo
Truely score heart icon

3.7/5

57 reviews

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$150.00

per year

Bitcoin,Ethereum,Ripple,Bitcoin Cash,Tether,Litecoin

150 $

Daily

Visit site

5

BitDeer logo
Truely score heart icon

3.7/5

36 reviews

Visit site
$910.00

per 200 days

Bitcoin,Bitcoin Cash,Litecoin,Ethereum,Dash

0.001 BTC

Daily

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6

NiceHash logo
Truely score heart icon

3.6/5

1,328 reviews

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$42.05

price changes every second depends on bitcoin price, billed once

Bitcoin

0.001 BTC

Every 4 Hours

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7

MinerGate logo
Truely score heart icon

2.1/5

503 reviews

Visit site
Custom

Contact company for pricing

Ethereum,Ethereum Classic,Monero,Litecoin,Bitcoin Gold,Bitcoin,ZCash

Daily

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Best Products

#1

Hashmart

Hashmart

Best Overall

61 Reviews analysed

50 Positive

11 Negative

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Key facts

  • Currency

    Bitcoin, Ethereum

  • Minimum

    26 $

  • Payouts

    Daily

  • 24/7 Support

Pros

  • Really appreciated by its users

  • No issues experienced

  • Don't mind negative reviews

  • Delivered as promised

  • Does not have to pay to use

See all

Cons

  • Money transfer issues

  • Suspected scam

  • Customer service is bad

  • Premium version is not worth it

  • Don't waste your time

See all

Hashmart is a cloud mining service that offers a simple and easy way to mine various cryptocurrencies. The service offers a variety of features that are common among other cloud mining services, as well as some features that are uncommon. Some of the features that Hashmart offers include automatic payouts, multiple supported cryptocurrencies, a cryptocurrency wallet, and 24/7 support. However, the service is missing some features that are common among other services, such as email support and payouts in cryptocurrency. Additionally, the service has some unique features, such as the ability to buy and sell hashrates, and no commission charges. Overall, Hashmart is a good option for those looking for a simple and easy way to mine cryptocurrencies.

#2

Hashshiny

1,705 Reviews analysed

976 Positive

729 Negative

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Key facts

  • Currency

    Bitcoin, Ethereum, ZCash, Litecoin, Dash, Doge, Decred

  • Minimum

    10 $

  • Payouts

    Daily

  • Mobile App

  • 24/7 Support

Pros

  • Really appreciated by its users

  • Good value for money

  • Lots of long time users

  • Money back guarantee

  • Free version is great

See all

Cons

  • Suspected scam

  • Money transfer issues

  • Don't waste your time

  • Problems with app store listing

  • Disappointing free version

See all

Hashshiny doesn't offer 24/7 support, regular subscription and has no hidden fees. However, it does provide a one-time license, lending services and automatic reinvestment - features that are very rare to be found in other services. Hashshiny is also uncommon for offering full history records, an Android mobile app, phone support, Litecoin mining, an iOS mobile app, payouts in cash, Mac desktop software and Zcash mining. Lastly, it should be noted that Hashshiny has all of the features that are commonly found in other cloud mining services such as Ethereum mining, real-time analytics, a cryptocurrency wallet, multiple language support, web access and cloud-based software.


In their reviews, users have mentioned that one of the cons of Hashshiny is that there have been issues in the past with money transfer. People have also said that the app store listing for this provider can be misleading, and that the free version is not as good as expected. On the other hand, reviewers have noted that Hashshiny offers a money back guarantee which is a great pro. Additionally, people have said that this service is better than its competitors and that it's a great tool for what it promises to do. Finally, some users highlight the great customer service as a big plus.

#3

Hashing24

29 Reviews analysed

14 Positive

15 Negative

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Key facts

  • Currency

    ZCash, Dash, Ethereum, Litecoin, Bitcoin

  • Minimum

    0 BTC

  • Payouts

    Daily

  • 24/7 Support

Pros

  • Good value for money

  • Fantastic service

  • Does not have to pay to use

  • Great support

  • Well documented

See all

Cons

  • You have to pay extra

  • Suspected scam

  • Money transfer issues

  • Hidden costs

  • Stability issues

See all

Hashing24 is a cloud mining provider that offers a wide range of features. Some of the unique features offered by Hashing24 include a free trial period, lending services, and the ability to buy and sell cryptocurrencies. However, Hashing24 is missing some common features such as automatic payouts, free account signup, and GUI miners.

#4

ECOS

57 Reviews analysed

31 Positive

26 Negative

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Key facts

  • Currency

    Bitcoin, Ethereum, Ripple, Bitcoin Cash, Tether, Litecoin

  • Minimum

    150 $

  • Payouts

    Daily

  • Mobile App

Pros

  • Really appreciated by its users

  • Money back guarantee

  • Lots of long time users

  • Good value for money

  • Trial version is great

See all

Cons

  • Login problems

  • Mobile app is bad

  • Customer support is unresponsive

  • Customer service is bad

  • Refund issues

See all

ECOS is a cloud mining provider that offers a wide range of features. Some of the features are very rare to find in other services, while others are quite common. Let's take a closer look at the features offered by ECOS: The first thing you'll notice about ECOS is that it offers a wide range of features. Some of the features are very rare to find in other services, while others are quite common. For example, ECOS offers miner benchmarking, lending services, and a benchmark testing tool. These are all unique features that you won't find on many other cloud mining providers. However, there are some downsides to ECOS as well. For example, they don't offer automatic payouts or GUI miners. Additionally, their Android mobile app is still in development and is not yet available for use. Despite these downsides, ECOS still offers a lot of great features. Their web-based software is easy to use and provides real-time analytics. They also have 24/7 support and offer multiple language support. Additionally, their automated smart mining feature ensures that you're always mining the most profitable cryptocurrency. Overall, ECOS is a great choice for those looking for a comprehensive cloud mining solution.

#5

BitDeer

36 Reviews analysed

26 Positive

10 Negative

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Key facts

  • Currency

    Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Dash

  • Minimum

    0.001 BTC

  • Payouts

    Daily

  • Mobile App

Pros

  • Good value for money

  • Money back guarantee

  • Fantastic service

  • Does not have to pay to use

  • Great support

See all

Cons

  • Suspected scam

  • Customer support is unresponsive

  • Not recommended

  • Slow performance

  • Update issues

See all

BitDeer has both upsides and downsides when it comes to features. On the upside, BitDeer offers pool fee discounts, automatic reinvestment, full history records, custom pool allocation, forum support, and the ability to buy and sell hashrates. Additionally, they have a Mac desktop software, an iOS mobile app, and an Android mobile app. They also offer miner perks, cryptocurrency exchange, and email support. However, they are missing some common features that other services offer, such as multiple language support and hidden fees. On the downside, BitDeer does not offer multiple language support or hidden fees. Additionally, their customer support is only available via email. However, they do offer a wide variety of features that are unique to their service. These include pool fee discounts, automatic reinvestment, full history records, custom pool allocation, forum support, and the ability to buy and sell hashrates. Additionally, they have a Mac desktop software, an iOS mobile app, and an Android mobile app. They also offer miner perks, cryptocurrency exchange, and email support.

#6

NiceHash

1,328 Reviews analysed

418 Positive

910 Negative

Visit site

Key facts

  • Currency

    Bitcoin

  • Minimum

    0.001 BTC

  • Payouts

    Every 4 Hours

  • Mobile App

Pros

  • Really appreciated by its users

  • Has everything you need

  • Money back guarantee

  • Better than the rest

  • Great staff

See all

Cons

  • Login problems

  • Getting errors

  • Update issues

  • Latest update is not great

  • Compatibility issues

See all

NiceHash offers a variety of features that are not offered by other services. For example, NiceHash is Anti-Money Laundering Compliant and GDPR Compliant. In addition, NiceHash has a Benchmark Testing Tool which allows you to test the performance of your miner. NiceHash also offers Miner Perks, which is a rewards program that gives you discounts on things like hardware and software. However, NiceHash is missing some common features such as 24/7 support and regular subscription.


In their reviews, users have mentioned that they have faced login problems, getting errors, compatibility issues and update issues with NiceHash. However, they have also praised the provider for being better than the rest, working perfectly and only having minor quirks. They find it to be good value for money and appreciate the great staff. Additionally, NiceHash offers a money back guarantee.

#7

MinerGate

503 Reviews analysed

64 Positive

439 Negative

Visit site

Key facts

  • Currency

    Ethereum, Ethereum Classic, Monero, Litecoin, Bitcoin Gold, Bitcoin, ZCash

  • Payouts

    Daily

Pros

  • Really appreciated by its users

  • Keeps my phone safe

  • Does not have to pay to use

  • Does exactly what it says

  • Great desktop version

See all

Cons

  • Login problems

  • Problems with app store listing

  • Doesn't work

  • Suspected scam

  • Don't waste your time

See all

MinerGate is a service with quite a long list of features, but some of them are more standart, while others are pretty rare. First of all, we should say that MinerGate is not only a Cloud Mining Provider, but also has such features as Zcash Mining, Benchmarking, Android and iOS Mobile Apps and etc. All this makes MinerGate pretty unique. On the other hand, some of the features which are provided by most of services, such as Multiple Language Support or Bitcoin Mining are not so special. To sum up, we can say that MinerGate is a service with both unique and standart features.


In their reviews, users have mentioned that one of the cons of MinerGate is that there have been login problems reported by some users. Additionally, some users have also said that they had difficulty setting up their accounts. Another con that has been mentioned is that the app store listing for MinerGate has had some issues in the past. However, one of the pros of this service is that it has been reported to keep people's phones safe.

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Frequently Asked Questions

The best Cloud Mining Provider is Hashmart. Hashmart has been ranking number 1 for the last 128 days.

Step 1: Educate yourself about the crypto market and cryptocurrency.


Step 2: Research the different cloud mining companies that provide cloud mining contracts to the market.


Step 3: Register with your preferred service provider.


Step 4: Pay for the contract that you want. You'll have the option to choose from the available tiers. You can select among hash rates, cryptocurrency varieties, the frequency of the payout, and different payout options.


Step 5: Start cloud mining. Your cloud mining provider will provide instructions on how to mine using your chosen cryptocurrency wallet address. Furthermore, you can also decide what type of currency you want to mine, like bitcoin, Ethereum, or Monero.


Step 6: Receive newly mined coins regularly. The mining contract will indicate how frequently you can expect to receive your mining rewards, whether daily, weekly, or on-demand.
 

There are many cloud mining services on the internet today, each with different features and promises. You want to ensure you invest in an established and reputable site with a proven track record of success. 


The best Cloud Mining Sites for beginners and experts are those with a proven track record of success, low withdrawal fees, excellent customer service, and rare downtimes. The best cloud mining sites will also have some of the fastest available bitcoin mining hardware. 

There is no risk-free investment, especially in cryptocurrency, but there are ways to minimize it. 


The essential things that you can do to reduce risk are:


• Do not choose a cryptocurrency with too big a valuation compared to the amount of money you plan to invest.
• Do not risk more than you can afford
• Stay up to date with the situation on your country's legislation regarding
cryptocurrencies. 


Investors should be wary when considering cloud mining as an investment option in their portfolios because some risks are involved. The most significant risk with this method is that the profits depend on how efficiently the company's servers can work, and you don't always know much about who your provider is.


Investing in cryptocurrency does not always guarantee a positive return on investment due to the volatile nature of the asset. To make it less risky, you should use a trusted cloud mining provider with a legitimate platform.
 

Many factors determine whether or not it is profitable to mine cryptocurrencies through a cloud mining company. For example, cloud miners' profitability largely depends on electricity, hardware, etc. In addition, it can involve the location of the provider's remote data center and the mining pool. 


Furthermore, the profitability also depends on the strategy that you adopt. It can be a profitable investment strategy if done correctly. For instance, you can reinvest the profits you earn into more cloud mining contracts that mine another cryptocurrency to diversify your portfolio and use the profits from that to hedge against the losses from your previous investments. On the other hand, your entire portfolio can become less profitable when you can not mine without another significant investment or risk losing your total investment.
 

Mining cryptocurrencies worldwide has become an increasingly popular activity in recent years. As a result, various governments have considered cryptocurrency as either digital assets or virtual commodities. In addition, there are discussions about the legality of cryptocurrencies and how they should be regulated. 


Since the majority of governments and legal authorities haven't yet passed legislation governing cryptocurrencies, it's uncertain whether crypto mining is legal in most nations.
 

Under the pseudonym Satoshi Nakamoto, an unidentified person or group of persons created the digital currency and payment system known as Bitcoin. It was made available as open-source software in 2009 as a reaction to the 2008 financial crisis brought on by the public's loss of faith in banks and the centralized financial system run by the centralized monetary authority. 


The bitcoin network is the infrastructure of the digital bitcoin currency. It is also known as the Bitcoin Blockchain and acts as the central ledger which records all bitcoin transactions that have taken place. It consists of nodes and miners. Nodes are computers connected to the network using a client that performs tasks like validating and relaying transactions. Miners are computers that create bitcoins by solving complex mathematical problems with specialized hardware, which takes time and computational power.


Since the network is peer-to-peer, there is no need for a middleman to facilitate transactions between users. These transactions are added to a publicly accessible distributed ledger known as a blockchain and validated by network nodes using encryption. The ledger makes use of its digital currency, commonly known as bitcoin. The fact that the system operates without a single administrator or central repository has led the Treasury of the United States to identify it as a decentralized virtual currency. 


Most people often misconstrued bitcoin as the first cryptocurrency, although prior systems existed. Nonetheless, the correct description is that bitcoin is the first decentralized digital currency.


The first cryptocurrency investment platform was obtaining bitcoin through mining on the Bitcoin blockchain. Bitcoin transactions ideally require no transaction fees, and there is no need to give our real name. In addition, transactions made through bitcoin are anonymous, thanks to how the blockchain works. 


Nowadays, more and more merchants are beginning to accept Bitcoin as a payment option. Still, in the project's early days, only the early adopters who saw the digital currency's utility used Bitcoin. The first official transaction was when a man negotiated to pay for his pizza order with 10,000 bitcoins. The next transition allowed you to buy web hosting services, pizza, or even manicures as more establishments started accepting bitcoin. Until now, bitcoin still relies on the blockchain to make transactions work.
 

Bitcoin mining is adding transaction records to Bitcoin's public ledger of past transactions. It is also how new Bitcoins are released. The concept is to generate additional Bitcoins until the supply cap reaches 21 million coins. 


Miners can either be individuals or groups who work together to mine faster and more efficiently, but that also means they will have less profit every time they find a block. BTC mining is not a get-rich-quick scheme, as it takes time for miners to find blocks and for those blocks to generate coins.


The creators intentionally designed BTC mining to be resource-intensive and difficult so that the number of blocks found daily by miners remains steady, with difficulty regularly increasing because of the increasing number of bitcoin miners. Individual blocks must also contain proof-of-work to be considered valid. This proof-of-work (PoW) is verified by other Bitcoin nodes each time they receive a block.
 

When selecting a suitable site, you must research to ensure that it suits your investment needs. Finding the perfect host will be challenging. You should always check their history on the internet and check their review pages. You can also double-check if they provide statistics on the status of their previous jobs. Finally, it would help to choose the service plan that fits your planned investment amount.


Step 1: Decide how much money you want to invest in the bitcoin mining platform. 


Step 2: Check the cloud mining company's reputation by looking at their past projects and how they compare to others in their niche. Scams have been on the rise, so you should pay close attention to reviews from previous customers of the company or organizations that have had bad experiences with them. 


Step 3: Choose a site that offers cryptocurrency wallet security. Cryptocurrency wallet security is a serious issue, and it is crucial to protect your privacy and ensure you maintain control of your assets. 


Step 4: Choose which hashing algorithm to use. The hashing algorithm you choose will determine which cryptocurrency you can mine, influencing your profits, losses, and growth. 


Step 5: Choose your plan on the cloud bitcoin mining website. The provider will give you a range of packages to choose from, and you can choose the best one according to your needs. Of course, the best plan is the one that suits your investment and income needs. 

Cloud mining scams are all over the internet. They try to lure people by promising returns on crypto assets that can be too good to be true. 


Step 1: Know about the risks. One essential step in identifying cloud mining scams is understanding the risks involved with the activity, even though it may seem easy and secure. The risks can break your trust in cloud mining companies or even make your investment in digital currencies turn out to be worthless. 


Some of the telltale signs of a cloud mining scam include: 


Fraud
The company can just run away with the money without ever paying back any rewards; in line with this, this can also constitute false claims about profitability and the possibility of high profits with little to no risk. They also lure you into buying more hash power while understating how difficult the mining on a particular mining contract would be. 


Poor Hardware
The hardware may not be enough for the number of miners using it, making your investment lose value while offering too-good-to-be-true discounts on hardware. They also cannot scale due to the inadequate performance quality of the rig, meaning If more miners join, there won't be enough resources to provide quality mining activities for everyone. 


Step 2: Check their website for any indicators of credibility. If they do not have an "About Us" page or any other information about themselves on their website, it may be a sign that they are trying to hide something. 


You should look at the length and the success of their operations. You must conduct thorough research on the company you are considering to handle your investment. Remember that there are certain red flags for an investment scam, and you should ask questions about these possible red flags. Don't be afraid to ask your potential cloud mining company questions about the company's safety and security.
 

A cryptocurrency cloud mining app runs in the background on your phone or device. It is where you can control cryptocurrency mining activity. These cloud mining apps generally use very little power or data usage, and many even provide rewards for using them on the regular. 

Proof-of-Work is a process where one party (miner) generates a proof of work that complies with specific requirements and sends it to a second party (verifier). In essence, the PoW proves that the miner has done its job. The PoW is a piece of data demonstrating the time, effort, and computations spent on generating the data that will form part of the blockchain. 


Proof-of-Work is one of the most popular consensus algorithms used in blockchain networks today. It is the algorithm employed by Bitcoin, which uses mining to create new blocks and add them to the blockchain. It is a fundamental part of the Bitcoin protocol, which provides security through block generation, verification, and providing bitcoins as a reward for miners. It also provides economic incentives for participants to validate transactions, create new blocks and store them in the blockchain.

Mining bitcoin through a cloud mining platform is not always profitable, and the potential ROI is very low. Cloud mining platforms depend on many factors to be advantageous because they charge high maintenance and electricity fees and have the opportunity cost of not investing in other cryptocurrencies that may have better returns on investment.


Cloud mining platforms offer different services and packages with varying degrees of profitability in the bitcoin cloud mining process. Therefore, it's essential to research before investing. The research will help you understand how much you will potentially earn and what risks are involved.


The profitability of cloud mining is also highly dependent on the price of bitcoin since you are betting on increasing the value to make a profit. Cloud mining may not be as profitable as buying bitcoins outright because you are paying someone else to manage your hardware and run it for you. 

Mining Bitcoin is not a free service since it can be expensive to mine Bitcoin, so it's not possible to mine them on the cloud for free. However, some providers offer free cloud mining services. Still, these companies tend to be illegitimate and often have hidden fees in their contracts or collect your personal information in exchange for "free" services.
 

The main question on people's minds is whether or not these programs are safe. It is important to note that 99% of these programs are scams, and investors should avoid them at all costs. These programs can contain malware and viruses that can steal your personal information. Therefore, you should always do your research before you invest in any cloud mining program. One of the ways to tell if a free cloud mining program is safe is by analyzing its terms and conditions. The terms and conditions should be clear and concise and not hide any clauses that may seem unreasonable or suspicious. In addition, they should be transparent in their operations. Since these are free services, there are no guarantees that these companies will pay out.


Finally, the company should offer easy ways to withdraw your funds from the mining pool.


In general, you should be careful in using these companies. They might make money by allowing you to use their computing power for their bitcoin cloud mining for free, but they also have to earn from the transaction. If you don't pay them directly, they might be making more from selling your data to other parties that could use it for nefarious purposes.
 

Cloud Mining contracts are not physical products. They are a service the company provides and are subject to the terms and conditions outlined in the buyer and seller agreement. Generally, it is primarily possible to sell Cloud Mining contracts as long as the contract is yet to be activated. The person who buys the contract can activate it themselves and get their mining rewards.
 

You may mine a variety of coins using cloud mining services. They include Bitcoin, Ethereum, Dash, Litecoin, and Monero. Currently, cloud mining only works on cryptocurrencies that rely on Proof of Work as their consensus protocol to maintain the integrity of the transactions on the blockchain since a mining process that utilizes proof of work will be easier to scale up.
 

An introduction: Cloud Mining Providers

Cryptocurrency cloud mining is one of the easiest ways to delve into cryptocurrency! There is no need for technical knowledge, complicated hardware, or software installers. Instead, start your rented miner on any cloud mining platform and watch the crypto roll in!

Best for Beginners

Cloud mining is best for beginners who don't want to spend money on expensive hardware but want to try to mine bitcoin or Ethereum. It also allows people to mine cryptocurrencies without needing technical knowledge or a related skill set. It is an investment that will allow you to learn more about the world of cryptocurrency and blockchain technology.

Good cloud mining providers provide bitcoin cloud mining and Ethereum mining, some of the most lucrative digital currencies. In addition, these trusted cloud mining providers have cloud mining contracts that have some of the lowest fraud risks and the best-trusted cloud mining equipment with a great hash rate.

Best for Investors with a High-Risk Tolerance

Cryptocurrency inherently does not provide fixed passive income. However, investors with a high propensity for risk can use this type of investment because they have proved profitable. However, these investments carry more risk than traditional investments. The investor pays a fee and receives revenue from the company's future cryptocurrency production.

Cloud mining can be risky for investors as they do not directly control the hardware that mines cryptocurrencies. If something goes wrong with the hardware, fixing it can take a while, and there is no way to recover lost funds. However, if an investor has a high tolerance for risk, then cloud mining may be one of the best possibilities for investing in cryptocurrency.

What is cloud mining?

Cryptocurrency mining is the process of validating transactions that take place in the blockchain and updating the blockchain to reflect these changes. Algorithms assign miners to validate blocks of transactions. The blockchain is a public ledger that records all the cryptocurrency transactions and shows their movement from one address to another, including exchange rates. 

Mining is essential for the currency because it prevents fraud, can act as an incentive for people who participate in the activity by paying them with virtual coins, and ensures that its investors can trust the networks.

Cloud mining is the concept of connecting users to remote data centers that host the mining hardware. It eliminates the need for you to own and deal with physical hardware, the power consumption costs of these components, and the cooling and maintenance costs associated with the cryptocurrency mining process.

Types of cloud mining

Cloud miners can mine three ways through a server.

Virtual Private Server

A virtual private server, VPS for short, is the process of renting out a server and installing the necessary software on it. However, the server might still need more equipment to give you a decent hash rate and mine cryptocurrency effectively. Mining through a VPS is the best way to make cloud mining safe and ensure you have the most reliable cloud miners.

Leased Hash Power

An investor can rent the unused hash power of the equipment from the cloud mining provider. The provider already installed the unused hash power on their network, and all the investor has to do is control the setup using remote software.

Hosted Mining

Hosted mining utilizes economies of scale to provide the processing power needed to mine cryptocurrency. This process involves renting the unused computing power of some server providers and using that hash power to mine cryptocurrency. For example, you rent out the hash rate of multiple, high-powered Application-Specific Integrated Circuit (ASIC) machines offered by a cloud mining service provider. These ASIC miners are the most efficient but can only mine specific cryptocurrencies.

How does cloud mining work?

Cloud mining is a relatively new type of cryptocurrency mining that has become increasingly popular. Cloud mining providers sell their computing power, allow customers to pay for the hash rate, and buy a part of the server in their different mining farms worldwide.

To start mining cryptocurrency, you must buy a machine or a mining contract from a cloud mining provider. 

When you build your machine, you can choose from various GPUs, including AMD cards and Nvidia cards, which can mine different cryptocurrencies. You then have to install the operating system, set up drivers and all other necessary software like special BIOSes and OpenCL miner configs, configure networking settings so it can connect to the blockchain, and start mining. 

Building a machine to mine is cumbersome and would take a lot of time to maintain each part. Cloud mining is a solution for those who want to mine cryptocurrency without the hassle of building a machine.

Cloud mining providers have popularized cloud mining by offering different packages for different levels of involvement - from simply renting out processing power for a fixed period to owning an entire mining rig and generating cryptocurrency on your behalf.

What are the core features of cloud mining?

Convenience

You do not need to buy expensive mining equipment, build a mining rig, or spend time on installation and maintenance. Instead, you just need to invest in cloud mining contracts with cloud mining providers to take advantage of the computing power of mining equipment to start mining cryptocurrency and participate in mining pools.

Ease of Use

You can monitor the mining activity on your personal computer through the provided software. Some providers allow you to choose which cryptocurrency you want to mine that is available on their network.

Statistics Monitoring System

The best cloud mining providers employ monitoring systems that include the following:

  • vital stats about the cryptocurrency,

  • the availability of the cryptocurrency you want to mine,

  • the balance confirmation,

  • your transfers and withdrawals,

  • and your profits.

Multiple Payout Options

Cloud mining websites should give you various options when cashing in your rewards. You must have the opportunity to withdraw the cryptocurrency to a wallet, transfer it to an exchange, sell it directly, or reinvest it into more mining contracts when available.

What are the advantages and disadvantages of cloud mining?

Cloud mining is a convenient option for miners who are new to the industry or those who cannot afford the required equipment. The advantages of cloud mining include:

  • You don't need to purchase and maintain the expensive and noisy hardware in your home.

  • It is accessible to everyone, no matter their location.

  • The cloud mining service provider sets up everything from hardware maintenance and electricity costs, allowing users to save time and not have to be an expert in building computers or mining rigs, determining the optimal balance between the costs and the rewards. As a result, cloud Mining services can offer more powerful hardware for much less money than a traditional setup.

  • You can mine different cryptocurrencies without having to worry about the cost of the hardware and electricity bills.

However, the process is not all rainbows and butterflies. There are disadvantages to cloud mining which include:

  • The mining process is centralized, which means you are at the mercy of the downtimes experienced by the cloud mining company. 

  • You cannot control the cryptocurrency data due to centralization. Thus, you only receive the rewards with no information on the rest of the process.

  • Users cannot mine in other pools and mine coins with a different algorithm because of the specified use in the mining contract.

  • Some service providers charge high fees, often not disclosed before signing up for a cloud mining contract.

What features should I consider when comparing cloud mining providers? 

When you are comparing cloud mining companies, you should consider the following features:

Cryptocurrency Variety

Some providers offer a range of cryptocurrencies, while others only typically offer bitcoin or Ethereum.

Hash Rate

The rate at which a miner mines is known as the hash rate. It is measured in Giga hashes per second(GH/s) or mega hashes per second(MH/s). The hashing power of the mining hardware should be on par with the mining difficulty associated with mining Ethereum or Bitcoin. Different cloud mining sites will quote you with varying rates of hash for their various cloud mining contracts.

Energy Efficiency 

Cloud mining providers use different types of hardware and algorithms. For example, suppose one provider uses more advanced mining hardware or a better algorithm that consumes less or uses green energy. In that case, it will have lower electricity costs and a higher profit margin.

Maintenance Fees 

Some providers charge additional periodic maintenance fees as part of the mining contract to cover their overhead costs and improve the reliability of their data centers. These fees can range from 1% to 10% of the overall contract value, the original contract cost, or a predetermined price.

Support Services

Knowing what support services are available before buying any mining contract is good because you might face mining process problems.

Contract Length

It's essential to know how long the contract for their cloud mining services would last compared to their competitors to see if they have competitive contract lengths.

Security 

It's essential to know and understand the kind of security measures that the cloud mining provider has in place to protect your investment. For example, they should be using encryption security in communication between devices and securing their server.

Stability

The stability of a cloud mining provider is vital because you don't want to be missing out on potential income because of downtime.

Reputation

The company's reputation is crucial because it tells you how reliable and trustworthy they are and that they won't just run away with your money.

User Guides

Proof-of-Work vs. Proof-of-Stake

Proof-of-Work and Proof-of-Stake are two types of algorithms used to validate transactions on a blockchain.

Proof-of-Work is the current standard for validation in most cryptocurrencies. To validate a transaction, miners have to solve a complex math problem. The problem's difficulty automatically adjusts to limit the number of blocks created by miners each day.

The Proof-of-Work system is a protocol created to solve the problem of double-spending. The idea is to give every miner a chance to produce blocks, and the more computational resources they have, the bigger the chance they can be selected.

Proof-of-Stake is an alternative system for validation in which hash power complements the amount the miner has at stake. It doesn't depend on computational power because it uses your stake to grant you rights. Proof-of-Stake systems allow different participants in a blockchain network to take turns validating transactions based predominantly on their stake during each blockchain transaction.

Ethereum vs. Bitcoin Mining 

In Ethereum vs. Bitcoin Mining, we need to make a few distinctions. First, Bitcoin is not just a currency; it's also an electronic payment system that allows everybody to transfer wealth without a third-party intermediary. Second, Ethereum is another cryptocurrency that has been gaining popularity recently. Its creators designed it to have more flexible use cases than Bitcoin. It also has smart contracts which allow the automation of specific tasks, such as transferring funds when a particular event occurs.

Bitcoin mining is adding transaction records to bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is the blockchain, as it is a chain of blocks. The blockchain confirms transactions to the rest of the network as having taken place.

Bitcoin mining needs a lot of computing power and, in turn, uses a large amount of electrical power. Bitcoin miners gain bitcoin for their efforts, which they can trade for fiat currencies like dollars and euros.

Ethereum mining is different from bitcoin mining because it does not use the same proof-of-work algorithm. Instead, Ethereum uses Ethash, which uses the memory on your graphics card (GPU) instead of just your CPU like bitcoin does.

There are some solid arguments for preferring Ethereum over Bitcoin. For one, Ethereum has a much larger market cap, meaning one could mine ether coins with cheaper hardware. Ether's lower price also means that it has more chances of soaring than bitcoin when it comes time for market corrections. The mining difficulty associated with bitcoin has also increased with the growing popularity of bitcoin mining.

Using Cloud Mining vs. Using A Cryptocurrency Investment Platform

One technique used to produce cryptocurrency online is through cloud mining. It is the process of pooling resources and investing in high-powered machines to mine Bitcoin, Ethereum, and other cryptocurrencies.

Cloud mining is not for everyone because it requires investment paid upfront. If you want to invest in cloud mining, you need to buy mining contracts from companies that offer these services and pay them monthly or yearly. Cloud mining has been around for a while now, and some people have made good profits, but it's risky because there's no guarantee that your investment will pay off.

Conversely, cryptocurrency investment platforms allow people to invest in cryptocurrencies without mining them. The investor does not need any technical knowledge or access to expensive mining equipment; all they need is a computer that's connected to the internet and the intent to invest in cryptocurrency. Cryptocurrency Investment Platforms are websites where people can invest their money into cryptocurrencies to generate a profit.

ASIC Miners vs. GPU Miners

The ASIC miner is the first of its kind in the market. They are more powerful than GPU miners, have a higher hash rate, and are more efficient. However, they are also much more expensive to produce and can only mine a single cryptocurrency.

On the other hand, GPU miners are less powerful than ASIC miners but can mine various cryptocurrencies. They can also be produced at a much lower cost and are easier to maintain. Furthermore, GPU miners are not limited to mining cryptocurrency. They can be used to mine cryptocurrencies and perform other graphical processing tasks.

Independent miners commonly use GPU miners due to their versatility and relatively specific setup requirements. On the other hand, ASIC miners are more common for cloud mining companies since they can provide better hash rates more efficiently.

Glossary 

Application

Specific Integrated Circuit (ASIC) - A computer, or more specifically an integrated circuit chip, built for a specific purpose. It is optimized to do a particular job well, often just a single computational algorithm or a set of related algorithms.

Cloud Computing 

Cloud computing is the delivery of different computing services through the internet. It offloads the computational load from your devices to remote data centers, which users can access through the internet. To be specific, cloud computing offloads computational load to the "cloud," which allows users to monitor all data and activities anywhere they might be with an internet connection.

Green Energy 

Green energy is the electricity from renewable energy sources with the most significant environmental benefit. Solar panels, windmills, geothermal power plants, biogas, biomass, and some hydroelectric dams generate Green Energy.

Hash

Hash is a shortened digital signature of a block of data.

Hash Rate 

Hash rate is the total computational power used to mine and process the transactions on a Proof-of-Work blockchain, like in Bitcoin and Ethereum.

Proof-of-Stake (PoS)

This is a method of maintaining the integrity of transactions on a cryptocurrency's blockchain. Proof-of-Stake adds another layer to Proof-of-Work by increasing the chance to win additional blocks if they have more money invested into the process. In simpler terms, it means that the protocol relies on the "proof" of how much you have at "stake."

Proof-of-Work (PoW)

This is the original method cryptocurrency has employed to ensure that transactions on the blockchain are secure and validated. It relies on the principle that miners must use tremendous computing power to create a hash that matches the current one that Bitcoin, the network, requires. In simpler terms, the protocol relies on having "proof" that the miner has done "work" to find the hash that matches the one that the cryptocurrency blockchain requires.

Mining 

Mining is the process that involves validating cryptocurrency transactions on the blockchain network and adding them to the distributed ledger. Mining is checking the computations done by miners to see if they correspond with the string of code hidden in the block. If they get the validation correct, they get a part of the newly minted coins.

Mining Contracts 

A mining contract is an agreement where a customer pays for the output from the hardware placed in remote data centers. They pay a specific amount upfront to a service provider in the hopes that they would get their money back in a few months or for as long as it takes them to correctly answer enough challenging math problems to break even.

Mining Pools 

A mining pool is a concept that allows miners to combine, or pool, their computational resources to increase the possibility of finding and mining blocks on the blockchain. The rewards are distributed proportionately to the number of resources each miner has contributed when the mining pool succeeds in its activity.