What is the Cloud Mining and How Does Cloud Mining Bitcoin Work?

If you want to invest in bitcoin mining without the hassle of managing your hardware, then there is an option. You can use the cloud to earn your coins.Keep it very simply, cloud mining means using shared processing power (usually) running from remote data centers. Communication requires only one home computer, optional local bitcoin wallet etc.

 Cloud mining is really useful for those who are not technically minded and do not want to run their own software or hardware.If you have a lot of electricity - for example in Germany - then outsourcing your mining somewhere is a good idea, where the cost of electricity in the US is very low.

You then decide what deal you want to go to - whether it is a 500GH contract or 1000GH contract and for which period. Most bitcoin contracts are for one year, although some can be infinite (although it may look great to be true, because most of the machines will become obsolete due to continuing to follow Moore's law - which would mean that bitcoin or lightcoin.The mining company will continue to operate in losses in the near future to continue to increase the rate of network's hashing power. There are some providers that provide small and intermediate lengths of Betquoine or Lightcore contracts between 6 months and 24 months.

All you have to do is pay advance cost for PFTT in BTC, or you can pay in dollars in PB mining. They take care of everything, and everything is going well - you will get regular flow of BTC in your personal wallet. Some mining contract providers charge you during the contract at the top of the initial payment, which can distort the return metrics, and sometimes the mining contract provider can be busted or a complete and complete scam. This is the reason why we are here to provide a brief database which is reputable and can be trusted to run a bitcoin mining hardware machine on your behalf.

However, there are some risks associated with cloud mining which investors need to understand before purchase.

Professionals

Here's why cloud mining can be considered:

A quiet, cooler home - not fans of constant fans

No additional cost of electricity

When mining becomes profitable, no equipment to sell

There is no ventilation problem with hot devices

Less chance to leave by mining equipment suppliers.

Opposition

Cloud mining should not be considered here:

Fraud Risk

OPEC Mining Operations

Less fun 

Low profits - Operators must complete their costs

Contractual warnings that mining operations may be closed based on the price of bitcoin

Lack of control and flexibility.

Types of cloud mining

Generally, three types of remote mining are available at this time:

1. Hosted Mining

Take a mining machine hosted by the provider.

2. Virtual Hosted Mining

Create a (general purpose) virtual private server and install your mining software.

3. Leased hashing power

Collect the amount of hashing power, without a dedicated physical or virtual computer. 

How to Determine Profitability

We have covered ways to calculate the first mining profitability. However, the proposed web services are designed to work with your hardware parameters, not the cloud-mining parameter.

Even so, you can still use these calculators thinking about the costs involved. Profitability calculators (for example, Genesis Block) often ask for initial investment in your electricity costs, and sometimes hardware. Effectively, you are being asked for your ongoing costs and each other's investments.

Therefore, since the provider, you are not paying electricity bills, so you can enter a monthly mining bill in case of electricity costs.

Although the conversion process is not completely straightforward. In the case of hardware miners, you can do the monthly running cost by multiplying your electricity charge (i.e. $ per kilowatt) per month by the conversion factor of the unit and the conversion factor of 0.745 (per second per kilowatt power per cubic power per second) .

However, for cloud mining calculations, you need to reverse, because the provider gives you an effective (effective) monthly running cost. Therefore, you need to calculate the cost per kilowatt hour to feed the mining calculator. This is done by dividing (not multiplied) monthly running costs by the 0.745 conversion factor outlined above.

Method 2 Personally Mining Bitcoin

Buy custom mining hardware. ...

Buy power supply. ...

Get a bitcoin wallet. ...

Protect your wallet. ...

Pick a mining pool. ...

Connect ASIC miners to power supply. ...

Connect ASIC miners to your router. ...

Boot ASIC miners.

Risk vs reward

There are risks involved in any kind of cryptocurrency mining, but profitability is possible if you choose the right option. In this article, we have given you some pointers to decide how to go.

In your test calculations, you will see that some cloud mining services will be beneficial for a few months, but, as the level of difficulty of bitcoin, you probably will start losing weight in four to six months and beyond.

A possible solution to this situation is to re-invest the work you have done to maintain a competitive hashing rate, but it is highly speculative.

As mentioned above, the risk of fraud and mismanagement in the cloud mining space is very common. Investors should only invest in cloud mining if they are comfortable with these risks - as they are said, you do not invest more than not being willing to lose.

Investigate social media channels, talk to former customers and ask questions about operators before investing. After all, you should take care of the same kind of things that you will do for any investment.

Disclaimer: This article should not be viewed as a support from one of the services mentioned. Please do your own research before considering investing any money through these services.