How To Earn Money With Cloud Mining

Crypto mining is all the rage in the world of innovative finance and everyone has heard of the practice and how lucrative it can be. However, it does require an investor to create a mining facility and purchase the much-needed gear. This is often too expensive for most investors and other options started to emerge.
Cloud mining is one of those alternatives and one that’s gaining traction in recent years. It started when even pool mining wasn’t available to an average user or a group of them as it once was.
What is Cloud Mining in The First Place?
Cloud mining is a process for producing cryptocurrency coins in which you don’t use your own equipment but rent those provided by others. Sites such as Truely.com provide reviews that you can use to select the best provider based on your budget and needs.
It’s a preferable option for small-time and mid-size investors since buying your own equipment is becoming too much of an initial expense for most investors to bear. It does mean, however, that the profits are somewhat smaller since you need to pay the provider as well.
What Problems You Can Solve By Using Cloud Mining
A few main problems that face all cryptocurrency miners can be solved by using this service. First of all, they connect and configure the mining farms so that they can work continuously, without clients having to do any work.
There’s no downtime on the equipment you’re using, as is the case when you use your own. That’s because the provider will rotate the equipment so that it doesn’t stop working. The third party often deals with the legal and tax-related aspects of the job.
How to Do It?
The process for starting cloud mining is quite simple. It starts with setting up an account as you would for any other online service. Next, you need to choose a contract that is suited to your needs and the profit you’re looking for. After that, you need to pay for the service – which can be done both in Bitcoins and in fiat currency.
Once everything is set up you can track the mining process on the dashboard. It shows how much was mined within a day and how much you’ve earned within the last 14 days as well.  You can also withdraw the funds from your account by going to the wallet settings.
How Profitable is It?
It’s a good investment to make when it’s compared to how you can make it when you purchase your own equipment. It’s less profitable in the long run than being your Bitcoin miner, but it also comes without a hefty initial investment.
There’s also an upside to using cloud mining as a passive income meaning that there’s no work after you set up the account. The same can’t be said for mining since it requires active involvement from those who run and maintain the farm.
What Are The Rates
The price of the contract you can enter into depends on the hash rate you’re using. The average rate offered by most providers is 100 GH per second but you can get both more and less than that. For the most part, you’ll have to enter into a one-year contract since that’s the norm.
If a Bitcoin is worth $5 and you pay for the average rate of 100 GH/s you’ll end up with $1900 at the end of the year. This is an amazing rate when compared to what you could get by for the same investment in your gear.
Less Control Over the Process
Using cloud mining means you’ll have less or no control over how the process is actually executed. That’s done by the company whose services you’re using and you don’t get to choose the software or the equipment that is used for mining. If it’s important to you to get involved in those decisions, cloud mining isn’t a good fit.
Luckily, there are a lot of reviews and comparisons between different services and you can dive into those and choose a provider based on that valuable input. It doesn’t give you agency over the process, but it does give you an option of saying no.
It isn’t for The Geeks
Those who care about the tech behind cryptocurrency and enjoy mining for the chance to build their own gear also won’t enjoy cloud mining. Part of the fun is in the tech and the ability to produce the mining farm on your own and there’s a big crossover between the worlds of tech and finance.
If this is the appeal for you and not the profit itself, you may want to stick to finding and setting up your own gear rather than using cloud mining services.
Terminating The Contract
It’s important to keep in mind that the third-party provider can terminate the contract with you before the due date. That’s what happens when the value of the cryptocurrency changes and the process is no longer profitable for them. However, this doesn’t mean you’re left empty-handed as a user.
There are payouts that you’re entitled to when this happens and they may not be as much as you would earn otherwise but it’s still better than nothing. Make sure you read and understand the contract before you decide to move on.
Should You Do it?
If you plan to add Bitcoin to your portfolio, cloud mining is a good way to do it at this stage. It’s much less expensive and less complicated than setting up your cloud mining farm and you can still gain a better understanding of the industry and earn some profit in the process.
As is the case, with any investment, you should also take into account the potential risks and downsides involved in investing in cloud mining. Regardless, of these, generally speaking, it’s a good investment to make and one that can grow and expand over time. It’s also the first step into an innovative industry.