Are you looking to understand everything about cloud mining? You are at the right place. This guide explains what cloud mining is, how it works, and the platforms you can use to participate in cloud mining. So whether you are an experienced crypto user or a beginner, after reading this article, you should be able to know how you can take part in cloud mining.
Cloud Mining Explained
Simply put, cloud mining involves mining crypto assets without owning any equipment. With conventional cryptocurrency mining, one must buy and maintain the necessary hardware required for mining, which is considerably expensive. But thanks to cloud mining, you no longer have to purchase that hardware. You only need to pay a monthly fee to mine crypto assets.
That said, cloud mining is an ideal option for people who wish to mine Bitcoin and other digital currencies but cannot afford to buy the required machines. Moreover, it is perfect for those who live in areas with high electricity charges, considering that mining machines consume a lot of energy.
How Cloud Mining Works
Traditional mining involves the use of powerful computers to solve difficult mathematical problems. The process is vital as it also secures blockchain networks. Once miners solve the problems, they are rewarded with newly generated tokens.
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As for cloud mining, the platforms providing this service operate the computers for crypto mining. After being rewarded, they distribute the tokens to investors based on their subscriptions. These subscriptions are offered in the form of mining contracts. Expensive mining contracts tend to attract more rewards than cheaper ones.
How Do You Start Cloud Mining?
Do you still want to give cloud mining a try? Here are the steps you are required to follow:
Select a Cloud Mining Provider
Although there are several platforms claiming to provide cloud mining services, only a few are legit. So, doing your due diligence before subscribing to any of them is important. One of the reliable providers is Binance. The crypto exchange offers cloud mining services through its platform called Binance Pool. Through Binance Pool, you can mine Bitcoin, Dogecoin, and many other proof-of-work cryptocurrencies.
Moreover, the platform offers daily payouts and a comprehensive transaction history. However, its downside is that it’s not available in some countries, like the United States.
Register a Mining Account
If you are not a Binance user, you need to create an account with the exchange before registering a mining account. If you are already a registered user, simply go to pool.binance.com and click “Mining Account” to create one. Follow the registration steps to set up a mining account.
Buy Mining Contracts (Hash Rate)
After getting access to your mining account, you will notice several miners listed on the platform, along with the power of their computers, which is measured in hash rate. For starters, the hash rate calculates the speech at which a miner’s computer is able to mine crypto. The higher the hashrate, the faster a crypto asset gets mined.
Binance will provide you with a guide on how you can invest funds in your preffered miner. Unfortunately, Binance does not disclose how much you pay per month to access its cloud mining platform.
Is Cloud Mining Profitable?
Cloud mining is becoming a lucrative business, given that the mining rates are constantly increasing. Moreover, you don’t need to break the bank to start cloud mining. With only a few dollars, you can generate income from mining cryptocurrencies.
It is worth pointing out that profits generated vary from one crypto asset to another. For example, while Bitcoin is the most mined digital currency, it offers lower profits than other cryptocurrencies.
Top Cloud Mining Platforms
Besides Binance Pool, other reliable cloud mining platforms include Hashfrog, BitFuFu, StormGain, Nicehash, ECOS, YouHodler, and hashing24.
As mentioned, there is money to be made through cloud mining. However, keep in mind that not all cloud mining providers are genuine. So, doing your homework before investing in any platform is key.
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