Cloud mining Bitcoin
Cloud mining Bitcoin is a perfect choice if you want to earn Bitcoin. You invest in bitcoin mining but don´t handle the hardware. Cloud mining means you hire or buy the Bitcoin mining equipment from a company. The company runs the Bitcoin miners for you. For the service, the company grabs a part of your profit. They do this to cover for maintenance and electrical cost. However, there are a few risks with Bitcoin cloud mining. There are many Ponzi schemes out there. There are also a few companies running old equipment. Therefore, the ROI can be hard to get positive. We have a list of cloud mining reviews from the best companies. We also offer cloud mining bonuses.
We recommend Coinbase as bitcoin wallet.
Bitcoin mining is the process when computer power process transactions, secure the network and keep the system synchronized. The Bitcoin mining process is entirely decentralized, and anyone can participate. The bitcoin mining process provides a reward to its miners in the form of new bitcoins. The number of bitcoins is limited, but the miners will be required to secure the network and the transactions after the last bitcoin is issued.
Cloud Mining Risks
There are several risks you must be aware of before you invest in bitcoin cloud mining. Allcloudminers have listed risks we have identified and also experienced loss from.
- Mining Competition (KNCminer, Mining Sweden)
- Ponzi Schemes (Hashocean, Biteminer and many more)
- Bad business (Zeushash)
- Bitcoin Volatility (KNCminer, MiningSweden)
There is a big competition about the newly mined bitcoins, and therefore, the equipment can run out of profitability since all companies update all the time. If the miners run out od profitability the company shut your mining contract down. Ponzi scheme is an obvious risk and cloud mining is full of them. We have tried to separate them but it's impossible to do 100%. Running a cloud mining company is like running any other company. The operators need to be business people to succeed. There have been examples where the people are really good technicians and operating people but fail when it comes to business. The other risk is, of course, the Bitcoin price. If the bitcoin value dips too much, the equipment will run out of profitability, and the company will shut the mining equipment down. Large cloud mining operators like Genesis Mining and Hashflare could probably handle those risks. Read our Genesis Mining Review and Hashflare reviews for more information.
There are a few things to consider to minimize risks.
- Only invest in well-known cloud mining companies
- Invest small amounts over time instead of one big investment
- Choose a couple of operators instead of one
- Spread investment in different cloud mining contracts
This advice is common to minimize risk with any investment. Look at different review sites and compare presented cloud mining companies. Don´t invest in any company that isn't listed just because they have bought a Google ranking and guarantee a certain profit. Consider to start with a small investment and increase over time. The good cloud mining companies will still be there and offer contracts tomorrow as well. Consider investing in two or three different cloud mining operators, rather than just one. This is common so spread the risks if one operator fail. In addition, also consider investing in different types of cloud mining contracts.
Cloud mining Pros
- Time saving - You don't have to set up the mining park yourself.
- No explicit knowledge - You buy a contract which is as easy as buying anything online. You don't need to have any particular knowledge about the mining process.
- No extra space at home - You don't run the miners at home, so you don't waste space at home.
- No additional costs - You pay the contract and all the maintenance fees are included or deducted automatically from the profit. You don't have to worry about repair costs or higher electricity prices.
Cloud mining Cons
- The risk of fraud - There has been and still are a lot of cloud miner scams on the internet.
- Lower payouts - It´s a bit lower payout than running the miners yourself but, on the other hand, these companies run such huge farms they can cut the costs pretty much.
- No control - You don't have the control over your mining equipment. You pay someone else to have control over it. This can be bad if the company for some reasons runs into problems.
Cloud Mining Calculator
A cloud mining calculator is an important tool. With a cloud mining calculator, you can see the current status of the contracts before you buy. You need to remember that several factors have an impact on the payouts so they are not static. However, the calculator indicates the most profitable contracts for the moment.
Check out calculations for 2017 in our page Cloud Mining Calculations 2017.
Cloud Mining Scams
Here are companies we have experienced as cloud mining scams.
Cloud Mining Website
Cloud Mining Tips
Allcloudminers have summarized a few tips for from our cloud mining reviews. We have invested in 30-40 different cloud mining companies the last 3 years. We have divided the companies as legit, doubtful and definitely scams. The legit companies are well-known in the community as transparent and real mining companies. Remember that those also can fail, as for example MiningSweden. The companies listed in the doubtful category runs a company that makes payments as a legit cloud mining company. However, we have noticed some uncertainties in different communities about these companies. Be careful. In the bottom, we have a list of companies that are 100 % scams that we have invested in. Don´t ever invest in those. We recommend Genesis Mining as it is the most transparent cloud mining company.