In this quick guide, we go over free cloud mining as a separate branch of cloud mining industry. The sector has its own pros and cons, all of which we list out at the beginning of this article. We also go through the profit calculation, payouts, and withdrawal methods. At the end of the article, we propose platforms that you should check out. We list their advantages and disadvantages which you should be aware of.
We also go over communities from which you can contact other miners and get information about the industry and payouts. It should be noted early in this article that we dont have any good experience with free cloud mining. Those companies are often shortlived or scams. However, we see it is a big interest ta read about them from our readers so we provide the information. Make sure to compare with real large cloud mining providers, such as Hashflare and Genesis Mining.
Before we go any further, there is an important distinction that we have to male regarding free cloud mining. The sentence “there is no such a thing as a free lunch” applies to cloud mining as well. Thus, what we review here is cloud mining that can be kick-started without the initial investment. You do pay fees as you mine cryptocurrencies in most cases, either by flat rate or as a percentage.
Also, free cloud mining providers have other means on which they gain funds, apart from charging you fees. They can implement Google Ads or use your hash power to harness more coins which would they take.
We made advantages and disadvantages of the free cloud mining platforms that you should know about before you start mining.
– no plan purchases are required, meaning that you can start immediately
– coins are immediately available
– out-of-stock happens rarely
– many of the platforms offering free services are scams
– daily fees can cover up payouts completely
– positive ROI takes a lot longer time than with paid cloud mining
Most of the indicators are the same with those platforms that offer pans. You have mining difficulty, providing you with a general idea of the daily payout. You also have hash power available to you to choose from. Combined, you use hash power to derive coin’s volume according to the mining difficulty.
There is an important distinction from regular cloud mining operations when it comes to profit. Except for bitcoin, maintenance fees are not present in large, pay-for-plan companies like Genesis Mining and Hashflare. Free cloud mining platforms, however, would charge you with flat costs or percentage, depending on its strategy.
Thus, you have hash power/difficulty daily payouts vs daily costs that would be deducted from your payouts. BE aware of the fact that many platforms do not offer large hash powers, thus the profit margin would be quite small. There is no ROI in the case of free cloud mining since you are not investing anything at the beginning. Read more about cloud mining calculations in our specialized article about this topic.
There is little difference between paid programs and free cloud mining platforms. In both cases, you get payments expressed in coins that you mine. You also pay maintenance fees, though in paid cloud mining programs some cryptos do not have these costs while free platforms do. The only major difference is the rate of payout.
Free cloud mining programs tend to have a lot lower payouts than those that require prepayment. That is how these companies make most of the profit, meaning that fees are rather hidden within the smaller awarded volume.
In this section, we go over several free cloud mining platforms, in terms of available hash power, cryptocurrencies, and fees. Selected companies that we review in this guide are BitzFree, 247bitcoins and Micro-BTC.
Founded in 2014, a company called Bitzfree Software Trading LLC operates the platform, with its headquarters located in Ankara, Turkey. The Turkish cloud mining organization offers Bitcoin Gold mining service through GH/s. As soon as you register, you start gaining the balance of BTG, standing at 0.0001 mBTG on daily basis.
The price per GH/s stands at 0.001250 BTG, which is approximately $0.076 in fiat value. The only currency available at this point is BTG, with even bitcoin not being available. Should you wish to purchase larger hash power or contracts, there is a bonus system, seen in the picture below.
247bitcoins is a platform which started its operations in 2016 and has since offered free cloud mining services. Ownership of the is not known nor are is the development team. Its reputation, although its services are free, is on low hinges with many investors calling 247bitoincs a Ponzi scheme. You can check out the home page of the platform in the snapshot below.
Currently, the platform offers 0.0005 BTC per hour and only bitcoins are accepted for cloud mining. You can also invest your own BTC, though we suggest trying free coins first, due to the negative word-of-mouth.
The most transparent company offering free cloud mining is Micro-BTC, a registered Canadian business. The site operates since 2015 and has been said to provide regular payouts according to various posts in the community. With this platform, you get free 30 GH/S with a lifetime contract available. There are no fees and verification, much like with others, is not needed. You can check out programs in a picture below.
As seen in the case of 247bitcoins, what communities say is of vast importance. You should keep an eye on the latest information regarding scam lists, Ponzi schemes discovered and status on payouts. Many of the free cloud mining platforms are cleverly designed frauds, aimed at pushing you to deposit coins, never to see them again.
In this free cloud mining guide, we have analyzed current market and benchmarked it against paid contracts. Although very similar, free cloud mining can be used a starting point for those that wish to learn more about the industry. It offers low-profit rates and has many scamming sites at this moment.
Since no investment is a need, we would suggest to only use it for educational purpose. You should refrain from investing coins only to get really small payouts on daily basis.