What is cloud mining
Cloud mining is a way in which you hire a company to pay for your digital currency without paying for the necessary hardware and equipment. Continue along with ExPay 24 to explain the different aspects of Cloud Mining.
A summary of Cloud Mining
Cloud Mining refers to those services and companies that sell you their hardware processing power and do the mining and maintain the equipment. Cloud Mining means that you can mine digital currency remotely without buying expensive hardware equipment. All you need is just a computer or mobile phone to access your account and see your profit.
Keep in mind that the benefits of cloud mining are naturally much lower than direct mining, and you will sometimes suffer losses if prices drop.
High Possibility of Scam in Cloud Mining
Some companies in the field of cloud mining, but not all of them, either work on unhealthy business models or just want to empty your pocket. Unhealthy models cause either losing your money in the end or your profit will be less than the time you invest directly in bitcoin.
It was a summary of Cloud Mining and its various aspects. If you need more in-depth information on Cloud Mining and more reviews, follow us to consider cloud mining from the following points of view:
- How is cloud mining performed?
- What are the best cloud mining services?
- Research before taking any steps
- Conclusion – Is Cloud Mining Profitable?
How is cloud mining performed
Since bitcoin mining and most other digital currencies mining at home is a very difficult and expensive task, people are looking for cheaper solutions where there is no such thing as consuming electricity by equipment that sometimes gets out of hand and loses their performance.
Because of these problems, Cloud Mining is considered an alternative solution because you rent high-powered hash hardware that is maintained in the right environment. The miner company is responsible for maintaining the equipment and sharing the benefits of the mining operation with you.
If you search the term “Cloud Mining” on the Internet, you will find many websites that encourage you to enter the field. On most of these websites, you will find a lot of numbers that generally confuse newcomers.
Remember, you cannot always trust the promises of such websites.
The best Cloud Mining services
Naming a cloud mining service provider is a very difficult job, as most of these companies are fraudulent. There are, of course, good options.
Suitable cloud mining companies
When it comes to the word “suitable”, it does not mean that they are “profitable” or “famous”. By “suitable” word, it means owing hardware that can be used for bitcoin mining. A reputable company is not a company that makes a better profit or guarantees a profit, but a company with fewer lies and you can be sure that it does mine.
Genesis Mining, Bitclub Network, and Hash Flare are authentic companies and websites. However, when we take a closer look at these companies, we find that each has its weaknesses.
Most of the time, Cloud Mining describes the “losing” situation. If the price of bitcoin goes up, you will be less profitable than you were when you bought it. If the bitcoin price is reduced, you will not benefit and you will probably lose the only money you have saved.
Apart from the fact that the payment contracts of companies active in the field of cloud mining are fixed, these companies also receive maintenance costs of the equipment from the customer.
Maintenance costs usually include the friction costs of the equipment, the cooling equipment, and the location where the equipment is placed. This price is calculated in dollars per unit of mining power, which is about $ 0.14 per tera hash.
Since profits are paid based on bitcoin prices and maintenance costs are received in common currencies, if the price falls, the profits may not be sufficient to pay maintenance costs. In this case, the company will terminate your contract without a refund.
According to the Genesis Mining website:
“If the contract does not profit (the profit is not as much as the maintenance cost), the daily profit will be zero. Thereafter, the contract is valid for up to sixty days, and if the contract is not profitable within sixty days, the contract will be terminated.”
On the other hand, if bitcoin prices are jumping, the mine difficulty will also increase, resulting in less profitability. In other words, the direct purchase and maintenance of bitcoin will be more profitable, as you will lose less and earn more.
If you look around at the websites that provide such services, you will find that many contracts were terminated after bitcoin’s long-term standstill period in early 2018 when bitcoin prices fell.
Ponzi Tricks underneath the Cloud mine
Alongside the companies that provide cloud mine services, there are many companies created just to deceive customers. After bitcoin attracted a lot of attention, many fraudulent companies came into this market.
Much of the Ponzi fraud in the digital currency field is dedicated to cloud mine websites that claim to invest in digital currency with investors’ money. Most of these sites use the Ponzi method and pay new investors the profits of old investors.
Astronomical and guaranteed profits, regardless of the risks of mine, lack of transparency on how to operate, lack of a valid address or telephone number, etc. are signs of Ponzi Mining plans.
Cloud mine is possible, but a reputable cloud mine site only sells hash power, not claiming a guaranteed astronomical benefit at a fixed and regular rate.
According to activists in the field, many cloud mine companies are a kind of Ponzi plan. This means no extraction equipment is in place, and you only pay the older investors and the company.
Many people do not complain about the company when a few hundred dollars are stolen in this way, and eventually, after the company goes bankrupt or disappears, there’s nothing to.
Do it yourself
If you haven’t already convinced about Cloud mine to become a high-risk business, you can do your research. Here are some ways you can get the best results:
Investigate the company you intend to register with
Almost all of the fraudulent companies in this area have referrals where people have complained about the services of the company. To do this, you can research in forums like “BitcoinTalk” or “Reddit”.
If you are involved in fraud, you can share your experience on these websites and avoid harming others.
Invest as much as you can without loss
If you want to get into Cloud mine , invest step-by-step and never, ever, invest too much. It can be said that this is the most important thing to keep in mind. The technique of such companies is to bring you slowly to the game and as soon as you make big money, you will never hear from them again.
Conclusion – Is Cloud mine Profitable
Avoid Cloud mine as possible. There are many unanswered questions in this area, and it cannot be said with certainty that Cloud mine is a good solution for investing in digital currency. Finally, if you have a dogma to get into the digital currency and especially bitcoin, the best thing is to go straight to the market.
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