Are you interested in mining bitcoin but rather not would like to buy expensive equipment, set it up and mine Bitcoin yourself? Then cloud mining is for you. With cloud mining or cloud hashing as it also is called, you let others (data centers) mine Bitcoins for you by renting their equipment and paying them to make sure it runs smoothly (service fees).
In this article, we will go through exactly what it is, why data centers rent them out instead of leveraging the equipment themselves, and of course, list the best cloud mining contracts in our Bitcoin cloud mining reviews. Let’s jump straight into it!
- Why do data centers rent out mining equipment?
- What are the advantages of cloud mining
- The disadvantages of cloud hashing
- To look out for when choosing a cloud mining contract
- Best Bitcoin Cloud Hashing Services 2018
- Is Cloud Mining Profitable?
- Bitcoin Cloud Mining Scams History
- Cloud Mining Viruses
- Are there Free Cloud Mining Trials?
Why do data centers rent out mining equipment?
The answer is simple, really. While their business model in one way relies on Bitcoin, they are not building their whole business model on the price of Bitcoin, since the price is highly volatile. They are basically providing shovels and picks in a gold rush. It’s a Pick-And-Shovel Play. This is something that was done during the California gold rush and is done now, with Bitcoin.
They get their return on investment without relying too much on the price of Bitcoin. If Bitcoin were to crash to $0, their capital if they had mined Bitcoin and kept it themselves, would be worth $0. It’s a more secure way of doing business by renting out the equipment, as of now at least.
However, since the price of Bitcoin keeps rising, their users make more and more profit from their service. So it’s a win-win situation; the user doesn’t need to invest in bitcoin mining hardware and pay for the electricity (the price of a miner can be $3000+, and electricity bills can add up quickly). And the data center does not rely fully on the price of Bitcoin.
What are the advantages of cloud mining
- No stress of upkeep, electricity costs, software installations or expensive hardware
- You don’t need to listen to humming fans running wild all day long
- You can quit at any time if/when Bitcoin mining becomes unprofitable
- No ventilation needed for the hot equipment
- No need to wait to get started mining bitcoin
- No out-of-stock equipment to wait on to be re-stocked
The disadvantages of cloud hashing
- Many scams: Many companies that have popped up that exploit newbies, making it hard to find a trustable provider
- Your hands are tied to the decisions of the provider. You cannot upgrade the gear yourself.
- Lower profits long-term
- You rely on a cloud mining provider that can close down anytime in case of too low of a price on Bitcoin
These are some of the pros and cons of the cloud hashing, you can use them to make your mind on which method is the best. Although, for most people that aren’t that tech-savvy or have money to put down on expensive hardware, cloud mining contracts is the best choice.
Now that you know why they are operating and the advantages/disadvantages of cloud mining, it is time to make sure we pick the right contract. Here are some guidelines we would recommend you to follow when picking a provider.
To look out for when choosing a cloud mining contract
The reputation of a cloud mining contract is important. You need to make sure that the operations are done without any hassle and that the company is not trying to exploit the “bitcoin boom” and essentially is ripping you off.
We recommend you to always read reviews from different sources to make an educated decision. Don’t worry though, after this section, we will list all the best Bitcoin cloud hashing contracts so that you don’t have to do the extensive research yourself.
The price of operations is important. Most companies say that you’ll break-even by a certain month. You can pick which machine you would like to rent, and how many, so you can really put in as much money as you want into this – the minimum is usually around $10-20 per month.
Best Bitcoin Cloud Hashing Services 2018
1. Eobot Review
This is by far the best cloud mining solution. Eobot offers a solution unlike any other. With Eobot Cloud Mining you can purchase fractions of a cloud instance. Pay with PayPal or using cryptocurrencies, and mine a wide variety of cryptocurrencies such as LiteCoin, Ethereum, Bitcoin Cash, DogeCoin, Ripple, Dash, Golem, and Ethereum Classic to name a few.
For each cloud instance running SHA-256 you own you will get 1.0 gigahashes per second. This is the preferred one for Bitcoin due to its difficulty level. The Cloud Scrypt will get you 1.0 megahashes per second, which is more suitable for LiteCoin and other lower-difficulty coins.
Since you can start out small, this is a great choice for a beginner that just want to dip their toe into the jungle of Bitcoin mining. It’s easy to get started and you can start with as little as $10. You’ll receive mining updates every 60 seconds which makes it easy to keep track on your profits. They also offer a calculator on their website so that you easily can calculate the earnings per cloud instance.
2. Hashflare Review
Hashflare is a well-known cloud mining provider that has operated since 2014. They offer a customizable pool mining solution, you can decide which pools you want to mine in to make the most money possible. With transparent fees and commissions, you can always keep track on how much you have actually made, with the fees included.
They, like most of the rest Bitcoin cloud mining providers they offer two types of mining; Scrypt and SHA-256. They also offer specific packages for those interesting in mining Ethereum, ZCash, and Dash. The pricing is easy to understand and comes at a competitive rate.
You will receive your first payout within 24 hours. This is great since you will quickly see your investment paying off, slowly but surely.
3. Genesis Mining Review
With a simple-to-use interface and an easy way to get started mining Bitcoins, Genesis Mining is a great contestant as the best cloud mining provider. Genesis Mining is one of the oldest cloud mining providers and thus they have a lot of experience in the field. They are also the largest cloud bitcoin mining company which proves that they can handle a lot of volumes and still do it well.
You can allocate the hashpower you own to mine different coins at the same time. You can, therefore, use one instance to a variety of cryptocurrencies. This is not only fun and extremely easy to accomplish, it also diversifies the risk of the investment.
Genesis Mining offers different pricing packages based on what coin(s) you’re interested in mining as well as the amount of hashpower you want. They are a bit more expensive than others in the field, but their support and experience weight up for that.
4. Hashing24 Review
Hashing24 is a well-established cloud mining company since they have operated since 2012 and served thousands of satisfied customers since. Using modern ASICs from Bitfury they make sure that they are really using as efficient and powerful hardware as possible. They also guarantee 100% uptime, you will never have to lose sleep at night over downtime or errors, they don’t operate like that.
Their data centers are located in Georgia and Iceland. They make the calculations of expected ROI time-frame really easy by showing you all the numbers included beforehand. Keep in mind, though, as with all cloud mining companies, they cannot promise anything. But if everything goes as planned, the calculation is the estimated outcome.
Hashing24 is a highly recommended service. They know what they are doing and keep the user informed of the included fees. There is really nothing bad to say about them.
5. Minergate Review
Minergate not only offers cloud mining but also mining software so that you easily can mine cryptocurrencies using your computer. As with the previously mentioned services Minergate also clearly shows you all included costs and potential profit calculations.
With 20,000+ happy users and a clean UI (user interface), Minergate is a great choice for a beginner. You can easily set the amount you want to invest per day and voilá, you’ve entered the world of crypto mining. They allow you to mine Bitcoin, Ethereum, and Monero.
7. Hashnest Review
Operated by Bitmain, the ones behind the Antminer line, Hashnet offers excellent cloud mining contracts. Currently, they have over 600 Antminer S7s to rent out, and since it is owned by Bitmain, they can re-stock quickly in case of them running out of stock.
They have a special contract called PACMiC V5. PACMiC stands for “payback accelerated cloud mining contract”, which means that it aims to cut down the payback time-frame a lot. We highly recommend using it since you will see a return on investment quicker using PACMIC V5 than traditional cloud mining contracts.
8. Bitcoin Cloud Mining Review
Currently out of stock.
9. NiceHash Review
This is more of a marketplace than a company selling cloud mining. Here you can meet sellers of mining capacity or if you want to sell capacity, you can connect with buyers here. The pros of this are that you can cancel at any time without a cancellation fee (you’re not locked into a contract) and that the rates can be a bit cheaper here than with data centers renting out space and maintenance service. The con of NiceHash is that you can only pay and get paid in Bitcoin or fiat as of now.
Is Cloud Mining Profitable?
Yes, it currently is. The current mining hardware makes it profitable after a certain amount of time. We’ve included how fast each company claims that you will break-even (and after that, it is all profit), but somewhere along the lines of 12-16 months is usually the standard. This might seem like a long time but if you think about it – any business that breaks even within a time-frame of 12 months is doing something right.
It also highly depends on the price of Bitcoin. If the price of Bitcoin goes up, so will our total revenue do. The thing with cloud mining is also that you will need to invest a bit of money to really see some returns, the more you are able to invest on a monthly basis, the more money you will get back. Even though you will get the same ROI with $10/month as with $100/month, the latter will result in 10x the amount of money. However, you’ve invested way more using the latter.
For the majority of people, buying Bitcoin and trading it with other altcoins, or just hodling, will be way more lucrative than mining (unless you have free access to electricity and a good storage space).
Bitcoin Cloud Mining Scams History
Unfortunately, there are a lot of scams in the Bitcoin cloud mining industry. How come you may ask, well, it’s quite simple to set up a website nowadays and claim that the users will get X, Y, and Z. In reality, they might not have a facility or any hardware whatsoever.
Two big cases of cloud mining scams are HashOcean and Bitcoin Cloud Services, which got accused of running a $500,000 Bitcoin Mining Ponzi-scheme and have since shut down.
Cloud Mining Viruses
There are quite a bit of virus going around that infect computers and mines Bitcoin from that device. If you fear that this has happened to you if you have downloaded unsafe programs or Torrents, then please run a virus scan on your computer. The mining could be done in the background and unable to be found on the front-end of the computer. The mining will not only make your computer slower (using a lot of CPU) but also will cost you a lot due to high electricity bills.
Make sure to weekly or monthly run a virus scan to ensure that you are not affected by a virus. This is also important if you have an online wallet and don’t want to run under the risk of being hacked.
Are there Free Cloud Mining Trials?
No. Any company offering free trials are most certainly trying to scam you. Nobody is willing to just hand you some free cash in return for nothing, especially not a business. We would recommend everyone and their mother to stay away from cloud hashing companies offering free trials.