Investment in cryptocurrencies seems to work dealing with high rates of risk since they are highly volatile compared to traditional currencies. Fortunately, there are also possible ways to earn passive income from them. With cloud mining, one of the most frequently used and best crypto passive income options, you can earn a significant amount of income from cryptocurrencies produced by mining. Moreover, without turning your home into a mining workshop or learning a new code language for this.
- Although the amount of money you will earn from cryptocurrencies depends on how much risk you can take, it is also possible to earn passive income by cloud mining.
- Cloud mining is an alternative mining method built for people who want to mine crypto but do not have enough knowledge and equipment to mine.
- By choosing an advantageous hash rate and contract plan, you can earn regular income from cloud mining. But how profitable it is will vary depending on your preferred cryptocurrency, its mining difficulty and the current market situation.
What is Cloud Mining and How Was It Born?
Mining a cryptocurrency provides security by validating transactions on the relevant network, while also allowing the generation of new cryptocurrencies until the total supply number is reached. In traditional mining, miners need to solve complex mathematical problems with powerful computers to generate new blocks. Cloud mining, on the other hand, allows you to rent a physical device from a company that already has a mining farm instead of doing this. While the relevant company is mining for you, you will receive the remaining money after the expenses (cooling, electricity, rental fee) required for mining are subtracted from the total income.
Why Should You Earn Passive Income with Cloud Mining?
Here are the possible advantages of using cloud mining method to gain crypto passive income:
- Investing for passive income is quite easy: When you earn passive income with cloud mining, you do not need to buy expensive equipment, operate a data center and manage your equipment. All you have to do is take advantage of the services of the websites that offer you services, and in the meantime, do cloud mining at the level you want and are possible.
- Cloud mining is open to both crypto enthusiasts and crypto-tech experts and beginners: By utilizing the cloud mining system, you can mine cryptocurrencies or alternative coins without any equipment or technology knowledge.
- It is possible to create a very flexible roadmap for your investments with cloud mining: It is possible to invest in the cryptocurrency you want or one of the alternative coin options while cloud mining, cloud mining sites can be listed specifically for the cryptocurrency you want.
Starting Earning Passive Income with Cloud Mining
So, how to start the adventure of cloud mining?
- Choose a platform comparing the mining plans, maintenance fees, withdrawal conditions, supported currencies, etc.
- Choose a sufficient cloud mining contract by reviewing the hash rate they offer, price/performance ratio, etc.
- Pay for the contract (In general, people prefer annualy contracts to save some money)
- Regularly monitor your profit statistics, the usage status of your current balance and the page showing the estimated profit rates. It will be useful at this stage to prefer cloud mining platforms that offer advanced analysis options.
- Withdraw your money by connecting to your wallet at allowed intervals. Note that you will pay a gas fee depending on the processing speed you prefer when withdrawing your money.
But hey, what to understand from ”hash ratios” or ”mining contracts”? Let us explain:
Each bitcoin transaction that takes place on the blockchain network has a 16-digit identification number. What the miners do is guess correctly this ID with the numbers randomly assigned by the computers. While examining the cloud mining packages, you will see different hash rate values. Here, each random number sequence to reach the correct guess represents a hash. The faster you guess, the more likely you are to mine the corresponding block.
Of course, mining is not just for Bitcoin. For example, Ethereum or Litecoin are also popular options. Ether uses a number called Ethash.
Cloud mining means that instead of installing a device that will produce high TH in your home, you can rent them to mine for you. Then you should choose the right hash rate for you depending on the competition in the cryptocurrency you will mine and the mining difficulty. And there is nothing else you can do. High-power computers will do everything for you.
How Much Income Can You Earn By Cloud Mining?
To calculate how much cloud mining will earn you, you need to take into account the difficulty of mining in the relevant network, the number of competitors and the maintenance cost that will be charged by the mining company. In addition, the price movements of your preferred coin directly determine whether you will profit from this business. Altcoins, whose value is constantly decreasing, can cause the mining income they provide to melt.
Let’s go through an example. Suppose a company named X offers you 10 GH/s hash power per month. This is charged at $2 per month. If you earn one unit of crypto per month and the price of the crypto you earn is $5, great, you’re in profit. If the price of the crypto is also rising and it has gone from $5 to $7 during the mining time, your profits will increase even more.
But things don’t usually go that way. Falling prices and mining difficulties during bear periods cause the profits to decrease gradually. Moreover, mining contracts usually reserve the right to unilaterally terminate the contract if the altcoin falls below a certain profitability. All of these also pose the risk of being eaten by the big fish.
We use Shamining income calculator to create a scenario.
Let’s say you have 1000 Dollars to make investment on cloud mining. And you choose 129245 GH/S, which is the lowest ratio to prefer. In that case, your daily income will be 4.33USD, while your yearly income ise 1560 USD. With the bonus the website offer, it can go up to 2137USD (for 1 year contract period). For this plan, the website will charge you 0.03416286, which is approximately 1000 USD.
Note that rates of income or bonuses changes from website to another. But it was an example to give you an idea. You can increase your income rate by increasing the hash rate you prefer.
What abou the ”potantial” cryptocurrency mining has?
Let’s think about Bitcoin.
We can say that approximately 900 Bitcoins are mined in a day. The price of Bitcoin at the time of writing this article is $29.210,80. If we multiply this price by eighteen hundred bitcoins, we are talking about a mining income of $26,289,720. So, there is a mining market of $26,289,720 in one day.
But don’t let this number confuse you. According to current market data, an average of 1,000,000 unique individuals mining bitcoins in the market. This means incredible competition and increased mining costs. So it makes sense to research the mining market. But the main thing you should care about is the mining difficulty rates.
The Best Cloud Mining Sites: Top 10 Cloud Mines
If you want to start cloud mining, you have to agree with a cloud mine first, it is very important that the price and features of the cloud mine you will agree with are suitable for you. That’s why we researched and found the ten most popular cloud mines for you to choose from. You can find the names and characteristics of these cloud mines in the table below.
What are the advantages of cloud mining?
You do not need to be an expert in any technical knowledge or have quality equipment and equipment to use cloud mining. You also have to rent a building when physically mining, but if you do cloud mining, you don’t need to rent a place. You have to wait a certain amount of time for physical mining because the materials need to arrive and the necessary knowledge needs to be learned, but if you prefer cloud mining, you can start mining right away.
What are the disadvantages of cloud mining?
Cloud mining has two major disadvantages. The biggest disadvantage of cloud mining is that some cloud mining services can be fraudulent, you can avoid this by only using the mines with the lowest risk level. Another disadvantage of cloud mining is that there is no control or flexibility in cloud mining.
Which countries are mining Bitcoin the most?
This type of profession is being adopted in many countries, as Bitcoin mining becomes a profession that becomes more valuable as the value of Bitcoin increases. China has become the country that mines the most Bitcoin, removing approximately sixty percent of all newly produced Bitcoins. Georgia is the country where fifteen percent of all new and old Bitcoins are mined. The United States is the country where three percent of all Bitcoin reserves are mined.