Mining farms are commonplace in the Bitcoin ecosystem and most of them offer different packages for hash power while mining for themselves as well. This is a touchy subject for many people, due to the sheer amount of scams that are popping up across the internet.
This is why we want to ask you to practice due diligence and deeply explore and research companies claiming to provide a cloud mining service.
Cloud mining companies need to be able to present valid proof, as well as have a detailed “About” page, where you can learn more about the company and the people that are working for them.
So What is Cloud Mining?
Cloud mining is a great way to start mining Bitcoin or other cryptocurrencies without the technical knowledge or burdensome hardware that takes up space, electricity and generates a significant amount of noise in your home.
Essentially, cloud mining is a product that allows you to purchase mining power from a mining farm. They upkeep your miner 24/7 and you don’t have to bother with any part of Bitcoin mining, except ownership of mined Bitcoin.
Though a cloud mining plan, you could become the owner of a Bitcoin Miner. You could also claim a smaller part of the hashing power from one miner. It’s your choice, depending on the cloud mining provider you choose.
These companies have to pay electricity bills and they develop formulas which calculate how much power is expended by the hashing power that you own. These fees are deducted from your payments. Additionally, depending on the provider of the service you could be charged additional fees depending on the payment model you choose for their mining pool. Generally the fees are associated with the PPS payment plan, while PPLNS usually doesn’t come with any additional fees.
Legitimate Cloud Mining Companies
This is a branch from BitMain, one of the largest manufacturers of Bitcoin Miners. Currently, they are producing the strongest Bitcoin Miners on the market, as part of the AntMiner series. What is interesting about this cloud mining service is that they have set up a trading system that allows you to trade hashing power for bitcoin and vice-versa.
One of the longest standing miner farms on the market. They started their company in 2013 and have grown quite a lot ever since. They offer Bitcoin mining plans starting as low as 200 Gh/s for 30$. Beyond Bitcoin they also have mining plans for other cryptocurrencies such as Zcash and Ethereum.
Once again, practice due diligence when making a decision to purchase a cloud mining product. There have been numerous scams over the years that people have fallen victim to. This can be easily prevented by setting high standards for yourself.
There is so much more to learn about Bitcoin and related technologies. Understanding and learning more about them will be vital for making correct decisions in this ecosystem.