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    Best Bitcoin Cloud Mining Sites

    Ben Knight
    Posted by: Ben KnightUpdated May 12th, 2023

    The information provided on this page is for educational purposes only and is not intended as investment advice. We may receive compensation from our partners if you visit their website. Read our disclaimer to learn how we make money.

    As competition for mining Bitcoin (and other crypto assets) has increased, the requirements for successfully mining crypto are now out of reach for many casual investors. However, cloud mining platforms level the playing field by providing mining services for a small fee. This lets retail investors participate without paying up for expensive hardware and their hefty running costs. We have compiled a list of the best cloud mining sites and platforms. Each has been assessed to determine which is best suited to each prospective miner’s specific needs.

    Best Cloud Mining Websites For Bitcoin In 2023

    The final list of our top-rated Bitcoin cloud mining sites are:

    1. Binance - Best Cloud Mining Platform for Beginners
    2. KuCoin - Good Cloud Miner For Electricity Costs
    3. Hashing24 - Solid Bitcoin Cloud Mining Platform
    4. StormGain - Popular BTC Cloud Mining Platform with Trades
    5. Nicehash - Reputable Bitcoin Cloud Miner
    6. Hashshiny - Trusted Cloud Mining Provider for Multiple Coins
    7. ECOS - Full Option Crypto Mining Platform
    8. BeMine - Best Platform for Leasing Miners
    9. IQ Cloud Mining - Mining Platform with Support for 100+ Coins
    10. HappyMiner - Zero Maintenance Fees

    The Best Cloud Mining Sites Compared

    Cloud Mining SiteSupported CoinsDeposit MethodsMinimum DepositMaintenance Fees Rating
    Binance Cloud PoolBTCUSD, EUR + other fiat and cryptocurrencies~$5.85$0.0531 per TH/s4.8/5
    KuCoinBTCUSD, EUR + other fiat and cryptocurrencies~$5.85$0.05 per TH/s4.8/5
    Hashing24BTCUSD, EUR, BTC and other cryptocurrencies$52$0.00033 per GH/s 4.8/5
    StormGainBTCNoneNoneNone4.6/5
    NicehashBTCBTC, ETH, EUR and other cryptocurrencies0.001 BTCNone, but 3% on every order4.6/5
    HashshinyBTC, ETC, ZEC, DASH, DCR, DOGEDebit/credit cards, PayPal, USD, EUR and other cryptocurrencies$0.50 per day for BTC$0.005 per 10 GH/s4.4/5
    ECOSBTCBTC, LTC, XRP, and ETH$150$0.025 per TH/s4.2/5
    BeMineBTCBTC, XRP, LTC, Debit/credit card, and several othersNot statedUp to 7% for withdrawals, $0.057 for KW/h of electricity used4/5
    IQ Cloud MiningBTC, BCH, and 150 othersVisa, Mastercard, Wire Transfer, BTC, BCH, ETH and more$5.65 (figure subject to change)$0.0005 daily 4/5
    HappyMinerETC, BTC, LTC, BCH, DOGE, DASHBTC, LTC, ETH, USDC, BCH and USDT$10None3.6/5

    Cloud Mining Platforms and Apps Reviewed

    There are many cloud mining platforms available online with varying features, costs, pros, and cons. Here are our reviews of each cloud mining pool.

    1. Binance Pool – Best Cloud Miner For Beginners

    Binance is by far the world’s most popular crypto exchange after being founded by Changpeng Zhao in 2017. The platform has enjoyed a long period in the sun, attracting 90 million registered users and billions of dollars in daily trading volume.

    The Binance exchange is renowned for its long list of features, and true to form, the developers introduced a cloud mining setup in 2022 for platform users to easily access. Binance isn’t necessarily a beginner-friendly exchange, but it is highly regarded in the industry for being trustworthy and providing reputable services. This can give newcomers joining a Bitcoin cloud mining pool confidence that their hard-earned crypto will be safe.

    Binance cloud mining pool for BitcoinBinance cloud mining pool for Bitcoin

    For now, Binance’s cloud mining service only supports pre-paid, set-duration plans to mine BTC. Most of these plans are usually 3 or 6 months long. The team is continually adding new products though, and in the future, Binance will likely include other Proof-of-Work digital currencies too.

    In terms of costs, Binance offers fixed-rate fees, which vary depending on the current plan. The hash rate fee is typically set at around USD $0.012 per day, while the electricity fee is approximately USD $0.0531 per day.

    On the flip side, Binance’s cloud mining pool has historically returned USD $0.0819 per day, leading to a revenue rate of 140%. We can break the numbers down even further if we assume an investor has selected a 90-day plan:

    • Hashrate Fee: $1.08
    • Electricity Fee: $4.78
    • Total Projected Income $7.37
    • Overall Profit: $1.50

    Of course, investors can purchase substantially more hash power than used in this example to magnify their potential profits. However, it’s important to remember this data is historical and can change at any time. Bitcoin cloud mining may not be profitable at all if the price of BTC drops substantially, or if Binance changes its fee structure. Additionally, Binance charges a 1.5% management fee and a 2.5% cloud mining fee, totaling a 4% fee.

    Read our full Binance review.

    Binance Cloud Mining Pros:

    • Simple, one-click process to participate in BTC cloud mining pool
    • Binance is full of useful features to maximize mining profits (for example, staking)
    • A well-respected platform trusted by millions of weekly users

    Binance Cloud Mining Cons:

    • Only supports cloud mining BTC as of 2023
    • Still a new service so may have some kinks to iron out
    • Contracts are usually fixed-duration with a limited uptake
    • 4% fee for participation is quite high

    2. KuCoin Pool – Best For Low Electricity Costs

    KuCoin has become renowned among crypto enthusiasts as “the altcoin exchange”, thanks to its support for thousands of trading pairs. It's similar to Binance in both appearance and features – including a cloud mining service that was introduced in the past couple of years.

    The “one-click” cloud mining pool enables participants can buy into pre-paid plans that will mine on their behalf for a set duration. Like other similar “plan-based” cloud mining pools, KuCoin Pool has a limit on how many members can sign up. If they miss out, they have to wait until KuCoin releases their next cloud mining plan.

    KuCoin cloud mining serviceKuCoin cloud mining service

    So far, KuCoin only supports mining Bitcoin with Antminer hardware, although other coins and popular mining hardware and rigs might be on their way. The program occasionally waives its electricity fee, which lets them offer customers potential yields of 500%+ (substantially more than most competitors).

    However, these figures are inflated as KuCoin instead charges “Electricity Management Fees” where participants have to buy electricity to continue mining. The exact costs vary as these fees are calculated on a daily basis, but the minimum payment is 1 USDT. The exact same variable fee system is used for purchasing hashrate.

    Due to the changing fee structure, it’s difficult to put an exact figure on overall costs and potential profit. Ultimately, KuCoin cloud mining comes cost-effective and comes out very similar to most competitors – approx. $0.01 per day for hashrate and $0.05 per day for electricity. KuCoin also charges a cloud mining fee of 1-2%, which also varies depending on participation levels.

    Read our full review on KuCoin.

    KuCoin Cloud Mining Pros:

    • One-click plans available for easy participation in cloud mining pools
    • KuCoin occasionally runs promotions where they waive electricity or hashrate fees
    • Lots of additional features for miners
    • 1% cloud mining fee is quite competitive (although this can jump to 2% depending on the plan)

    KuCoin Cloud Mining Cons:

    • Bitcoin is the only coin offered by KuCoin’s Cloud Mining Pool
    • If an investor misses out on a Cloud Mining Stage, they may have to wait weeks or months to participate in the next Stage
    • Cloud mining plans only last 90 days (although this may change in the future)

    3. Hashing24 - Excellent Bitcoin Cloud Mining Platform

    Hashing24 is a legally-registered Bitcoin mining service provider based out of Ireland. The company was launched in 2012 and has surged in popularity to support over 200,000 users monthly. The product’s industry prominence, ease of use, and range of options make it particularly valuable for cloud mining newcomers.

    The Hashing24 platform leverages the infrastructure of Bitfury, a top blockchain technology company with data centers spread across Europe and Canada. The business also employs qualified personnel to take charge of monitoring the activity and performance of the mining farms. This ensures customers 100% uptime when purchasing hashing power. At this point, BTC is the only mineable coin, but this may change in the future.

    Hashing24 cloud mining calculatorHashing24 cloud mining calculator

    Like most other mining platforms, Hashing24 offers fixed-duration contracts, including 12, 18, and 24-month plans. These cloud mining contracts can be activated for as little as one terra hash per second (TH/s), which works out to US $52 for a year-long plan. The estimated profit for such a plan would be $28.75 (an excellent ROI of 55%), but these figures may be drastically different from actual earnings. Withdrawals can be processed at any time, but the minimum figure is 0.0007 BTC (about $2 at the time of writing this article).

    Hashing24 charges a service fee on each contract (which is variable) as well as a daily maintenance fee on certain contracts. Most popular contracts on the platform won’t charge the maintenance fee, however.

    Hashing24 also comes with a profit calculator on its website, allowing investors to check their potential profits across days and weeks. For first-time Bitcoin miners, Hashing24 features a demo mining account where they can test different miner capabilities before selecting a mining plan.

    Hashing24 Pros:

    • 100% uptime for Hashing24’s various international data centers
    • A solid choice for beginners thanks to the platform’s one-click plans
    • Small barrier to entry, with a yearly plan starting at just $52
    • 1% cloud mining fee is quite competitive (although this can jump to 2% depending on the plan)

    Hashing24 Cons:

    • BTC is the only coin mineable on the platform
    • No short-term or 30-month plans available
    • Will occasionally charge maintenance fees depending on the plan chosen

    4. StormGain - Best Free Bitcoin Cloud Miner

    StormGain is an “all-in-one” cryptocurrency platform that operates a cloud mining service alongside an advanced cryptocurrency exchange. The company was founded fairly recently in 2019 with the goal of creating an all-encompassing experience for investors and miners of moderate to advanced skill levels. Users can trade derivatives with leverage of up to 500x, with support for popular digital currencies and several tokenized assets. The platform is ideal for experienced crypto traders wanting to dabble in margin trading alongside cloud mining.

    StormGain cloud minerStormGain cloud miner

    StormGain’s cloud mining service is unique compared to nearly all others on the market. Investors can only purchase hashing power proportionally to their trading volume. This is quite different from other cloud mining services where users pay a subscription fee to lease resources.

    Those creating a StormGain account just for the BTC cloud mining pool can earn up to $0.26 per day (paid out in BTC). Users need $10 in rewards to make a withdrawal, so it will take approximately ~2 months for non-traders to access their earnings. This is made even more convoluted as investors must continue re-activating the miner tool on their account to continue “mining”. The highest tier, which requires a huge $75 million in trading volume, can earn approximately $276 worth of BTC per day.

    Although StormGain is an extremely slow burn with very low-profit rates, there are some positives. It is simple to get started – new users just need to create an account, deposit money to the exchange, and activate the miner (by pressing a big green button). Additionally, there are no fees for participating in StormGain’s mining product, as the company makes its revenue from transaction fees on the exchange. However, serious miners without much margin trading experience should consider an alternative platform.

    Read our full StormGain review.

    StormGain Cloud Miner Pros:

    • No fees or subscription required – completely free
    • Setup is incredibly simple and only takes a few minutes
    • Those with high trading volume anyway can profit hundreds daily from StormGain’s BTC cloud mining pool

    StormGain Cloud Miner Cons:

    • Potential earnings will be very low for most investors
    • No ability to subscribe for higher hash power – users must trade crypto
    • The first tier above free BTC cloud mining requires $150,000 in trading volume
    • Bitcoin is the only mineable coin

    5. NiceHash - Trustworthy Cloud Mining Company

    NiceHash is one of the industry’s leading cloud mining services, being in operation for close to a decade. It is essentially a marketplace where those with excellent graphic processing units (GPUs) or powerful mining rigs can sell hash power to other investors. The platform was founded by two Slovenian university students and now boasts over 60 employees. The team is renowned for its attention to security and readily available customer support.

    NiceHash cloud mining statsNiceHash cloud mining stats

    NiceHash provides people an opportunity to mine with any hardware – including older GPUs and CPUs (although profitability will vary dramatically). Perhaps the most useful feature of the platform is its calculator. Interested miners can install Bitcoin mining software that scans their PC’s hardware and calculates potential earnings.

    When it comes to cloud mining, NiceHash runs an open marketplace that lets investors start earning BTC, ETH, and LTC by borrowing the hash power of other rigs. The prices on offer vary depending on the algorithm being used and the seller’s requirements. Regardless of the algorithm, NiceHash’s minimum order price is 0.001 BTC. Fees for buyers include 3% of the total order and a flat 0.00001 BTC “new order” fee.

    NiceHash is a little more complex than other cloud mining services (as they are a broker, rather than a data center operator) and is ideal for the more experienced. This is because investors can set their own parameters for buying hash power, including the algorithm, cost per TH, and their preferred internet server.

    NiceHash Pros:

    • Massive flexibility on offer for advanced cloud miners
    • Earnings available on Bitcoin, Ethereum Classic and Litecoin
    • Relatively low starting point (0.0001 BTC)
    • Strong history of security and attention to detail

    NiceHash Cons:

    • Fees are rather high
    • Can be a little more complex than the one-click plans offered by other cloud mining services

    6. Hashshiny - Trusted Cloud Mining Provider for Multiple Coins

    Hashshiny has stood out as one of the top cloud mining platforms since it was founded at the tail end of 2016 and released to the public in 2017. The platform represents an excellent middle-ground between beginner and advanced cloud mining products. The desktop website is paired alongside a functional and sleek mobile app, both of which offer a comprehensive lineup of PoW coins for mining Bitcoin on a mobile phone.

    Hashshiny cloud minerHashshiny cloud miner

    Hashshiny supports 7 major digital currencies, including Bitcoin, Ethereum Classic, Zcash, Litecoin, Dash, Decred, and Dogecoin which gives investors additional flexibility compared to other cloud miners. Hashshiny also uses the latest ASIC and GPU miners to power its cloud mining infrastructure, such as the Whatsminer M30, and employs professionals to maintain its operations and run its data centers.

    Different contracts are priced differently depending on the coin being mined and the crypto being used. For instance, the cloud mining contract for Bitcoin starts at $0.50, with the minimum hashrate put at 10 Giga hash per second, with a maintenance fee of $0.0005 per day.

    Other cloud mining contracts are billed between $0.15 and $0.85. Each offering comes with a 2-year contract, so investors must be prepared for their money to be tied up for 24 months. Some customers on review sites have complained that the maintenance fee, paired with transfer fees upon withdrawal, eats 40% of the profits.

    In terms of security, Hashshiny is one of the most reputable and trusted cloud mining sites. The team stores all generated cryptocurrencies in offline cold wallet storage facilities, and its database is backed up daily.

    Hashshiny Pros:

    • Mine seven different coins, one of the largest ranges offered by a cloud mining service
    • Very low minimum requirements to get started
    • Has a mobile app to manage cloud mining products on-the-go
    • Stores earnings in cold hardware wallets

    Hashshiny Cons:

    • Only accepts 2-year contracts which are rather illiquid
    • Maintenance fees can get costly
    • Website design and optimization could be a bit better

    7. ECOS - Full Option Crypto Mining Platform

    ECOS is an interesting project born in 2017. The company operates out of the Free Economic Zone (FEZ) in Hrazdan, Armenia, an area designed to foster the growth of high-tech startups. ECOS claims to be one of the most cost-efficient cloud miners available due to its location and partnership with local energy and mining equipment suppliers. The company sources its mining rigs from crypto mining equipment manufacturer Bitmain, with thousands of rigs set up across the region.

    ECOS cloud miningECOS cloud mining

    Cryptocurrency mining on ECOS is quite simple for investors to set up. Users only need to purchase their preferred plan to begin mining Bitcoin, making it an excellent choice for beginners – especially considering the well-designed and easy-to-use mobile app. There is a little flexibility lacking though, as BTC is the only mineable coin available.

    ECOS offers a minimum mining contract of 30 months and a maximum of 60. The minimum contract price is $150, which will provide users with approximately 2.18 TH/s of hashing power (and works out to $2.29 per 1 TH/month). This is quite an affordable rate that yields an industry standard of 50-60%. A 60-month contract would yield $79 in profit if all things remained the same. It’s worth noting that ECOS charges a service fee of $0.025 per 1 TH/s, which is deducted from the daily profits earned.

    ECOS has one of the most legitimate-looking platforms of any cloud mining service provider, with easy-to-access customer support and several other features such as an upcoming NFT marketplace. Like with all cloud mining service providers, ensure to be across the math and potential risks before entering a contract, as multiple investors have ended up losing money from ECOS.

    ECOS Pros:

    • Strong value for money
    • Very simple to enter and customize a contract, even for beginners
    • One of the better-designed and easy-to navigate cloud mining platforms. It looks more professional than most competitors
    • A solid mobile app

    ECOS Cons:

    • A daily service fee which can quickly eat into potential profits
    • Bitcoin is the only coin supported by the platform

    8. BeMine - Best Platform for Leasing Miners

    BeMine is a cloud mining service targeting both beginner and advanced crypto miners. The platform connects data centers and mining equipment owners for a collaborative cryptocurrency mining experience. Platform users have mined over 380 BTC since its inception in 2018 with over 75,000 users. There are several powerful rigs available for interested miners, including the Whatsminer M50s and the Antminer T19.

    BeMine Cloud mining plansBeMine Cloud mining plans

    The company's cloud mining contracts are 48 months long and split into different levels – Beginner, Standard, Professional, and Ultra. BeMine charges customers for the hash power and electricity costs. The cheapest, beginner contract available comes with a hash power of 4 TH/s and hourly energy consumption of 200w. The expected daily income at current Bitcoin prices is set at 0.000018 BTC ($0.35/daily), although this figure will vary significantly. At the time of writing this article, each contract was out of stock and maybe a few weeks or months before being available again.

    BeMine charges a service fee of $0.057 per KW/h of electricity. Withdrawals are charged a flat fee depending on the amount of Bitcoin withdrawn. BeMine charges up to 7% for 0.01 BTC withdrawn, with a minimum withdrawal amount of 0.005BTC.

    The platform has a strong history of customer support and security in its time running. There have been no public incidents reported and customers have typically left strong reviews on independent sites like TrustPilot (3.7/5 stars).

    BeMine Pros:

    • One-click contracts targeted at both beginners and advanced users
    • Fast customer service accessible via WhatsApp and Telegram
    • Decent contract and fee schedule
    • Use renewable energy to power their services

    BeMine Cons:

    • Fees charged for withdrawals can reach 7% for less than 0.01 BTC, which is very high and will wipe out a lot of profits immediately
    • Small uptake for contracts, meaning they are often sold out

    9. IQ Cloud Mining - Mining Platform with Support for 100+ Coins

    IQ Cloud Mining is one of the better cloud mining sites for altcoins. It has the largest list of mineable coins in this list with more than 150 altcoins and includes major tokens such as BTC and ETH. Each comes with a respective hashrate and number of mineable coins.

    Like most cloud mining services we've mentioned, IQ works on a one-click contract basis. The mining contract is set at a minimum of 1 year with daily payouts, but users can also make a lifetime commitment and automatically re-invest their profits. The minimum hashrate starts at 500 GH/s, while the minimum contract price is set at $0.113 per 10 GH/s.

    IQ Cloud MiningIQ Cloud Mining

    IQ Cloud Mining charges a maintenance fee of $0.0003 per 10 GH/s daily for its services. This would ultimately lead to a 12-month payout of approx. $107 from a $50 dollar investment (although this calculation does not consider the service fee).

    The platform features a profit calculator for a general gain overview, as well as lightning-fast customer support. IQ boasts a sub-2 minute response time from their 24/7 live chat, making them one of the most efficient and accessible support teams in the industry.

    IQ Cloud Mining Pros:

    • Low minimum contracts starting at just $50
    • Support for a huge range of altcoins and stablecoins
    • Excellent user back-end to trade coins and track profits from mining
    • Solid maintenance fee rate

    IQ Cloud Mining Cons:

    • The fee structure is charged daily, which can have a big impact on the profits of smaller spenders
    • No official mobile app or smartphone support
    • No support for US residents

    10. HappyMiner - Good For No Maintenance Fees

    HappyMiner is another cloud mining platform that made its debut in 2018. The product offers one of the simplest ways for miners of all experience levels to participate in proof-of-work blockchains without needing expensive hardware. The platform’s strong reputation and immense flexibility will make HappyMiner a suitable mining solution for investors of varying needs.

    Like other mining services, HappyMiner operates on a contractual basis. Essentially, cloud miners will pay an upfront fee to borrow the hashing power of one of the company’s machines in Iceland, Norway, or Canada. Importantly, the company uses electricity from renewable sources, giving them a sustainable long-term structure.

    Happyminer cloud mining contractsHappyminer cloud mining contracts

    There are six cloud mining packages available via HappyMiner, each for a different coin and with differing requirements. The coins supported include ETH, BTC, LTC, BCH, DOGE, and DASH. The cheapest available is called “Primary Mining” and provides a daily profit rate of 8% with just a $10 buy-in. However, each contract can only be renewed every day.

    For Bitcoin, the starting contract costs $100 and returns about 1.5% over a three-day period. So, a $100 purchase of hashing power would yield about $4.50 – although this figure is subject to change. It’s worth noting there’s a $100 minimum deposit and withdrawal.

    HappyMiner has acquired solid reviews on independent websites such as TrustPilot (3/5 stars). The company promises excellent customer support and provides a live chat feature that should instill new users with confidence. HappyMiner offers slightly higher rates than many of its competitors and does not charge any pool fees – which may make some investors wary. However, they are a registered business in the United States (based in Olklahoma) and so far have done little to damage their strong reputation.

    HappyMiner Pros:

    • $10 sign up bonus to get started right away
    • Support for multiple coins
    • Excellent daily rates compared to other mining platforms
    • Very simple to get started cloud mining

    HappyMiner Cons:

    • The contract price for certain coins may be a little high for beginners
    • Only short-term plans are available for major coins like BTC and ETH
    • There is no mobile app for tracking progress on-the-go
    • Minimum deposit of $100 isn’t ideal for those just wanting to try the service out

    What is Cloud Mining?

    Cloud mining is a form of producing new cryptocurrencies by capitalizing on the computational power of remote mining rigs. This way, individuals can start to mine Bitcoin and other cryptocurrencies without needing to own expensive mining rigs. Cloud mining has gained prominence following the rise in energy costs, and competition for earning BTC (and other digital assets).

    Most cloud mining services are operated by companies that own international data centers filled with advanced mining machines. The power of these facilities is then leased out to users who subscribe to a ‘mining contract’ – basically an allocation of the service provider’s resources. Once the mining rigs receive block rewards, they are shared based on the hash rate purchased.

    While cloud mining is mostly popular with Bitcoin, crypto users can mine various PoW coins, like Litecoin, Monero, Dash, and several others.

    Types of Cloud Mining Services

    A crypto miner can usually access a rig’s computational power by buying “hash power” from the cloud provider. Depending on their needs, cloud miners can choose between two models:

    Host Mining

    This model involves purchasing (or renting) mining equipment in a data center and paying for installation and maintenance. Miners can reduce costs associated with electricity consumption by sharing it with others.

    Host mining allows miners to tweak the hash power and strength of the connected rig to reduce energy consumption if, for example, income was slowing down. In addition, miners have total control over all rewards generated and get to choose their own pools. Host mining is better for higher net-worth, experienced individuals who want the flexibility of owning (or leasing) an entire rig.

    Hash Power

    Hash Power is another cloud mining model that miners use to reduce operations costs. In this model, miners pay to borrow a fraction of the mining farm’s hash power. It’s usually a subscription-based model, where investors will receive rewards proportionate to the amount of power purchased.

    Unlike host mining, leashing hash power is much cheaper to start off with, as it requires much smaller setup and maintenance fees. However, this model is less lucrative as rewards are shared among investors.

    What To Look For In A Cloud Mining Service

    There are many cloud mining websites for interested users to choose from, which can be overwhelming for some. To make the decision easier. here are some key features to look out for before choosing a mining platform:

    • Low fees. Service fees are used to help the cloud mining provider pay for the running costs of their operation. A good fee rate for cloud mining is between 1% and 2% of the profits. However, some investors will find cloud mining platforms that only charge upon withdrawal (or not at all, like StormGain).
    • Daily payouts. The best cloud miners will reward crypto miners daily for all transactions completed. Usually, the payout amount depends on the energy miners consume and the total blocks they complete. Look for sites that have re-investment schedules that automatically put these daily rewards into purchasing additional hash power.
    • Customer Support. The best cloud mining companies provide fast and responsive customer support channels that are easily accessible. Keep an eye out for 24/7 live chat and multilingual support as vital features.
    • Mobile App. With a mobile app, investors can easily monitor and control their cloud mining activities via a smartphone. This lets miners make quick decisions on the go, which are especially important in the crypto space where things move really fast.

    Pros and Cons of Cloud Mining

    There are several benefits and disadvantages to cloud mining that crypto miners must consider before embarking on their journey:

    Cloud mining pros:

    • Using cloud mining eliminates the hefty costs associated with purchasing, installing, and running sophisticated mining equipment or hardware. Also, no ongoing operational costs and replacements if a GPU is damaged via crypto mining
    • Many popular cloud mining platforms require minimal technical knowledge. Beginners and experienced investors alike can generate passive income via cloud mining
    • Quality cloud mining platforms like Hashing24 deploy robust security systems to protect miners' data and shield them against hacks or cyberattacks. This helps ensure miners' assets and data are safe at all times, which can be a little harder to ensure when independently running mining software

    Cloud mining cons:

    • Cloud mining is built upon the centralization of mining resources. This flies in the face of Satoshi’s original vision for the blockchain, a distributed ledger. However, this issue is broader and largely has to do with consensus mechanisms, rather than a direct problem with cloud mining
    • Many fake cloud mining platforms pretend to be legit to swindle unsuspecting investors. To be safer, investors should stick to trusted cloud mining websites and read customer reviews before joining a mining farm
    • Although some cloud mining platforms can be maximized with just a click or two, others may have a steep learning curve. This could use up a lot of time that may be better invested in other earning activities like staking
    • Cloud mining providers can face difficulties with staying profitable mining Bitcoin in particular. This can mean companies can become insolvent and also it can take years for an individual to mine 1 Bitcoin.

    How To Cloud Mine Bitcoin and Crypto

    Investors can start cloud mining on a reputable crypto-mining platform in just a few minutes. For this guide, we will demonstrate how to get started on the popular crypto exchange Binance.

    1. Create and verify the account. Many will already have an account with Binance. If not, head over to the mobile or web platform and register an account. This process can be shortened by signing up via Apple or Google accounts. New customers must also verify their accounts to abide by international Know Your Customer protocols.
    2. Navigate to Binance. Head to the Binance cloud mining webpage. This can be found by hovering on the Earn tab, and then selecting “Binance Pool”. Then, on the top of the Binance Pool page, select “Cloud Mining”.
    3. Subscribe to the Binance Cloud Mining Pool. The Binance cloud mining service will have various contracts, each with a different term length and upfront cost. Select the most beneficial package (by clicking where the “Sold Out” button is), making sure to assess the various fees against potential earnings. Some users may need to fund their accounts to continue. This can be done simply on Binance by clicking on the yellow ”Deposit” button and sending any of the supported crypto and fiat currencies to the Binance account.
    4. Finalize Transaction. Once the desired cloud mining contract has been chosen, users just need to confirm the transaction, sit back, and watch as their leased hash rate accumulates BTC. BTC rewards will be paid out daily.

    Frequently Asked Questions

    Some cloud mining services are free, while others require a payment of some sort. Most have an upfront subscription fee because they must purchase and set up high-capacity ASIC equipment. There can also be additional service fees to pay for electricity costs or other overheads.

    Yes, cloud mining can be profitable. There are lots of elements that can impact profitability that should be determined – the price of the coin being mined, electricity fees, and other service fees. It’s important to run calculations before getting started with a cloud mining service.

    Crypto scams are unfortunately common in the cloud mining space. Some platforms may request upfront payments (much like a legitimate service). However, these fake platforms do not own any hash rate or mining pool and will simply take the money of their victims.

    Therefore, investors should always do due diligence before subscribing to a mining platform to stay one step ahead of scammers. It’s a good idea to steer clear of platforms that promise outrageous returns on investment (ROIs) and questionable projects, as they may be rug pulls.

    Conclusion

    Cloud mining is one of many ways to earn passive income from crypto, and has surged in popularity along with the price of Bitcoin. It is a solid solution to the extreme costs associated with solo mining BTC (or other digital currencies) and can provide decent profits. However, cloud mining doesn’t guarantee profits, and elements such as fees, price fluctuations and lock-in periods can all impact earnings. Cloud mining is a fantastic option, but always do a couple of profitability calculations before signing a contract.

    Ben KnightBen KnightBen Knight

    Ben Knight is a freelance writer with a passion for music and finance from Melbourne, Australia. He completed his Master's in Writing, Editing, and Publishing in 2019, following a Bachelor's degree in Creative Writing. Ben has been writing in the finance and cryptocurrency industry for more than three years.

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