19 min read

Recently, cloud mining has become one of the most popular topics in the press, on specialized cryptocurrency websites and publications, on forums of crypto enthusiasts. The cloud mining market is developing dynamically. This article is intended to expand your knowledge of what cloud mining is, while you will be able to learn more about cryptocurrency mining in general. At the same time, we will try to reveal its advantages and disadvantages, find out whether cloud mining is safe and whether it is worth investing in it.

Cloud mining is considered one of the most convenient methods of generating digital coins. This method of mining is more convenient for people who do not have technical knowledge. This is also a good option for cryptocurrency mining for those who do not want to run and maintain expensive equipment and related software.

Cloud mining brings great benefits to miners and a certain reward. However, it also becomes a fraud field. That's why, first of all, be vigilant, attentive and always protect your digital assets before doing anything.

Hashing24 - Bitcoin Cloud Mining

What is cloud mining?

Cloud mining is a method of mining bitcoin and other cryptocurrencies using leased computing power from a third-party cloud mining service provider. Each miner participates in a mining farm, which is a remote data center designed for crypto mining, by purchasing a certain amount of "hash power" from a service provider company.

In return, the provider will give them access to rewards equal to the amount of hash power acquired by the manners. In addition, since mining is performed through the cloud, miners do not need to worry about computer maintenance, noise, and heat and electricity bills.

After finding a reliable cloud mining service provider, miners only need to choose the type of contract to sign and the desired duration. Then they will have to make an advance payment either in fiat currencies or in digital currencies, after which the provider will provide them with everything necessary for the operation.

As a rule, miners can choose contracts from 500 to 1000 gigahashes per second with a validity period of up to one year. Many providers can also offer various conditions, such as a short-term lease of cloud mining, which can take up to 6 months or even 24-month contracts.

Is Cloud Mining Profitable?

With the growth of mining pools, cloud mining means that you rent the hash power of a data center. Reducing the initial costs of a mining rig makes it profitable in a sense. However, when it comes to investing, it always depends on the specific case. Please do your own research on your service provider before diving into cloud mining.

Similarly, it would be possible to free up the time required for driving, due to technical obstacles associated with mining. Cloud mining eliminates this as well. It is noteworthy that those who live in countries with expensive electricity can finally participate in crypto mining using a simple cloud account.

How Cloud Mining Platforms Work

Before entering the cloud mining platform for the first time, you need to know how this process usually works. Therefore, we would advise you to read the following step-by-step recommendations.

Step 1. Choose a cloud mining company

Your first step is to choose a cloud mining company website that meets your individual needs. In addition, the best way for you to do this is to conduct advanced research on the platform. This includes the duration of the site's operation and what reviews are publicly available.

Step 2: Create an account and deposit funds

Once you choose which cloud mining platform you want to use, you must create an account. In most cases, you will need to provide an email address and choose a username and password.

Step 3: Choose a cryptocurrency for mining

After selecting the cloud mining platform that you want to use, select the crypto currency that you want to mine and invest in it. Cloud mining companies usually provide you with a choice for mining various cryptosystems. But each mining platform has its pros and cons.

Step 4: Collect your share until contract matures

In the broad bulk of cases, you will be required to invest for a minimum period. Also, it is known as the “Contract Period.” This dictates the length of time you will need to have your initial investment locked up.

Likewise, this operates on fixed-rate bonds so that you will receive your interest payments throughout the term—besides your original deposit amount on the contract maturity date. 

Estimated Profit: Profitability assessment

To estimate profit, which cloud mining investment can give you, let’s calculate how much one can earn per 1 year with the initial investment of $ 5,000. 

  • We will measure profitability for the most popular: Bitcoin (ВТС).
  • For comparison, we have selected 4 of the TOP 11 best cloud mining platforms. You can find a list of the TOP 11 best cloud mining platforms below.
  • Cloud Mining Platforms: Hashing24, HashShiny, IQ Mining, CryptoUniverse. 
PlatformCost of
Hash Power
Service
Charges
Purchased
Power
Profit
per day*
Profit
per year**
Hashing24$ 1.2
for 10 GH/s
$ 0.0015
for 10 GH/s
42 TH/s0.16 mВТС$ 14,730
HashShiny$ 69
for 1 TH/s
$ 0.28
for 1 TH/s
72 TH/s0.12 mВТС$ 12,620
IQ Mining$ 95
for 1 TH/s
$ 0.03
for 1 TH/s
53 TG/s0.11 mВТС$ 9,952
CryptoUniverse$ 60
for 1 TH/s
4,6%
Service fee
83 TG/s0.1 mВТС$ 9,162

*) - The approximate calculation of income as of July 2021 is indicated, excluding the increase in complexity.
**) - The profit is indicated based on the forecast of the ВТС exchange rate for the winter of 2022.

Learn moreWhat factors affect the profitability of cloud mining in 2021

Hashing24 Mining Calculator

Choosing a cryptocurrency for mining

Now that you know how cloud mining platforms usually work, you need to think about the specific cryptocurrency that you want to mine. Unfortunately, this is not easy, since there is no universal answer to the question - "Which coin is best suited for me". Instead, there are a lot of variables that you need to consider.

This includes:

The short-term potential of the coin

First of all, you need to look at how cryptocurrency works on the open market. For example, if the coin has been on an upward trajectory for several weeks or months. Then, perhaps, it is worth taking advantage of its potential.

You will receive daily profit from cloud mining, which will be paid using the cryptocurrency that you mine. But the actual value of the coin will have a direct impact on the return on your investment, especially if you plan to sell your coins as soon as they are paid out.

The long-term potential of the coin

If you are more interested in the long-term viability of your investments, it may be best to choose a cryptocurrency that, in your opinion, has a good chance of increasing value in the future. By doing this, you will keep the profit from cloud mining, planning to sell coins in a few years.

Ultimately, if you are confident in the potential of your preferred cryptocurrency, you have a chance to get coins at a reduced price using cloud mining.

Competitiveness

During the first few years of Bitcoin's existence, it was possible to receive a reward for mining using a basic GPU device. This was due to the fact that there was practically no competition between the miners, which meant that everyone had a good chance of winning this crucial block reward.

However, Bitcoin is currently a multibillion-dollar asset class. The mining industry is dominated by a certain number of well-equipped mining rigs.

Thus, it may be worth taking crypto, which works in a less competitive field of mining. In fact, the less valuable the corresponding coin is, the more likely it is that your cloud mining operation will have inconsistent block rewards.

Project Yield

Most cloud mining platforms will give you a breakdown of the proposed payout on your chosen crypto. This is sometimes shown as a dollar value for every KW/s or Mh/s. However, this makes it hard to know exactly how much you’re likely to get. So, we prefer sites that give projected yields in interest terms.Take note, and there is never any guarantee that you will realize the projected yield published by the cloud mining site as market conditions change on almost a daily basis.

ECOS - Legit BTC Mining Platform

How to choose a website for a cloud mining company

Choosing a platform to use in your investment project, in order to make a profit from cloud mining, is usually the most difficult part of the project. Moreover, this industry operates in an unregulated way or is very poorly regulated. Thus, your money is not 100% safe.

However, here are some factors that you need to consider before choosing a cloud mining company website.

Reputation and Track Record

Notably, cloud mining platforms are not regulated, but plenty of data is available in the public domain. So, firstly, check the launch of the cloud mining site. The longer it’s been operational, the better.Then, it would help if you check websites like Reddit to assess public opinion of the cloud mining provider. If there are constant complaints from past investors about the site, you should probably avoid it.

Supported Coins

You also need to consider the type of cryptocurrency you wish to fund your cloud mining account with. If the platform does not support a coin that you currently hold, you will need to go and buy it.

Therefore, this is possible to increase the cost of your investment when you factor in the exchange fee. So, evaluate what coins are available before opening an account. 

Mining Equipment

You can consistently win block rewards on a cloud mining platform, owning a fully-fledged mining rig setup. If it doesn’t, you won’t stand a chance of earning any money. At the fore of this is the hardware devices that the platform owns.

As we noted earlier, miners are often required when the blockchain difficulty level increases. As such, verify the cloud mining site setup crucially, if what hardware it owns.

Location

The location of the cloud mining platform plays a vital role in your decision-making process. For example, you want to choose a mining operation based in a country with cheap energy prices. This is to ensure your yield is not eaten by ever-growing electricity consumption.

Similarly, you’ll want to take a cloud mining platform that is based in a crypto-friendly location. If it’s not, there is always a chance that the local authorities will close the operation. 

The risk of using cloud mining sites

As with any investment product, you need to understand and consider the underlying risks. After all, the cryptocurrency industry is subject to high risks. So there is always a risk of losing money.

Fraudulent cloud mining sites

While cloud mining is still a very promising line of business, many fraudulent companies have fled with client funds. At the same time, the platform could initially work legally. We have seen cases where a cloud mining site would shut down overnight and investors lost everything.

Ultimately, there is no guarantee that this will not happen to you; not least because of the poorly regulated cryptocurrency market or frequently changing rules and regulations.

Market condition.

You will be mining cryptocurrency to make a profit in cryptocurrency in order to collect your winnings in fiat currency. To do this, you need to sell your coins on the open market. 

However, if the cryptocurrency market is going through a period of bearish sentiment, you may need to urgently sell your coins at a discounted price. This can lead to losses and, as a result, turn your investment project into an unprofitable one.

Hashing24 - Bitcoin Cloud Mining

Pros and cons of cloud mining

Pros

  • Cryptocurrency mining without the use of any equipment.
  • There are no requirements for the consumption and restriction of electricity.
  • The possibility of investing a small amount or as much as you wish.
  • You can see the return on your investment from the very beginning.
  • You can choose the cryptocurrency that you want to use for cloud mining.
  • The opportunity to get a share of the profit from mining, proportional to your investment.

Cons

  • A lot of dubious cloud mining sites
  • The potential profit is very small

Conclusion

Many experts come to the conclusion that cloud mining with its capabilities is the future of crypto mining. However, it currently remains a complex sector of the cryptocurrency industry, prone to fraudulent activities. This means that miners need to conduct extensive research before investing in a particular company. Cloud mining is home to those investors who are willing to invest and accept the risks associated with it.


The Best Cloud Mining Platforms & Pools

The leading cloud mining platforms offer convenient services, profitable contracts for mining Bitcoin and other profitable cryptocurrencies; Crypto Mining Pools.

HashShiny

HashShiny - World's leading Bitcoin cloud mining. The faster, safer platform to mining Bitcoin. HashShiny offer a cloud-based solution for mining crypto currency for all types of users. More than 2,100,000 people mining here. HashShiny aims to extend business to the entire Cryptocurrency industry chain in the future and serve global users with technology innovations. New user get 5TH/S Bitcoin hash rate for Free.

Hashing24

Hashing24 - Bitcoin Cloud Mining with Most Advanced ASICs. Hashing24 provides turnkey renting solutions from the largest cryptocurrency mining data centers. Official reseller of industry leading companies. Data centers in Canada, Norway, Iceland, and Georgia. The newest ASIC chips. Air and immersion cooling technology. Ultimate performance at low cost. 100% uptime guarantee. Payout is based on overall network hashrate. Simply register an account, decide on the contract specifications (duration, hashrate, maintenance), make payment with fiat, bank wire or crypto and mine BTC instantly.

CCG Mining

CCG Mining is a platform for mining the most profitable cryptocurrencies. Contracts for cloud mining of Bitcoin, Bitcoin Cash, Ethereum, ZCash, Monero, Litecoin. The mining process allows you to reach the highest level of hashrate to increase your capital. CCG provides one of the highest hashing computing capacities in Europe. CCG provides customers with B2B and B2C services, simplifying the work. CCG Mining offers two ways to make a profit: Contracts for Cloud Mining and Mining Rigs. The price and duration of the contract depend on the selected coin for mining.

SHAMINING

SHAMINING offers modern cloud mining of bitcoin and other cryptocurrencies with instant payments; profitable contracts for bitcoin mining. Assembling your farm from special computers is an extremely expensive process that requires a lot of technical knowledge. The SHAMINING project comes to the rescue, which takes all the technical work on itself, offers a convenient service, transparent tariffs and excellent quality of miners. Choose the best GHs mining contract and start your cloud mining, get passive income, payouts to your cryptocurrency wallet every day.


EMCD Mining Pool

EMCD is the largest cryptocurrencies mining pool for sha256, Scrypt, Ethash and X11 in Eastern Europe with a capacity of more than 1.6 EH/s and offers one of the best commissions on the market of mining popular cryptocurrencies, minimum payment thresholds and the ability to receive daily accruals. EMCD operates on the FPPS+ model, which allows users to maximize their revenue from mining in the pool. The EMCD pool supports mining a large number of Proof-of-Work coins.

Bitland.pro

Bitland.pro is a highly profitable cloud mining platform without mandatory replenishment with guaranteed security of digital assets storage. Bitland was founded in 2017. The main office is located in Canada, Ottawa, and the main mining servers are located in Iceland and Canada. Choosing Bitland you get: Mining Bitcoin, Dogecoin, Litecoin, Tron and Tether; Recharge replenishment with Bitcoin, Dogecoin, Ethereum, Litecoin, Monero, Tron, DigiByte, Tether, Zcash, Perfect Money and Payeer; A random bonus from 5 Gh/s to 50 Gh/s is available depending on the level (from 60 to 5 minutes).

IQ Mining

IQ Mining is a cloud mining service developed for affordable cryptocurrencies mining. Cloud mining of Bitcoins, Ethereum and Altcoins. IQ Mining platform combines cloud mining with daily payments and Forex margin trading, options and cryptocurrencies, giving the opportunity to multiply potential income. IQ Mining is offering a wide selection of cloud mining contracts. Mining contracts with payouts in the most popular and trusted cryptocurrencies, 100+ altcoins and also a contract with a fixed payment in USDT. Choose a contract now and get the first payment to your crypto wallet tomorrow.

OKex Mining Pool

OKex Mining Pool - The leading crypto mining pool with 11 assets, as well as PoS assets, and daily revenue. Earn more with stable mining, real-time data, and hedging. Thanks to the unique architecture and advanced technologies, OKEx mining pool effectively prevents various attacks and maintains stable operation. The pool relies on PPS+, FPPS, and other settlement models, so you automatically get revenue daily and can check real-time revenue data. OKex guarantee reliable 24/7 mining service thanks to the multi-node deployment around the world and professional technical team.

Binance Mining Pool

Binance Mining Pool is a comprehensive service platform dedicated to improving the income of miners. Secure and Transparent - Hashrate is displayed in real-time while the Binance security team safeguards your assets. Steady Earnings - Using the FPPS, PPS+ model and instant settlements, you can avoid fluctuations in earnings. Comprehensive Service is committed to improving miners' income, closing the gap between mining and trading, and providing a one-stop mining ecosphere.

CryptoUniverse

CryptoUniverse Cloud Mining is a multi-functional cryptocurrency cloud mining service; leading hash rate and mining equipment provider with 3 data centers and 41000+ ASIC miners. Service is a partner of the world's largest exchange, Binance. Has been created in 2017 on the basis of one of the most powerful data centers in Europe with a capacity of more than 48 MW. Promotes absolute transparency in work. 


ECOS Mining

ECOS-M is a high-tech platform, specialised in sharing computing power. Here are key features of the service: ECOS mining capacities work in partnership with the largest mining pool - BTC.com; a transparent system of using real computing equipment on mining farms; flexible system of mining - contracts.
ECOS Mining Platform is a resident of a free-economic zone with special tax conditions. ECOS Cloud Mining gives an opportunity to lease real capacity of equipment for BTC mining. The advantage of ECOS Mining among similar services is in the lowest commission at service operators, competitive value of electricity and the absence of tax encumbers.
https://ecos.finance/en/cloud-mining?ref=9OBvjyn4

BITDEER

Bitdeer is the world's leading computing power-sharing platform, where users are provided with a full range of cloud mining solutions. This alleviates users' from complicated processes, such as the procurement of mining equipment, the logistics of transport, power management, and the operation and maintenance of the mining farms. Users will be able to place an order and enjoy the services with a single click.
As the world's first platform delivering real computing power to the smallest 1 TB, Bitdeer features traceable computing capacity, direct mining payment, straightforward and transparent pay outs, and customizable service plans. Bitdeer provides genuine, transparent, secure and convenient services, making it possible for anyone to take advantage of mining.
Bitdeer has served users from over 200 countries and regions around the world with monthly traffic of over 2.5 million. Bitdeer also operates hundreds of thousands of specialist mining machines from professional mining farms in Europe and America. Bitdeer not only ensures stable and consistent operation, but also strives to provide top-notch computing power-sharing services to its customers worldwide.
In strategic partnership with Bitmain, an industry-leading mining machine manufacturer, Bitdeer aggregates the world's top mining pools from across the world, such as BTC.com, Antpool, F2Pool, ViaBTC, and BTC.top, aimed at providing users with more flexible mining options.


HashMart Cloud Mining

Hashmart is a simple and affordable cloud mining service; it is based in Cyprus; it offers contracts for mining Bitcoins and Ethereum from data centers in Siberia (Russia). Hashmart uses the technologies of leading companies and manufacturers of the industry, such as Bitmain. You get maximum performance at low cost. Hashmart does not require any additional fees for paying for orders or for withdrawing funds in cryptocurrency. Hashmart provides the best possible cloud mining experience with a substantial hash power of 150.5 Ph/s. Zero risk of downtime, advanced ASIC chips that allow you to mine coins in the most efficient way. Choose your plan, specify the required hash power and start mining with Hashmart today! Hashmart offers several mining contracts, which differ in hash power, service fee and some other details. The most popular options are a 12-month bitcoin plan and an open plan, providing performance of 300 Gh/s and 250 Gh/s, respectively. The higher the hashing speed, the more mining opportunities that you can take advantage of. Therefore, be sure to carefully consider your options when choosing a contract. 


Gate.io Cloud Mining

In August 2021, Gate.io launched a cloud mining service that will allow users to purchase cloud mining contracts starting from $47 and receive income equal to 70% of annual profit.
Gate.io is a leading global asset exchange, including fiat trading, crypto-crypto trading, margin trading, Futures, ETFs, Hodl & Earn, Startup and much more, as well as Cloud mining. It provides you with secure, reliable and transparent trading services and real-time market information for hundreds of digital assets, including Bitcon, Litecon, Ethereum and others.

APOLLO Miners

Apollo Miners is offering a wide selection of mining contracts. Mining contracts with payouts in the most popular and trusted cryptocurrencies, 100+ BTC Coins and also a contract with a fixed payment in USDT. Choose a contract now and get the first payment to your crypto wallet tomorrow. Apollo Miners provide a dynamic mining solution to clients, as well as a smart fund with flexible time and investment amount. Apollo Miners platform combines mining with daily payments through cryptocurrencies.


MinerGate Mining Pool *

*) Note: MinerGate is a GUI miner.
MinerGate, a multicurrency mining pool with a broad spectrum of products, has been successfully operating since early 2014; provide user-friendly mining software, reliable 24/7 support service, and a helpful community; support 4 major mining algorithms, including Ethash, Equihash, CryptoNight & Scrypt. Currently, MinerGate host 11 mining pools for every supported coin, and a merged mining pool designed especially for CryptoNight ASICs. The core insight that led MinerGate to success was the CPU-mining adaptability, which allowed thousands of hundreds of cryptocurrency enthusiasts to effectively mine coins on decent home PCs, regardless of the dominance of powerful mining farms. MinerGate provide its services in two main forms: simple GUI desktop miner, and CLI console mining solution for more experienced miners. It’s attracting over 400,000 of active users monthly and this number continues to grow. Mining pools:Monero XMR, Grin GRIN, Bitcoin BTC, Ethereum ETH,Ethereum Classic ETC, Zcash ZEC, Litecoin LTC, Bitcoin Gold BTG, Block Producer EOS, TRON Representative TRX, ICON Representative ICX.