Bitcoin mining is one of the ways that investors can get bitcoins without buying them on the market. Of course, it is necessary to take into account that this method can be used only by those who can afford the costs of electricity and maintenance necessary for conducting mining.
Here are a few available options to get bitcoin using cloud mining contracts, crypto-lending platforms and centralized exchanges (CEX).
Cloud mining platforms offer their services to those who are interested in bitcoin mining, but who lack the necessary equipment and electricity.
The demand for cloud mining services has increased so much that the capabilities of some cloud mining contract providers have exceeded their capabilities. All contracts for bitcoin mining of such well-known companies as Genesis Mining and HashNest were sold out.
One of the most affordable and effective in terms of mining profitability are the services of ECOS, Hashing24, IQ Mining and SHAMINING cloud mining platforms, which allow users to more flexibly approach the parameters of their contract for mining bitcoin and other cryptocurrencies.
As can be seen in the chart above, a 50-month contract for 10.15 Th/s is currently (September 5, 2021) worth $ 2113 and is projected to bring a profit of 260.48% at a BTC price of $ 70,000.
ECOS 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.
Mining Calculator: Calculate the profitability of cloud mining here >>>
It should be noted that all cloud mining services warn about the high risks associated with this and that no level of profit can be guaranteed. This may be due to a number of circumstances, including fluctuations in electricity prices, bitcoin price volatility and advances in mining technology, which lead to a significant increase in the complexity of mining, which makes the equipment obsolete.
A more traditional option available to hodlers to get more bitcoins by using their current stack, which does not require additional investments, such as mining, is lending services that offer a high level of income on deposits.
At the time of writing, Celsius offers users an Annual percentage yield (APY) of 6.2% for bitcoin deposits, and Nexo offers a standard yield of 5% on deposits with a flexible term, while fixed-term deposits with a validity period of at least one month can earn 6%.
The third option that provides users with a high level of APY from placing deposits in BTC is YouHodler, a service provider for crypto assets. YouHodler offers high-yield interest accounts and loans backed by cryptocurrency.
Several centralized exchanges also offer bitcoin holders a refund of their deposits in BTC, although at lower rates than those mentioned above.
Binance, the largest cryptocurrency exchange, offers users an estimated APY of 0.5%, while the third-place Huobi exchange offers 1.32%.
Perhaps the best returns offered on centralized exchanges in the United States can be found on Kraken and Gemini, where users can earn up to 1.65 % on their deposits.
KuCoin offers a more flexible approach to BTC lending, where lenders can set the parameters of the loan terms, choosing between the contract duration of 7, 14 and 28 days, while setting their own daily interest rates to compete with other lenders in the market.
The lowest rate currently offered on KuCoin is 1.82% per annum on a seven-day contract.
As you can see from the data provided, there are many ways to increase the bitcoin stack, as opposed to simply buying on the open market, but over time there are fewer of them.
Due to the fact that large institutions, energy companies and governments are beginning to develop bitcoin mining infrastructure, smaller market participants are increasingly being squeezed out, as cloud mining service providers are unable to keep up with demand.
Crypto lending increasingly looks like the main way that bitcoin holders will be able to receive income paid in BTC in the future, while bitcoin-backed loans offer hodlers the opportunity to access the value of their crypto assets without having to sell them and create a taxable event.
Currently, the leading cloud mining and crypto-lending platforms, centralized exchanges offer to earn bitcoin and other cryptocurrencies with a high annual percentage yield (APY). Unlike staking on centralized exchanges, cloud mining, crypto-lending and interest accounts are the most preferred ways to earn on bitcoin.