Passive Income from Cloud Mining: 2022 Lessons
Cloud mining is one of the best ways to earn passive income with limited risks and investments.
In traditional crypto mining, miners have to buy their own hardware and mining equipment to solve complicated mathematical calculations and earn rewards in exchange. This mining process is time-consuming, expensive, and involves huge computational power, and there is also a risk of incurring huge losses.
That’s where cloud mining comes in. Cloud mining is the process of mining cryptocurrencies to earn passive income without any hardware or mining tools.
Cloud mining is similar to mining, but instead of using their own resources, miners lease or buy computing power from an outside service provider.
How does Cloud Mining Work?
In mining, miners create new altcoins and bitcoins, as well as validate existing transactions. In exchange, the miner earns rewards for successfully completing each computational task. However, as the number of crypto coins increases and more miners come into the market, the process becomes more challenging and competitive.
Mining operations require significant energy and computation power, and miners have to regularly upgrade their equipment to sustain the mining process.
Cloud mining involves a third-party service provider who lends the computing power to the miners. Through this system, miners no longer have to pay a huge lump sum and buy mining equipment. It also eliminates the cost of regular upkeep for the hardware.
The mining services provide a huge mining rig that leases out hash power to the miners. Each time a new block is created, the transaction is validated and the reward is sent to the miner’s wallet.
In cloud mining, all computations, data file storage, server, and processing are done via the cloud or the internet. The service provider charges on the basis of the usage of the computing power and other expenses incurred, such as electricity charges.
Cloud mining does not require you to know the technicalities of the mining process. So, a person with little to no knowledge or technical know-how of how cloud mining works can also earn a passive income by hiring a service provider.
Popular Cloud Mining Service Providers
ECOS was founded in 2017 and is one of the most popular cloud mining service providers in the market that has a legal status. With more than 100,000 users, ECOS supports a variety of digital assets and tools and offers daily transaction history and payments.
The platform can be easily downloaded through Google Play and the Apple app store. It is a complete package with its own wallet, investment portfolios, and calculator, and offers a mining contract. It supports multiple coins like Ethereum, Bitcoin, Bitcoin Cash, Tether, and Litecoin. First-timers can also use the coupon “GURU” for a free mining contract for one month.
Like ECOS, StormGain is a user-friendly cloud mining platform that can be used both by experts and beginners in a secure environment. The platform comes with a dashboard that features charting tools, price movements, trend tracking, and a secure wallet. Users can also track the rise and fall in the prices of their assets through the dashboard.
StormGain offers multiple payment options and is available in various languages like Spanish, Italian, French, and English. The signing-up process is very simple, and you can get a return of up to 12% on your investments.
Hashing24 is one of the most trusted cloud mining platforms, especially for individuals who want to venture into Bitcoin cloud mining. Cloud mining customer support is available 24/7 and earnings are automatically transferred to your wallets.
Payments are done daily and the platform also offers weekly auctions and promotions for its registered users. The platform also offers users a free first-time mining contract for one month. Hashing24 supports crypto coins like ETH, LTC, Dash, ZCash, BTC, etc.
Cloud Mining Models
1. Hosted Mining Model
This method is mostly used for cloud mining. Here, the miner rents or buys mining tools or hardware from the mining supplier, which is located at the miner’s facility. The miners themselves don’t have to worry about buying expensive tools or maintaining the mining rig.
The mining service provider has to ensure that the mining rig is in good condition, and that there is a fast internet connection. The provider must also make proper arrangements for cooling off the machine so that it can function properly. Hosting mining service providers shoulder the mining costs and also ensure that the mining rigs perform properly. Miners can enter into short-term or long-term contracts in hosted mining. Usually, service providers prefer long-term contracts.
2. Leased Hash Power Model
Here, customers rent hash power or computing power from a mining farm. It is a common model to mine altcoins. With this model, users need to open an account with the mining service provider and provide details on their mining plan and required hash power. Once you make the payment, the provider will start the mining process.
How to Start Crypto Mining
To start crypto mining, you need to:
- Have a good internet connection.
- Open a cloud mining account.
- Choose a crypto wallet that supports the coins.
- Have enough crypto coins to pay for the mining service.
Five Advantages of Cloud Mining
Here are 5 reasons to start cloud mining over the traditional mining process:
Privacy & Security
Cloud mining services deploy advanced privacy and security features that safeguard your personal data and assets. Cloud mining services are highly trusted and ensure that the systems are not hacked at any cost. Moreover, to lease hashing power, both parties need to sign a contract and are legally bound, which further authenticates the service. All data and transactions are recorded in real-time and cannot be altered or faked by any outside source.
Cloud mining can be done from a remote place, which is a big reason why it has become so popular among miners. You just need a strong internet connection. Users can access data anytime they want from the cloud infrastructure in the comfort of their homes, through smartphones like iOS or Android phones.
Low fees & high revenues
Cloud mining fees are negligible. In traditional mining, miners have to pay huge fees which are deducted from their pay-outs. Cloud mining, on the other hand, is an excellent opportunity for new miners who want to make substantial profits with less fees. Beginners can start with small investments and gradually invest more as they increase their hashing power to yield higher profits. They can also spread their investments over multiple cryptocurrencies from a single platform to minimize risk.
Earn through referral programs
You can also earn through referral programs. As you bring in more customers to the platform, you get a bonus (a percentage of the earnings) from the profits earned by the new user. This not only increases the user base, but also allows loyal customers to make some extra profits.
Easy to use
Cloud mining is simple and anyone can participate in the mining process. In addition, users do not have to buy expensive equipment or incur charges on electricity or the internet. The process is hassle-free. Everything is taken care of by the mining service.
Disadvantages of Cloud Mining
Although cloud mining has a considerable number of advantages, there are a few drawbacks:
- Unless you invest in a reliable and reputable cloud mining service, there is always a risk of scams and frauds.
- Crypto investment are always volatile. The prices of bitcoins and other altcoins may fall overnight.
- When you hire an outside service, you have no control over their functionalities. You have to rely on their decisions and operations. So, it is important to do your research before investing in a cloud mining service.
Cloud mining is one of the best ways to earn passive income with limited risks and investments. However, there are several factors that one should consider, such as the reputation of the mining service, the size of operation, and the type of hardware they use.
Unfortunately, the digital market is full of scams and fraudsters, so, before you venture into cloud mining, choose your service provider wisely.
Originally published at https://www.cryptohopper.com.