Cloud Mining

Cloud mining - how to start not to be deceived, not to be fooled

Let’s discuss cloud mining in this article especially in the light of the fact that Bitcoin is growing. On the background of the fact that more and more people are learning about this technology of the blockchain, more and more people want to invest in it because it allows you to invest and do nothing more …

As a result, there are so many different “pyramids” that deceive people.

In the last article, we talked about physical mining. Today we are talking about cloud mining – how to start not to be deceived, not to be fooled, and you did not lose money?

First, let’s analyze what is cloud mining and what is its difference from ordinary, physical mining?

– Ordinary mining is when you buy your equipment, put it in your room (or any other place) and start the mining process

– Cloud mining – this is when you hire equipment and rent hashrate

At the same time, because of the fact that you are mining using a cloud method, usually the services charge such expenses as:

– equipment maintenance costs (equipment setup)

– electric power costs

Typically, the amount of expenses does not accrue 10% of your mining income.

What is particularly interesting about this method is that the entrance threshold is very low. Even with just $ 20 you can already start cloud mining

But of course there are also big risks about which it is worth writing in detail.

The first and main risk associated primarily with scam sites.

People organize a “service” for pseudo mining, you are told that your equipment will be purchased for your money (or it is already purchased and already as if it works). On the wave of popularity of the topic of crypto currency, this “service” collects money for a while. But one  day the site closes and everyone disappears, and you certainly lose your money.

As a rule, such scam mining services are not located in your country, but somewhere very far away, for example:

– China

– Estonia

– Lithuania

– Iceland, etc.

The second possible risk is such services as "semi-speculators".

When in general the service is not scam (the equipment is really bought, it really works), but there are nuances.

  • The most common option is when such services forge accounting (you get some money, but not at all those that could receive)
  • cunningly written conditions for withdrawing money. For example, the withdrawal threshold of 1 Bitcoin and as a result, investing 20 or 500 dollars you will never be able to take your honestly earned (and even those that just invested already can not be returned to you)
  • The site you are working with may “hang” and the support service begins to say that everything will be considered in “manual” mode and at the beginning applications with a higher hashrate will be considered. Even if it is true, but you have invested a small amount, as a result you will be at the very end of the list and before you can never get to the turn or reach but VERY not soon
  • The service offers mining some incomprehensible, unknown crypto currency. Which at the initial stage can give rise, after which the first bottom, second bottom and third bottom as a gift … It is clear that the result of such mining is only the loss of money and time
  • or vice versa, you are mining good, reliable, trustworthy crypto currencies (Bitcoin, Ethereum etc), but under the terms of the contract, you can take profits only in some unknown crypto currencies (which by the time you are ready to deduce profits can either cost a penny or just disappear)
  • There may be a collapse of the currency that you are mining, for example Altcoin. If the rate remains very low, then there is a possibility that you will never work out your investments and will not be able to withdraw your money (let alone profit)
  • changes in the terms of the contract. In the beginning it was said that it was indefinite, then there appeared some clear deadline. Or promised a certain% of profitability, but then it was significantly lowered and TP. (Part of this change in contracts can be explained by the fact that the situation on the crypto currency market is not stable, that the complexity of blockchain is constantly growing and no one can guarantee 100% anything). But some unclean sites use this and review contracts without any grounds

The risk that can lie in wait for cloud mining is when you created the scam service yourself. What does it mean?

In the network, there are already time-proven services for cloud mining, which are also not perfect, but they still can trust their money, for example, the service Hashflare. And here at such sites it is a lot of phishing website, for example one letter is written not so: Hashflaere, Hashflaree, Heshflare and тд.

If you do not notice the dirty trick and “throw” your money on such a site, of course, in the end, you will say goodbye to your money.

How to determine 100% fake cloud mining websites? Do not mess with unverified service if you are offered the following things:

– a huge percentage of return. If you are promised that, for example, a 400% yield is guaranteed or called unrealistically large amounts in dollars that you can earn in 1 day – this must necessarily alert, do not mess with such services

– if you see that the service offers too attractive a proposal for reference links (thus trying to catch up as many people as possible and as quickly as possible). But as a rule, such reference links can only afford services that do not plan to make a profit (they just want to quickly collect money from people and disappear)

– if the service is not connected to any other real business (only cloud mining and nothing else except it)

– if you are offered mining some sort of extra secret, over a new crypto currency (about which no one yet knows, but just about everything will find out and its value will soar to the skies)

– if the cloud service promises to “sell” / deliver your equipment at an unrealistically low price. If you are promised to put expensive and qualitative mining farm at a price 2-3 times lower than its market value – this can not be true!

Good cloud services

Let’s now a couple of words and good cloud services, there are not so many of them and they are far from ideal, but they are.

One of them we already mentioned here is Hashflare. What about him?

Hashflare is the “daughter” of one of the producers of equipment for mining. Performs payments on cloud mining since 2014.

What features (pros and cons of this service):

– they often have problems with the site. Then they solve these problems, restore everything, positive feedback appears on the network about the fact that everything is fine, money was paid, and so on. But these moments are a little alarming!

– The second “slippery” moment with Hashflare is the lack of photos and videos of the mining process. More precisely, some photos are there, but they are old on them, nothing is clear, and the video is not at all (which would be in real time to see the mining process, it would be clear what equipment is used and so on)

– all the time there are discounts on hashrates

– commission for withdrawal of money – 0.0003 Bitcoins

– a contract for 1 year (before they had other conditions, but more recently the contract has changed)

What other relatively reliable cloud services are worth mentioning here: Genesis Mining and Gigahash.

 

A very important point which should be mentioned when talking about cloud mining is the fact that your business, your capacity, they are completely virtual. Your equipment does not belong to you at all: you can not touch it, you can not take it for yourself, you can not resell it, you even often can not see it. For this one of the tips for a beginner cloud miner, choose such a cloud service so that you can at least see your hardware in real time on the video (but do not forget about other signs of “good” and “bad” service!)

If the cloud service offers a contract for less than a year, there is a very high probability that you will not get your profit and do not even return the investment, be careful when reading the agreement with cloud services.

Well, the last tip that I would like to give to a novice cloud miner, do not contact the new crypto currencies, only deal with the mining of currencies that have been in the market for a long time and have proved themselves.