How Does Cloud Mining Work

Cloud mining

Buying a contract with cloud mining is a good idea if you don’t want to want to bother with technical stuff and pay money for special hardware and software.

Besides, we believe that signing a contract with a cloud mining service is beneficial for those who live in countries where electricity costs much. For example, in Germany the cost of electricity is higher than in America. Consequently, if you’re based in any city in Germany, you take advantage of the mining process only if you pay for a contract with a cloud mining system.

The first thing you need to do is obvious. You need to decide what provider you’ll use. It’s easy to find information on the most reliable providers. Besides, you’ll be also able to read reviews of those who are already using their services.

Once you decide what provider is the best for you, take some time to think over the question of what contract you need. There are 2 options to choose from: 500GH or 1000GH. You need to also decide on the term of the contract. As a rule, Bitcoin contracts last for not more than 1 year. At the same time, some people say that there are also infinite contracts. We tend to believe that such contracts, even if they really exist, are very rare. The crux of the matter is that the majority of machines (according to the Moore’s law) will be considered to be outdated once the period of 18 months is over. Consequently, bitcoin and litecoin mining companies will lose their profitability very soon under the condition that the network hashing power continues to increase. You can also find contracts that last from 6 months to 2 years.

If you want to see how much GH you get for every dollar you pay for your contract, it’s not hard to find websites that provide such information. You can also see how the cots of the contracts ranks against their length.

Let’s say you’ve bought your first contract with either Hashflare or Genesis Mining.

The only thing left to do now is to pay the upfront cost. You can it in BTC or dollars. After that, you’ll start earning bitcoins. They’ll be send directly to the wallet the address of that you specify.

Keep in mind that some contracts imply certain fees to be paid on top of the initial price. Due to this the metrics can be distorted sometimes. Besides, you can buy a contract that turns out to be scam later on. That’s why we encourage all future miners to buy contracts only from trusted providers.

How does cloud mining work

 

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