What is cloud mining? Notes on using Cloud Mining

By F | Peach

What is Cloud Mining

Digging a coin does not necessarily have to own a miner, plug in your home. You can completely mine coins from afar. That is using the Cloud Mining services.

In this article, I will work with you to learn about Cloud Mining in mining and comparing it with other types of mining.

Definition of Cloud Mining

Cloud Mining is temporarily translated into Vietnamese as "cloud mining" or "mining coins on clouds".

Cloud Mining is a service that allows users to remotely mine or mine without having to own a machine.

Below I will explain in more detail.

Nature of Cloud Mining

You must be familiar with cloud storage services, right? The data you store, for example the image files, will be stored on the service provider's servers. From there, you can save and access, view photos anywhere with an internet connection.

You imagine Cloud Mining is similar. However, Cloud Mining does not store images on servers, it is a networked miner.

  • Users will have to pay to be able to buy the Hashrates (mining power) of these miners.
  • In return they will receive the mined coin.
  • Of course, users will have to pay an extra fee to the provider when using their services.

In summary, Cloud Mining is a type of service that provides capabilities mining coin from far away.

Features of Cloud Mining

Cloud Mining includes the following components:

  • Mining service provider: They will provide the miner or sell the remote hashrate to the buyer. Some parties are providing this service: Minergate, Hashing 24, Hashflare, Genesis Mining. In the lower part, I will talk more about reputable Cloud mining.
  • Service users (investors): They are investors. These users spend money to rent / buy from these miners / hashrate remotely. And they will receive the corresponding coin according to the contract.

The two most common forms of Cloud Mining are:

  • Rent a remote excavator.
  • Buy Hashrate.

Advantages of Cloud Mining

Based on the above characteristics, you can clearly see the advantages when using Cloud Mining to mine coins:

  • There is no need to spend a large amount of money to invest in a excavator.
  • No time-consuming operation and maintenance of the excavator.
  • No need to rent factories and warehouses to place excavators.
  • No additional monthly electricity bill. Because it was included in the contract by the service provider.
  • Not thinking about what kind of coin should be mined for efficiency.

Because of all the aforementioned points, the Cloud Mining service provider takes care of it. And of course they will charge these too. Therefore, you need to consider the contracts very carefully.

Cons of Cloud Mining

Because it does not directly own a miner, nor does it know the exact daily figures, Cloud Mining service will have some disadvantages as follows for service buyers:

  • Not know exactly the state of the machine in operation.
  • May receive less than what you spend. For example: The timing of mining is good, the price of coins is up, operating costs are down, electricity prices are down, but because you have a contract with a service provider, you only receive profits exactly as in the case. copper.
  • "Money given, the new month porridge scoop".
  • Do not directly own any excavator.
  • There is no money to liquidate excavators.

Risks of mining Cloud Mining

The biggest risk that investors may encounter is fraudulent service providers, scam money.

Service providers receive money from the investor but only operate for a while and then "run away" along with all the money of the investor. Or even do not own any miner. .

This is not without precedent. Particularly in Vietnam, there are two names, Sky Mining and Asama Mining. Are any of you reading this article remember this event?

The difference between Cloud Mining and buying a miner

Here are the biggest differences between Cloud Mining and buying a miner:

Note when using Cloud Mining

Basically, in Cloud Mining service, you will hire the machine or hire the Hashrate of the unit provided. Therefore, there are a few points to note before signing a contract:

Hashrate of excavator in Cloud Mining

The hashrate (hash function) of the miner shows the machine's ability to calculate / mine when mining a coin. The higher the hash function, the stronger the machine, the better & dig more coins.

Therefore, right from the hire, you need to know what kind of machine you rent, hashrate is how much to optimize profits.

Or with Hashrate direct rental, you should know how much hashrate to hire?

Cloud Mining price

The rent here is a total of renting the machine & the costs incurred as well as operating costs.

Cloud Mining providers will often issue packages to investors.

Cloud Mining Contract

Ok, this part is similar to when you rent premises for business, the nature is almost the same. Brothers hired with the expectation of making a profit. Therefore, pay close attention to the internal terms, especially the payments, deadlines as well as rights and obligations of the parties involved.

The prestigious Cloud Mining mining coin 2020

Hashing 24

Started operating in 2012, they focus on using the latest ASIC miners. Hashing 24 also has a Vietnamese interface.

Hashflare

Focus on remote BTC mining machine rental. They currently own the largest number of service users. Hashflare is at the top of the most prestigious Bitcoin Mining Cloud Mining.

Genesis Mining

Genesis Mining's slogan "Largest Cloud Bitcoin Mining Company" has been in operation since 2013. They are also focusing on the Vietnamese market when they have a full Vietnamese interface.

In addition, you can also learn some more Cloud Mining projects to issue tokens, such as Eminer (EM). Coin98 has analytical articles on this project, you read to read more clearly before making investment decisions.

Frequently asked questions about Cloud Mining

Invest with Cloud Mining

It's correct.

Whether you buy a mining machine directly at home or use the Cloud Mining service is all about investing money to make a profit. The advantages and disadvantages I mentioned clearly above, you can review it to make your decision.

Is Cloud Mining a scam or not?

Is not.

Cloud Mining is a remote miner service for investors who want to get involved in mining.

Cloud Mining itself is not scam, not fraud. Only the project worked on Cloud Mining. They can raise capital from investors then run away or "superficial" activities and close the project, so you need to be very alert when participating in this activity.

When buying coins, the price of coins decreases you still have coins. But when you start from Cloud Mining, all your money will be held by the supplier. If they scam then determine if it can be lost.

How to identify deceptive Cloud Mining projects

Here are some signs that Cloud Mining projects are deceiving investors:

The appearance of the Cloud Mining project is shady:

  • The domain name could not be accessed by the owner.
  • Registered address is not clear, or not real.
  • The project team is unclear, there is no profile.
  • There is no clear evidence about how much they own the excavator, how many, the capacity ...
  • The project spends a lot of money advertising images, praising the size of the project, money received by investors.

How to raise capital:

  • The project always focuses on the level of profit achieved without talking about what they are doing, they are focused on development.
  • Attractive investment packages, inviting more people to participate, the more profitable.

Above is how to identify brothers to eliminate suspicious projects from the beginning.

You can check the domain names of these projects simply through the Whois website to clarify the first question.

What are the biggest risks when investing in Cloud Mining?

The biggest risk when investing in Cloud Mining is the scam project. They fled with all the money from investors.

To avoid this, you need to first check the credibility of the project through some of the tips mentioned above.

Should Bitcoin (BTC) be mined with Cloud Mining?

Yes.

The fact of mining Bitcoin (BTC) with Cloud Mining is very popular & popular. The projects mentioned above also focus on BTC mining.

What is Nicehash?

Nicehash is a provider of Cloud Mining services similar to Hashflare, Hashing 24, Genesis Mining I mentioned above.

Effective mining coin 2020?

Some of the top coins in 2020 will have halving: BTC (May 14, 5), BCH (April 2020, 9), BSV (April 4, 2020), ETC (July 10, 4), DASH (April 2020, 31). 7/2020), ZEC (November 27, 4).

It is possible that their prices will fluctuate sharply during halving periods, but in the long run, when the fraction often decreases, the general trend (according to the history of previous halving periods) will increase.

In addition, you should also pay attention to some other coins: Zcoin (XZC), Monero (XMR).

Conclusion

Recently, I introduced you to invest in Cloud Mining. At the same time, you have also noticed when investing in this form.

Hope you guys have an overview of Cloud Mining & make a reasonable investment decision. See you all again!

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