Cloud mining has emerged as a secure alternative to invest in the cryptocurrency market and generate a consistent passive income.
As bitcoin price volatility has helped many investors to make millions of dollars in profits, encouraging more people to invest in this market, many people have lost money due to these large variations in crypto price.
However, bitcoin investing is more than just “high risk, high reward”; there are ways to produce consistent, passive income. Isn’t it intriguing?
How does cloud mining work?
Let’s talk a little bit about miners and how they function first. Every bitcoin transaction is encrypted in a 16-digit phrase called a hash. Miners have to guess what that phrase is and try to get it by applying their computer power. Each of these attempts is known as hashing. A hash rate indicates how many hashes a miner can generate in one second. The miner that wins to guess the phrase correctly first, is the one that gets the reward for that transaction.
Ethereum uses something similar called Ethash and other cryptocurrencies use a variety of hashes with different processing speeds. For simplicity, we’ll use Bitcoin as an example.
A simple ASIC mining rig can mine around 14 Terahashes (TH) per second, which is roughly 14 trillion hashes. Sounds like a lot, but this is by no means less than what the Bitcoin network can do. Currently, Bitcoin can process a trillion hashes per second – that’s a number with 18 zeros. So if you can produce more hashes than that number, you would theoretically win every transaction. But to even perform such a feat, it would have been better to buy all available bitcoins.
Servicing a facility that produces 14 TH/s involves a lot of effort and costs including electricity, maintenance, assembling, etc. Thereby, cloud mining companies offer to take all these burdens for you at a reasonable price.
Similar to pool mining, where you can either buy additional resources for your CPU or share your own, cloud mining is all about buying hash power on a cloud basis. You pay for the desired hash rate and leave the rest to the miners. At the end of a certain period, you earn a portion of what they mined based on the hashes you bought.
Why cloud mining is the way to earn passive income
The main reasons for this are:
Easy Investment: Earning passive income shouldn’t involve the hassle of buying and managing expensive equipment to run a data center for a mining project. With cloud mining, all you have to do is use the services of cloud mining sites and you are well on your way to earning significant returns on your investment.
Open to both crypto enthusiasts and non-tech savvy people alike, cloud mining means you no longer have to worry about handling technical devices or environments. Moreover, even a non-technical person who knows nothing about blockchain algorithms but is interested in the money-making dimension can make money here simply by subscribing to cloud mining services provided by several cryptocurrency cloud mining companies.
Flexible Investment Options: Some of the cloud mining platforms give you options in terms of which cryptocurrency to invest in. You can choose between Bitcoin, Ethereum, and Litecoin or split your investment between them to avoid putting all your eggs in one basket.
A Greater Sense of Security through binding Contracts: Cloud mining contracts give both the crypto-savvy and non-technical investors a sense of security because it clarifies their expectations of the return on their initial capital.
How much money can you earn?
When choosing a cloud mining service, there are often several plans in that service that you can choose from. They are usually available in different hash rates, e.g. B. 100 GH/s, 100 H/s, and so on depending on the type of coin you want to mine and the plans of the cloud mining service provider.
The coin doesn’t matter as you can’t actually change it and you can only buy more of it. What is interesting is that they sell them usually with annual contracts. So if you want to use the service, you are obliged to pay for the entire year of mining. We can plug this price into a simple equation to figure out how much profit we would make in a year.
You can ask the cloud mining service to determine the amount of return you get from your initial capital. Some of these services, such as Minerland, have been more creative and have offered different packages with different initial capital. In this case, you can start investing and expanding your capital, even with very little initial capital.
Tens of thousands of miners are competing for each transaction at any one time. Hundreds of companies and pools also with varying computing power are all competing for the same rewards. When you buy a hash rate, you are putting it ahead of other rivals.
In all of this, probability also plays a major role. A smaller miner could guess the sequence in front of a huge pool based on pure chance. However, since all extra costs in cloud mining will be borne by the cloud mining service provider, this method can bring you a great income.
Types of cloud mining
Potential investors can choose from two basic types of cloud mining services. They are:
Hash Power Lease
Hash power leasing is the most common type of cloud mining. You buy electricity from the company and receive a return until the end of the contract. It’s an option for those who don’t want to bother with the technical aspects. However, this may detract from some of the potential returns you get. as the company may charge a fee for maintaining operations. And like many lease structures, you will lock in for a while.
Those with more mining knowledge can choose to rent an entire rig or a multi-rig structure. It’s a more expensive trial, but you have more control over your setup. Knowing how to maximize mining will allow you to get the most rewards and pay little to no additional fees.
However, you will be more active in monitoring and maintaining the setup, which can be time-consuming and complex. However, there are publicly traded mine hosting companies where you can buy a rig or multi-rig structures (or shares) and they will do all the architecture and maintenance for you.
The benefits of cloud mining
When investing in a cloud mining service, choose one of several plans. Joining cloud miners of the more popular coins like Bitcoin or Ethereum can be more expensive.
Purchasing services with the potential for higher hash rates, which means more computing power, is also more expensive, regardless of the cryptocurrency being mined. However, higher hash rates could potentially lead to higher returns.
Because of these contracted purchases, buyers can feel a sense of security. You can read more about them and what you’re getting into before you buy. You know roughly what to expect when it comes to potential profits and payout structures (depending on the mined currency and its current price). You will also learn to understand a bit more about how mining works.
Aside from that, here are some other benefits of getting started with cryptocurrency cloud mining.
Open to everyone: With cloud mining, you don’t have to understand all the technical details of the craft. Even people who don’t know much about crypto could mine potentially benefit by putting their money in a cloud mining platform. If you’re interested in making money from crypto and don’t care much about the technical aspects of blockchain, cloud mining is the best choice.
An Investment Opportunity: Cloud mining gives you another way to potentially make money. You could see returns over a set period without thinking about running a mining operation.
Diversity: You can choose from the different cryptocurrencies you like or split your investment across several coins. With cloud mining, you can control how much you invest and which blockchains you put your money in without having to buy expensive and specialized equipment yourself.
How to choose a bitcoin cloud mining website?
When it comes to choosing the best mining website, the process is very smooth and fairly straightforward. You just have to choose a plan to see how the service works.
Perhaps the most complicated part is finding the right host. Always check the company’s background, check out their websites, and read their reviews.
MinerLand is the best cloud mining website to make money
To start cloud mining, various highly legitimate cloud mining sites ensure the best security for your assets and offer a comprehensive list of features. MinerLand is the best and top-rated bitcoin cloud mining website out there.
MinerLand cloud mining website started in late 2019 when our founders were working in the Bitcoin mining field. Then they started building a global cloud mining business in mid-2020.
When you decide to become our client, your money-making journey with a world-class cloud mining platform will begin. Whether you have a job or you are a business owner or don’t have a job at all, you can still benefit from MinerLand as a top cloud mining service provider. You will be a bitcoin miner with just a few clicks and minimal investment. You will profit from the most advanced cloud mining center with a panel to monitor your mined BTC and transfer it to your Bitcoin wallet daily.
The cloud mining sector is essential in the community. There will always be a demand for bitcoin network hashing power. In many cases, using these networks is far less expensive than buying or running your rig. Even if your rig is part of the mining pool, you can still increase your rewards by buying more hash power.
For these reasons, cloud mining will remain a core product of the industry for the foreseeable future. All in all, if you want a truly hands-free investing experience, then cloud mining is the way to go, and also it is a passive income.