The rise of cryptocurrencies as well as trading pairs such as XRP USDT are unstoppable and taking the world by storm.
Cloud mining is a method to earn cryptocurrency without the need for you to buy or build expensive equipment. You can simply pay someone else to mine and earn income from their hardware.
In this guide, we’ll explain how cloud mining works and why you should use it if you’re interested in earning passive income from cryptocurrencies.
What is Cloud Mining?
Cloud mining is a process of mining cryptocurrency with the help of remote data centers. Cloud mining enables you to mine cryptocurrencies without having to buy expensive equipment or even own a mining rig.
There are several reasons why cloud mining is an attractive option for many cryptocurrency enthusiasts.
First, it allows people who don’t have access to cheap electricity or expensive hardware to still earn money by investing in cryptocurrencies.
Second, it provides unprecedented flexibility since you can stop your investment at any time and withdraw your profits as soon as they reach your wallet address (or bank account). Third, if you choose a reputable provider then cloud mining can be one of the most profitable investments that you make in 2019 – 2020!
How does cloud mining work?
Cloud mining is the process of mining Bitcoin or other cryptocurrencies without the need to buy a physical mining rig. It’s like a service, where you pay to rent the necessary hardware and software. As a miner, you get paid for your share of the mining in cloud mining.
Cloud Mining will not be profitable if you don’t have cheap electricity or if there are no cheap electricity sources near your home! If this doesn’t apply to you then please continue reading…
If you want to know more about Bitcoin Blockchain you can visit BSV Blockchain.
Cloud Mining Models and Types
Hashing Power Leasing
The first type is called Hashing Power Leasing, where you buy hashing power in the form of contracts and get paid for it. This type of service was invented by Genesis Mining a while ago and they still offer it to this day.
In this model, you don’t own any hardware nor do you pay for electricity costs because someone else does that for you. You only pay for the hashing power, not for the mining hardware itself so if something happens to your contract (e.g., the difficulty increases) then it doesn’t affect your earnings at all because your server is hosted somewhere else.
Hosted mining is a service that allows you to purchase mining power from the provider. You don’t have to buy hardware, maintain it, or pay for electricity. You also don’t worry about overheating since the mining hardware is in a data center and maintained by someone else.
This model of cloud mining has been around for years, but recently it’s become more popular as an investment option with several providers offering this service. With hosted mining, you can access all the benefits of crypto-mining without having to worry about anything else except keeping track of your profits growing month after month!
Cloud Mining For Earning Passive Income
There are many ways to earn passive income in cloud mining and the easiest one is to start your own cloud mining operation. With just a little bit of capital, you can start buying hardware and pay for electricity, and then you can rent out the hardware to others and make monthly profits from your investment.
Another way to earn passive income with cloud mining is by investing in a company that already has a cloud mining operation. There are multiple companies that offer this service and they too, allow you to earn passive income by simply owning their stock.
Furthermore, you can simply buy and own some of the mining hardware or software. You might opt for renting out your own real estate property where you can build a mining facility, such as a warehouse or even a factory. You can then rent it out for a profit. Another option is to build a facility that you can rent out to other people looking for cloud mining facilities.
Advantages of cloud mining
- You don’t need to buy hardware, which can be expensive and difficult to maintain.
- You don’t need to worry about electricity costs.
- You don’t need to worry about your hardware failing and having no way of recovering losses.
- You also do not have to worry about cooling systems or noise issues, as the cloud mining company will take care of this part for you.
- Finally, if security is important for you then it won’t matter whether your equipment is at home or on an external server in another country; neither location provides better protection than the other because both are under constant surveillance and monitored by engineers 24/7 via remote control software (which is why this type of service is called “cloud” mining).
Is cloud mining profitable?
The answer to this question depends on many factors. The price of bitcoin, the cost of electricity, the hardware used in your mining operation, and the mining pool fees are just some of them.
Also, when you plan your cloud mining operation you should take into account that there are two types of cloud mining services: a contract-based one and a pay-as-you-go one. The former gives you access to specific hashing power for a limited period (for example, 1 year), whereas with a pay-as-you-go service, you purchase GH/s or TH/s at any moment without any limitations on time or the amount purchased.