Cloud Mining Introduction, Cloud Mining Risks, Legitimate Cloud Mining Companies, Genesis Mining, Cloud Mining Earnings, Maintenance fees
Cloud Mining Introduction
Cloud mining enables you to mine Bitcoin and other cryptocurrencies without having to pay for, set up, and monitor equipment yourself. Instead, you pay a cloud mining company which purchases and maintains the equipment for you while you earn your portion of the profits from the coins mined. These services charge you for the equipment you are renting.
For some contracts, there are additional maintenance fees. In general, there is a maintenance fee for Bitcoin cloud mining contracts but not for Altcoin cloud mining contracts. Some cloud mining contracts are sold as lifetime, or open-ended, and some have a predetermined time. Lifetime, or open-ended, means that they run as long as they are profitable.
Cloud Mining Risks
Like any type of investment, cloud mining is not without risk. It is up to you as an investor to weigh the potential risks and the potential profits. At Cryptocoinzone we publish as much information as possible from our own cloud mining experience to make this as easy as possible for you.
Legitimate Cloud Mining Companies
One the most important steps in investing in cloud mining is making sure you invest in a reputable and legitimate cloud mining company. There are a significant number of fraudulent companies in the cloud mining space that are simply Ponzi schemes and will steal money from their investors. It is important to look up reviews and testimonies online for any company that you are considering investing in, as previous investors will tell you from experience if the company is legitimate and trustworthy. Avoid HYIPs, new cloud mining companies, guaranteed profits, bad homepages and so on.
One of the largest and longest-running cloud mining companies is Genesis Mining. Genesis Mining started their cloud mining operations in 2014 and we have also invested since then. The company is very transparent and communicative about their services. However, even a legitimate and long-running company can still fail, so it is important to never invest more than you are willing to lose. Investing small amounts in a variety of different companies and currencies is always a smart way to minimize risk. Other companies to consider to invest in are Hashflare, Nicehash, ViaBTC and more, which are listed on our cloud mining page. You also find discount codes there.
Cloud Mining Earnings
Your potential earnings are very hard to predict since they depend on many factors. The most important factors are the price of the cryptocurrency, the mining difficulty and electricity cost. The electricity cost is often easy to calculate since it does not change much over time compared to the other two factors.
It is impossible to predict the price and the mining difficulty. If the coin price increase, your payouts will increase and if the mining difficulty increase, your payouts will decrease. However, the mining difficulty will probably not increase if the coin price doesn´t increase first, and vice versa. This makes cloud mining a less volatile investment than the currency itself and many people have profited more from investing in the cryptocurrency itself than in cloud mining. Cryptocoinzone publishes latest calculations from all of our contracts from Genesis Mining and Hashflare. Cloud mining calculators can give you a fairly good idea of how long it will take you to break even on your investment and how much profit you can potentially earn.
We believe cloud mining is a good investment when the price of the mining coin is stable. Our estimation is that you can get a yearly ROI 5-20%. During 2017 all coin prices have skyrocketed and a better investment would have been the coin itself.
For both Genesis Mining and Hashflare, there is a maintenance fee with the Bitcoin cloud mining contracts. Make sure to factor in maintenance fees charged per contract when you calculate profits. In our calculations, we always deduct the maintenance fee before we calculate the potential ROI.
To sum up, investing in cloud mining is risky and unpredictable. However, as with any investment, there are ways to minimize the risk. Cryptocoinzone always pushes investors to understand the investment and risks, diversify among different contracts and companies and start with small investments. Cloud mining is a great choice for diversifying a passive income generator. The latest calculations for all available contracts are available in Genesis Mining Review and Hashflare Review – including contracts for Bitcoin, Dash, Ethereum, Litecoin, Zcash and Monero – can be found on the blog. If you decided to invest but don’t know how, we recommend reading our blog post, cloud mining step by step.