What is cloud mining? An introduction

What is cloud mining? An introduction

Genesis Mining


Cloud mining Bitcoin is a very good choice if you want to earn and invest in Bitcoin in a passive way because you won´t managing the hardware. Cloud mining means you hire or buy the Bitcoin mining equipment from a company that runs the Bitcoin miners for you. For this service, the company grabs a part of your profit for maintenance and electrical cost. There are a few risks with Bitcoin cloud mining an investor should be aware of.

There are many Ponzi schemes in Bitcoin cloud mining. These companies may give you great payouts for a short while but all of a sudden the site is closed down and no one receives any payments anymore.
Few legitimate companies run old equipment and the ROI can be hard to get positive. These companies may give a good deal in the beginning but the payouts get lower and lower over time.

The profitability of bitcoin mining is highly dependent on the bitcoin price. When the Bitcoin price decreases the maintenance fee will eat up a big part of the profit.

The profitability of bitcoin mining is dependent on the mining difficulty. The mining difficulty depends on how many Bitcoins are released every day (inflation rate) and the mining competition.

We have listed companies we have used for at least 8-14 months. We have sorted out at least 8 scams we have used. We have learned many things on the way. We want to minimize the profit of those companies and that was one reason why we launched Cryptocoinzone.

Compare the payouts between the companies before you invest. If there is a company that claims to have 2-5 times higher payouts than all other companies you can be sure its a scam. Please contact us if you like before you invest in any doubtful cloud mining company and we can give you our opinion or maybe even our experience with that particular cloud miner.