In this guide, we seek to answer the question of what are the legit cloud mining companies in 2020. Due to the declining difficulty and falling crypto prices, we provide reasons why should you enter the cloud mining market. We also dedicate a part of the article on judging a good cloud mining company, as well as how to hedge against the scams.
In this review, we propose platforms that are safe, including Genesis Mining, Hashnest, Hashflare, Hashing24, OxBTC, Mining Rig Rentals, and Bitdeer.
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Why Cloud Mining Right Now?
Looking at the comments in the social media, one might be led to believe the crypto industry is on its last legs. However, the thing about cryptocurrencies is that volatility is a given. With falling prices, the market tends to correct itself through supply, which is happening right now. Currently, mining difficulty is on the unprecedented decline, with many miners exiting the stage.
Hash rate is somewhat falling as well, freeing a lot of space for new players to enter the market. This is where cloud mining jumps into perspective, as you need a quick way to cash in digital coins. Investments in mining equipment are large and can cost you your entire savings. By renting out an already-established farm, you are supporting the market and making a profit immediately at the same time.
Bitcoin mining is expensive and drains your electricity a lot. Thus, instead of dedicating an entire section of your house towards mining, choose a cloud gig instead.
How to Judge a Good Cloud Mining Company?
Although now is a good time to invest, it is important to pick up good apples from the bunch. There are many scams going around at the moment, as people like easy money. Thus, you should use our list below to seek out genuine businesses that provide an actual service. Here are some indicators of a good Cloud Mining company:
- Has actual mining farm (pictures available and confirmed)
- Company has headquarters
- Responsive support team
- Years of successful business
Moreover, free cloud mining programs are not necessarily profitable ones. Though you may not invest anything when engaging in free mining BTC activities, often you receive very small returns. At the same time, you may risk your confidential information, as no one would give coins for free.
Although we warn against using new platforms, there are few that can really disrupt the market. BitDeer is one of them, coming as a business supported by one of the largest mining pools in the industry – Bitmain. Crypto equipment giant stands behind this project, which should be enough for anyone when it comes to the security of invested funds.
At the moment, the cloud platform works with Bitcoin only, which is understandable, given that Bitmain supports bitcoin technology. Ethereum cloud mining programs are not available, nor are other altcoins at the moment. As seen below, you have quite a large selection of contracts to choose from.
Each of these contracts works its price out depending on the chosen Antiminer equipment. Thus, ready your crypto calculator and seek out best deals by combining BTC’s price, difficulty, and hash rate offered. Read more about Bitdeer in our Bitdeer cloud mining review or go and purchase cloud mining contracts directly.
The Mining Rig Rentals is a P2P platform where miners offer cloud services directly to interested parties. The platform itself is safe so it is up to you to choose a genuine offer. However, through a rating system, it is easy to distinguish scammers from real deal gigs. The marketplace is quite large, with numerous cryptocurrencies available for mining.
However, we do advise extra caution here when choosing a gig for your cloud mining investments. Bitcoin mining contract might sound lucrative but the offer itself is from an anonymous pool. Works out the details on what type of equipment are they working with. Also, hash power should correspond to the difficulty rate, to determine whether returns are adequate. Cloud mining calculator is invaluable here, as there are many ads to choose from.
It does not get bigger than Genesis Mining in terms of crypto cloud mining platforms. One of the first-ever businesses to open their operations to the general public, Genesis Mining is the leader of the industry. With headquarters based in the British Virgin Islands, the off-shore firm offers services since 2013. The procedure of payments is done through a registered subsidiary in Iceland, where mining farm is located at the moment.
Management is upfront of the “About us” page while the site offers a video featuring the actual mining farm. However, you would be really lucky to snatch up one of its contracts. It seems they are out of stock most of the time.
Currently, Bitcoin and Ethereum cloud mining programs are part of the portfolio, together with Dash, Litecoin, Zcash, and Monero. As one of the best cloud mining 2019 platforms, there is no reason why would situation change in 2020.
This particular cloud mining platform uses Bitmain technologies to work out its mining operations. Users can purchase a contract for an unspecified amount of time and earn coins through cloud mining. The company operates since 2014 and has been in the game for a while now. With Bitmain Tech being the parent company, Hashnest is part of the giant mining pool, including Bitdeer and OxBtc.
Nowadays, the company came up with the PACMiC program for cloud miners. However, most of its popularity evaporated due to the competition of other China-based businesses. Moving out to Hong Kong, the company still works solely with bitcoin, with no altcoins set for the near future.
Hashflare is a British-based cloud mining business, operating globally through crypto and fiat payments. Created by HashCoins in 2015, the subsidiary operates as a cloud mining platform, drawing its supply from the mother organization. Since the company operates under the U.K.’s financial jurisdiction, all accounts should verify their identity at some point. This is a crucial bit of information, as you get legal protection in the process.
Hashflare is similar to Genesis Mining in terms of cryptos available for cloud mining. You have Litecoin, bitcoin, Ethereum, Zcash, and Dash mining contracts. However, the most interesting part about the platform is the fact that you choose the hash rate power. Instead of facing a few choices, you have the freedom to make your own investment at the pace that suits you.
With an office in Dublin, Ireland, this European cloud mining platform offers a safe environment for your investments. They also have an office in Kyiv, Ukraine while the company registered its operations in 2012. So far, it has been business as usual, with complaints are generally personal. No large-scale issues occurred so far and the organization seems to work splendidly for the past few years.
With the initial supplier, BitFury, backing the company, contracts run on actual mining equipment, much like platforms in this guide. Additionally, it is quite possible for Hashing24 to run out of contracts, signifying planned sales and scalable business. At this point, only BTC is available for cloud mining, though altcoins might see their own programs in the future.
Much like Bitdeer, OxBtc is a Bitmain’s connected organization that supplies the market vie bitcoin mining contract. Here, you can even purchase mining equipment directly, shipped from Hong Kong to anywhere in the world. Thus, it is a legit cloud mining business, operating since 2014 quite successfully. Apart from Asia, the platform implements nodes from Europe and N. America as well, to ensure a steady supply of coins.
So far, there have not been any major issues to report regarding the company. Currently, cloud mining platform offers several types of mining power rent programs, involving Bitcoin and Ethereum as cryptos of interest. Most of these contracts require a lifetime commitment though payment is also made once. Rare are situations in which contract renewals occur but they are possible.
Cloud Mining Scams 2020
As mentioned at the beginning of this article, there are many scams out there within the crypto cloud mining industry. It is nothing different from what happened in the past, apart from the fact that fraudsters are getting smarter. We would advise you to deal only with those platforms that everyone knows about, no matter how “profitable” new ones claim to be.
So, how do you spot a fraud from the very beginning? Check out how their marketing works. If their advertising seems like what average Joe would do on Facebook, chances that you are dealing with a scam group. Also, large returns are very hard to get and should not be part of the promise. Statements that say that you are guaranteed some sort of ROI is an obvious red flag.
You can check out forums to see how schemes work by typing these names into your search engine: Fleex, Rapidminers, Cryptomonitor, Micro-BTC, and HashPerium. These promised a large return on investments had inflexible crypto contracts and very unprofessional-looking websites.
Conclusion Cloud Mining 2020
In this review, we answered the question regarding what are the legit cloud mining companies in 2020. Although plagued with scams, the industry is still ongoing, with several; legit options available. We would definitely pinpoint that, although crypto prices are falling, so does the mining difficulty. It is a good time to get into cloud mining, as new players see space opening for them.