If you’re new to the cryptocurrency space and you’re interested in earning some bitcoin or other coins, cloud mining is probably one of the most suggested methods by people online. But is it worth it?

 

Is cloud mining real or a scam?

Cloud mining is not necessarily a scam. While most cloud mining services are scams, there are definitely a few legitimate cloud mining services that actually has mining hardware to rent to their customers, though are very rarely worth it or profitable.

How does cloud mining work?

Instead of buying graphics cards or ASIC miners and paying for your own electricity, with cloud mining, you instead rent mining hardware from certain mining service’s warehouses instead. They would pay you daily/weekly/monthly with your mining earnings without you actually running or owning actual hardware yourself.

Can I make money through cloud mining?

You technically can, but the chance of you actually making profit and reaching your return of investment(ROI) is extremely low, and the chances of you getting scammed is extremely high especially if you don’t do extensive research.

Is cloud mining profitable or worth it?

99% of the time, cloud mining services are not profitable, hence definitely not worth it.

Assuming the cloud mining service you paid for is legitimate(which is rarely the case), there are going to be fees you need to pay that will be deducted to your daily/weekly/monthly earnings. Hence significantly decreasing your earnings. Not to mention that bitcoin’s mining difficulty continues to increase as intended, decreasing your potential earnings once again.

Is cloud mining safe or legit?

Probably 99% of the cloud mining services you see advertised online are scams, especially the “free” ones. While they claim that you’re actually renting miners with your money, most of the time, you’re actually instead funding a ponzi scheme(a common type of investment scam). Ponzi schemes and other scams masquerading as cloud mining services, trading bot services, bitcoin investment sites, etc, are really nothing new in the cryptocurrency space.

While there are a few cloud mining services that seems legitimate and continues to run for years already, there’s no guarantee that their business would run longer amounts of time. Not to mention that they’re very rarely profitable investments in the first place.

Is there such thing as a free cloud mining service?

No. Cloud mining is a business. No legitimate cloud mining service business would rent out their hardware and their electricity for free or without any cost. This is simply just not a feasible business model.

What are the best cloud mining sites in 2019?

None. Every cloud mining service is either a scam, or far from potentially being profitable. You’re most likely going to lose money either way, even if you invest in legitimate ones.

Why do people online frequently suggest doing cloud mining?

A lot of people are simply incentivised to suggest people online to do cloud mining, as for them to earn affiliate commission through their cloud mining affiliate links. If you deposit money on the cloud mining service they were advertising, they earn a small percentage off your deposit.

What should I do instead?

If you really want to do legitimate mining, buy your own mining hardware instead. That way, you actually have decent a chance of earning money.

Take note that having a bitcoin mining business is not as easy as most think, and you can still end up with a loss. A lot of calculations and research will be needed to make sure that you’ll end up being profitable.

If your end goal is to simply own some bitcoin, you better buy them from a reputable exchange, and store them on a safe and reputable hardware wallet like the Ledger Nano X.




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Marc G

Loves talking about cryptocurrencies, finance, investing, and gaming economies.

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