April 21, 2021

Everything you must know about Bitcoin Cloud Mining and Bitcoin Mining Pools

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From WN

What is Cloud Mining?

In the case of cloud mining of bitcoins , ethereum , Litecoins and many other cryptocurrnecys – is simplified considerably. Cloud Mining vendors provide computing power for a one-time fee, so you can easily create bitcoins from home without having to buy mining hardware or software.

You pay the fee and get the income generated by the rented computing power. For most Bitcoin Mining vendors, you can mine different cryptos at the same time, so you build a broad portfolio of different coins.

The cloud provider mining or mining pools are mostly located in countries with very low electricity prices or access to alternative energy sources and create there all the server farms. Since professional mining with massive computing power is only worthwhile in high-performance systems, this results in a very high power consumption. Therefore, a professional mining in Germany is usually not profitable. Cloud Mining providers or Mining Pools are a good opportunity to increase their bitcoins with low capital use and low risk, or to generate additional coins such as Litecoin or Ethereum.

Cloud Mining or self-mining?

The self-mending of cryptic stimuli requires a lot of technical expertise. If you do not have this, or have little time to get involved in the topic of mining, Cloud Mining is just the right thing to do. Not only that the mining can go directly after buying the HashPower, but also the actuality of the Miner-Hardare, the calibrating, the electricity costs, etc. do not have to be considered with the Cloud Mining.

In contrast to the own hardware mining, however, the ROI, ie the “return on invest”, is longer (time required to recover capital use). This means, of course, that the company, which provides the computing power for the Mining also wants to make money, you need in comparison to your own Mining in a theoretical calculation a bit longer to get your employment again and operate completely profitable Bitcoin Mining.

This is why cloud mining is very suitable for beginners. Mining costs of at least € 500 are incurred for own hardware mining. This varies depending on the crypt diet and the volume of the minerals.

Cloud Mining or Buy Direct?

Here you have to decide if you want to “create” crypto-coins yourself by mining or whether you are driving with a direct investment in cryptosciences no better. For me personally a double strategy has paid so far the best. That means I run Cloud Mining over Genesis and in parallel I buy however also various crypt currencies directly.

Make money with Bitcoin Mining

With Bitcoin Mining as a millionaire – over night – without working, you have already seen such ads. I hope you are not on it, because that is absolute nonsense and rip off. Especially from the MLM area, especially ominous mining companies like fungi are sprouting from the ground. In principle, MLM can be a solid business model, but it is currently attracted to people who do not understand either the mining, the cryptics or the blockchain. They are concerned only with the big and fast money.

Here it should be clear that most MLM Bitcoin Mining companies come very close to a Ponzi scheme. Mining investment is only 50% of the investment in mining, for example, and the other 50% are invested in the marketing plan, ie commissions. This business model “earning money with Bictoin Mining” really makes sense only for those who as much as possible enroll other people among you into the structure and thereby earning money should be clear. Here is my recommendation quite clear fingers away.

Cloud Bitcoin Mining

The ROI with Bitcoin Cloud Mining (Return on Invest) is currently only available in the long term (> 3 -6 months depending on provider and package). If now only 50% flow into the actual mining, the ROI is almost impossible to reach without other people.

There is the widespread fallacy that if you run Mining or Cloud Mining, you automatically get better profits. For this, one must say that the success of Bitcoin Mining or the Ethereum Mining depends on different factors. For example, if you invest directly into the Top 10 of the crypt currencies in January 2017 – 1,000 €, you have earned much higher profits compared to an investment of € 1,000 in mining. Therefore, a double strategy, buy cryptic ferries directly, and accompanying bitcoin mining or mining from other cryptocurrencys (eg Ethereum, Dash, Monero, ZCash, Litecoin, Dogecoin) is a good strategy.

Conclusion on Cloud Mining and Bitcoin Mining

As part of my investment strategy , cloud mining has become an integral part. In addition to the direct purchase of cryptos andtrading crypto currencies , I can fully rely on Cloud Mining, even if the market is downhill or I do not have time for active trading, but I still make a profit.

For me personally it is important that I am as wide as possible in the field of cryptic diseases, mainly for the reason not a good opportunity to miss and a risk diversion in the portfolio to have. The bitcoin mining with hardware is not worthwhile for me because I lack the technical background here and I do not have the time to adapt to the knowledge and the technology. So I decided in the Mining area for the Cloud Mining. Even if the ROI takes somewhat longer than hardware mining, cloud mining is simple and very fast.

Cloud Mining is, in my opinion, not an absolute must, but a useful and useful portfolio supplement for investments in cryptos.

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Comments

  1. This type of cloud mining enables users to mine bitcoins or alternative cryptocurrencies without managing the hardware.

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