Cloud mining is a procedure of mining cryptocurrencies by using a remote datacenter with shared processing power. As such, it allows anyone to mine Bitcoin, or any other cryptocurrency that can be mined, without the need to own or maintain mining hardware.
In This Article:
- ScryptCube Cloud Mining
- Genesis cloud mining
- Nicehash cloud mining
- CCG Mining
What is cloud mining?
Mining cryptocurrencies can be expensive, and that especially goes for mining Bitcoin. As the world’s largest cryptocurrency, Bitcoin also has the largest mining community out there. While this is generally a good thing, as it shows massive interest in the coin, it also means that the competition is so big that no one can mine the coin on their own, with their own CPU or GPU, as it was possible in the early days.
Instead, entire mining farms are needed, where miners use professional mining gear worth thousands of dollars. Not to mention the huge cost of electricity that is necessary to mine the coin.
Obviously, not a lot of people can afford that, which is why another solution has emerged — cloud mining.
As mentioned, cloud mining allows people to mine cryptocurrencies without having to own the necessary hardware. Considering how expensive hardware is, this is a preferred option for thousands of people around the world.
Cloud mining comes as a much cheaper alternative which anyone can use, regardless of how much or how little they can contribute. It is also much safer than trying to profit from trading cryptocurrencies, as there is little risk of experiencing great loss.
How does cloud mining work?
Cloud computing is one of the fastest-growing trends, and it provides access to all kinds of computing services, such as storage, databases, servers, and software — all of which are available via the cloud.
With crypto mining being the backbone of many Bitcoin-like coins, it did not take long for the concept of mining via the cloud (the internet) to emerge.
Basically, cloud mining allows people to invest some money into a company that owns mining gear. The company calculates how much hash power the user has contributed through their investment, and they repay them with a certain amount of BTC they manage to mine.
Meanwhile, the miner’s investment is used for maintaining the gear, paying for the cost of mining, and alike. The amount that the user will invest depends on the contract they purchase, as cloud mining companies have multiple of them, in order to meet everyone’s needs, as well as capabilities.
Getting started is very easy, and all that a would-be miner needs to do is open an account with one of these cloud mining companies. After that, they can browse through the offered contracts and similar details, pick the deal they find the best for their situation, and purchase the hashing power.
Of course, miners are advised to be very cautious when approaching a company, as there are always fraudulent firms that will promise huge returns on investments. They would try to trick the miner into paying them money, and then they would disappear without ever paying back the investor.
In essence, cloud mining makes crypto mining accessible and available, which would not be the case if the person had to use hardware on their own. Before we start comparing it to hardware, however, we should first focus on the matter of profit.
Is cloud mining profitable?
One thing that you need to understand about cloud mining and cloud mining companies is that majority of them out there are Ponzi schemes. When we say the majority, we mean 99% of them are not trustworthy.
These firms do not actually mine crypto. Instead, all they do is take the investors’ money and use it for themselves. When the new investors arrive, they take their money as well, and pay a bit to the previous investors, while keeping a portion for themselves. Then, as new investors keep coming, they just repeat the process.
You can find complaints about such firms pretty much everywhere.
As for legitimate firms, cloud mining can be profitable, although only under certain conditions. If we assume that BTC price will remain the same, it would likely take anywhere from around six months to several years for you to break even, depending on the company, prices, contracts, and more. Everything after that will be pure profit. In other words, you shouldn’t expect astounding results straight away, unless, of course, you start mining while Bitcoin is at its lowest, and it hits a new ATH pretty soon after you have started.
Cloud mining vs Hardware mining: Summary
So far, we have learned that cloud mining can be profitable if you are willing to wait. Other than that, it is relatively cheap, it doesn’t require you to do pretty much anything, and anyone can do it with almost any amount of money they are willing to invest.
By making this investment, you are empowering a company of your choice to mine Bitcoin and pay you back a portion of the profits.
This is, clearly, much more convenient than having to mine Bitcoin via your own hardware.
To put things into perspective, let’s just point out that hardware itself costs thousands of dollars. On top of that, there is a cost of electricity, which is so big, that most of the Bitcoin mining has to take place in China — a very anti-Bitcoin country, and the only reason for it is that China has cheap power due to its rain seasons.
Then, think of the cost and effort that goes into maintaining it, cooling it, fixing it, and making sure that it all works properly at all times. If anything breaks down at any point, it is you who will experience losses.
Then, there’s the matter of the competition, which has never been higher, judging by the current hashrate, so that is definitely something to keep in mind. In other words, if you wish to mine Bitcoin and not some other crypto, you will likely have a very bad time if you go for hardware mining. In comparison, cloud mining is a breeze, where all you need to do is invest in a contract and wait for half a year to start seeing profits.
Top cloud mining services
We cannot stress enough how important it is to only work with reputable cloud mining companies. If you are interested in a specific firm, do your research and background check, as the number of scams in the crypto industry is sky-high, and it is all too easy to lose your money.
Luckily, there are still plenty of real, reputable mining firms, such as:
- The team at Shamining is dedicated to creating the best conditions to maximize your profits from cloud mining.
- Here, users can choose which miner works best for them, based on lite powered miners to more high powered ones.
- Supports various payment and withdrawal methods, like MasterCard and Visa. Also provides instant payments.
- Shamining has a lot of positive reviews as of 2018.
- The minimum deposit is an accessible $100.
- Average yield on Shamining is 1.43%
- If you’re new to the platform, they will add 37% to your first deposit for free.
- Unfortunately, you can only mine Bitcoin on here.
Pros of Shamining
- Can choose between miners
- Supports various payment methods
- Positive reviews
- Accessible minimum deposit
- Great deposit incentive.
Cons of Shamining
- Can only mine Bitcoin on this platform.
- StormGain cloud mining performs all operations of BTC mining hardware without using the battery of your mobile or computer.
- Mining speed depends on StormGain’s cloud servers. Speed is limited by the number of users participating in the mining process.
- Every 30-40 minutes, (depending on the production time of the bitcoin blocks), the benefit of mining is distributed equally among all users who participate in the mining process.
- After mining the equivalent of at least 10 USDT in BTC, click the ‘Withdraw’ button. Whatever you’ve mined will be credited to your account by StormGain within 72 hours.
- Payment may be limited or blocked based on company judgment based on its anti-fraud engine.
- The profit from cloud mining will be credited to your USDT trading account. Remember that this can only be used to operate on Stormgain.
- However, any profit you make from those trades on Stormgain will be yours to withdraw or exchange as you wish.
Pros of StormGain:
- A credible service for cloud mining
- Use reliable equipment
- It has an anti-fraud engine
- It offers good customer service
- Stable payments
Cons of StormGain:
- It can only mine BTC
- It is difficult to calculate the amount you get when withdrawing
- ScryptCube is a UK-based company that has made it all the way up to the second spot in our best cloud mining services in 2021 rankings owing to its affordability and ease-of-use. The platform claims to have state-of-the-art data centers hosting hundreds of high-efficiency and reasonably-priced miners.
- As of press time, ScryptCube offers two cloud mining plans: 1) Bitcoin Mining 1-Year, and 2) Bitcoin Mining – 2 Years. The 1-year plan starts at $1.90 per 100 GH/s while the 2-year plan will cost you $3.50 per 100 GH/s. ScryptCube is also planning on introducing Ethereum and Beam mining plans in the foreseeable future.
- Registration is simple on the platform and you will require providing only some basic info such as your name, contact details, and payment information. Next, you will be asked to choose a mining plan of your choice. Each ScryptCube mining plan is customizable based on your budget and preference. You can purchase any Hash Rate of your choice using Bitcoin or credit card (Visa/MasterCard).
- Because you can choose any Hash Rate of your choosing, you have the chance to try out the platform first with any capital that you are comfortable with and evaluate its performance before making any further investment.
- Mining starts immediately after your payment is confirmed. ScryptCube’s in-house experts configure the miners promptly to ensure the highest efficiency. The dashboard for managing your account is neatly arranged and is easy-to-understand even for first-time miners having no prior experience with cloud mining.
Pros of ScryptCube
- You can generate revenue 24/7 from a profitable plan.
- Mining plans are affordable and highly customizable, which makes ScryptCube’s cloud mining accessible to a wide range of users.
- The newly mined coins are deposited into your account daily.
- There are no hidden fees or commissions.
- The dashboard is info-packed, yet very easy and intuitive for users with all levels of technical expertise.
- You have real-time access to all mining- and account-related statistics.
Cons of ScryptCube
- ScryptCube only supports Bitcoin mining is available as of today, which limits the options for anyone who would otherwise prefer to mine any other cryptocurrency of their choice.
- Genesis Bitcoin cloud mining is third on our list, and one of the few truly reliable cloud mining companies out there. This is an example of a legitimate firm that has actually purchased and set up mining hardware to mine cryptocurrencies on behalf of their users.
- Genesis mining has been around ever since mining on your own started becoming difficult, being among the first companies to provide an alternative. This was all the way back in 2013, which makes it one of the oldest ones today. Since then, the Genesis Mining stayed in business, mining Bitcoin and other coins from its farm in Iceland.
- In terms of the coins it offers, those include a few cryptos, such as Bitcoin, Ethereum, Zcash, Monero, Litecoin, and Dash. Many of these are privacy coins, as they are very popular for making crypto payments. Bitcoin is there, as well as its oldest fork, Litecoin. And, of course, Ethereum is still an option, as it has yet to switch to PoS.
- Genesis Mining also offers several contracts that you can purchase.
There are four different mining plan types, each of which has four contracts with different prices;
- Bitcoin radiant Classic (6 months runtime)
- Bitcoin Radiant Classic (24 months runtime)
- Bitcoin Radiant Zero (6 months runtime)
- Bitcoin Radiant Zero (24 months runtime)
As for the contracts themselves, you can choose between:
In total, there are 16 combinations, each of which offers a different price, TH/s, length, and more.
Pros of Genesis Bitcoin:
- A credible service for cloud mining
- Uses reliable equipment
- Offers good customer support
- Stable payments
Cons of Genesis Bitcoin:
- No exchange for sale of the hashrates
5. Nicehash Cloud Mining
- The buyers can decide on how much hash they wish to purchase, and they get to set the terms. This can include the amount, the length of time during which they will need the hash power, and how much they are willing to pay. Then, the sellers get to decide whether the conditions are acceptable and if they are interested in making a deal.
- The entire economy of this specific marketplace is Bitcoin-powered. You use BTC to buy hashing power, while sellers receive BTC for providing it. In other words, you will get paid in Bitcoin, regardless of which cryptocurrency you wish to mine. It all gets converted into BTC.
- Meanwhile, sellers can provide any type of hardware they want, which includes CPU, GPU, and ASIC mining. Naturally, the profitability and success will depend on the buyer’s choice of crypto and hardware they employ. But, this also means that NiceHash itself doesn’t have any mining hardware, which is exactly what they admit on their site. They are simply there to connect the buyer and the seller and make things happen between them.
- The service is known as NiceHash in Europe, although in the US, its name is different — WestHash. As for its servers, they are located all over the world, including the US, China, India, Japan, and Brazil.
Pros of Nicehash:
- Simple to use
- Pays out in BTC
- The mining software is excellent
- It can sometimes pay higher than the mining rate
Cons of Nicehash:
- Fees are higher than at other pools
- Payout rate is slow
- Not the most friendly when it comes to smaller coins
- In the fourth spot, we have an Estonian cloud mining service, HashFlare. The way this service operates is pretty similar to most others, although this one does own some of the mining hardware that it provides. With that said, it also allows third-party miners to contribute to the website’s mining activities, as well.
- It is a type of a hybrid service that is neither completely relying on others like NiceHash, nor is it only doing the mining with its own hardware, like Genesis.
- The service started by providing cloud mining contracts for a number of coins, including Bitcoin, Ethereum, Litecoin, DASH, and Zcash. However, it paid its customers in the cryptocurrency they opted to mine, except when it comes to LTC, which was paid out in Bitcoin.
- Another thing to note is that the service has a pretty limited number of Ethereum contracts. However, there are a fair number of people who apparently got burned while working with the company, so its ratings are not the best. It is legitimate, although it doesn’t seem to be particularly reliable.
- This led to a number of scandals in its past, which revolved around the introduction of KYC and AML procedures, the shutdown of BTC mining, and it even started canceling contracts without any reason at one point. Those who opt to give it a chance should stay very cautious.
- As for its pricing, it is pretty straightforward — you choose how much MH/s you wish to buy, and the price depends on that.
There are different prices per coin you opt to mine, so you will pay:
- $1.80 per 1 MH/s for Litecoin
- $0.60 per 10 GH/s for Bitcoin
- $1.40 per 100 KH/s for Ethereum
- $1.40 per 1 H/s for Zcash
- $3.20 per 1 MH/s for DASH
Pros of Hashflare:
- Well-equipped data centres with good availability
- Stable payments
- Allows you to choose a pool
- Good customer support
Cons of Hashflare:
- You cannot sell your hashrates
7. Hashnest Cloud Mining
- Next up, we have Hashnest, which is a cloud mining service that has quite a prominent backer — the crypto mining hardware maker, Bitmain. Like Bitmain itself, this service is also China-based, although it has its people and offices all around the world.
- It is also a pretty old service, which has been around since April 2014. As such, it has had plenty of time to be revealed as a scam if it were one, which did not really happen.
- That’s not to say that you can’t find people who were burned by the firm — there are plenty of them. However, the majority of reviews suggest that this is, in fact, a trusted, decent option for cloud mining. It is worth noting that cloud mining firms have spent years in the experimental phase after Bitcoin mining via CPU and GPU became less-than-profitable from 2013 onwards.
- The miner describes itself as the ‘best cryptocurrency mining platform,’ and it directs all miners to Antpool by default. This pool is a part of Bitmain Corporation, which owns a number of mining farms — not only in China, but in Iceland, too. – Unfortunately, most of them cannot be reviewed, as they are hidden in order to protect the customers and maintain security, as the company claims. But, they also claim to be the owner of the world’s largest Bitcoin mining farm, which is not a claim to be made lightly.
- In the end, mining via Hashnest is pretty simple. All that participants need to do is download the mobile app, and they will be able to use it at any time. By registering, they will also get their own wallet, where they have to deposit BTC in order to purchase hashrate. After that, mining can officially start.
Pros of Hashnest:
- Between 20 and 120 payouts each day
- No withdrawal penalties
- Lets you redeem your hash for hardware
- If you buy your hash, you immediately get payout increase
- Buy and sell hash power on an open market
Cons of Hashnest:
- Not that easy to use
- Hash must be bought with only selected coins
- Market prices can get extremely overheated
- Close ties to Bitmain, which is controversial
- Site can be slow to load
8. Eobot Cloud Mining
- Nearing the end of the list, we have Eobot, which is yet another cloud mining platform that has quite a long history. It has been around since 2013, which makes it one of the oldest cloud mining services, and puts it right up there with Genesis. This is a California-based service, whose owners have decided to stay anonymous.
- If you are an ad-block user, you will quickly notice that Eobot is not too fond of this kind of software. You will either have to disable it or use another browser to even register on its website. After you finish the registration, however, the service is actually pretty good. It enables 2FA and alerts of logins from unknown browsers by default, so security is excellent.
- However, when it comes to its mining contracts, you don’t really have a huge selection. You can buy one either for 24 hours or 10 years. But, the site itself is pretty clean and easy to navigate, with everything being properly laid out and presentable.
- It features a fee estimator, that will let you calculate how much you can earn judging by the amount of hashpower you have purchased. However, it does warn you that it takes up to 52 months to break even. In other words, this is a service for someone who can invest a lot at once and be patient for years to come.
- As for available cryptos, there are plenty of them, including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, EOS, USDC, TRON, DASH, Dogecoin, Cardano, CureCoin, Monero, NEM, Zcash, Bytecoin, Tezos, Stellar, Lisk, STEEM, Grin, and Ethereum Classic.
Pros of Eobot:
- Support for Android and iOS
- Provides immediate payouts
- Has interesting side projects
Cons of Eobot:
- Maintenance fees are high
- Website is pretty basic
- Owner is anonymous
- Last, but not least, we have Hashing24. This is a service that operates from offices around the world, including Ukraine, the UK, and even Thailand. Meanwhile, its mining devices are located in Iceland and Georgia.
- The service has been around for a few years, since 2016. Apart from that, it has close ties to a chip-making project by BitFury. In fact, this is where the majority of its hashing power comes from. That also gives the service a certain level of legitimacy, as it has a constant supply of hashing power to sell.
- However, this is not a great choice for those who wish to mine cryptos other than Bitcoin. Bitcoin is the only supported coin, and Hashing24 offers lifetime mining contracts for a one-time-pay. So, if you wish to pay once and mine BTC for as long as there are coins to be mined, this might be the best service for you.
- It is expensive, there is no doubt about that, but it also appears to be reliable and competent. It has good customer support, and it is very easy to navigate, thanks to the user-friendly interface. You can register in less than two minutes. After that, choosing the hash power is all there is to it. The mining starts after that, and you can sit back and watch as your supply of BTC keeps growing.
Pros of Hashing24:
- Very simple to use
- Payouts are based on the hashrate
- Excellent uptime
- Offers a demo to test the product before committing
- It can act as a Bitcoin wallet account
- Quick withdrawals
- You can withdraw at any time
Cons of Hashing24:
- It’s hard to calculate the amount you get when withdrawing
- No short-term contracts
- It only has one algorithm
10. CCG Mining
- Finally, there is CCG Mining, which is a cloud mining firm that was launched in 2016. The company came right as the crypto mania started to pick up, and it started offering rather comprehensive solutions.
- The firm is based in Europe, and it spread out through five different countries — Russia, Austria, Poland, Latvia, and the UK. As of 2021, it has over 850 business clients, as well as 45,000 private clients.
- The company’s goal is to offer professional services and satisfy its clients, but also to create the highest computing hashing power in Europe. To ensure this, it makes it extremely easy for clients to use its service, and it ensured to have a qualified and competent team working on its crypto mining deals.
- The company also created rather innovative products called B2B (Business-to-Business) and B2C (Business-to-Consumer) clients, which revolve around simplifying the mining process for the clients.
- On top of that, CCG Mining offers three things: Cloud Mining Contracts, Mining Rigs, and Affiliate program.
- It offers services for multiple cryptocurrencies, including: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Monero (XMR), and Zcash (ZEC).
- As for its cloud mining contracts, there are three standard ones, as well as a custom one, that the client creates in agreement with the firm. The three standard ones include: Mini, Starter, and Pro.
- The price per each contract, as well as the duration, depend on the coin that the client is interested in mining.
CCG Mining pros:
- Excellent mining rigs
- Good support systems
- Excellent loyalty program
- Very good prices
CCG Mining cons:
- Provision of inadequate information
- The firm relies too much on live communication for technical details
At this point, you should know what crypto cloud mining is and how it works. We have also explained some of the best services for you to choose from if you are new and not really sure where to start. Once again, if this is the case, do everything in your power to protect yourself from the scammers, as there are plenty of them out there, and also be careful when working with legitimate firms, as well.
Not that they will try to trick you, of course, but there are many pitfalls that you might not be aware of due to the fact that you are new in an industry that is still very much new itself. Cloud mining can be very profitable if you do it right and approach it with care, so play your cards right, and depending on the service you choose and the contract that you buy — you can start seeing profits in only a few months.
Disclaimer: All the information in this article is published for general information purpose only. Any action you take upon the information you find on this website is strictly at your own risk. We encourage you to do your own research and take extra care to protect yourself from scammers.