For many people in the crypto market, mining coins in return for earning passive income is an attractive prospect. But mining, in the traditional sense, requires expensive hardware and significant power. Increasingly, people are turning to cloud mining instead.
With cloud mining, users simply choose a provider, invest upfront, and wait for the mining platform to generate profits. Sounds easy, right? But choosing the best cloud mining site is not so simple. We’ve rounded up the top contenders for 2023, so potential miners can feel confident in their investments.
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What is cloud mining?
Cloud mining is the process of mining cryptocurrency by renting computational power from another source, such as a cloud mining service provider. Traditional means of mining crypto often require expensive computers, which use up a lot of electricity. This also leads to difficulty in sustaining and making a profit.
By utilizing a remote data center that shares its processing power with its renters, cloud miners don’t have to worry about managing complicated hardware equipment. This is especially useful for beginners. When you use a cloud mining service, what you’re actually renting out are hashrates — a metric used to assess a network’s processing power. Users must register with a mining company and purchase a mining contract that acts as their “share.”
Most people are familiar with bitcoin, so bitcoin cloud mining is still the most common form of crypto mining. However, you can mine any crypto that uses the proof-of-work consensus mechanism. When there’s a requirement to invest upfront, choosing a trusted cloud mining site with good reviews is essential. Here are the best cloud mining sites on the market right now.
Importance of cloud mining
Every 210,000 blocks (roughly every four years), block rewards for mining bitcoin are cut in half. This means that in 2024, the current reward of 6.25 BTC will be reduced to 3.125 BTC.
Bitcoin mining generated $3.39/ TH per second at its peak in 2017. It was closer to $0.104/ TH per second by the end of Fall 2022. When you take into account these factors, bitcoin mining will have periods of diminished returns.
Traditional mining is expensive, and miners must pay for electricity costs, even if returns take a hit. Many people take out loans to buy equipment and start mining operations. As such, when these companies or individuals cannot repay their debt, they go bankrupt and stop mining. Cloud mining is a great way for miners to continue contributing to the security of the network without an initially large investment.
It is also less risky for those who want to earn passive income but do not have the start-up capital to begin mining. Cloud mining is also a good option for the less technically savvy. In all, it lowers the threshold for entry to the world of crypto mining.
Top 8 cloud mining sites
1. BeMine
BeMine offers an innovative flagship service, bringing together data centers and equipment owners. Users can also purchase up to 0.1% share of an Application-specific Integrated Circuit (ASIC). This allows prospective miners to begin mining coins without buying expensive equipment upfront.
Miners can be purchased as cloud contracts or in parts. Mining contracts and equipment shares hardly differ from one another. Whole machines are bought forever and can be delivered to your local farm or storage facility. However, contracts are bought for a specific amount of time and are not associated with any particular piece of equipment.
-Service fee: 0.057 USD per kW/h
-Withdrawal fees: 3%-7%
-There are 4 cloud contracts: Beginner, Standard, Professional, Ultra
-All cloud contracts are for 48 months
- Provides simple and easy access for investors to mine cryptocurrency
- Minimal learning curve: suitable for beginner miners
- Native token Pawā offers enticing discounts and a bullish roadmap for DeFi and cloud mining convergence
- Users can purchase part of ASIC miners
- Minimizes electricity usage in mining
- Profitability calculator
- No deposit fees
- Offers analytics and support via Telegram
- Other mining services rank higher for customer service
2. YouHodler
YouHodler’s Cloud Miner is a cryptocurrency mining simulator and incentive program. Its primary goal is to gamify the Bitcoin mining process and encourage user engagement. By completing easy tasks, users are rewarded with BTC.
Furthermore, the custody of assets is supported by Ledger, a trusted provider in the crypto industry. It’s worth noting that the Cloud Miner doesn’t consume any computing power from users’ devices, ensuring a seamless and hassle-free experience. Additionally, even at the basic miner level, users are eligible for rewards simply by creating an account.
-Dynamically adjusted
- Incentive and rewards program
- Low cost
- Multi-HODL allows you to boost rewards
- Cloud mining simulator
- Not available in the U.S.
3. Binance
Binance, one of the largest cryptocurrency exchanges in the world, offers a mining pool service called Binance Pool. Users can pool their computing power with that of other miners to mine cryptocurrencies together and earn rewards based on their participation.
Bitcoin (BTC), bitcoin cash (BCH), litecoin (LTC), and other cryptocurrencies are a feww of the supported coins By signing up for Binance Pool, miners can take advantage of the platform’s resources and infrastructure to improve their mining efficiency and perhaps even boost their chances of receiving rewards.
-2.5% pool fee
-1.5% management fee
-1%-4% mining fee depending on the coin
- Supports multiple algorithms
- FPPS, PPS+, and PPS settlements
- Daily payouts
- May cost a lot at times
- Not available in U.S.
4. KuCoin
This platform offers lending, staking, P2P trading, futures, spot trading, and mining. KuCoin Pool, its mining service, is a high-performance mining pool that supports bitcoin (BTC). It is a relatively new service, aiming to become one of the largest mining pools contributing to multiple blockchains.
-No fees on revenue from mining
-BTC-5T Threshold Antminer S19XP: 4.313 USDT/ T
-BTC-50T Threshold Antminer S19XP: 4.31 USDT/ T
- Merged mining and FPPS settlement guarantees mining income
- Accurate Hashrate Data
- One-on-One Customer Service
- Can not withdraw fiat
- U.S. users have limited features
- Can only mine BTC
5. Hashfrog
HashFrog is a miner rental marketplace. User’s can purchase the rights to profit from mining for a specified period of time. The mining platform has a significant strategic partnership with BITMAIN, a leading mining machine manufacturer, and ANTPOOL, aiming to closely collaborate and connect various ecological partners involved in mining machines, mining farms, and mining resources.
Users will incur a service fee and hashrate fee, specific to their miner and mining contract. For example, S19i miners have a hash rate fee of $ 0.001/T/Days, and a service fee of $ 0.06/T/Days for a 3 day contract. While a KA3 miner has hash rate fee of $ 0.011/T/Days, and a service fee of $ 0.0831/T/Days for 60 days.
- Daily payouts to personal wallet address
- Multiple coins to mine
- Newbie exclusive contract has competitive rates
- Multiple contracts available
- Not available in the U.S.
6. BitFuFu
BitFuFu stands as a digital asset mining service and cloud mining provider, offering a wide range of solutions. Backed by BITMAIN, a renowned name in the industry, BitFuFu has established itself as the strategic partner for cloud mining.
With a robust business model encompassing cloud mining, miner hosting, and self-mining, BitFuFu collaborates with a multitude of carefully chosen mining facilities across prominent locations such as Canada, the United States, and Kazakhstan.
BitFuFu applies a Hashrate fee and a Service fee, specific to each miner and time period. For example, for the S19 miner, the Hashrate fee is $0.0130
/T/D, while the service fee is $0.0531/T/D.
- Cloud mining, miner hosting and self mining
- Daily payouts
- Multiple coupons and rewards
- Not available in the U.S.
- Only Bitcoin
7. StormGain
This platform offers a simple and intuitive, user-friendly dashboard. StormGain performs all the operations of normal BTC mining hardware, so it doesn’t use up your mobile or computer battery. Users can monitor assets rising or falling straight from the platform’s interface.
Free
- Legitimate, reliable service
- Anti-fraud engine
- Stable payments
- Good customer service
- Gives up to 20% bonus on every deposit
- Difficult to calculate the withdrawal amount
- No in-built bot to automate trading
8. ECOS
With over 100 thousand users worldwide, the DeFi platform supports major coins, including bitcoin, ripple, ethereum, litecoin, tether, and bitcoin cash. However, mining functions only support bitcoin. In addition to providing cloud mining services, Ecos offers a multicurrency wallet and a range of digital asset portfolios with various risk/return ratio indicators.
-Service charge is $0.05 (indicated for 1 TH/ s per day)
-30 month, 40 month, 50 month, and 60 month contracts
-Each mining contract has adjustable pricing $150-$50,000
- Customized contract purchasing
- Daily payments
- Low minimum withdrawal
- Low fraud risk
- Only supports BTC mining
9. Nicehash
The Nicehash platform provides both mining hosting services as well as a marketplace. Here, miners have more freedom in customizing their mining terms. Customers can also connect their miners and sell hash rates to others on the platform by attaching their GPU.
NiceHash is a marketplace for hash power brokers that links buyers and sellers of hash power, such as miners. The unique feature of the NiceHash service is that it only links various end users and does not provide any cloud mining options, which means that NiceHash neither owns nor leases any mining equipment. Therer are no mining contracts.
-Fees for selling hash power: 0.5%-2%
-Fees for buying hash power: 3%
- Fiat withdrawals
- Remote mining management
- Peer-to-peer hashrate trading
- Fast Lightning Network mode
- More expensive than most cloud mining options
- Slow payout rate
10. Hashing24
The platform boasts a solid ten years in the bitcoin cloud mining market, with over 1000 coins mined and withdrawn by users, and utilizes industry leader Bitfury for its mining data centers. Similar to Ecos, the platform only supports bitcoin mining at present.
Hashing24 is a reseller of Bitcoin hash rate capacity generated by data centers. The user orders a specific hashrate volume for bitcoin mining via the cloud on the platform. The company processes the order and once completed, bitcoin mining can begin.
Daily maintenance fee
-12 month plan: $55.40
-18 month plan: $83.10
-24 month plan: $110.80
-30 month plan: $138.50
- Stable hash power
- 24/7 customer support
- Daily payout
- Weekly promotions and auctions
- Free demo to simulate profits
- Maintenance fee is not transparent
- Only supports bitcoin mining
How to choose the best cloud mining site for you
Always do your research before choosing the right platform for your needs. Keep in mind that the best cloud mining sites are those that have a proven track record of successful payouts and customer reviews. Be aware that many cloud mining platforms are scams. It is crucial to find one that pays you consistently and is transparent with its hashrates. Cloud mining can be rewarding if you practice good risk management, choose a reputable company, and only invest money you’re comfortable losing.
Frequently asked questions
Is cloud mining profitable?
Is cloud mining risky?
How can I start cloud mining?
Disclaimer
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