In How to set up your mining rig post, we discussed how to physically set up a mining rig for yourself. But what if you don’t belong to a technical background and found setting up your mining rig to be too perplexed a task to do it all by yourself? Don’t fret. Not all of us are technical geeks. Cloud mining is the solution you need.
What is Cloud Mining?
Cloud mining is a hassle-free process of mining which involves renting out mining power by getting into an agreement with a cloud mining company. To put it simply, the mining company sets up the hardware for you, incurs the electricity cost and also monitors your mining hardware once it’s up. Sounds great, doesn’t it? Now, you must be all curious to know how do they manage to churn profits and what’s in it for them.
Here’s you cloud mining companies roll. The legitimate ones ( Yes, not all are legitimate. Beware of the scamsters ) have gigantic farms in locations where the electricity costs are negligible. On top of that, since these companies buy hardware in bulk they’re also privileged to getting it sourced at a significantly reasonable price.
If you’re planning to dip your toe in the cloud mining business, genesis mining is the most legitimate third party mining service provider our there. An Iceland based company, genesis mining is one of the oldest and the most reliable players among all the cloud mining companies. Here’s a screenshot of the Etherium cloud mining contract they’re selling.
Depending on your budget and the hashing rate you wish to have, you can choose any one of from the small, medium and large plans or create a custom plan and pay accordingly. We’d recommend you start small and read the entire contract carefully before paying them.
Factors to consider before you opt for cloud Mining
In the crypto world, it’s pretty common for people to get all excited and get in hastily only to regret later. While cloud mining has many pros, it has its share of cons too.
Let’s have a look at both the pros and cons of cloud mining
1. Save yourself from the hassle of setting up and monitoring the mining rig
2. No extra electricity cost incurred.
3. No need to worry about dealing with the heat the rig generates
4. Switch between different crypto coins on the fly and take payouts in the cryptocurrency you wish to.
5. Daily payouts
1. Once you get into the contract, you have to honour it. Your money gets blocked
2. As the network complexity increases, your rewards might take a hit.
3. If mining ceases to be profitable, your contract will end and you might not even recover your seed money
In the end, it all comes down to whether you’re capable of setting up the rig and supporting the rig on your own. Even if you are capable enough, you also need to take into consideration whether you will be able to invest the time it will demand. Once you’ve got all these things figured out, making the right decision with regards to mining will be much easier for you