Mining is essentially a resource and time intensive process, which is not cost-effective for the average miner, given the expensive mining assets, huge electricity costs incurred and time involved in the mining process. This is where cloud mining comes into play. Cloud mining operations are mining farms — data centers dedicated to mining — that sell or lease hashing power to cryptocurrency miners. The essence of the service is that a third-party hosts mining equipment and provides access to the rewards associated with the equipment.
The advantages, of course, are not having to fill your home with computer equipment, not having to deal with the noise, the heat, the power consumption, and the upkeep of the mining equipment, and so on. Essentially, you outsource the work. However, the disadvantage is that there are so many cloud mining sites out there - so which ones can I trust?
Some cloud mining sites are Ponzi schemes - they lure investors with mining contracts that promise high returns; they do no real mining work, but simply redistribute a portion of the investments as 'earnings', to maintain the reputation of the site, momentarily. Take the modus operandi of mineify for example. They had a very presentable site, claimed to have been registered with the ASIC, with a good customer support team - but offered yields that were too good to be true (that should be the first warning sign). Initially they offered 50% discounts on the contracts, then 60%, 80%, 90% and finally ludicrously 95% before turning scam and vanishing from operations. Many have fallen prey, including myself.
Another such example is hashrate.io, which even lets you mine bitcoins for free without a deposit, but on reaching minimum withdrawal amount, blocks your account. These are just few examples of how mining sites scam.
So are all cloud mining sites scam?
The answer is no.
I'm happy to have found a few good legit and reliable sites to mine with, check out my reviews below
https://www.publish0x.com/smart-investing/mine-ethereum-xgpqdkg
Things to look out for
- Deals that are too good to be true - they are probably not!
- Trustpilot reviews can be faked, especially if reviews are submitted from unverifiable, new users, in a short space of time. Look for diversity and of the reviews in terms of review content and time to determine its authenticity
- Sites such hashant offer good reviews of mining sites
If done correctly, cloud mining can be a profitable business, given the rising prices of cryptocurrencies.
Happy mining!
Check out other reliable and safe ways to earn and grow your cryptocurrency.
https://www.publish0x.com/smart-investing/hodl-and-earn-xomrqoe
https://www.publish0x.com/smart-investing/introducing-pool-by-cakedefi-xmkrdzn
https://www.publish0x.com/smart-investing/how-to-earn-with-binance-xnqyxdx
