If you want to invest in bitcoin mining without the hassle of managing your hardware and software, there is an alternative. Cloud mining (also cloud hashing) is a new concept, which allows users to buy mining power of the hardware placed in remote data centers. Cloud mining offers a unique option for mining with a very low cost of entry as well as minimal risk and expense, which is opposite to traditional models of mining that involve procurement, maintenance, and configuration of highly specialized hardware.
Bitcoin cloud mining providers list – top 3
- HashFlare – this company offers a new range of cloud-mining services brought to you by cryptomining experts. You can mine bitcoins via SHA-256 or Scrypt protocol.
- Genesis Mining – is offering hardware rental for mining purposes. They are world’s leading hashpower provider! Beside bitcoin you can also mine altcoins.
- Hashing24* – they offer turnkey renting solutions from the largest bitcoin mining data centers as they buy hashing power directly from a hardware producer Bitfury.
Bitcoin cloud mining providers list – other providers
- HashNest – is operated by Bitmain, chinese producer of the Antminer line of Bitcoin miners, world’s most power-efficient bitcoin miner.
- ViaBTC – they offer mining pools for major competing coins and cloud mining products. Entry to cloud mining with them is higher then with other providers.
- Eobot – one of the first to offer cloud mining with PayPal payments for hardware renting. Their prices are not as competitive recently as they were before.
- GigaHash – start mining bitcoin or altcoins with this Bulgarian company. Profits are low, but they cover all maintenance fees. They are often sold out.
- OXBTC – owns 3 of China’s largest mining farms with low-cost electricity. It provides stable and profitable cloud mining services.
- BW – offers a variety of bitcoin mining services and investment opportunities including hashrate plans, mining pools and interest bearing accounts.
- NiceHash – is hashpower marketplace. Buy or sell hashing power without contracts on pay-as-you-go basis directly from many providers.
- MinerGate – they provide true bitcoin mining which is executed at the data centers supplied with innovative hardware. Payouts come directly from newly unlocked blocks and it can be traced on the blockchain.
- Pow8 – another chinese company involved in bitcoin cloud mining.
- BitMiner – little is know to us about this cloud mining provider.
All bitcoin mining is done in the cloud, without any offline hassle, such as dealing with electricity, hosting, software or installation trouble. Everybody can earn extra revenue with little to no risk and frequent payouts. We believe cloud mining is the best option to generate bitcoins if you do not own a lot of hardware or free electricity. It allows users to form groups (pools), where their joint efforts are rewarded with greater income, compared to individual mining.
Is bitcoin cloud mining profitable?
Mining profitability depends on many different factors. In order to find out bitcoin mining profitability calculators were invented. They take into account various parameters such as the cost of your hardware, electricity cost and other network related variables that you can’t control.
Our cloud mining plan at HashFlare for example has 10 TH/s mining power (protocol SHA-256) and gives us approx 9.3 US$ cloud mining revenue daily (current Bitcoin price is 2275$). We need to pay about 3.8$ for electricity and maintenance and this gives us a profit of 5.5$. The same plan currently costs 1200$, meaning that you will get your investment back in 7 months. The other protocol, Scrypt, has investment payback period of 9 months. As mining contract last as long as it is profitable, everything after this period is your profit.
With special deals that they regularly have, your payback will be even sooner.
However, the web services offered to calculate profitability are designed to work with your hardware parameters, not cloud-mining parameters, but you can still use them. If you rent your equipment with a cloud mining provider, you usually do not need to worry about electricity cost and other parameters, as this is often already included in your in expected profits. You usually just need to compare how much you pay to rent the hardware and how much coins you get in return.
Calculators give you an estimate of your projected profit. However, they can not 100% predict the future, especially not the future bitcoin price. So, these are only estimates. Try this calculator for cloud mining in general. Some cloud mining providers already give you an estimate of return on investment with their pricing and costs data already filled in.
Pros of cloud mining
Why you might want to consider cloud mining instead of mining on your own:
- no added electricity costs,
- quiet and cooler home – no constantly humming fans,
- no equipment to sell when mining is unprofitable,
- reduced chance of being let down by mining equipment suppliers.
Cons of cloud mining
Why you might want to mine on your own instead in the cloud:
- avoid risk of fraud,
- lower profits – the operators cut their share,
- lack of control and flexibility.
How to start cloud mining?
First, join the cloud mining pool by simply buying shares or GHS online. You need to choose a plan, pay for it and you will start mining right after purchase. By signing mining contract, your provider will take care of all mining tasks, maintenance, and upkeep while you just sit back and receive your share of mined bitcoins.
You will receive daily or weekly BTC payouts to your bitcoin wallet address (depends on the plan). You need to pay in advance for hashing power and contracts usually come in the form of a 1-year contract, 5-years or unlimited (until mining with rented hardware is profitable).
Sounds simple? Well, it is, the only thing to keep eyes on is the current bitcoin value, so that you stay profitable and that you do not pay more for hashing power than you get out of bitcoin production. You can also sell your hashing power if you do not want to keep the plan or if profitability drops at some cloud mining providers.
We suggest cloud-based bitcoin mining and hashing for those who are inexperienced in hardware and software maintenance. Everybody can earn extra revenue with little risk and frequent payouts with bitcoin cloud hashing.
We recommend Genesis Mining
You are probably aware that bitcoin cloud mining had a few issues in the past. There were a lot of companies that were deceptive at best, scams at worst. These pretended to have mining facilities somewhere in Northern Europe, often taking photos from other providers and claiming them as their own, but in reality, they do not own anything, and they just take your money. Cloud mining providers often disappear with your bitcoins. We were already scammed a few times when testing various bitcoin cloud mining providers for our users, so we recommend you to stick to our frequently updated list above.
At Genesis mining, you can also mine other crypto-coins. For example, their X11 mining algorithm will mine the most profitable coins at the time and convert them to bitcoin automatically (like DASH) which gives an accelerated return on investment. You can also mine very popular ethereum.
Some other cloud mining offers
Eobot has an offer where you can buy cloud mining just for a day. Good if you want to try it out. You can start with just 10$.
Mining bitcoin on your own
If you can buy hardware and install software, you can start mining bitcoins on your own. Here are a few links to help you start. But as computers around the world mine for coins by competing with each other, mining on your own can be unefficient.
- If you want an easy start, MinerGate has user-friendly software that you can put on your laptop/desktop to mine bitcoins.
- You can also buy ready-made bitcoin mining computer on Amazon – click here for The 21 Bitcoin Computer but you will not generate much coins this way.
- If you are serious about bitcoin mining and consider buying your own hardware, one place to look for is BitFury. Whether you’re a hobbyist home miner or want to run a large scale mining operation, you will benefit from the performance boost that their chip delivers. Higher performance per chip translates to lower cost, less space and quieter operation.
- Indirectly you can invest in bitcoin mining by putting your bitcoins into bitcoin savings account. This way your coins will be used by various Chinese mining companies to fund their operations. You get interest in exchange.
- Find the latest news on cloud mining industry at Reddit
- Find other options to get bitcoins.
- Interested in cloud mining altcoins? Try Zcash, Ethereum or Ethereum Classic.
- Be careful with various promotions as some advertised companies are scams, some even apper on the first page of google searches or in google advertisements. We suggest you to stick to our list. If you want to try some other provider, be sure to read this advice on how to spot a problematic company.
- * Some believe, that Hashing24 is a scam (source). We list them as they are linked and endorsed from well known hardware producer Bitfury.