If you want to invest in bitcoin mining without the hassle of managing your own 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 centres.
Bitcoin cloud mining providers list
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 with their own hardware.
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 bitcoin mining contract your provider will take care of all mining tasks, maintenance and up-keep while you just sit back and receive you 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 a form of a 1-year contract, 5-years or unlimited (until mining with rented hardware is profitable).
Sounds simple? Well it actually 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 inexperience 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. This gives you 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 10$ and you can pay by PayPal.
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 different parameters such as the cost of your hardware, electricity cost and other network related variables that you do not have an influence of.
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 hardware 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.
Last update – apr 18, 2017: Our mining plan at HashFlare for example has 6 TH/s mining power (protocol SHA-256) and gives us approx 1.3 usd profit daily (after all costs). At current mining prices, you will get your investment back in 18 months.
Recent newsletter from Hashflare regarding Scrypt mining says: “the breakeven point of Scrypt contracts reached 210 days“. Our records show 260 days to be correct as you also have to pay maintenance fee. It is more or less the same with Genesis Mining. With special deals that they both regularly have, your payback will be a bit sooner.
- 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.
- Save some money with bitcoin promo codes when buying bitcoin cloud mining.
- From time to time, some doubtful cloud mining companies appear, we list them here just to keep you informed. Hashing24.com is likely scam (source). On our request to show us photos of their mining facilites they answered: “We can’t provide the photos of the farms because we buy hashpower from BitFury. So basically we don’t have our own farms and of course we can’t provide the photos of the BitFury’s farms as this is kind of information that only they can provide you with.“. Basically, they say they buy hashing power directly from hardware mining producer.
- Find other options to get bitcoins.
- Bitcoin mining overview.
- Interested in mining altcoins? Try Zcash or ethereum cloud mining.