If we take one single look at the crypto world today, we’ll quickly notice that cloud mining is a really hot topic within certain cryptocurrency mining circles. Progressively more and more people want to know various things about cloud mining - how it works, who are the service providers, what are the costs, etc. Naturally, a lot of people gravitate towards free cloud mining, for it seems to be the most attractive option out there.
In this tutorial, we’re gonna talk about all things related to cloud mining. We’ll cover both the basic definitions and the more in-depth stuff. Along the way, I’ll give you some examples of the best cloud mining providers out there, both paid and free. I can give you a hint, though - paid cloud mining is usually going to be a much better alternative.
Since the debate of which one is better - paid or free cloud mining - seems to be an ongoing issue, I’ll also talk about some of the pros and cons that both of those options possess.
By the way, even free cloud mining is an option, you can also choose to invest in cryptocurrencies and start trading instantly by choosing reliable cryptocurrency exchanges, such as Binance, KuCoin, and Kraken.
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Table: Some general information about the Binance and KuCoin cryptocurrency exchanges
Now, let's find out more about cloud mining.
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Table of Contents
What is Cloud Mining?
To develop a full-circle type of conversation and understanding, let’s take it from the top and define cloud mining.
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Cloud mining is usually defined simply as a remote cryptocurrency mining service. This service is provided by hosts (people who own and sell the cloud mining service) who have farms (huge collections of mining rigs, usually held in big, designated facilities).
The hosts are usually big corporations that specialize in cloud mining. These corporations buy excessive amounts of mining rig hardware (GPUs, motherboards, processors, etc.) and build hundreds of rigs. Naturally, they are located in respectively sized buildings - huge garages, warehouses and so on. The type of building doesn’t matter - the only conditions are cheap electricity bills and good cooling and air conditioning.
Cloud mining is becoming more and more popular for a couple of reasons.
First of all, it’s very accessible. The average person usually hasn’t got a lot of space or resources required for a successful mining operation. However, with the help of cloud mining, almost everyone can “have” their designated mining rigs that produce revenue over time.
Another popular reason is the cost (or a lack of one). Sure, you could pay someone for their hosting services. However, free cloud mining is also a thing - with this option, you eliminate any possible spendings. Many people don’t have thousands of dollars to spend on their rigs and their maintenance. In such scenarios, free cloud mining becomes a very tempting option.
Paid Cloud Mining vs Free Cloud Mining
Since Bitcoin seems to be the most popular cryptocurrency of choice when it comes to cloud mining, that’s the coin I’ll be using and referring to from this point onwards.
The debate about which one of the two (paid and free cloud mining) is better and more worthwhile is an ongoing topic in the crypto community. While there are arguments that the more you play - the more you earn, free cloud miners emphasize the lack of initial payment as the outweighing factor. Let’s take a closer look at these two types of Bitcoin cloud mining options.
What you should know, though, is that paid options tend to be better than free ones. The same applies to cryptocurrency wallets. It's better to pay for a secure and reliable hardware wallet, such as the Ledger Nano X and Trezor Model T, than choose an online option.
Paid Cloud Mining: Pros and Cons
Paid cloud mining comes in different plans. You, as the customer, pick a plan that suits you the most (some sites and companies even offer custom plans). Then you simply decide on a timeline, unless one is already given beforehand.
Different types of Bitcoin cloud mining plans offer different hash rates. A hash rate is simply the indicator of how powerful the rig is or, in other words, how much Bitcoin it can mine at any given point in time.
Paid cloud miners agree that the initial cost for a contract can be somewhat (or very) expensive. However, they do stress that it all depends on what type of hash rate you prefer. The bigger the upfront payment, the faster the hash rate you will receive and, in turn, the sooner you’ll start noticing profitable results.
The ability to create custom plans also plays a big part in this. A custom plan means that you can choose how much you want to pay or how fast you want the rig to mine. Some companies even offer the option to pick the time of your cloud mining process - you might want to mine for a month or two just to see what it’s like, or perhaps even jump into a lifelong contract.
When it comes to the cons of paid cloud mining, the first and obvious one would probably have to be the price. Paid cloud mining tends to get quite expensive. Depending on the amount of money you’ve decided to invest in cloud mining, even the entry plans could seem too expensive to tackle.
Paid cloud mining entry plans usually start from around $200 - $300. Considering the usual price increases for the following levels of plans, this is a decent price to start with. With an entry plan, you get the minimum hash rate speed, while the time of the plan could vary. These entry-level cloud mining plans are mostly designed for people who have never had any previous experience with cloud mining, and simply want to get a feel for it.
Others who are serious and determined that cloud mining is the future of their financial income tend to invest a lot more from the very beginning. This isn’t a problem in itself, but such investors should be aware and do their research!
There are a lot of ill intent-driven companies out there who might let the lower levels of contracts pass. This would happen simply because they would hope that the person would eventually upgrade their contract to a more expensive one. However, they will jump to an opportunity to scam bigger investors.
Free Cloud Mining - Pros and Cons
When it comes to free Bitcoin cloud mining, the biggest debate is whether it’s worth it or not.
Free cloud mining offers people the ability to pitch into the world of cryptocurrency mining without having to need to invest any initial fees. When you search for “Bitcoin cloud mining free” on Google, hundreds of sites pop up offering their expertise and services in the free cloud mining area.
How free cloud mining works is that while hosts don’t require any initial fees, they take certain portions of your monthly revenue, in addition to the electricity costs and maintenance fees. When you’re talking about cloud Bitcoin mining, this becomes an even bigger issue.
Bitcoin is known for being one of the slowest (if not the slowest) crypto coins to mine. This is due to its popularity and market cap. A lot of people want to own at least a tiny amount of Bitcoin. Some of them want it simply for the sentiment, others - to show off in front of friends and colleagues.
Because of this, Bitcoin cloud mining (free) becomes an almost eternal process. The fact that it’s free already means that it’s going to be slow, so when you add Bitcoin (as slow crypto to mine) into the equation, any profits seem almost non-existent.
Another issue with free cloud mining is that this area is saturated with scammers and fraudsters. These hosts usually don’t see a need to provide any proof of work (or simply provide fake ones). That is because they market their services to be “*FREE*!”.
These guys will have nice and shiny homepages and “a lot of positive reviews”. However, as soon as you type in some sort of personal information, you can be sure that it’s gone for good.
If you’re looking for Bitcoin cloud mining (free) service providers, always do your research and look into more than one place. Forums and online chat rooms are a great place to start. Here, people usually offer good advice and tips on how to avoid the above-mentioned scammers.
Free Cloud Mining Sites
Now that you have a general idea of what paid and free Bitcoin cloud mining is (and the pros and cons of the two types of mining), we can talk about some of the more notable free cloud mining companies and sites.
MinerFarm is one of the more well-known free cloud mining sites. It has an established reputation for being trustworthy and being approachable and easy to use.
How MinerFarm works are that they offer you a free 100Gh/s for simply registering to their site. If this seems too low, you can always upgrade your plan to earn more. Withdrawals are easy and quick, and they also offer customer support.
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While being paid to cloud mining providers, Multimining has their version of free cloud mining. They offer you 30 GH/s as a lifetime plan for just registering to their site.
What’s cool about Multimining is that they also have a referral program - if you bring more people to their site, you start earning more crypto. The company is an established free cloud mining site, so check them out!
EOBOT is a bit less known than the other free Bitcoin cloud mining sites on this list. Nonetheless, the site is worth covering and checking out.
While not being inherently free, EOBOT offers decent cloud mining plans for almost unnoticeable fees. The above-given example shows one of their plans (if you choose to pay in USD).
Even though EOBOT isn’t that well-known, they have been mentioned in more than a few articles talking about free Bitcoin cloud mining, so don’t hesitate to visit them yourself!
A Short Summary
With the rise of cryptocurrencies, it was just a matter of time when innovative people think of various business plans to earn money from them. Cloud mining is one of the results of such ideas.
With cryptos slowly but surely taking over the world, more and more people want to get involved. Some choose to become blockchain developers, others simply read every single bit of information they find online. Cloud Bitcoin mining is just a way for people to not only join the community of crypto enthusiasts but to also make some passive profit on the side.
When it comes to paid cloud Bitcoin mining services, everything’s pretty much straightforward. You simply pick a plan and see how the service works. The trickiest part here is probably to pick the right host.
Always check the host’s background - observe their website (or websites), read all of the reviews you can find. Also, check if they have some sort of proof of work statistics (and if they do, double-check them through other different sites).
Free cloud mining is a bit trickier. When compared to paid cloud mining, you should do a lot more research. Only then you'll be able to end up in a long-lasting business relationship with your cloud mining service provider.
There's one thing that's nice about free cloud mining, though. You get the opportunity to test the site out before deciding on investing anything into it. If the customer support, security or hash rate choices don’t suit you, you can always just turn away and go look for a new cloud mining host.
Whether it be free or paid cloud mining, always take your time in picking a decent host. One of the ways to do this is to look at their security measurements. Some companies offer poor security or even have a reputation of being broken into or hacked in the past.
In such cases, it doesn’t matter if those companies' hash rates are through the roof or if it offers the prettiest interfaces - they're not trustworthy.
If all of your profits and earnings get stolen, it doesn’t matter what the site looks like, right? Well, imagine if you had paid for a cloud mining service. In this case, you would risk not only losing your cryptocurrency, but also your credit card being hacked!
Some of the best paid cloud mining solutions are thought to be platforms such as CCG Mining and Genesis Mining. On the flip side, if you're looking for some parts for your mining device at home, make sure to check out Parallel Miner, too!
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All in all, hopefully now you have a wider understanding of free cloud mining. There are a lot of options in the market - understandably, it might be difficult to pick just one. Do your research, have a critical mindset and you should be set!