1. Method — Cloud mining
With Bitcoin being the best performing asset of the past decade, many have taken the previous lows and recent exit out of the bear market as a good entry point to get invested in Bitcoin and other cryptocurrencies.
Bitcoin is up 45% this year to date and both traders and investors alike are ecstatic. However, few know about the alternative ways of accumulating bitcoin and the enormous returns they can provide if one has the capital and leverage to assume the proper risk.
Mining, the method in which Bitcoin is brought into existence is also the protocol on which the blockchain technology backing the currency verifies transactions.
Mining Bitcoin is a costly process in terms of energy and money due to its proof of work protocol, but informing oneself of the alternative currencies to mine as well as mining pools are good alternatives for those that don’t have the capital to purchase the most elite mining rig and aren’t too fond of participating in the volatile market of cryptocurrency trading.
Cloud mining and innovative platforms are opening the door to multiple users that are interested in cryptocurrency mining as well as thorough instructions and protocols on how to get started. By removing a lot of monetary barriers and equipment traditionally required to start mining, mining pools utilize participating members’ hashing power and incentivizes them bitcoin.
We recommend trying the following cloud mining services:
Genesis Mining is a popular platform that has garnered a lot of attention for its Ethereum cloud mining services. Prices for 2-year contracts of ETH mining currently vary from $1,520 at 40 MH/s to $12,960 at 360 MH/s. Genesis Mining provides great usability and a public mining address. Acting as evidence that the company is mining their available bitcoins on a network, Genesis’s public mining address attests the legitimacy of the company. Genesis is one of the oldest surviving cloud mining companies and allows users to participate in cryptocurrency mining without the associated costs of purchasing and maintaining equipment.
However, when the math is said and done, Genesis offers profitability only after a period that extends beyond 2 years. Looking at their “best buy option”, the Platinum plan lasts for 18 months, costs $1,544 and gives users 35 TH/s of mining power in addition to $0.15 of a TH per a day. In essence, the associated fees to utilize 35 TH/s of hashing power add up to around $2,835 for the duration of the contract. If we take the hash rate of 35 TH/s and keep the BTC/USD exchange rate at around $10,000 a block reward of 12.5 will produce around $2,704 after a year.
Assuming everything stays the same for the duration of the contract, which hardly ever happens, this would add up to around $4,056 after 18 months. With $4056 in revenue, subtracting $2835 for maintenance fees and $1,544 in contract costs, you would end up losing around $322. However, taken into effect that we are indeed on a bull run, the likelihood for your profits to exceed your costs are higher than if you participated in a mining pool in the past two years. In addition, the halvening is less than three months away and will cut down block rewards from 12.5 Bitcoin to 6.25, likely causing a large increase to the cost of bitcoin due to the cut in supply.
This in addition to the bullish divergences that we have seen this year so far make mining a potentially lucrative endeavor. Genesis Mining has brought on board thousands of individuals and implemented a reputable mining pool in which users can expect to make profit given they assess a plan and time frame that properly meets their needs.
2) NuVoo Mining
By selling contracts without hardware, they are a prime example of a company that has continuously taken advantage of its userbase and fraudulently utilized investor assets for their own monetary demands. Contacting them leads to vague and unhelpful answers if any answer at all and they are unwilling to provide refunds under any circumstances whatsoever.
Nuvoo is another popular cryptocurrency cloud mining service that promises the opportunity to mine bitcoin and other cryptocurrency without the large upfront monetary commitment of mining equipment and maintenance. Unfortunately, many users report a lot of dissatisfied experiences with the platform, complaining about delayed contracts without any notice, a lack of customer support and a plethora of accounting issues. It is often reported that they consistently change the daily fees, delay contracts and ignore many requests about contract information and validation attempts.
Many users tend to agree that Nuvoo mining is riddled with false advertising by saying 99% uptime. There is little to no transparency in the majority in their operations and they have the authority to cancel contracts that pose little to no chance of profitability without any input form the user. In addition, there have been instances of people receiving contracts in cryptocurrencies that they had not requested and being unable to cancel them.
By locking you into a contract that they design, Nuvoo is a prime example of a company taking advantage of the user with little to no transparency and promising outlandish returns with no data or feasibility to back it up. Unfortunately, Nuvoo is an example of a service that should be avoided and gives the cloud mining community a bad name. Again, analyzing your company, doing in depth research on their contacts and reviewing user feedback are all important steps to take before committing to any cloud mining service out there. While there are many that offer legitimate services and profitability, there remain fraudulent companies that won’t hesitate to take advantage of their userbase.
3) CCG Mining
CCG mining is another platform that has been reportedly known to take advantage of its userbase and pose risk to investors. They are notorious for being fraudulent and causing users to lose their funds if you invest with them, and the majority of people that have done business with them will convince you to stay away. While the main selling point of CCG mining is the variety of crypto mining plans and the provision of customized solutions to meet user needs and budgets, one should be wary of a lot of the concerns and warnings that other users have made public.
While claiming to provide 24/7 technical support to ensure smooth running and free consultation, many people report difficulties with getting in contact with the company customer service representatives, and any conversation they have is mostly dismissive and unhelpful in assessing their assets and any questions or concerns they may have. After receiving your money and information, they neglect your emails and won’t respond entirely. Many victims of their fraudulent activity have initiated movements in an attempt to recover the lost funds that companies such as CCG mining have stolen from them.
Many of these reforms and advocacy projects put a lot of capital and advertising in advising people against services such as CCG mining and similar companies that give cryptocurrency and mining a bad name in general, but don’t always reach new users that can be susceptible to many cloud mining scams. As seen with their tempting profitability promises and platform, they offer a large return in an unrealistic attempt to garner as much traction and publicity as possible without actually living up to any expectations.
CCG mining often disappears on users and leaves them empty handed, solidifying the fact that the majority if not all operations conducted on this platform are a scam in one way or another. It is highly suggested that any serious investor stays away from CCG mining and all associated platforms ran by the same company.
Mining is the backbone of bitcoin and cryptocurrency in general. Registering with a company is relatively simple and you are required to choose things such as the contract duration and hashing power. But with many instances of fraudulent companies and scams taking advantages of users, it is imperative you research each company and mining pool you are about to join. Joining a mining pool is still a form of an investment, and with any investment, properly managing your risk and doing your due diligence is essential to protect yourself and your assets. An absolute necessity is utilizing a resource called the bitcoin scam test. This test ensures that a cloud miner company will always provide datacenter details, relevant photos, guarenteed ASIC Miner Vendor support, public mining addresses and more factors that will help ensure your security.
Cloud mining is an innovative process that has continued to gain traction and offers limitless potential. By opening the opportunity to mine without requiring expensive equipment, cloud mining helps users overcome barriers and can be quite profitable if done correctly. But ensuring you are investing your money with the right cloud computing company is an absolute necessity. In addition, with the halvening only a few months away, a lot of the reward distributions that people expect to see will have decreased even more drastically, increasing the scarcity of Bitcoin and will likely cause the price to increase exponentially based on historical data. For those looking to an alternative to day trading cryptocurrency and want to take advantage of your computer’s hashing power, joining the right mining pool can bring you immense returns.
Your priority when looking into cloud mining should always be transparency and a userbase that can attest to the legitimacy of the company. Cloud mining is a legitimate service and has expanded its reach to many users that would not be able to participate in mining otherwise. However, for those companies that lack transparency, it can be very difficult to prove if the company is actually mining bitcoin or using capital for other monetary costs.
In many fraudulent cloud mining companies, they don’t own any mining rigs or bitcoin, but are just using fees to pay off other users until the money dries up. By exposing a designated number of cloud mining companies as pyramid schemes, many people tend to associate cloud mining with illegitimate practices but that could not be further from the truth. The emphasis however should be placed on the company providing cloud mining services and whether they are a scam or not, instead of blaming the entire industry.
For 2020 and moving forward, dollar cost averaging into large positions of Bitcoin or other cryptocurrencies with a large market cap is still an extremely profitable and risk adverse way to get involved in the space. But for those looking to supplement their income with another monetary incentive, mining poses tremendous opportunity. With Bitcoin recently breaking out of its consolidation phase and initiating a trajectory to retest all time highs and possibly beyond, researching mining pools and participating in one could bring a large amount of passive income for the years to come if you plan on investing for the long-term.