Is Cloud Mining Profitable or a Scam?
Many people believe cloud mining is a scam. In fact some cloud mining websites have been known to be scams in the past. There are a few legit cloud mining website that are proven not to be scams however. These sites are genesis mining and hashing 24.
Most people are not aware that cloud mining is actually not a scam, however for most people its not very profitable. The main reason for this is because the difficulty goes up with the price, causing you to mine less coin per day, taking longer to get a return on your investment. Some cloud mining sites require a daily maintenance fee, these fees are very small but if they are not paid the contract will be ended. Also another thing to note some contracts claim to be lifetime contracts but in fine print they say the contract will be ended if its "no longer profitable."
So when your using a mining calculator and adding numbers up this all seems like a totally great deal in the long term but in reality the people that make the most money mining are the people with Youtube or lots of followers. Why you ask? Well the referral codes of course. These codes greatly help the person referring others and only help the person using the code just a little bit. A lot of Youtubers claim cloud mining is very profitable but they neglect to tell you that they make more money in referrals. Another way to become successful cloud mining is out of your control. You want the coins you mine to have lower value when you mine them so later on when they go up in price you can profit much more from them. But if you spent a year mining a coin and then the value goes down a lot. Now it will take you even longer to get a return on investment.
Here is a really good site that tells you the coins that are most profitable to mine at this current time. The site is called whattomine.com. This site is mostly used for regular mining yourself using your own rig or asic set up but its still usable for cloud mining and is a very interesting website. So although some people do well in cloud mining make sure you do your research first. Just because you don't have to pay electricity in cloud mining doesn't mean its profitable. Best to just buy low and hodl guys
Hello there and thank you for your informative post. I agree with you in the sense that I spent 0,6 bitcoin in euros for some mining contracts and did indeed make a profit. But if I however had just left the bitcoin in my wallet I would have made a much bigger increase in value than with the cloud mining service. In a sense the cloud mining service profits from the potentially huge increases in valuation more than you do as a consumer. This to me is troubling and therefore I have chosen to invest in my own mining equipment. Have fun out there and good luck with your future posts.
Thx
I think eobot.com is a good cloud mininig website. You can start for free and boost your mining power with free daily faucet. My friends did it for free, though i purchase mining power with about $15
I honestly think its great and profitable
Thx
This was very informative and answered questions I've had for quite sometime, concerning if I should be cloud vs home mining. Do you cloud mine currently, and if so which?
Thanks for commenting and not upvoting
I upvote on content I feel is engaging from people who hold "weight" in what they are saying. Since it didn't appear from your post "experience" was the driving force, I gave the benefit of the doubt it wasn't a "bandwagon" post and asked a question. You're reply was rather classy. Won't be upvoting this time either.
most are scams... but some you can for sure get profits.
There are many scams,but good sites to.From my experience,it's not worth it.Better to buy crypto on exchange,than invest money for a few year mining contract.
I wouldn't go so far as to call cloud mining a scam, but I will never touch it again. I did a fair bit of cloud mining back in the day (@2014) and all three of the cloud miners I used dissolved. I assume their equipment became obsolete, they unplugged their machines, and that was that. If that money had gone towards topping off my other investments (the ethereum presale, for example) I would be much happier today. Of course, conditions may have changed, but I seriously doubt it. In short: there are better places to put your money.