BITCOIN CLOUD MINING
Beginners Guide to Bitcoin Cloud Mining
Bitcoin mining has been the domain of the computer geeks and programmers until recently with the advent of cloud mining. Because cloud mining requires users to own no Bitcoin mining hardware or have any Bitcoin mining technical expertise, it has opened up the overall Bitcoin mining pool to include more average Bitcoin enthusiasts, particularly the non technically oriented variety. Thanks to cloud mining, more people than ever are finding Bitcoin mining worth it for their bottom line. Bitcoin cloud mining is so easy anyone can do it, making Bitcoin mining for beginners not only possible, but common. However, there are a few important considerations to understand before jumping in. This Bitcoin mining guide will explain what they are.
Cloud Bitcoin mining explained
The main difference between traditional Bitcoin mining and cloud mining lies in who houses and maintains the Bitcoin mining hardware. With traditional Bitcoin mining, the user buys, sets up and maintains the Bitcoin mining rigs. This requires extensive technical knowledge as well as adequate ventilation for cooling and will result in an increase in electricity costs. On the other hand, with Bitcoin cloud mining, the Bitcoin mining rigs are housed and maintained in a facility owned by the Bitcoin mining company. The customer simply needs to register an account and purchase Bitcoin mining contracts or shares. These Bitcoin mining contracts immediately start mining Bitcoin which is paid out to the user on a regular basis. The user does not have to concern himself with ordering, setting up or maintaining Bitcoin mining hardware. Nor is the user required to make a big up front Bitcoin mining investment. For as little as fifty dollars, he can begin cloud mining. From that point on the Bitcoin mining hardware housed at the Bitcoin mining company will do the work.
Bitcoin mining profitability issues with cloud mining
Not all cloud mining services are created equally, so it is important to understand the issues and make an appropriate Bitcoin mining comparison. The first concern is the reputation and security of the Bitcoin mining company itself. Will the company be around for the duration of your Bitcoin mining contract? How secure are the funds in your account? Can the site be easily hacked? Good answers to these questions can usually be found on relevant threads in the Bitcoin Forum and on reliable Bitcoin mining review sites such as this one.
The second major issue concerns the price of the cloud mining GHS to be purchased. These prices can vary widely, and sometimes can be so high that there is no way to make back the initial Bitcoin mining investment in a reasonable amount of time. Cryptsy cloud mining contracts are a good example of that situation. Bitcoin mining difficulty is another issue which directly impacts Bitcoin mining profitability. A good Bitcoin mining calculator can give a user a reasonable estimate of how his profits will be impacted by future Bitcoin mining difficulty increases. Another factor which impacts Bitcoin mining profitability is the market price of Bitcoin.
How does cloud mining work?
Cloud mining is really useful for those who aren’t technically minded and don’t want to run their own software or hardware.
If you have very high cost electricity too – for example in Germany – then it’s a good idea to outsource your mining to somewhere where electricity costs are much lower as they are in America.
First you determine which provider you want to go with – have a look at our list of providers here and reviews.
Then you determine which deal you want to go for – whether it’s a 500GH contract or a 1000GH contract and for what term. Most Bitcoin contracts are for a year, however some can be infinite (although this might sound too good to be true as most machines will be obsolete 18 months if Moore’s law continues to be followed – which would mean the Bitcoin or litecoin mining company would be operating at a loss in the not too distant future assuming the rate of network hashing power continued to increase). There are some providers who offer shorter and intermediate length Bitcoin or litecoin contracts of between 6 Months and 24 months.
You can rank the cost per GH and the length of contracts here on our Bitcoin and Litecoin mining Comparison pages.
All you need to do is pay the upfront cost, either in BTC as it is for PBmining, or you can pay in dollars at PB mining. They take care of everything, and all going well – you will receive a regular flow of BTC into your personal wallet.
Some mining contract providers are charge you fees throughout the contract on top of the initial payment, which can distort the return metrics, and sometimes the mining contract provider can go bust or be a complete and utter scam. This is why we are here to provide a concise database on who is reputable and can be trusted to run a Bitcoin mining hardware machine on your behalf.