To mine digital currencies, you have to deploy dedicated digital currency mining hardware that solves complex mathematical problems using a substantial amount of computing power to verify transactions and secure a blockchain network.
However, if you want to get involved in mining without having to deal with the technical aspects of mining, you might consider cloud mining instead.
What Is Cloud Mining?
Cloud mining refers to renting computing power from remote data centers that run specialized digital currency mining hardware to allow individuals to partake in bitcoin (or altcoin) mining without having to personally invest in and manage a mining operation.
In exchange for a fee, anyone in the world can start to mine bitcoin or a range of altcoins by purchasing cloud mining contracts from cloud mining providers.
Best Cloud Mining Providers
Here’s a look at the most reputable bitcoin and crypto cloud mining providers that you could use to get started with cloud mining.
A Word of Caution
Cloud mining is not a risk-free venture. If you read the fine print of your crypto cloud mining contracts, you will see that cloud mining providers will switch off their machines if the price of the digital currency linked to your mining contract drops below a level where it is no longer profitable. That means you can lose a substantial part of your invested money if the price drops and remains at an unprofitable level for a certain period of time.
Moreover, many cloud mining providers have turned out to be fraudulent operations. Hence, careful due diligence needs to be conducted before choosing a cloud mining provider with which to invest. The above-mentioned cloud mining platforms are the most reputable in the market and could arguably, therefore, be safe for investment.
Finally, many bitcoin experts agree that buying and holding a digital currency will result in a higher return on investment than purchasing a cloud mining contract in the same coin. Historical price data confirms that.
Cloud mining is an excellent way to gain exposure to digital currency mining, but it is a high-risk venture that should only make up a tiny fraction of your digital currency investment portfolio.
Related Articles:
To discover more investment opportunities in the digital asset markets, subscribe to the Bitcoin Market Journal newsletter today!
