Wouldn’t it be great to do nothing and get paid for it? Just sink some money in a promising Bitcoin cloud mining opportunity and watch your funds multiply! Before your mind starts painting this idyllic picture, think again. If something sounds too good to be true, and especially when the crypto space is involved, that’s probably because it is.
But let’s start from the beginning.
What Bitcoin Cloud Mining Is
In theory, Bitcoin cloud mining is basically your average mining minus the downsides of owning and maintaining equipment and counting costs. You simply delegate the complicated part of mining to the cloud mining company and buy some of their hash rates instead. Depending on the plan that you’ve purchased you will receive regular payouts. Or so they say.
Why Do People Engage in Bitcoin Cloud Mining?
- Convenience: No equipment to buy, maintain, and exchange once it’s no longer relevant
- Freedom: You’re neither dealing with individual mining nor joining the pool
- Simplicity: All the calculations are done for you
Clearly, it’s all about the hassle-free Bitcoin earning journey that it offers. But there’s another side to cloud mining services.
Is Bitcoin Cloud Mining Profitable?
Usually, the price of Bitcoin cloud mining consists of two parts: you buy the plan that suits you the most, and you pay a maintenance fee. The tricky part is that maintenance fee you normally pay is in fiat, which is not a good idea considering the volatile nature of Bitcoin.
- If the Bitcoin price goes down, you lose profits
- If the Bitcoin price goes up, the mining difficulty will increase, and you will still lose profits
The calculators that some of the Bitcoin cloud mining companies equip their websites with are not transparent and plus they do not include the maintenance fee whatsoever, which makes their outcome numbers close to useless.
On the other hand, if a cloud mining company accepts Bitcoin payments, it becomes a risky affair as Bitcoin transactions are irreversible.
Some Bitcoin cloud mining companies will maybe even pay you profits for several months until Bitcoin’s price swings.
A fair alternative to Bitcoin cloud mining is buying and holding Bitcoin. It is a lot safer and pays off quicker. And with Lumi Wallet, buying Bitcoin now is easier than ever. Just use your credit or debit card.
Legit Bitcoin Cloud Mining: Is There Any?
While working on this article we saw all sorts of idle promises with no real evidence. Besides, when the company calls itself ‘one of the most legit mining companies’ directly on the landing page, shouldn’t that raise a huge red flag right away?
When looking for a ‘legit’ cloud mining service, you will have to face only a few poor options. Considering their questionable payout models, it is uncertain whether or not your Bitcoin cloud mining company will be able to deliver.
So at the end of the day, the legit cloud mining platforms are those who are not trying to scam you. Whether you receive your profit or not yet remains uncertain and that’s probably not what you’re after.
Best Way to Arrange Your Bitcoin Cloud Mining
The best method is to not sign up for Bitcoin cloud mining. Seriously, just buy Bitcoin instead.
If you’re still not convinced and willing to try your luck, do your own research. Read the reviews, study the platform, analyze the profits, and count the risks. Most of the Bitcoin cloud mining companies that do pay out encourage their clients to invest all their profits back into the system. Think twice before doing this: it might be a good idea to quit with a smaller gain and still walk out as a winner.
The Bottom Line
The vast majority of Bitcoin cloud mining platforms turn out to be scams or simply not worth it. If you flirt with them for too long, chances are that you will lose all of your investments. There is no service we can recommend whatsoever.Instead of signing up for dubious affairs buy some Bitcoins or invest in other crypto.