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Cloud crypto mining is the most significant new trend in crypto mining. It’s an alternative to having your mining facility, and many small-time investors are jumping at such an opportunity. With this mining method, you pay for the chance to use the equipment set up and run by the provider and use the mined coins for a fee.
It’s a better option for new investors since there’s no initial investment required to purchase and set up the equipment. You also don’t need the expert knowledge to run it and produce the coins.
Do Your Research First
The first thing to do before investing in cloud mining is to research the practice and the companies that do it. Sites such as Truely allow you to compare and contrast different services and choose one based on the reviews.
There’s a difference between such services, and even though they may seem small to a novice, they can mean a lot in the long run when you use the cloud mining service for a while. Since contracts can be pretty long, it’s best to do the research beforehand.
How Long the Contract Should Last?
The contracts can last from one to three years depending on the company and the conditions you agree to. Some companies also provide a lifetime contract, but it’s mostly a gimmick, and it’s best to skip such arrangements.
Long-term contracts will usually be less costly, but you need to remember that investing in crypto can be volatile since there’s no need to know how much the currency will be worth within a year or three. It’s a matter of finding a balance between the two.
How To Set Up An Account
Setting up an account to mine cryptocurrencies in a cloud is simple enough, and it resembles setting up any online account. All you need to do is have an email address and connect your account to a payment method with which you can pay for this service.
These payments don’t need to be made in cryptocurrencies, but they can be. After the payment is made, you can start mining, and the dashboard will show how much you’re mining and what the Bitcoin is worth at the moment. You can also use the settings to withdraw the funds.
Choose the Currency
There are a lot of different cryptocurrencies at this point, and it’s not always an easy matter to decide which one you’re going to use. The most commonly used one is Bitcoin, and many different institutions and governments now accept it.
This also means that Bitcoin has become more stable and more regulated. It no longer provides such quick profits as it once did, and chances are you may get taxed on the profits made from it. Choosing a minor currency may be a better option for smaller investors.
Selling Your Account
Some cloud mining companies allow you to sell your account to another user. This is something that some users want to try when they decide to give up on cryptocurrency and move on. Not all providers allow for this option, and it’s best to make sure that you have it if you plan to use it at some point.
If the company doesn’t allow you to sell your account, there’s nothing you can do about it. The only way to go is to choose the provider that offers such a service in the first place. At this point, those are rare.
Be Aware of The Downsides
There are downsides to mining cryptocurrencies in this manner. They come from the fact that your profits are lower than they could be if you could run the mining factory independently. Since most users don’t have that ability – it’s the only way to go.
There are also limits on how much control over the mining process you have as a user. The provider owns the equipment and labor, and the user has very little to do with the actual mining process. If this is a deal-breaker for you, you should invest in your equipment instead.
Should You Do it?
There’s no one size fits all answer as to how to invest in cryptocurrencies. There are benefits as well as downsides to using cloud mining. If your main goal is to get your foothold in the market and start earning from it as soon as possible, this is an excellent way to go.
This is the case for most small and mid-sized investors, and the chances are that you’ll be in this category if you’re not able to invest in your mining facility and crew.