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Cloud Mining

Cloud Mining can be seen as a mechanism for mining a crypto-currency using rented cloud computing power, without having to install and directly run hardware and related software. It is the process in which one take part in a mining pool and purchase a certain amount of hashpower, an equal proportion of profit is distributed among all participants who take part in the mining pool on the basis of allocated hash power. Since this mining is done via cloud, it reduces costs like equipment maintenance cost and direct energy cost.

Best Cloud Mining Platforms

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There are several mining platforms in existence, but I am going to be discussing 3 beat cloud Mining Platforms based on my judgement.

IQ Mining:

IQ Mining is based in Europe, they have a very soft user-friendly interface. They started their service providing in 2016. They provide remote equipment enabling users to rent them out to join cloud Mining. They have a variety of crypto currencies available from which one can choose for mining. Within their limited period of existence, they have recorded about 50,000 users. Their profit forecast is quite high compared to some investments.

There are about 3 packages available on IQ Mining, which includes:

• Bronze
• Silver
• Gold.

Genesis Mining:

This is one of the largest cloud Mining company that offers Bitcoin mining projects. They have over 2 million customers around the world. They are the highest hash power producer for Altcoins and Bitcoin. They were founded in 2013 and since then had held their reputation in the market by providing smart and easy investment solutions. They provide numerous pricing packages based on the user hashpower and type of coin the user is interested in mining. Though they are quite expensive compared to other cloud Mining Platforms, but they provide an excellent experience and support.

Hahing24:

In comparison to other platforms, hashing24 provides ultimate contract for their users to invest in. Thee are no fixed contracts here, the customers are to select the harshing power and the method of payment by themselves. The users choose their desired plan depending on the forecast profit. The company is based in United Kingdom, Thailand and Ukraine. Bitcoin is the only supported currency on their platform, and they pay their customers without delay.

Advantages of Cloud Mining

It doesn't require technical knowledge to mine:

In cloud Mining, it is as simple as creating an account and paying the necessary fees according to the hash rate the user intends to buy, then get started.

There is no need to purchase a hardware:

In cloud Mining users don't need to waste time in studying ASICs and other equipments. There is no need to worry about devaluing and updating equipments. The time is saved and spared for other things.

No operating cost, heat and noise:

Basically, the machines used in Mining produces a lot of heat and emits a deafening noise, due to the cooling system. Having ASICs for mining requires a large amount of electricity which is a huge cost on it's own, so all these are been avoided in cloud Mining.

Disadvantages Of Cloud Mining

High Rate of fraud:

The cloud Mining industry has often been the focus of several fraudulent platforms who sell fake Mining contract or even fail to pay their users. The high rate of fraudulent companies is due to the fact that there is no regulations in the sector and partly because once a bitcoin transaction is been executed, it is impossible to cancel it.

Low Earnings:

For the fact that nothing needs to be configured and everything is alreadily made, it has a negative impact which is low earning/profit. In general cloud Mining provides rather low revenues for those who wants to convert their coins to Fiat in monthly basis.

The coins to mine are restricted/limited:

In cloud Mining, users are constrained to mining some coins. It is usually limited to the most popular major currencies. Though in a way, it helps miners to focus only on proven and reliable coins, however if larger range of coins are mined, users can make larger profit.

It encourages centralization of the network:

Bitcoin and every other currencies were designed to be decentralized, but it is clear that the cloud Mining encourages centralization of Mining in the hands of a few, because the effective control of hashing power lies with the farm managers and not the end users, this implies that the user cannot change pool which is possible in domestic mining.

These and more are the advantages and disadvantages of cloud Mining.

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