Why should I mine ?? Cloudmining Part 2/x

Why should I mine ?? Cloudmining Part 2/x

Part 2: Cloudmining and rentability.
I finished the first part with the RIG, which can be assembled for mining.
There was still a third point: The online mining or cloud mining.
There are some more, but I would like to mention here two I know well, because I'm contribuing myself.
One of them is Hashflare. Here the link:
HashFlare
Quite easy to understand and setup, you decide what you want to mine (Algo, see my fist part), SHA256 (BTC), Scrypt (LTC), ETHash (ETH), Equihash (ZEC) or X11 (Dash).
Then you setup the price you are ready to pay for which Algo. Here an example for 10 MH/s for mining ETH (here 220US$/year):

As you can see the revenue per year in this case is 255.32 US$. Don't forget that they are estimation the revenue based on actual Coin value !! Means when in this example the ETH goes up, you will earn more !!

Setup your walletaddress and that's it. You can even decide on which pool you like to mine:

If you don't want to withdraw your earned coins, you can decide to reinvest. I like this, as after 1/2 year there is a good sum which added to my hasrate, so that the ROI goes up without having invested more than the original 220 US/year.
Then I let the mining run by itself for the next 6 months and get the money out before one year pasts.

Second cloud mining provider Genesis- Mining:
If you use this link you get 3% reduction on your order ( here the expalanation:
How big are the rewards?
At Rank 1 - our ‘Starter’ tier - you’ll get 2.5% of the quantity of hashpower purchased by your referral. For example, if someone purchases a 10 MH/s contract using your affiliate code, you’ll get 0.25MH/s for free - and they’ll get 3% off the total price. It’s a win-win situation! ")
https://www.genesis-mining.com/ and your 3% rebatte code is : 9T1DmS
Here I like the pricemodel: as you can see, 10 MH/s ETH mining is only 80US$ more for two years instead of 1 year, like before.
With the 3% bonus you can save even more...

An excellent advantage here is that after you decided which contract you want, you can distribute the hashpower over many currencies, so this is quite nice as you are not "bounded" to one currency and you can also react on the priceadjustment of the corresponding coin:

A "small" inconvenience: you can see your earnings only 14 days after you signed the contract. So be a little patient and wait the two weeks. This is a security mesure in case somebody stole your creditcard and bought haspower with it, which finally has its rightness, because it prevents fraud also in your interests. The earnings start within the first day when you buy the hashpower.
On Genesis-Mining you can't reinvest the earnings to buy more hashpower automatically.

Third cloud mining provider and a very interesting one is https://new.nicehash.com
After registering your account you can do a "speed" mining for your favorite coin.
Here is how it works ( I worked a lot with Scrypt, therefor I will give you this example, but works quite the same for all others too):

You have to have a pool and a worker already setup - this will come in my next Blog (Part 3/x- Pools and Software).
Here: I have setup a worker on litecoinpool.org
You deposit some BTC into your wallet.
You setup the pool in nicehash - take care that you chose scrypt and write in your Litecoinpool.org worker-account.
Click on Orders and you see something like that:

I want to explain here what you finally see:
I clicked on Europe>Standard (left) - if you're in US go USA>Standard - and the following window opens:

I chose first my forehand setup pool (in this case Litecoin ORG). Then I setup the price (as marked on the screenshot ) to - and this is very important - how much BTC I want to spend per GH per day !
And here is the HUGE advantage in setting up Scrypt: the scrypt mining works in MH/s ! Ca. 500 MH/s brings ca. 1 LTC per day ! Here we are talking in Giga Hashes!!
Back to our screenshot: So in this example I want to spend 0.0363 BTC/GH/Day
The next entry is the limit of mining speed. here I setup 0.5 GH/s means 500 MH/s
Then I setup the amount of BTC I want to spend in total (here 0.1). The result is marked grey: I will mine during 5d 12h 14m with a speed of 500 MH/s for 0.1 BTC (take care max mining time is 10 days !).
This will bring ca. 6.5 LTC.
Coming to the end, let's do a short math:
actual the BTC = 2768.87$ means total investment: 276.9 $
6.5 LTC = 44.55 $* 6.5= 289.6 US$
A small gain, but you have no investment in hardware, no costs in power, no space needed, no cooling costs, etc. comparing to hardware mining.
And by keeping the LTC in your wallet, and the price increases, you have finally a bigger gain, as long as the mining difficulty does not increase too much.

Finally I would say cloud mining is a good alternative to hardware mining. If you can invest a little more ( i.e. ca. 1 BTC ) you can earn nevertheless more by increasing the speed like in the example below ( ca. 51 LTC during the 9 days)

Links:
https://coinmarketcap.com/currencies/litecoin/
https://www.litecoinpool.org/calc
https://www.genesis-mining.com 3% redeem voucher: 9T1DmS
https://hashflare.io/r/58B02E08
https://www.nicehash.com/?p=orders

Next Blog will be about software, pools and some other tips about mining.
Stay tuned, vote, resteem, follow and reply :-)

See you next, @hausbau