What are the disadvantages of cloud mining
Cloud mining: all the pros and cons
If you look at the bitcoin rate and the excitement about its growth, it seems like we're back in 2017. Someone Once again, cops have launched and are looking for new investors where to put their capital.
Cloud mining often attracts their attention. In this article you will learn how cloud mining works, who offers this service and what profit you can expect.
What is cloud mining?
Cloud mining involves mining bitcoins and othercryptocurrencies that use a third-party data center. The data center itself is owned by a cloud mining provider. There are usually dozens of miner rigs that are regularly serviced by qualified specialists.
Typically, the suppliers are large private and government companies with preferential access to electricity and buying mining equipment direct from the manufacturer at wholesale prices. These ten and hundred miners are in large premises - warehouses, hangars, factories, etc. The main requirement for these rooms is good cooling and ventilation because mining machines generate a lot of heat. Imagine having 100 computers in your garage all the time.
How do I start making money with cloud mining?
To make money from cloud mining, you just need to follow five simple steps:</ p>
- Find a reliable provider
- Register on the website
- Select a suitable contract and buy it
- Wait for it to end
- Withdraw earned cryptocurrency
Why is cloud mining better than independent mining?
It's a lot easier than breaking down yourself. Here are just a few of the difficulties cloud mining saves you compared to self-mining cryptocurrency:
Legal issues and taxes
In some countries, cryptocurrency mining is banned, and mining bitcoins itself can result in heavy fines. Cloud mining helps get around this limitation as the provider may be in a different jurisdiction. The same goes for taxes. Withholding income is an economic crime. So if you don't want to have tax problems, cloud mining will help whitewash your income.
Heat and noise emissions
Thanks to remote mining, the noise and heat from miners' facilities is also “far away”. This means that you don't have to look for a special room or sleep in a bitcoin factory.
Power and internet outages
In normal life, many face temporary power outages and internet problems. But what if you lose money every time you fail like this? Shall we say a dollar a second? Few people like this perspective. And that's exactly what happens in independent mining, because with every second of downtime you lose your bottom line.
This is the largest article and covers most of the self-degradation problems. Buying, configuring, updating, and maintaining devices is a difficult task even for a tech-savvy person. Hence, many people prefer to transfer this right to specialists, and cloud mining is a good solution for such investors.
Are there disadvantages to cloud mining?
But along with these pluses, it is impossible to remain silent about the disadvantages, more precisely, about one, but a very large minus fraud. The cloud mining industry is full of vendors offering to double your capital in a month. And this is the truth! The problem, however, is that it is not their customers who double, triple and increase their capital several times, but the fraudulent providers themselves.
Therefore, it is necessary to carefully study the history, to confirm the work of the company, you need to confirm the presence of miners and data centers, check the registration and tax residence, read customer reviews on forums and social networks and look at reviews from experts in the field. It sounds complicated, but it has to be done once in order not to increase your capital but not to lose it.
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