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What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

Hello, I ‘m bumpy (@ bonifasan).

Recently, it announced that Japanese companies such as DMM and GMO will enter cloud mining business, it became a hot topic, but do you know what cloud mining is?

In this article, we will mainly explain “What is cloud mining” and “merit and demerit of cloud mining”.

What is Cloud Mining?

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

The cloud mining, by the child to invest in organizations that are doing the mining, is a mining method of obtaining a mining reward.

Mining
It is a task of recording transactions of cryptocurrency on block chains and obtaining rewards.

This mining method was born as mining mining at home owing to the rise in Bitcoin mining difficulty became unable to make profits.

In addition, invested money is used for equipment cost and electricity cost necessary for mining organizations mining.

Introducing the four merits of cloud mining

BTC

First of all, I will introduce four merits of cloud mining.

I do not need professional knowledge

Because cloud mining does not mining by oneself, even a beginner without expert knowledge can easily participate.

In order to do pool mining, etc., you need a machine to mining and knowledge only to master the machine, but it is not necessary for cloud mining.

Also, although there are many overseas cloud mining companies now, companies such as GMOs and DMMs in Japan have announced their participation, so it is expected that the environment for Japanese people will be better prepared for the future .

I do not need mining equipment

It is a big merit that mining equipment is not needed.

Because cloud mining does not mining at home, there is no money required for mining at home, such as the initial cost of mining, the repair cost when the mining machine breaks down, and so on.

Currently, it is quite a merit that we do not need this to earn profit by Bitcoin mining because we need a reasonable initial cost.

There is no electricity bill

It is one of the merits that it does not cost electricity bills.

When mining at home, it is necessary to operate a 24- hour mining machine and a huge electricity bill is required.

However, as mentioned earlier, cloud mining does not mining at home, so you will not be charged a high electricity bill at home.

Simply profitable

One of the merits of cloud mining is simply to make money.

Although it is necessary to carefully examine cloud mining in order to make a profit, some of them have simple yields.

Also, if the Bitcoin rises like last year, you can also benefit because the Bitcoin itself received by the reward is rising.

As you can see, there are many merits to cloud mining, but there are also disadvantages, of course.

Let’s confirm the disadvantage and risk of cloud mining

scam

Let’s also check the disadvantage and risk of cloud mining.

There is a fear of company bankruptcy

As a disadvantage of cloud mining, there is a risk that mining organizations can not make sufficient profit and go bankrupt.

If the company goes bankrupt, we do not know if the invested money will be returned, so we need to carefully choose companies that do cloud mining.

However, as there are many cloud mining abroads now, it is required to provide easy-to-understand cloud mining by Japanese companies.

There is a fear of fraud

In cloud mining, it is necessary to pay attention to fraud.

There are cases where cloud mining and good funds are gathered, there are actually no mining, and cases of cloud mining sites suddenly are closed after collecting funds to a certain extent.

Sites that do not have photos of mining equipment or mining factories or sites that have unlimited purchase of hash rates may be fraudulent.

Also, for sites that claim to be 100% profitable guarantee etc., it is highly possible that fraud is likely, so you need to be careful enough.

There is a risk of falling

Do not forget the risk of currency decline.

For example, when doing cloud mining of a Bitcoin, the Bitcoin itself received by the reward may fall and cause a loss.

Also, attention is necessary because there is a possibility of cracking principal due to influence of mining difficulty etc.

As described above, cloud mining is risky of loss, so we recommend you to do with surplus funds.

Recommended cloud mining service introduction 3 selections!

From here, I will introduce three recommended cloud mining services.

GenesisMining

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

GenesisMining is a cloud mining company established by Marco Streng et al at the end of 2013.

Alongside HashFlare below, it is the most major site in cloud mining.

You can mining six kinds of currencies: Bitcoin, dash, ether, light coin, Monero, cash.

It is a perfect site for beginners because plans are abundant and Japanese are also compatible.

Moreover, it is a feature that you can choose yourself, such as the mining period and the amount of investment, and the degree of freedom is high.

As a disappointing point, there are places where too many popular plans are sold out soon, but it is a very excellent mining service overall from a comprehensive viewpoint.

HashFlare

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

HashFlare is an affiliate of Hashcoins, a mining company established in Estonia in 2015.

You can mine the currencies of five kinds of currencies: Bitcoin, dash, ether, light coin, and cashier.

HashFlare is cheaper than other cloud mining and it is a recommended site to try on trial.

Also, it is also compatible with Japanese, the management screen is visual and very easy to understand.

The disadvantage is that the contract period is one year fixed and the degree of freedom is low.

Hashing 24

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

Hashing 24 is an affiliated company of Bitfury Group, a well-established mining company established in 2012 in the UK.

The currencies that can be mined on this site are currently only Bitcoins.

This site is a reliable mining company as it is an affiliated company named Bitfury, which is always displayed in the 24 hour Bitcoin hash rate distribution of blockchain.info.

What is Cloud Mining? Explanation of features and merits / risks (caveat points)!

The handling currency is only Bitcoin, there are only two contract plans and options are limited , but there are many interesting services, such as being able to simulate earnings in advance and buying and selling the hash rate in auction form.

Of course the site is compatible with Japanese so you can use it with confidence.

It is recommended site for people who want to mining Bitcoins for a long time.

Summary

So far, I have explained about cloud mining.

Due to the recent rise in difficulty of Bitcoins, hurdles to mining at home are getting higher, perhaps cloud mining may become mainstream from now on.

There are many mining sites besides the three mining sites introduced this time, but there are many sites not supporting Japanese, so it is inconvenient for Japanese people at present.

We are only hoping that Japanese companies such as GMO and DMM who have entered into cloud mining will start a cloud mining service that is easier to understand and easy.

Author: ぼ に フ ァ 【Coin Desk News】 – Source Post: https://crypto-times.jp/what-is-cloud-mining/

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