The Crypto Cloud Mining Guide for Amatuer Investors

In this guide is everything you need to know about cryptocurrency cloud mining, and why it's no longer a profitable business venture.

It’s a process of utilizing a remote data-centre with a shared processing computerized power to generate new coins by hash rates.

This type of cloud mining enables users to mine Bitcoin, including Altcoins without having the required hardware physically.

The mining hardware with rigs are housed and maintained in a facility owned by the crypto cloud mining companies.

A customer simply needs to register and purchase some mining contracts or shares on the platform.

Since cloud mining is provided as a service, there are also some cost attached to it, which can result in lower returns for the miner.

Crypto mining overview

Simply put that crypto mining is a process by which miners solves complex mathematical problems using a special mining software and hardware.

This is how a transaction is verified on the network and sent to the blockchain.

These crypto miners are rewarded for their work with cryptocurrencies, as blocks can hold up-to thousands of transactions.

Crypto mining is no longer profitable for solo individuals!

A fake company can claim to be an authority in cryptocurrency mining, without proofs of owning any physical mining rig or hardware.

Cloud mining is no longer the best way to have crypto-coins in your possession, as it’s best to buy them from a reliable exchange.

Almost 98.8% of the popularly known cloud mining services have turned out to become crypto scams.

Crypto mining software explained

A crypto mining software is something you download on your computer to control how the mining hardware operates.

This mining hardware connects to the internet through the crypto mining software, so that it can make hashes with the blockchain network.

Types of crypto mining

There are two important types of cryptocurrency mining on different consensus algorithms, and they are; Proof of Work and Proof of Stake.

1. Proof of Work (PoW)

Proof-of-Work crypto mining simply requires miners to solve problems, which requires a great amount of computational power.

Miners normally have to buy certain kind of mining hardware to help them compute and solve some problems, which in return they earn crypto as rewards.

2. Proof of Stake (PoS)

On the flip-side, Proof-of-Stake distributes shares to miners based on their existing wealth, which requires less energy and is more cost-effective.

It’s more easier for beginners, because all you need to do is get a wallet and lockout some amount of the crypto for a while to earn rewards.

How to mine cryptocurrency

Mining crypto-coins is kind of easy somehow, because the steps to get started are:

  1. Get a specific computer hardware for mining
  2. Set up your cryptocurrency mining rig
  3. Provide high ventilated cooling systems for the rigs
  4. Get a secure crypto wallet (mostly hardware wallets)
  5. Install a crypto mining software on the system server
  6. Join a mining pool with the crypto mining setup.

Once you have all these things being set-up correctly, you will have to wait to see if the it will successfully do the mathematical calculations.

If your set-up works efficiently in the mining pool, you will definitely get some crypto-coin rewards.

Is crypto mining dead?

Despite certain uncertainties, it would be wrong to say that crypto mining is dead.

However, cryptocurrency cloud mining is totally dead for individuals who cannot invest heavily on mining rigs.

Why is crypto mining dead for individuals?

The entrance of big crypto companies in the mining business is the major cause.

These companies invested heavily in acquiring mining equipments and work-force to make huge gain on the cloud mining business.

Is cloud mining still profitable?

Crypto cloud mining is now longer profitable, as it’s hardly possible to make substantial gain from mining crypto-coins these days.

What other crypto business is profitable?

There are many cryptocurrency businesses you can start doing to make passive income, but definitely not crypto mining.

If you want to know more, then read my guide on how to start crypto business for profitable income.

Final thoughts

The difficulty in making money through cryptocurrency cloud mining have shown that it is not worth it anymore.

The cryptocurrency space is highly unpredictable, and has also shown moves that caught most investors off-guard.

The consistent demand for mining hardware and their supply is also proof that miners are still bullish on generating profits in this industry.

However, the mining game is no longer in the hands of solo individual miners.

Thus, there are other ways to make money with crypto assets to passively earn shares and income periodically.

About The 'Staunch

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I am a financial nerd with a Bachelor’s Degree in Accounting and Finance, but found digital currency and asset investment to be more lucrative. The Crypto Staunch website is established to help individuals learn how digital currency and assets work through in-depth articles. Go-to the about page to learn more.

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About The 'Staunch

I am a financial nerd with a Bachelor’s Degree in Accounting and Finance, but found digital currency and asset investment to be more lucrative. The Crypto Staunch website is established to help individuals learn how digital currency and assets work through in-depth articles. Go-to the about page to learn more.