Beginners Guide to Bitcoin Cloud Mining
Bitcoin mining has been the domain of the computer geeks and programmers until recently with the advent of cloud mining. Because cloud mining requires users to own no Bitcoin mining hardware or have any Bitcoin mining technical expertise, it has opened up the overall Bitcoin mining pool to include more average Bitcoin enthusiasts, particularly the nontechnically oriented variety. Thanks to cloud mining, more people than ever are finding Bitcoin mining worth it for their bottom line. Bitcoin cloud mining is so easy anyone can do it, making Bitcoin mining for beginners not only possible, but common. However, there are a few important considerations to understand before jumping in. This Bitcoin mining guide will explain what they are.
Bitcoin Cloud Mining Explained
The main difference between traditional Bitcoin mining and cloud mining lies in who houses and maintains the Bitcoin mining hardware. With traditional Bitcoin mining, the user buys, sets up and maintains the Bitcoin mining rigs. This requires extensive technical knowledge as well as adequate ventilation for cooling and will result in an increase in electricity costs. On the other hand, with Bitcoin cloud mining, the Bitcoin mining rigs are housed and maintained in a facility owned by the Bitcoin mining company. The customer simply needs to register an account and purchase Bitcoin mining contracts or shares. These Bitcoin mining contracts immediately start mining Bitcoin which is paid out to the user on a regular basis. The user does not have to concern himself with ordering, setting up or maintaining Bitcoin mining hardware. Nor is the user required to make a big up front Bitcoin mining investment. For as little as fifty dollars, he can begin cloud mining. From that point on the Bitcoin mining hardware housed at the Bitcoin mining company will do the work.
Bitcoin Mining Profitability Issues With Cloud Mining
Not all cloud mining services are created equally, so it is important to understand the issues and make an appropriate Bitcoin mining comparison. The first concern is the reputation and security of the Bitcoin mining company itself. Will the company be around for the duration of your Bitcoin mining contract? How secure are the funds in your account? Can the site be easily hacked? Good answers to these questions can usually be found on relevant threads in the Bitcoin Forum and on reliable Bitcoin mining review sites such as this one.
The second major issue concerns the price of the cloud mining GHS to be purchased. These prices can vary widely, and sometimes can be so high that there is no way to make back the initial Bitcoin mining investment in a reasonable amount of time. Cryptsy cloud mining contracts are a good example of that situation. Bitcoin mining difficulty is another issue which directly impacts Bitcoin mining profitability. A good Bitcoin mining calculator can give a user a reasonable estimate of how his profits will be impacted by future Bitcoin mining difficulty increases. Another factor which impacts Bitcoin mining profitability is the market price of Bitcoin.
Cloud Mining Report aims to provide impartial reviews of cloud mining services in an effort to help users find the cloud mining service that is best suited to their needs and risk tolerance. We will update these reviews regularly with the latest information which could impact enthusiasts looking to buy hashing power on these bitcoin mining platforms. The various Bitcoin mining services reviewed here vary in terms of cost of hashing power, reputability and longevity of the service, flexibility of the Bitcoin mining contracts and other factors. Bitcoin mining should be treated as a high risk investment and it is strongly recommended to only spend what you can afford to lose.
A Word of Warning
Bitcoin cloud mining profitability depends on many factors such as the current and future Bitcoin exchange rate, future mining difficulty, and the reliability and security of the service used, including the risk of the service being hacked. As with Bitcoin and cryptocurrencies more generally, do not invest more than you can afford to lose.