Trading is the most known activity related to bitcoin and cryptocurrencies. Indeed, the volatility made Bitcoin appear on the most prominent media channels back in 2017 when the price peaked at $20,000.
You can also generate more bitcoins or any cryptocurrency by mining them, a bit like Gold.
As we have seen before, the Blockchain runs with the help of miners solving complex math problems with the power of their computer. Nowadays, Mine bitcoin requires you to have a cheap electricity cost and have one or several powerful computers. You can try to mine a few bitcoins alone at home. However, the network is so essential, and the difficulty became so hard that it is almost impossible for you to get some rewards alone.
You have then 3 options:
Cloud mining is the process of renting mining hardware and having a company running them for you. You are paying a portion of their “hashing power” and you will receive the mined bitcoin. This service has been booming when Bitcoin reached $20,000 in 2017. However, you must be very cautious. A lot of Cloud Mining websites turn to be fraud, even when they seem powerful, like Hashflare.
Hashflare was one of the most significant Cloud Mining services in 2017. I remember putting $100 there to try out. It was highly profitable when Bitcoin reached its All-Time-High. However, it corrected to $3,200, and then, Hashflare started to colled “update” fees every day. The contracts did not seem to be profitable. In the end, the profitability turned to be harmful, and the customer’s balance crashed to 0 before most of them could even reduce their losses.
How to judge an excellent cloud mining company?
Since there are many scams in the cloud mining services, you should consider the following list to seek out for the best companies:
To summarize, Cloud Mining Contract is not yet a reliable source of income. If you wish to mine some bitcoins or any other cryptocurrencies, we recommend you to start with your hardware.
Today, the difficulty on the Bitcoin network is so high that you will have to access to cheap electricity and a powerful network connection to be profitable. Before investing in any hardware or mining setups, you must use a Bitcoin mining calculator to see if you can ever be profitable in the long term
After that verification, if you still wish to mine Bitcoin with your hardware, we recommend you to follow this detailed guide.
The altcoins come with much lower entry barriers for miners than Bitcoin. The only challenge is to find the best Cryptocurrency, and we will go through multiple steps to narrow down profitable coins to mine.
Once a new coin comes to the market, it can be easily mined since there are not a lot of miners interested in it. When it gains a more significant exposure and a better recognition in the community, people will start mining it, and the difficulty to mine will increase.
The best way to find a coin to mine is to navigate through forums like BitcoinTalk.org and some communities. You can join our Discord or our Telegram to find people with the same interest. Feel free to mine and accumulate new coins as much as you can and hope you will generate profits later once it becomes a larger cryptocurrency.
Once you choose the coin to mine, here is a list of things you need to know before starting.
You will need to read, research, and always learn about mining technology and new coins so you will optimize your results.
There are also many risks involved by mining any unpopular cryptocurrencies:
Losing your wallet keys – there are many ways to lose the access to your wallet, such as losing the private keys or being locked out without remembering the passphrase, or even losing the access to your computer and not having any back-up.
Fraudulent Mining Pool services – some of the mining pool services may not be honest with the collected fees and might not give you the right amount of shares you earned.
Hackers – Mining can weaken your safety. By searching for the support online, you might be “helped” by someone with bad intentions that will try to steal your private keys.
Value Volatility – While mining an altcoin, or not selling it because you have good reasons to think it can rise in value, this one can do the opposite and not reach the levels you expect, or even worse, become worthless.
If you still wish to mine Bitcoin or any cryptocurrency with your hardware, we recommend you to follow this detailed guide we have been writing for you: