Bitcoin mining is a popular way to make a profit in the world of cryptocurrency. It allows the investors to mine and produces their own crypto coins that they can sell or lend. However, lately, the process has become costly and more complex than ever.
This leads some users to turn to bitcoin mining sites that don’t require the investors to purchase and use their own equipment. This is a useful alternative but it comes with a price both in terms of fees and in terms of letting go of the process and letting the provider handle the mining for you.
How Does Cloud Mining Work?
Cloud mining works in the same fashion as creating Bitcoin coins with your own equipment. However, the computers and the experts that use them are run by the owners of the Bitcoin mining sites and the investors are following it via a cloud-based interface. You can choose one such provider on this website and start mining right away.
The main advantage of such a setup is that you don’t need to do any investing right away and the service is paid for via a debit card or an e-wallet.
Is There Profit In It?
There’s profit in selling crypto coins or in lending them, even though this is a recent development that’s still not used widely enough. The value of Bitcoin changes and fluctuates based on the demand for it on the market.
If Bitcoin mining sites promise a certain value you can derive from them, you should take it with a grain of salt since the actual value can change. However, in the long run, Bitcoin has grown quite a lot in the last five years.
How Much Profit to Expect?
There are two main things to consider when choosing Bitcoin mining sites: the number of coins that can be produced at a given time and the value of Bitcoin on the market. The first one is something you can choose and therefore control at least somewhat, but the other depends on the market forces.
For the most part, with a common hash rate, you can passively earn about $30 in Bitcoin a day. Keep in mind that the value of Bitcoin has grown about 8 times in the past five years regardless of the ups and downs of the market.
New Ways To Profit
There are new ways to earn from Bitcoins that many investors are rushing to take advantage of. This is partly because Bitcoins are a part of the financial mainstream now and many online services accept them as a payment method. It’s also much more common to lend Bitcoin and get an interest in traditional fiat money.
With more options out there, the investors are eager to find bitcoin mining sites and use the cloud mining option to start earning without the high initial investment. The same can be tried with pool mining even though that’s a more complicated process.
Taxing the Profits
One of the reasons Bitcoin was so popular at first was because it was not recognized by the government entities and therefore it wasn’t taxed. This has changed in recent years and chances are it will change further in the years to come. Bitcoin is now accepted as a payment method and many governments are taxing Bitcoin earnings.
Many cloud mining providers allow legal and tax assistance as well and this can be of great help for small-time investors that can’t cover those costs on their own.
Selling Your Account
Another important feature to have under your belt is the ability to sell your accent to another investor after a while and if you’re not satisfied with the profits it produces. Not all cloud mining companies provide this option since not many are planning that long into the feature.
Those that do should be on your shortlist. It’s an exit strategy and therefore something every investor should take into account. The fees for the providers that offer this option may be a bit higher but the difference can prove to be worth your while when you decide to sell the account in a hurry.
Should You Invest in Cloud Mining Bitcoin?
In the long run, it’s probably a good idea to invest in cloud mining Bitcoin. The cryptocurrency market now works for most investors because you can simply buy and hold as you would with any other mid-term investment. Over the five years, Bitcoin has changed in value but it has kept growing.
Cloud mining is a good alternative to setting up your own mining facility. It’s less profitable but it also means you can start it right away without having a lot of funds to spend right away. This has opened the market to new investors from different backgrounds.