Bitcoin mining Gear
Bitcoin cloud mining or even hosting of your hardware where others take care of it in their data center is a tricky thing to say it is safe or cost effective. The ROI can be much longer if at all as well. This can be due to the fees involved, the upfront costs and the value of Bitcoin during that time. The issue of if the cloud mining provider is a legitimate business or just a ponzi is also an issue that plagues the industry.
Your first task is to find a reputable cloud mining provider that hopefully is real and not a ponzi just taking in new funds from new signups while having little to often no actual mining gear. This is a difficult task as many of the cloud services can even start out legit and get greedy or do not keep up with the ever constant pressure to upgrade and invest in their gear or they oversell what they actually have. Many of the scams cannot and or do not provide proof of mining. This can be done by showing hashrate on mining pools, the address where mining rewards are put into before being allocated to their customers.
One of the best ways to make sure you have a reputable service is to look on industry news site, forums and reddit subs to check out lists of cloud services and reports on them. Many times you will find on forums and reddit subs posts where people will post about their experiences with different services, exposing scams or detailing why a service may be legit. A thing to keep in mind as well that many scam services will buy advertising on everything from forums, news sites and subreddits. So be careful and do your due diligence before you spend your money. If you see an ad for a service but cannot find much information on it ask on a forum or subreddit, contact the news organization that you saw the ad on and ask for feedback. Many times someone will know the truth or at least be able to provide guidance. If you are interested in to learn the difference between home mining and cloud mining click here.
When you have discovered and researched the cloud mining service you want to use you need to then take into account the following things next in deciding to buy or not.
- Price per gh/s or th/s
- Service fees (some are included in the purchase of your hashrate as opposed to recurring fees)
- Time to ROI (this is very important as even a legit service may cost so much that to ROI the time frame could be unrealistic with difficulty levels moving up and BTC value not climbing enough to help get your ROI on your purchased hashrate)
If you have decided that your chosen cloud mining service meets all of your requirement then you purchase your hash power and sit back and watch the Bitcoin rewards come in. You do not have to setup or maintain any equipment, listen to it make noise and generating heat.