Want to find the best Bitcoin cloud mining contracts? This post has you covered. Just know ahead of time - the truth about cloud mining in 2020 isn’t pretty.
Like the heading says, most cloud mining contracts are scams. Why?
Because it’s easy for companies to take peoples’ money, and then not pay out. A company can claim to be a cloud mining company without any proof of actually owning any hardware.
So remember: 99.9% of cloud mining companies are scams.
Mining is not the fastest way to buy bitcoins.
Buying bitcoin with a debit card is the fastest way.
We can’t recommend any cloud mining companies at this time.
Note: If you do find one, you’ll need a wallet to receive payouts to. A secure hardware wallet like the Ledger Nano X is a good option.
It depends what your goals are with cloud mining. If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all.
You will get more bitcoins for your buck if you just buy bitcoins!
The reason there are so many cloud mining scams is because it is very easy for anyone in the world to setup a website.
Once the website is setup it can claim that the company has a large mining facility.
The company can act legit by sending initial payments to its customers. But after that it can just keep the already received payments for hash power and then make no further payments.
Mining is not the fastest way to get bitcoins.
Try an exchange below for the fastest way to get bitcoins.
We do not promote, endorse, or earn commissions from the trading of securities of any kind, including CFDs, however, eToro requires that we provide you with the following disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
If you beleive you have found a legitimate clound mining company, you can really make sure by putting it to the test.
If any of these red flags are present, we recommend proceeding with caution.
NOTE: the following are taken largely from Puppet’s Cloud Mining 101 reddit post, which is a great supplement to this post.
Most cloud mining companies accept Bitcoin, PayPal, and credit cards. If a cloud mining company accepts bitcoins then there is a good chance it is a scam.
This is because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back.
No company would give away free cloud mining; this is basically giving away free money.
Any company offering free trials, especially if they require payment information, is most likely a scam.
Mining or buying bitcoins? You can't do either without a Bitcoin wallet.
Our guide on the best bitcoin wallets will help you pick one. Read it here!
Cloud mining means a host company owns Bitcoin mining hardware and runs it at a warehouse.
You pay the company and rent out some of the hardware. Based on the amount of hash power you rent, you will earn a share of payments from the cloud mining company for any revenue generated by the hash power you purchased.
There have been viruses that land on computers and then use the computers’ power to mine bitcoins.
This is particularly common with Monero since it is ASIC resistant and can be mined with GPUs.
Run a malware detector on your computer if you think you may have come under attack.
Mining software is something you download on your computer. It is required when you OWN mining hardware. Software connects your hardware to the internet so that it can make hashes and communicate with the network.
If you just want bitcoins, don’t bother with cloud mining. Just find an exchange in your country and buy some bitcoins.