Ethereum which was launched in 2015 has now emerged as one of the leading cryptocurrencies in the market. The question, however, remains whether it is still easy to mine this cryptocurrency after three years. So, to know whether cryptocurrency mining is profitable or not, you will need to consider costs of installing and maintaining the mining rig, power costs, hash rate of the mining rig, mining difficulty levels etc. After carefully reviewing these factors it appears that Ethereum mining is still capable of generating profits but you must choose the most cost-effective option to improve your chances of earning rewards. This is where cloud mining comes in and it becomes imperative to see whether Ethereum cloud mining is actually profitable or not.
Why should you consider the Ethereum cloud mining services?
Today, many miners are signing up for Ethereum cloud mining contracts. This is because cloud mining relieves them of the responsibilities of buying and maintaining costly mining hardware. The cryptocurrency mining market is by nature volatile and prices are likely to go up and fall down from time to time. It is strongly believed that investing in cloud mining companies can be a good way to enhance your assets in the future. When you choose to enter into cloud mining contracts you will not have to deal with huge electricity bills, software configuration problems and other complexities which come with having your own mining rig.
How does Ethereum cloud mining work?
In cloud mining, you can basically pay an amount of money in order to lease mining equipment from companies which maintain huge mining farms. Among the many advantages which Ethereum cloud mining offers, the key ones are reduced power consumption, no noise from constantly working machines, and no need for configuring or repairing equipment.
What should you consider when looking for Ethereum cloud mining services?
- While there are many advantages of choosing cloud mining over traditional mining, there are some significant hazards too. For instance, there are many cloud mining services out there which may be running scams and Ponzi schemes. So, before you sign up with any, it is recommended that you verify their credentials and read up reviews. This is especially true of some companies which promise incredibly high returns to interested clients. They often do not have the necessary computing power for mining and simply make false claims to cheat miners.
- When you choose reliable Ethereum cloud mining companies you can be certain they have a rock-solid reputation amongst their customers. So, they will also be committed to constantly upgrading their equipment to increase returns. Companies which claim that they can successfully mine many types of cryptocurrency are usually not trustworthy. This is because each cryptocurrency is likely to have its own mining algorithms, the method of working and requirements for mining equipment. It is very rare that a cloud mining company can maintain so many diverse types of equipment to support mining multiple cryptocurrencies.
- You should also use the online cloud mining calculators to see the number of profits you can expect to make. Such calculations will be based upon factors like pool fees, network difficulty levels, block rewards, hash rate etc. There are even miners who wish to opt for free cloud mining services. It is recommended that you stay away from such schemes because usually, such companies shut shop within a few months leaving you in the lurch.
- There are some scam contracts which even pay you for a while and then completely stop making payments. Within days another site appears making similar types of offers. It is always advisable to choose a provider which can offer you a guided Skype tour of their data centers so that you can see for yourself how well equipped they are. You can also view images they post about their mining farms online. If you find that the pictures are not very impressive and the facility looks disorganized and cluttered, it is best to avoid such cloud mining providers.
The market is so volatile that even with the best intentions, there are some companies which cannot survive. On your part, you can try to be safe by choosing to sign up only with providers who sound legitimate and have positive customer feedbacks and reviews. You must also understand that sites will offer you different contract terms and prices. So, you need to read these carefully to know exactly what they entail. In case you have queries too, it is advisable to get these clarified before you sign on the dotted lines. Usually, the first month will see you making good profits but the profits will keep going down if you stick to the same contract.