Cloud mining is one of the most profitable ways to earn Cryptocurrencies since it eliminates need to setup, maintain, and operate cost intensive mining hardware. If you are able to find a reliable resource and invest wisely, then cloud mining can prove to be a significant source of earning.
One has to realize that cloud mining market is full of con scheme operators before entering into a cloud mining contract. Setting up a cloud mining operation requires clear understanding of possible risks prior to selection of a service provider that promises a sound number of referral schemes and several algorithms.
Look for a company that enables access to a great number of algorithms. These companies are Eobot, Genesis Mining, and Hashflare to name a few. Hashflare or Genesis mining are also known to present low risks as far as cloud mining frauds are concerned.
It would also be wise to compare cloud mining costs that include contract fees and ongoing expenditure. Specification of Bitcoin mining as far as algorithm is concerned should be SHA256. You can also come across cloud mining service providers that enable X11 or scrypt algorithms.
If your service provider is capable of facilitating access to its own mining pool, then it is evident that you will be able to choose a good number of mining pools.
However, absence of own mining pool will drastically reduce this possibility. Subsequently, the earnings will also be impacted to a great extent. While calculating profitability one should know that the fees for accessing pools are in the range of one to two percent of total payouts.
Finally, you need to ensure the security status of the mining platform because it is based on cloud computing. The cloud mining site should offer optimum security for storage of Bitcoins earned by its users. The bare minimum requirement of any cloud mining platform should be a protection from DDoS attacks.
It is prudent to limit the total number of cons in the wallet provided by a cloud mining provider. The same should also be protected by way of two factor authentication to minimize the risk of intrusion from cyber criminals.
Look for unique features provided by different cloud mining service providers such as ability to sell or buy hashpower, earning interest on deposits of Cryptocurrencies, and so forth. Some platforms provide the option to automatically mine the most profitable altcoin according to the current rates.