Bitcoin and altcoin mining attracts a lot of attention. After all, cryptocurrency exchanges are influenced by a lot of uncertain, rapidly changing factors and market psychology. Because of this, conducting a fundamental analysis and forecasting revenues in the secondary market of cryptocurrencies is quite a challenge. But with mining everything looks easier. ProstoCoin explains whether this is true.
How profitable cloud mining is
By comparison, some of the determinants of mining efficiency – such as processing power (production volume), electricity charges, and network fees – are public information from which a relatively objective quantitative analysis can be made. Given that miners’ earnings are closely tied to the value of the cryptocurrency, the return on investment becomes more predictable and stable than when buying cryptocurrency on the secondary market.
Many private and institutional investors from non-mining industries want to get involved in cryptocurrency mining. When bitcoin was not yet so popular, it was easy for a miner to mine bitcoins at home and make a good profit.
But now is not the “good old days” when the processors of ordinary computers can mine large amounts of bitcoins. The entry threshold into mining has gone up a lot: negotiating electricity supplies at discounted prices, choosing a location for a data center, choosing mining rigs and pools, calculating the seasonal volatility of electricity charges, keeping track of changes in cryptocurrency legislation, and much more.
As mining grows in popularity, so does its complexity. This makes it impossible to mine bitcoins from home with an ordinary computer. Home mining is only profitable if you have extremely cheap electricity and a cold climate to mine in for many months.
While the quantification of bitcoin mining is more objective than that of stock trading, the high entry threshold can deter many investors. That’s why cloud mining has emerged. It is a subspecies of mining that allows investors and crypto-enthusiasts to mine bitcoin, avoiding the complexities of mining bitcoins themselves.
The concept of cloud mining emerged to reduce the high costs of mining and to shield investors from the technical challenges of self-mining. The idea quickly attracted a large number of miners who could not afford expensive equipment.
For comparison, the cost of a single modern miner starts at $2,000. For stable bitcoin mining, you will need several of these machines. You also need to provide noise isolation and heat dissipation (otherwise your neighbors will ask you to give up this investment). The cost of a cloud contract can start at $10. This is a huge difference, which is what attracts investors to mine bitcoins using companies that specialize in this – cloud mining providers.
How to Calculate Profit
Providers commit to buying, maintaining, and upgrading equipment. They also provide a special platform for investing, withdrawal of earned bitcoins, mining statistics, and a special yield calculator. For example, on the website of one of the most popular providers ECOS you can compare the yield of cloud mining with buying bitcoin on the exchange.
ECOS calculator
Cloud mining allows you to noticeably reduce the impact of cryptocurrency market volatility while keeping your earnings stable. You get income on a daily basis. This approach is especially convenient for long-term investors, whose goal is not to make money from quick speculations, but to keep and multiply their capital for many years.
The main disadvantage of cloud mining is finding a reliable provider. There are a large number of scammers on the market. Sometimes it is hard to distinguish a bona fide company from a scam. Therefore, before you enter the world of cloud mining, carefully check the provider you want to work with.
One of the most popular and reliable providers is the company ECOS. Their data center is located in the Free Economic Zone of Armenia. The company is free from income taxes, VAT, import and export customs duties as well as property and real estate taxes. It allows the company to save not only clients’ money, but also its own.
Conclusion
Cloud mining is probably the best way to invest in bitcoins that is currently available. It is more profitable than self-mining and less risky than trading cryptocurrency on an exchange. If you believe in bitcoin growth and want to have a stable income for a long time, invest in ECOS cloud mining and earn daily!