Important Things You Need To Know About Free Cloud Mining

Cloud miningCryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to several individual tokens).Cloud mining involves purchasing time on someone else’s rig.9 Companies like Genesis Mining and HashFlare charge you based on what’s called a hash rate — basically, your processing power. If you purchase a higher hash rate, you are expected to receive more coins for what you pay for, but it will cost more.Depending on the company you choose, you might pay a monthly fee, or you might pay according to the hash rate.10 Some companies also charge a maintenance fee. In general, cloud miners that allow you access to bitcoin come at higher rates.In some cases, you might be required to sign a year-long contract, locking you in. If the value of the cryptocurrency drops, you could be stuck in an unprofitable contract.However, at least with cloud mining, you don’t have to worry about power consumption costs and other direct costs related to doing all of the mining with your own rig.Is cloud mining profitable?Mining cryptocurrency seems like a no-brainer. Set up a computer to help solve complex math puzzles, and you are rewarded with a coin or a fraction of a coin. The first bitcoin miners were able to earn coins relatively…