How Profitable is Ethereum Cloud Mining
Ethereum is one of the top cryptocurrencies in the world. How easy is it to mine Ethereum? Well, to figure out how profitable it is to mine a particular crypto, you’d have to factor in variables such as the installation and maintenance costs of the mining rig, the difficulty levels of the mining operation, the mining rig’s hash rate as well as power costs, to name but a few.
When we applied these factors to evaluate the profitability of mining Ethereum, we found that this crypto is still able to provide a high return on investment. However, it’s always a good idea to opt for the most cost-effective option as that will improve your profitability metrics overall. Cloud mining is a great option just for that reason, which is why we’re going to explore whether or not Ethereum cloud mining is still profitable.
Why Consider Ethereum Cloud Mining Services?
Ethereum cloud mining is fast becoming a popular option for a lot of miners. This is mostly thanks to the fact that cloud miners don’t have the obligation to purchase and manage mining hardware like typical crypto mining requires.
It’s worth noting that the crypto market is volatile by definition and the constant fluctuation of prices is inevitable, while cloud mining companies offer a safer and more reliable alternative that enables investors to increase their assets at a steady rate. Plus, cloud mining companies don’t come with the software configuration prerequisites, large energy bills and the other problems that come with owning an actual mining rig.
How Does Ethereum Cloud Mining Work?
What cloud mining allows you to do is basically lease mining equipment from corporations that own and manage massive mining farms. This brings with it several benefits like not having to deal with complex equipment configurations, noisy machines or constantly escalating power bills.
What to Consider When Looking for Ethereum Cloud Mining Services?
- As you can see from the points highlighted above, there are a lot of benefits that come with cloud mining, but as with anything, there are some disadvantages too. For example, there are a lot of fake cloud mining services and Ponzi schemes out there, which is why you should always do your due diligence before investing your money into anything. This includes going through all the available reviews on the company and verifying their credentials as well. You should also be careful of companies that promise you the moon and stars, as most of these operators don’t even have enough computing power to back their claims.
- What you want is a trustworthy Ethereum mining company with a verifiable track record and a good reputation. You’ll know these companies by their commitment to constantly invest in their equipment so that they can offer you, the customer, better value.
- Be on the lookout for companies that claim to mine different kinds of cryptocurrencies because each crypto has its own mining algorithms that require unique equipment. So it only makes sense that a practical cloud mining company would only choose to support one or two cryptocurrencies at most so that they can guaranteetheir investors the returns that they promised.
- Cloud mining calculators are a great tool for investors who want to figure out how much they will be making on any investment. That’s because the calculations you make on these resources actually take relevant variables into account, including the company’s hash rate, lock rewards, network difficulty levels, pool fees etc.
- In your search for a reliable cloud mining company, you’ll also come across operators who claim to offer free cloud mining services. Avoid them like the plague as they’ll most likely disappear without a trace in a few months anyway, leaving many of their investors dumbfounded.
- Another common scam that fake cloud mining companies run is to pay the investor for a short amount of time and then stop payments abruptly and permanently for no reason. And then a few days later another company will pop up with identical offers to the one that just closed. For the best results, opt for a service provider that’s willing to let you view their data centers through a guided Skype tour. These companies will most likely post pictures of their mining farms online as well, which can be a great indication of whether or not they’re legit. Obviously, a service provider that posts low-quality pictures of a disorganized facility is not to be trusted.
It’s important to keep in mind that even though some companies may genuinely have good intentions, they simply won’t make it due to the volatility of the crypto market. That’s why investors are advised to only choose companies that have the most positive reviews, ratings, and customer feedback.
Also keep in mind that each website will have its own unique contract terms and prices to offer you, and you have to thoroughly read through them in order to fully understand what you’re getting. If you have questions, don’t be afraid to ask them and make sure that you’re 100% satisfied before you make your final decision. Now, what usually happens with most contracts is that they tend to offer impressive profits in the beginning, but will often decrease after the first few months unless you change to another contract.
The Future of Ethereum
What makes Ethereum a great long term investment? The fact that it’s more than just a digital currency. It’s a complete blockchain platform that enables you to create and deploy smart contracts and decentralized apps.
It’s also one of the leading drivers of transformation from a centralized economy to a decentralized, permission-less and borderless international economy. The presence of decentralized apps has heaps of advantages for lots of different sectors from finance to real estate, insurance, academia, entertainment, social media, the public sector and health care.
Similar to how the early progenitors of the internet probably couldn’t have imagined that cloud computing applications and social media would be the result of their invention, there’s no telling what type of applications Ethereum blockchain could yield.
One thing’s for sure though is that the future of Ethereum looks very bright, especially when you consider the fact that it was the most traded crypto in 2017, and it’s not far-fetched to think that 2018 could yield similar results.
Ethereum prices will probably start to increase as well, which makes now a good time to start investing in Ethereum cloud mining.