Cloud mining is an easy way to get involved in cryptocurrency mining without doing the hard work or purchasing the hardware. However, choosing the right cloud mining platform might be tricky. You need to consider a lot of things to make sure you get the best deal. If not, you’ll end up losing rather than gaining.
What You Should Consider When Choosing a Contract
1. Consider the Proof of Mining
There are scammers out there who provide the service for a while to make you feel they are legitimate and then suddenly cut you off. This is why it is important that you pick a cloud mining platform that has a track record of providing these services. Also, ask the contractors to give you a Skype tour of their facilities for peace of mind.
2. Consider the Profitability
The truth is that many contracts are not profitable if you consider the present market rates. To find out if the contract will be profitable, find out how many days it will take the contractors to pay back the money you’ve invested. You can do this by summing up daily returns on the present hash rate of the contract and subtracting the fee. This should give you an idea of how much profit you’ll make from paying for the cloud mining service.
3. Consider the Reviews
4. Consider the Miming Contract
Read and understand the mining contracts before you agree to it. Some contractors terminate the contract when the miming isn’t profitable. There are many clauses attached to mining contracts, and it’s important that you read and understand them before you proceed.
It’s easy to get ripped off on the internet. So, before you take the risk, you should be certain that you’re not handing your money to a scammer.