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Bitcoin is one of the most popular and by comparison, quite a good investment option to include in your financial portfolio. Endorsed by several governments worldwide, this cryptocurrency promises a great return-on-investment rate. Besides, it is digital money you can use to pay up for a wide variety of goods and services.
If you are still learning the ropes with Bitcoin, here’s a detailed guide on Bitcoin mining. We also talk about free cloud mining, giving you our top picks of trusted and legitimate websites offering free cloud mining.
What Is Bitcoin Mining?
Bitcoin is a peer-to-peer network and mining is a crucial link in the Bitcoin network. As a cryptocurrency, Bitcoin only exists online. It is not regulated by any financial bank or government.
So, how is new Bitcoin brought into circulation? It is not printed or minted. But rather created by solving mathematical problems. This process is called mining. Bitcoin mining helps generate new currency digitally. It is used to validate transactions too. It also helps secure the network, which means the network won’t be hacked.
We’ll help explain the Bitcoin mining process with the help of an example.
For instance, when you initiate a transaction at a bank, an employee of the bank or a clearinghouse verifies the legitimacy of the transaction before processing it further. Since the Bitcoin system is decentralized, you don’t have a bank doing it for you. You have miners.
Thus, if you want to pay someone using Bitcoin, the request is processed with the sender’s private key. The transaction is bundled and promoted to the mining nodes or Bitcoin users. It gets recorded as one of the blocks to be mined. Miners compete to solve the Proof of Work. The proof of work is the mathematical problem. The first miner to solve the problem creates a new block that must be approved and validated by maximum nodes in order to be added to the blockchain. Once added to the blockchain, the record cannot be modified.
The miner who solved the problem earns a small percentage of Bitcoins as a reward. The transaction is completed here and the intended receiver receives his money.
Mining Bitcoins - Can You Do It On Your Own?
Yes, you can mine Bitcoins as an individual. However, there are several conditions.
The mining-process is energy-intensive, implying there is a great drain on electricity. To add, you need specialized hardware. Earlier, you could mine Bitcoins from your personal computer. It isn’t so easy today with more miners joining the network and a greater demand for computing power. If you want to keep it profitable, it requires a miner to get custom Bitcoin ASIC chips for their enhanced capabilities. An increasingly competitive industry has also increased the costs of Bitcoin mining.
This Is Where Cloud Mining Comes In…
Cloud mining was introduced as an alternative to mining Bitcoin as an individual. It is highly cost-effective as you don’t have to spend on expensive hardware and software or pay for electricity and bandwidth. You also don’t have any hassles of hardware maintenance.
Cloud mining uses remote data centers as storage systems and shared processing power. These are offered and managed by third party companies. You can enter into a cloud mining contract with any of these third-party companies. The cloud mining contracts are either free or paid. The mining rigs are built and maintained by big corporations with huge investment budgets. They specialize in cryptocurrency cloud mining and sink large amounts of money into high-tech hardware: processors, GPUs, ASIC chips.
The cloud mining companies maintain huge facilities, housing collections of mining rigs. They are built in large warehouses or buildings. They are able to acquire cheaper electricity deals. The processors generate a good amount of heat and require cooling. The huge facilities make arrangements for proper ventilation.
Cloud mining has several advantages over individual mining. They are accessible to a wider audience. As an individual, we do not have a large amount of space available at our disposal were to build a mining rig. That’s something larger corporations can manage. You also don’t have to install expensive hardware or run high-tech software. Besides, you are guaranteed revenues overtime.
By opting for cloud mining, miners become part of a participative gaming and financial culture. They become members of a mining pool. In order to start mining Bitcoins, you will have to create an account with a cloud mining firm and participate in cryptocurrency mining.
Cloud miners must purchase “hash power” in order to participate in Bitcoin mining. Every miner earns a portion of Bitcoins in proportion to the amount of hashpower purchased.
Cloud Mining Models
There are two primary models of cloud mining. The first and most popular one has hosted mining. In this facility the customer rents or buys mining hardware housed in the cloud miner’s facility.
The hosting company is in charge of the operation and maintenance of equipment and hardware. Given that the mining-farms are large scale, energy costs, and expenses associated with the operation, maintenance, and storage become more practical. In this model, customers have direct authority over the cryptocurrency. Cost, however, is a major drawback with hosted cloud mining.
The second cloud mining model is the leased hash power model. It involves leasing computing power (hash power) from a mining farm. This model of clouding mining differs in its earning structure. The overall profits are distributed among miners on a percentage basis. If you want to make use of this method, you will have to visit a cloud mining site and open an account there. There, you will be required to decide your hashing power requirement and contract duration.
Free vs. Paid Cloud Mining
Offered as a service, cloud mining may entail a small fee. With paid cloud mining, you get to choose from a variety of contract plans including the ability to customize payment plans. The different payment plans vary based on hash power. The hash rate is a measure of the amount of Bitcoin that a miner can obtain at a given point in time. How much profit you make depends on the hash rate you opt for. The higher upfront payment gives you a higher hash rate. It also promises faster results.
A custom plan lets you decide the amount you want to pay and the speed at which you want the rig to mine. You can also choose the duration of your contract. If you would like to try out cryptocurrency mining before committing to a long-term contract you can opt for a one or two-month contract.
Miners are not too keen on using paid cloud mining as it eats into a portion of their Bitcoin earnings. Even entry-level plans can be expensive. Hence, the growing popularity of free cloud mining.
Free cloud mining sites allows miners to start mining cryptocurrency without having to pay a heavy upfront fee or being bound in long recurring contracts. You can take advantage of hash power bonuses too.
How can sites offer free cloud mining? What is the benefit for them in it? While the third-party cloud mining sites do not charge an initial payment, they may take a small proportion of your earnings.
Beware Of Free Cloud Mining Scams
The dream to earn some quick money often has many fall prey to scams. Many free cloud mining sites are fraudulent. They provide fake proof of work or none. Some are just there to trick people. When you try to withdraw your earnings, they may ask for a fee. Or you may never see your payout hit your balance, even days after you make a withdrawal. Hence, one needs to be careful when choosing free cloud mining.
The only way to mine cryptocurrencies like Bitcoin quickly without hardware is to ensure you choose a trusted and legit site.
Scam sites are dime a dozen. Steer clear of sites that make unrealistic promises: easy money and unbelievable prices are a red flag. You may also want to watch out for an endless list of glowing reviews. You risk losing your personal information when you sign up with a fraudulent site.
Do your research before you open an account with a free cloud mining site. Chatrooms and forums dedicated to Bitcoin cloud mining can help you get recommendations for free and trusted cloud mining sites.
The Best Free Cloud Mining Sites Without Investment
Hashshiny.io is a cloud mining platform that provides users with SHA-256 (BTC) hash power for mining Bitcoin (BTC). It was established in 2017, and since then, it has been working on improving its services to make them better than ever before.
Hashshiny is a mining platform for mining Bitcoin (BTC), which is safer and works faster. It was developed in 2017, and since then, it has been working in the industry, offering cloud mining services for cryptocurrencies, including the world’s biggest cryptocurrency, Bitcoin. The developers of HashShiny claim to have developed the top cloud mining platform in the world integrated with up-to-date deployment technology.
Hashshiny currently supports various significant cryptocurrencies, including the leading digital currency bitcoin (BTC), the second-ranked cryptocurrency Ethereum (ETH), Zcash (ZEC), and Litecoin (LTC), Dash (DASH), and Decred (DCR).
The company has a package for new users if you want to start mining with HashShiny.io. It offers new users a free 5TH/S SHA-256 (BTC) hash rate.
The next free cloud mining bitcoin option we vouch for is Freemining.co. It makes available a free, transparent platform for bitcoin mining. You can view every transaction. It is accessible to everyone. There are free and paid plans to choose from. If you boost your daily income further, you can always think of upgrading to a paid plan.
Getting started is extremely easy. All you need is to set up an account with your password and your Bitcoin wallet.
You won’t be asked to pay any processing or verification fee. Enjoy instant withdrawals. Choose an amount and have it credited to your account in minutes.
Freemining.co offers miners one more method to accrue more Bitcoin – a 5-tier affiliate program. There is a different commission at each level – 8%, 3%, 2%, 1% and 1%. The percentage is credited to your account whenever a referral chooses to upgrade their plan or makes a purchase. There’s a luck game too. Earn something with each spin.
Secure and easy are the two words that define the free cloud mining site Super Mining. Founded in 2017, the company has set up robust mining rigs that offer end-to-end services for cloud mining.
You can start mining at the click of a single button. There are several engineers and programs working at the back-end to assist with newbie miners. With Super Mining be assured of instant payments to your Bitcoin wallet. The latest ASIC miner chips facilitate quick and easy Bitcoin mining and uninterrupted earning potential. You can access and use the free cloud mining platform irrespective of your geographical location. Affiliate bonus available on every package. Free packages can be upgraded to a paid package later.
Cryptoplace.cloud also guarantees earnings on your cryptocurrency investments. Founded in 2017, Cryptoplace.cloud makes available a profitable investment option for all. This third-party mining company offers around-the-clock mining service to all customers. Cloud mining Bitcoins is fast and made possible at minimal investment.
You don’t have to wait for months for a payback. You can get your funds transferred to your wallet within an hour of the application process. Starting cloud mining Bitcoins immediately after registration.
Cryptoplace.cloud offers a range of paid and free cloud mining Bitcoin plans. Their contracts are valid for a period of 6 months. Every customer gets a joining bonus of 2500 Gh/s on registration. You can also earn other bonuses for referrals and invitation.
Bimine.io is yet another company offering comprehensive solutions for blockchain technology. With Bimine.io you can accrue Bitcoin in different ways. Be a part of the lucrative affiliate program. It is a three-tier system enabling customers to earn for referring people. It is structured as a 7%-15%-25% system.
You can enjoy a number of advantages by registering for an account in less than 2 minutes. You can withdraw your profits in less than 2 hours. Bimine.io guarantees a daily profit. There’s an expert team to help you with queries. Keep your data and transactions safe with a secure cryptocurrency cloud mining system.
Startminer is the next on our list of free cloud mining companies. You can start mining coins as soon as you sign up for a free account. It is a safe and secure platform where you can trade in a cryptocurrency of your choice. You can check the cryptocurrency catalog to make a pick.
Take advantage of their state-of-the-art mining infrastructure. Startminer is a cloud mining service that you can access on the go. Increase your earning potential by increasing hashing power. Not only this, great customer support and transparency, make it a great choice.
7. Citymine.cc - NOT WORKING ANYMORE!!!
If you are looking to establish a stable and profitable revenue stream using crypto cloud mining, you can also give Citymine.cc a thought. It is a free Bitcoin cloud mining website that can help you get started in the world of cryptocurrency investments.
Cloud mining at Citymine.cc is super easy. You can join the mining pool by simply signing up for an account. Citymine.cc enables miners to work with multiple cryptocurrency options. You can choose from the provided catalog. It is a secure and private service that makes free cloud mining highly accessible.
All mining results are automatically credited to your account. Citymine.cc also gives you an opportunity to earn via the referral program, with clients earning 10% GH/s for a referral 1 level, 5% GH/s for a referrable 2 level, and 5 Gh/s for all registrations via your referral link. You also get a sign-up bonus of 111 Gh/s.
8. Clowerty.cc - NOT WORKING ANYMORE!!!
While Cowerty.cc was built with experienced miners in mind, it is a great online cloud computing platform that anyone will be able to learn easily.
It is a quick and effective way to extract and earn cryptocurrency. There’s an option to choose from 5 promising cryptocurrencies: Ethereum, Dogecoin, Litecoin, Bitcoin, and Bitcoincash.
Cowerty.cc allows miners to create multiple accounts. However, they cannot be used as fake referral accounts. As a miner, you can become a partner on the affiliate programs too. It is a two-level affiliate program. Earn 2Gh/s per referral, 9% Gh/S for a level 1 referral, and 6% Gh/s for a level 2 referral.
A free sign-up bonus of 100 Gh/s is credited to your wallet as soon as you sign up.
Cloud mine cryptocurrency coins such as Bitcoin, Litecoin, Dogecoin, USD, and BCH using Bluemagic.cloud.
You can start mining coins as soon as you create an account at BlueMagic.cloud. You need to wait for a confirmation before you deposit deposits. You can check the minimum withdrawal limit and the commission for withdrawal.
You can also take advantage of the bonuses and affiliate programs to add more deposits to your wallet. For every purchased capacity made by a level 1 or level 2 referral, you are rewarded with 9% Gh/s and 6% Gh/s respectively. For every new miner joined using your referral link you get 2Gh/s.
Also, get your free 100 Gh/s bonus for a successful registration.
Multimining has both a paid and free cloud mining platform to get you started with Bitcoin mining. Once you sign up, you can start free cloud mining by simply using your Bitcoin address.
You enjoy free cloud mining for a lifetime unless you choose to upgrade. All free miners are eligible for one hour of free hashing power too. Collect more coins to continue mining with referrals and affiliate bonuses. Put more cryptocurrency in your wallet thanks to the 20% reward on every referral. There are other lucrative, affiliate bonuses that only premium miners are eligible for.
A transparent system lets you view the number of Bitcoins earned by free and paid accounts from the Multimining site.
Not as popular as the other Bitcoin cloud mining sites, Eobot is also a trusted site when it comes to cloud mining. Set up in 2013 with its offices located in the United States allows you to mine multiple currencies. Eobot is not a completely free bitcoin cloud mining site. However, the charges are negligible; it is as good as free.
To conclude, given the growing popularity of cryptocurrencies, they are bound to be the next big thing in the field of finance and investments. There is plenty of Bitcoin mining software online that lets you mine crypto on your own. However, the high costs of maintenance and electricity bills eat a large share of your earnings, making it impractical. Cloud mining is a great alternative, and if you can get a good free cloud mining company or software to give you a hand, there’s nothing like it!
Recommended Crypto Wallet To Use!!!
BOTTOM LINE
My final words for this review will finish with my honest opinion and the truth. I will suggest not to trust any of these websites and never forget that nothing is free in this world. The only legit and trusted company around the world that is not free but paying every time is – GENESIS MINING. Every time this company puts new mining contracts on their website they will be gone in days, that’s because this company pays and they have very reliable customer service.
Disclosure: Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.
