Cloud mining appeared approximately in 2013 when cryptocurrencies just started to become really worldwide popular. This business is based on ASICs, special hardware, which was invented to mine digital coins with maximal effectiveness. It can ensure a huge hashrate when working with a certain algorithm.
The most distributed hashing algorithm called SHA-256. This is the basis of Bitcoin and many other cryptocurrencies. The first ASICs were made for mining on SHA-256.
In 2018, there are exists many ASICs for different algorithms. They are mass produced and sold, and this is the reason why the network difficulty is growing so fast. Hence, the miners’ income reduces.
What is wrong with cloud mining?
Cloud mining used to be a quite beneficial business for both ASIC-producers and users. Users could get a cryptocurrency, which did not use to be such popular yet, and companies got a regular revenue. It was quite easier to sell the power of the hardware than use it by themselves. Remember, that five to six years ago nobody knew if cryptocurrencies are going to rise. It was very risky to hold them.
The first cloud mining users got really big passive income. At least those who did not sell the coins until 2017, when crypto-industry went up. That was the reason why such services became in demand in a short time.
In 2018, the crypto industry went down, and the difficulty of the network continued to grow. Mining was getting less and less profitable. Hardware did not work as effective as earlier, and cloud-mining services faced some problems. The main problem is that the role of mining had been totally reduced.
If you are familiar with Bitcoin architecture, you should know, that the reward for a block became twice less every several years. Actually, it is not so bad, because the reward is not disappearing. In the case of Ethereum, the situation is much worse.
Vitalik Buterin, the creator of Ethereum, said many times that mining would become useless in the next few years. Ethereum developers are going to put some new technologies on the basis of the platform. In 2017, Vitalik said that they are about to start using PoS technology for proving transactions. To put it simply, this means that miners will not need huge calculating power to get a reward. The sense of mining will totally change.
Such a long intro is supposed to explain that mining is not a long-term business in 2018. Some services are still able to get you coins, but it is not as beneficial as it used to be. In addition, many companies are turning out a scam, hence such investments are very risky. You can try to mine some ETH with services listed below, but do not invest too much in expecting a big income. This is not going to happen now.
The site was registered in February 2015. In the official group MiningRigRentals on Twitter, there is mention that the resource is located in New York. However, nobody can confirm or deny this, since there is no information on other resources about that. Who runs the company is also unknown.
The service provides to mine cryptocurrency on the following algorithms:
The service has a good reputation, and if you are going to try cloud mining, this is probably one of the best options. At least you can be sure that you will get your money, even if you obtained less than invested (this is, by the way, is the most likely outcome).
Minergate.com allows you to mine 14 cryptocurrencies, including Ethereum. The service works since 2014, and still keep paying, unlike many other similar companies. The main advantage of Minergate is an app that you can download and set up on your computer. It makes the service more convenient for users.
20Gh/s is a minimum purchase. That is actually not very much, but some sites allow you to buy less power if you want. Although, despite a small revenue, the most popular complaints about the service is that it is not giving you enough statistics about the mining process.
Minergate has a profit calculator that allows you to roughly predict the income. Actually, that is a popular tool, but even independent calculators cannot be accurate in predictions, because there are too many factors. The calculator on Minergate is obviously overstating, so you should not
OxBTC.com is a Chinese company that was run in 2014. This is actually one of the best services if we are talking about the cost of power. There are four cryptocurrencies available for mining here:
As you may know, Bitcoin business is illegal in China. This is probably the reason why OxBTC.com only accepts cryptocurrency as a payment method. In addition, you cannot get to some pages of the site outside of China. The service is kind of restricted for foreign users. However, it is still paying, which makes it quite better than many other cloud mining sites.
We could not avoid Nicehash on this list. It is probably the most popular Ethereum cloud mining service in 2018. The location of the company is unknown, but the site is good localized and operates in three languages. It has been working since 2014 and still has not turned out to be a scam.
In 2018, many users note that withdrawal is taking a long time. Obviously, the company has problems with scalability. The only available payment method is Bitcoin. You cannot even pay with Ethereum or Dash. In addition, you have to be kind of technically savvy if you are going to use Nicehash. It is totally not for newbies, because you have to be familiar with the main principles of mining to understand how the site works.
Hashflare is a UK-based company that used to be probably the most promising cloud mining service about two years ago. Unfortunately, in 2018 the company is about to lose all of its users and followers.
Hashflare is not just a cloud mining site. It is a big company that produces its own ASICs. That is why many people thought the business would be very profitable. The company has a few data centers and special employees to keep the hardware in good condition. You can even rent a particular machine and pay for the time it is working for you. The problem is that recently the service just stopped paying.
The difficulty of the network became so huge that mining with the existing hardware is not profitable already. It is important to note, that we are talking about SHA-256 coins.
As for Ethereum, it is still available for mining in Hashflare. This is, actually, why I put the company in the first place of this top five list.
They made a mistake with SHA-256 ASICs, but it is still one of the purest mining services in 2018. They have an official FB blog and they do not hide their location and real names. All of this makes Hashflare one of the best options to try Ethereum cloud mining. However, if you are going to invest in cloud mining in 2018, you will likely lose your money even with a good company. This is just not the best way to deal with cryptocurrency now.