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Top 10 Best Cloud Mining Sites in 2020

Cryptocurrency Mining
Wed, 03/11/2020 - 12:15
Vladislav Sopov
Which cloud mining platform is the best for newbies and old hands? What are the ‘red flags’ that those who just started cloud mining should be aware of? Let’s discuss it!
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Cloud mining usually refers to the process of Proof-of-Work mining (Bitcoin mining, Ethereum mining, Litecoin mining, etc.) via a remote data center that hosts and operates mining rigs. The customer needs to just ink a contract and get his/her share of the mining rewards. It's the best low-entry alternative to traditional mining as you don’t need to purchase expensive mining gear. 

Typically, the user is asked to sign a contract for one month, three months, six months or a year, though lifetime cloud mining contracts are also available. Additionally, the user can customize the hashrate (performance indicator) he would like to borrow. In turn, he/she pays an initial payment and some periodic fees.

In this text, U.Today will explain the process of cloud mining and describe the best cloud mining sites as well as give you some basic advice on how to avoid scams in the shady sphere of cloud mining.

Before you start reading this text,

While reading the following article, please, keep in mind that every cloud mining service described below can be a high-risk investment option that may result in loss of part or all of your investments. The crypto market is still in its infancy, and many dramatic crashes occur here and there.

Always do your own research or contact a licensed financial advisor. Please, don't spend funds on cloud mining, the loss of which you can not absorb.

The information in this article is provided for educational use only and is not intended to act as investment advice in any form.

Introduction: What is cloud mining and why might it be profitable in 2020?

Most commonly, people try to guess what mining is (also ‘hash-mining’, ‘traditional Bitcoin mining’, ‘Ethereum mining’ etc.), what makes cloud mining special and whether it's profitable to start mining (or cloud mining) in 2020.

What is mining?

In a nutshell, mining refers to the calculation of hashes (transactional secrets) when adding new blocks to the blockchain. In turn, every transaction in a network is validated within these blocks. As a result, Bitcoin mining is required to maintain the performance and integrity of the Bitcoin network. 

The quantity of hashes calculated (mined) during a particular period of time is also called the hash-rate. The overall hash-rate of the network is called network difficulty.

What is cloud mining?

Traditional mining is carried out via sophisticated hardware devices or mining rigs. E.g. one of the most widespread mining computers, Antminer S17, now costs $1,200, though you need at least a dozen of them to mine profitably. 

Instead, you can sign a mining contract and borrow some mining devices from a high-end mining entity. Typically, such mining giants are established by engineers and developers in areas with very cheap electricity (Far East, Northern China, Georgia, Abkhazia, etc.) and tolerant legislation. Borrowing a share of mining capacity for a prescribed period of time is called cloud mining.

Related
How Does Cloud Mining Work?

Cloud mining in 2020: Is it profitable?

Bitcoin mining is profitable because every new block and every validated transaction is rewarded with a predetermined sum in Bitcoin. As such, Bitcoin miners are incentivized economically to support the existence and development of the network. But after every 210,000 blocks, the mining reward decreases by 50%. This type of event is hard-coded into the Bitcoin network software and, therefore, occurs every 4 years.

This decrease, namely ‘halving’ or ‘halvening’, is of crucial importance to the Bitcoin network. The next (third) halving will occur in the early days of May 2020. Many analysts believe the Bitcoin price, after halving, will rise significantly. As such, it may be very profitable to start mining in 2020.

And it may be even more profitable to start cloud mining in 2020 because, in this case, you won’t need to purchase new mining equipment and customize it and, therefore, heavily invest in mining.

Is this cloud mining website a scam?

A cloud mining website is typically the site of a provider of cloud mining services. It offers various tariffs, shows the customer agreement form and informs visitors of their fee policy. Also, you can find up-to-date information about promo campaigns and regularly track the income you receive from cloud mining.

Firstly: how to avoid cloud mining scams

As the contractor typically is not able to physically access the mining rig he/she is receiving passive income from, the sphere of cloud mining is a true bonanza for all types of brazen fraudsters.

Two types of scams are the most common in cloud mining: Ponzi schemes and exit scams. Within the framework of the Ponzi scheme, cloud mining rewards for early contractors are generated only from the payments of new contractors. Mining rigs are not necessary here and can be non-existent. With exit scams, nobody receives any rewards besides the fraudster behind the scheme.

Two basic tips to avoid cloud mining scams

  • Transparency first. Never invest in cloud mining from a ‘secret project’ whose mining gear works in a ‘hidden’ location. Verify all documents: contracts, licenses, etc. Don’t hesitate to contact the cloud mining team and ask them any questions. Many secrets shill many scams.

  • There's no ‘free lunch’ in this world. Avoid free cloud mining sites. If someone offers you a cloud mining share for free (for review, as a promo, etc.), he/she is a scammer.

Top 3 cloud mining sites in 2020

U.Today offers you an unbiased analysis of the top cloud mining platforms in 2020. Look through it but always conduct your own research.

IQ mining

IQ Mining is a service for cloud mining launched back in 2016. It is incorporated by IQ mining Corp. in Seychelles. With five years of operation, it has acquired a stellar reputation in the cloud mining sphere. It offers three types of classic cloud mining algorithms (SHA-256, SHA-256 Bitcoin Cash and Ethereum) as well as two cutting-edge offers - SHA-256 Pro Mining and USDT Stablecoin Mining.

IQ Mining has a very low minimum price contract of $6. Diamond Club offers are available for prominent investors with a minimum of $50K invested in cloud mining.

IQ Mining launched an exciting referral program and constantly conducts giveaways with brilliant gifts.

Image by IQ Mining

IQ Mining: Contracts

Сontract

Minimum Price*, USD

Payouts

Potential Income Per Year, up to, %

Maintenance Fee, USD/24h

USDT

0.098 per 1 GH/s

Daily in USDT

125

0.0001 per 1 GH/s

SHA-256

- 0.063 per 10 GH/s

Daily in BTC

125

0.001 per 10 GH/s

SHA-256 Pro

- 0.042 per 10 GH/s

Daily in BTC

145

0.001 per 10 GH/s

SHA-256 BCH

- 0.042 per 10 GH/s

Daily in BCH

145

0.001 per 10 GH/s

Ethereum

0.237 per 1 MH/s

Daily in ETH

151

No

*Prices as of 13th of March

Nota bene: USDT contract with guaranteed income is available for 1 year only while the rest of the contracts are available for 1, 2 and 5 years as well as lifetime.

Maintenance Fee

The maintenance fee is a price that the user pays for support from the cloud mining system functionality. It is derived from the hash-rate the user orders as well as from his/her plan and the term of the contract.

Customers can be charged a maintenance fee periodically or when signing the contract.

Crypto Universe

The Crypto Universe cloud mining project launched in February 2018. It's registered in Estonia, which has one of the most attractive legislations of the European blockchain projects. This cloud mining platform has a great advantage as it operates mining capacities in Northern regions of the Russian Federation where electricity rates are really low.

Crypto Universe offers two types of contracts: ‘BTC Mining’ and ‘Cloud Miners’. The first one looks classic: you borrow a share in the company’s hash-rate in exchange for periodic fees. With the ‘Cloud Miners’ option, you can borrow your own mining computer for a period of time. The ‘Beginner’ tariff plan with ‘BTC Mining’ starts at $9.

With the most profitable tariff plan, you can earn up to 0.1 BTC/month with a high-end AvalonMiner 1066 mining machine.

Image by Crypto Universe

CryptoUniverse Cloud Mining BTC Contracts

Сontract

Minimum Price*, USD

Term

Potential Income Per Day, USD

Cloud Mining BTC 2025

18.90 per 1 TH/s

Until January 1, 2025

0.01

Cloud Mining BTC HODL

49.90 per 1 TH/s

365 Days

0.08

*Prices as of 13th of March

Nota Bene: Cloud Mining BTC 2025 contract includes a maintenance fee of $0.07 per 1 TH/s per day.

CryptoUniverse Cloud Miners Contracts

Сontract

Minimum Price*, USD

Term

Potential Income Per Day, USD

Maintenance Fee per Day, USD

Antminer S9k

79 per 13.5 TH/s

Until January 1, 2025

0.23

1.36

AvalonMiner 1146

1,399 per 56 TH/s

Until January 1, 2025

0.79

3.73

Antminer T17+

995 per 55 TH/s

Until January 1, 2025 (available from April 25, 2020)

0.78

3.66

Antminer S17+

1,729 per 67 TH/s

Until January 1, 2025 (available from April 15, 2020)

1.61

3.80

*Prices as of 13th of March

Genesis Mining

Genesis Mining is a cloud mining operator that uses the geothermal energy of Iceland. It is incorporated in the British Virgin Islands. This firm is a true veteran of the industry as it has been in operation since February 2014.

Formerly, they offered Bitcoin, Litecoin, Ethereum, Monero and ZCash cloud mining but now only Bitcoin (BTC) and Dash (DASH) cloud mining options are available.

The prices for Genesis Mining cloud mining tariffs start at $208.

Image by Genesis Mining

Genesis Mining Bitcoin (BTC) Cloud Mining Plans

Сontract

Price*, USD

Period

Maintenance Fee, USD/24h

Gold

225 per 3 GH/s

24 Months

No

Platinum

974 per 13 GH/s

24 Months

No

Diamond

3,972 per 53 GH/s

24 Months

No

Custom

Starting at 225 per 3 GH/s

24 Months

No

*Prices as of 13th of March

Genesis Mining Dash (DASH) Cloud Mining Plans

Сontract

Price, USD

Period

Maintenance Fee, USD/24h

Gemini

208 per 21,000 MH/s

24 Months

No

Ferox

1,385 per 140,000 MH/s

24 Months

No

Graviton

3,956 per 400,000 MH/s

24 Months

No

Custom

Starting at 208 per 21,000 MH/s

24 Months

No

*Prices as of 13th of March

Top 10 cloud mining sites in 2020: Continued

IQ mining

IQ Mining is one of the most popular cloud mining environments designed to mine Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and even the U.S. Dollar Tether (USDT). IQ Mining is a veteran in this sector as it has been in operation since 2016. That said, programs based on SHA-256 and Ethash mining algorithms are available. Its contract price is among the lowest in the market, starting at $6.

The Diamond Club Program for premium investors starts at $50,000. An impressive referral program is also offered.

Crypto Universe

The CryptoUniverse cloud mining platform was registered in Estonia in 2018. It operates mining capacities in the Russian Federation. Unlike its competitors, it offers both mining program and mining computer borrowing. This means you can borrow a certain amount of hashrate or a mining rig (e.g. an Antminer S9k) for a certain period of time.

At the moment, CryptoUniverse offers long-term mining contracts.

Genesis Mining

Genesis Mining is a platform whose mining capacities explore the geo-thermal energy of Iceland. It is the oldest cloud mining provider: its history began in February, 2014. It offers two-year Bitcoin (BTC) and Dash (DASH) cloud mining contracts. Four offers with various hash-rate amounts are available for each cryptocurrency. The price of the contract starts at $208.

Hashflare

Hashflare is a well-known cloud mining operator and ASIC-miner producer located in Scotland. It has been in operation since 2015 and offers cloud mining contracts for Bitcoin, Ethereum, Litecoin, DASH and ZCash. Their cloud mining contracts are for one year.

BitDeer

BitDeer is a relatively new cloud mining platform launched in 2018. It is incorporated in Singapore, a place well-known for high regulatory demands. It offers a wide range of cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, DASH, Monero, Litecoin and Decred. Bitcoin cloud mining prices start at $243.

RHY

RHY is a young cloud mining platform that was launched in 2019 in the P.R.C. It offers only Bitcoin cloud mining contracts. Prices start at $9. Also, their service offers Bitcoin, Ethereum and USDT crypto loans.

Nuvoo

Nuvoo is a Cyprus-based Bitcoin cloud mining company that has been operating Canadian mining capacities since 2016. The company offers only a two-year-contract with prices starting at $45. Also, Nuvvoo acts as a whole-seller of ASIC mining equipment for corporate clients.

Ultra Miner

Ultra Miner is a new cloud mining platform that launched only half a year ago. It is located in Great Britain. Ultra Miner offers four Bitcoin cloud mining tariffs. It uses a special manner of pricing as all tariffs are settled in Bitcoin. Ultra Miner has the lowest minimum investment of 0.0005 BTC, or $4.25.

Related
10 Popular Cloud Mining Sites in 2019 - Updated

Cloud mining websites in 2020: unbiased comparison

N

Platform

Currencies

Minimum contract price (USD)

Contract duration (months)

Extras

1

IQ Mining

BTC, BCH, ETH, USDT

6

12, 24, 60, lifetime

Giveaways, seasonal 30% sales, referral program, private investor club

2

Crypto Universe

BTC

9

6, 12, 24, 36, 60

15% cashback, affiliate program

3

Genesis Mining

BTC

208

6, 24

Referral program, cloud computing options

4

Nuvoo

BTC

45

24

None

5

Hashflare

BTC, ETH, LTC, XMR, DASH, ZCASH

220

12

Referral program, test mode

Cloud mining in 2020: Highlights

  1. Cloud mining is the process of borrowing a share of mining facilities to receive passive income from powerful mining gear.

  2. It's highly likely that Bitcoin cloud mining will be profitable in 2020 due to the Bitcoin halving and the following price fluctuations it creates.

  3. The cloud mining sphere is saturated in scams. Ponzi schemes and exit scams are the two most common threats for newbies.

  4. Cloud Mining contracts include initial payments and periodic payments. Typically, the minimum investment amount starts at $10.

  5. IQ Mining and Crypto Universe are top cloud mining providers in 2020 with low pricing and a rich toolkit of contracts.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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