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How Does Cloud Mining Work?

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How Does Cloud Mining Work?
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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At the dawn of the emergence of cryptocurrency, it was necessary to buy and independently install the hardware to start mining. But, with increasing attention to this field,  different services have appeared that are ready to provide their computing power. Now, a vast number of proposals for remote mining of cryptocurrency are available on the market: the so-called cloud mining platforms.

What is cloud mining?

Cloud mining services are engaged in providing their resources to users for сryptocurrency mining. Customers receive the computing capacity for a monthly, annual, or one-time payment.

This approach gives mining accessibility to those who cannot afford locating equipment on their premises. There is no need to pay large electricity bills or hear noise from coolers at home.

How does it work?

Companies provide cloud mining services, independently purchase equipment, and place it on their own. These resources are sold to users as a part of online mining.

To start using any cloud mining platform, you should follow these basic steps:

Cloud Mining process
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Pros and cons of cloud mining

Although cloud mining is a popular way of getting cryptocurrency, such a method has both advantages and disadvantages.

Image by U.today
Image by U.today

Choose a reliable mining service

This is a high-risk niche for earnings, but the income can be huge, which depends on many factors.

When choosing a cloud mining service, you should pay attention to the following things:

  • Availability to the public

  • The amount of time on the market

  • Opportunities the company offers

  • The more hashing algorithms you can use, the more reliable the service is

  • Methods of input and output

  • The timing of mining contracts

  • Feedbacks of a particular mining service

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Top 5 Most Popular Cloud Mining Websites by Monthly Visits: Similar Web

Top 5 Most Popular Cloud Mining Websites by Monthly Visits: Similar Web

Best cloud mining platforms 2019

The services mentioned below have already proven themselves to be reliable ones and are the most well-known in the crypto community.

IQ Mining

IQ Mining does its best and pretends to be ahead of other competitors in this sphere. It has been known to its customers since the end of 2016; although the company has been operating for less than 3 years, it has become the most trusted choice in the cloud mining community.

The smart mining or the so-called “Bitcoin mining 2.0” is an entirely new approach in this industry. The fact is that it combines:

  • Surprisingly low costs for expenses that can be achieved thanks to smart contracts with established data centers

  • Increased efficiency thanks to the automatic altcoins switching technology

IQ Mining profitability

  • Presence of privileges and bonuses – one can get more benefits putting a promotional code which gives a discount on the first contract and other advantages as well.

  • Financial management – you can use your mined coins for buying more amount of hashrate.

  • Algorithm – IQ Mining selects the most profitable currency, so you do not need to engage in this process by yourself.

  • Currency value – investors will get more profits if the more expensive cryptocurrency is traded on the exchanges.

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Top 5 Most Popular Cloud Mining Websites by Monthly Visits: Similar Web

Top 5 Most Popular Cloud Mining Websites by Monthly Visits: Similar Web

CryptoUniverse

The main objective and goal of CryptoUniverse is to provide the most reliable pool of technical capabilities which allows everyone to mine the desirable cryptocurrency.

The company was registered on July 20, 2017, and its representatives immediately went to China on a working visit to contact the major and reliable manufacturers of mining equipment, such as Innosilicon, Bitmain, Canaan, and Ebang.

Compared to other cloud mining services, CryptoUniverse differs significantly. Representatives of the company put the reputation of their service in one of the first places and offer only ready-made technical equipment for efficient operation and quick profits.

CryptoUniverse advantages:

  • Easy to start mining. The service has absolutely everything for organizing the mining process: users choose the power that suits them and get a stable profit.

  • Favorable conditions. Even if you start with minimum investment – you will still receive a regular income.

  • Daily profits.

  • The best level of protection. All customer data is fully secured through two-factor authentication.

  • Guaranteed profit by the contract. Each miner receives an online contract (agreement) and can make sure that the CryptoUniverse service can fully implement all of these obligations.

  • 24 hour control. For each user, there is always the opportunity to watch the online broadcast to see how his miner is operating at the moment.

  • A small fee. CryptoUniverse is fully responsible for the installation, configuration, and operation of mining equipment and therefore charges a minimum commission.

HashFlare

The HashFlare service has operated since 2015 and rid the miner of expensive electricity, software, constant hardware monitoring, etc.

Benefits and features of HashFlare:

  • Fast connection: you pay, and the work starts immediately, the first charges will come on your account within 24 hours (you can use Bitcoin or WebMoney for deposit).

  • High income with detailed statistics: 6-8 months payback period.

  • Fast withdrawal: choose the desired amount and withdraw it to your Bitcoin wallet.

  • 24/7 statistics: you monitor what is going on in your account.

  • Power distribution allows you to organize a beneficial bundle.

  • Fixed commission: no hidden fees, all changes in the balance are set.

  • Own data center with modern equipment.

  • HashFlare prices in the cloud mining community are among the most competitive (you can test the service even at $100).

  • Reinvesting profits allows you to increase mining turnovers at the expense of the earned crypto.

  • Referral program.

Genesis Mining

Genesis Mining is an international service for the cloud mining of Bitcoin and other cryptocurrencies: ETH, LTC, ZEC, Monero, and DASH. The platform has its mining farm, built in Iceland and other cold countries, where the climate allows one not to spend a lot of effort on cooling equipment, as well as where electricity is inexpensive, which makes the pricing policy very competitive and exciting for the end user.

Service peculiarities:

  • Various kinds of cryptocurrency can be mined

  • Daily payments

  • Reasonable pricing policy

  • Proper equipment and high efficiency at the best price

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Bitcoin Cloud Mining Contracts 2019

Bitcoin Cloud Mining Contracts 2019

Platform Comparisons

Having analyzed the most effective cloud mining platforms, we have come up with their basic features:

Platform

IQ Mining

CryptoUniverse

HashFlare

Genesis Mining

Launch Date

2016

2017

2015

2013

Available Coins

Ethereum, Litecoin, Monero, Dash, Zcash

Bitcoin, Litecoin

Bitcoin, Litecoin, Ethereum, Zcash, Dash

Bitcoin, Litecoin, Ethereum, Zcash, Dash, Monero

Minimum Withdrawal

$10

0.005 BTC

0.01 LTC

0.03000416 BTC
0.10025 ETH
0.1003 DASH

0.005 BTC

Minimum Investment

0.01 BTC

$5

$7.5

About $30 depending on the cryptocurrency

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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and make predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others.

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Bitcoin’s Domination May Rise According to One Analyst

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  • Vladislav Sopov
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    Famous analyst PlanB published an interesting chart showing the four stages of Bitcoin’s market dominance. It appears that he predicts hard times for the altcoins!

Bitcoin’s Domination May Rise According to One Analyst
Cover image via u.today
Contents

With the last days of 2019 right around the corner, analysts and traders are getting the audience pumped for 2020 forecasts. The third Bitcoin (BTC) halving and Ethereum's probable migration towards its Proof-of-Stake (PoS) consensus will be hot topics for the crypto community. Prominent trader PlanB decided to surf this wave by showing BTC's dominating traction.

Four Stages for Dominance

In the historical chart, PlanB has revealed one of the most important indicators of the crypto world - Bitcoin's market capitalization. This indicator shows the ratio of BTC's market capitalization to the capitalization of all other cryptocurrencies tracked publicly by the available services (4000+ coins). This is used as a sign of comparative demand for altcoins and BTC.

Bitcoin Dominance Historical Chart
Image by: https://twitter.com/100trillionUSD/status/1203012308513017856

Plan B showed the four stages of BTC's dominance, in which the graph is slipped vertically (bottom line indicates 100% BTC market dominance). The first stage, which lasted before April 2017, showed that BTC's dominance was more than 90%. The second stage (April-September 2017) showed that the figures were between 70% and 90%.

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Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

The third and the fourth stages repeated twice from September 2017 to the present day. In the early days of 2018, the indicator was at an all-times-low of 35%. Now, the graph is about to re-enter BTC's second stage with a 70+% dominance.

Altcoin Annihilation?

PlanB surrounded his picture with the ironic hashtag #altcoinannililation. Therefore, PlanB interpreted this traction as bad sign for the altcoins. It should also be said that some of commentators in PlanB's open thread suggest that the four-stage cycle was launched by the previous BTC halving of July 9, 2016.

Furthermore, we can see that BTC's high price correlates with its low market dominance. With that said, the publication by PlanB forecasts an extremely bearish start for 2020.

Recently, BTC advocate Tuur Demeester claimed that the price of BTC will drop one more time to $5,000. This level will be reached due to the capitulation of "weak" investors prior to the long bull rally.

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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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