Bitcoin has changed a lot since its inception in 2009 and one such change is the growing adoption of bitcoin cloud mining through exceptional services such as torque trading system. Put in simple terms, bitcoin cloud mining is the mining of bitcoins, without the need to buy expensive hardware. As a miner, you simply purchase a contract and you get paid periodically.
This may seem simple and risk-free at first, but before you go further, you need to be aware of the advantages and disadvantages of cloud mining considering the fact that you can get scammed easily. There have been many instances of cloud mining service providers scamming bitcoiners, such as luna mini.
Bitcoin cloud mining refers to mining Cryptocurrencies without owning bitcoin mining hardware, such as ASICs (application-specific integrated circuits). There are many benefits of cloud mining. First and foremost, you don’t need to worry about managing your miners. This can prove to be very beneficial if you are not tech-savvy in the world of Bitcoin.
Secondly, you do not have to worry about electricity costs as they can sometimes be a big pain. Not to mention that bitcoin mining hardware generally cause a lot of sounds, whereas, with cloud mining, you will have a silent home.
In addition to this, if you are an experienced Cryptocurrency miner, you will very well know that the mining difficulty constantly increases and you will soon come to a point in the future where your mining hardware is not viable enough to make it profitable and hence, the hardware becomes synonymous to a piece of junk. On the other hand, if you start making use of the innovative yet risky cloud mining, you do not need to worry about the cost depreciation of hardware, as that is something the service operator will take care of.
Going back to the issue of getting scammed when cloud mining: Yes, there have been many instances of bitcoin cloud mining operators scamming their users of thousands of bitcoins. Most of the cloud mining adopters purely focus on ROI (return on investment) and they don’t care about the legitimacy of the provider.
As a cloud miner, you must assess whether the contract is legit, and not a Ponzi scheme promising absurdly high yields in little time. You should definitely perform a complete background check on any cloud mining provider you wish to deal with, specifically looking through reputable blog reviews and news outlets that mention them.
While performing a background check, try to find out if they really have proof of their mining farms. Most of the scammers usually pay out money in the beginning to attract a large audience and once they rack up many people, they just disappear with the money. You should not hesitate to contact the service provider and ask them for proof that their mining farm exists. Moreover, if any service provider is offering a very juicy affiliate/referral program (with percentage commissions such as 15% and above), it shows that they are trying to lure you to do their marketing which will subsequently result in many users signing up for them. You should know that the service provider will have his own costs, such as paying their workers for maintaining their mining farms, as well as space, security, and the cost of electricity. There are many loopholes such as the above that you need to find, and hopefully, you can zero into a provider and start your contract, whether it is leasing a certain mining hash rate or renting out equipment in a storage facility.