Guide on Generating Passive Income with Cryptocurrency Mining

Cryptocurrency mining relies on the use of computer hardware to dig up the coins. Due to the inflation, people have started to mine for crypto currency to build up a supply of cryptocoins such as bitcoins that can replace real money if its value drops. Not just any computer hardware can turn into a real profit through cryptocurrency mining. Only specialized computer hardware with good specs can yield a high ROI in cryptocoin mining. Because it consumes a lot of electricity power, you must buy a lot of fans to cool down the equipment and make sure that they don’t get overheat.

Cloud mining is an alternative for those who don’t want to bear the expenses of purchasing the hardware. There are two types of cloud mining including hosted mining and buying hash power. In hosted mining, you lease a machine from the company. Some companies allow you to send your machine to them where they will provide low cost electricity and maintenance. Buying hashing power means you buy a certain amount of hash rates. This is the most popular form and also the cheapest cloud mining option for miners.

Hosted cloud mining does not have as much scams as buying hash power. If you choose this option, it is important that you find a licensed and legitimate provider. The downside is that it requires more money to invest and you will pay a higher monthly fee. You have to calculate how much energy will be used and the cost. You will be responsible for monitoring the hardware although some will offer partial monitoring. 

Buying hash power is ideal for those who want to earn passive income online but don’t have a lot of capital to get started on cryptocurrency mining. It is hard to earn coins when you don’t have the money to buy a good machine. In this case, buying has power is the most suitable option as you are earning a share from the coins that the provider mine with his machine. The provider will be responsible of optimizing the machine and you don’t have to do any configuration on your part.

You can have a more cool and peaceful home as the mining machine makes lots of noises and generate a lot of heat when it is in operation. You don’t need to be anxious about how high the electricity bill will get when you turn on your mining machine for several hours. You don’t have to worry about how you are going to pay for the maintenance fee of the machines when you are not earning enough from the coin mining to cover the cost.

When you buy a cloud mining, you also have to pay maintenance fee but it is a small fee that you can handle. Another disadvantage is that it will be less fun and excitement because you are not the one doing the mining. You also don’t have control on which place to mine for the coins. Despite that, all these disadvantages can be looked away if you are serious about generating some earnings from cryptocurrency mining but not have the savings to purchase good equipment.

Before you get started, you should first determine how much you want to invest in cloud mining. You must also ask yourself how fast you want your investment to yield a return. At the cloud mining site, you will find several plans. Some plans have short term that last less than 6 months while others have longer term that last 1 – 2 years. There are also lifetime plans that allow you to continue mining for as long as you want.

Every plan has an initial cost and you can decide for yourself how much hashrate to buy. The more hashrate you buy, the more expensive it will be. As a rule of thumb, you should stick to your budget when investing in cloud mining. You never know whether you are going to make profits or lose your investment so you should never invest more than your budget.
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