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Cloud mining is an advanced strategy that takes cryptocurrency investment to the next level! That means you’ll need to invest a little more into it – but the returns could be much bigger! (Remember, as with all forms of investing, you may not get back what you put in. And always seek professional financial advice before parting with any of your money).
Let’s take a look at what cloud mining is – and how to start investing with it!
- What Is Cryptocurrency?
- How Is Cloud Mining Different From Buying Crypto?
- Where Do I Start Cloud Mining?
- More Investing Tips
What Is Cryptocurrency?
Cryptocurrency is a hot topic these days! You’ve probably heard of BitCoin by now – but did you know there are lots of other cryptocurrencies, too?
The idea is that the currency is not a national currency like a Pound Sterling or US Dollar. Instead, it’s digital and international – and can (in theory) be spent anywhere that takes that crypto as payment. It uses blockchain technology to ‘mine’ currency. Blockchain uses lots of different computers to mine and manage the currency – which boosts the security appeal of cryptocurrency.
There are THOUSANDS of different cryptocurrencies available – you can check them all out on CoinMarketCap.com to find out more about each of them.
Crypto is popular because it removes central banks from the supply. That means it’s disconnected from the reduction of the value of money due to inflation, which is something the central banks control. Other people choose to invest in crypto not because they want to eventually spend it – but because they want to sell it when the price rises! We’ve all seen how BitCoin jumped significantly recently, and if you invested in that currency ten years ago you could be very rich right now!
You can invest in cryptocurrencies by researching the ones you want and setting up a wallet, such as with CoinBase. Transfer your real money into this wallet, and then you can buy cryptocurrency from there. Alternatively, you can invest via a trading platform like eToro, too. Check out our cryptocurrency investment guide for more details.
How Is Cloud Mining Different From Buying Crypto?
Cloud mining is the next step in cryptocurrency investment. Instead of just buying the cryptocurrency equivalent (like you would stocks and shares), you’re part of the creation process!
Computer servers mine currency using blockchain technology. That’s how the cryptocurrency is ‘made’ – and you can take advantage of this process with a little savvy. You can earn more in your cryptocurrency without putting down money into the currency – instead, you mine it. The more complex a hashtag puzzle is to solve, the higher the crypto reward for the miner.
However, this requires a lot of technical savvy. Unless you really know what you’re doing, it can seem too complicated to start mining. There is, however, a solution: cloud mining.
Where Do I Start Cloud Mining?
Instead of mining the currency directly yourself – which is time consuming and expensive – you can hire an already set-up server to do it for you!
This takes all of the technical know-how out of the situation for you. So, you’re just benefitting from the results of mining without needing to get stuck into the ins and outs of blockchain technology.
Shamining is one of the more popular places to do this. According to their website, all you need to do with Shamining is sign up, choose the contract type, and wait for your miners to work. You can choose from a Lite plan through to a more heavy-duty plan, depending on how much you want to pay. You rent the servers from as little as $0.0109 per GHz/s of processing power (the higher power ASIC miners are more expensive but you can achieve higher profitability – just like any investment, higher risk could mean higher reward!).
Shamining mines BitCoin, an established cryptocurrency that is trusted across the world. Once you’ve signed up, you can receive money into your account with daily payouts. BitCoin has an equivalent dollar value – so using Shamining means you could earn BitCoin that can be transferred to your online wallet for real cash.
More Investing Tips
If cryptocurrency isn’t for you – or you want to learn how to diversify your portfolio with other investment strategies, try these articles next!