Cloud Mining as a Solid Passive Income Strategy

AB, a little side question here.

Do you know anything about cloud mining operations? Been looking into cloud mining contracts like Sup Miner . Can you share your thoughts on this?

What is Cloud mining?

Cloud mining allows users to mine crypto without hardware investment. Cloud mining enables remote cryptocurrency mining through leased computational power from providers. There are many types of Cloud Mining:

• Hosted Mining: Leasing entire rigs with operational control while the provider manages maintenance.
• Leased Hash Power: Renting a share of mining pool power, receiving proportional earnings based on rented capacity.

Crypto mining is becoming increasingly complex and costly.

Enter cloud mining.

Read all about this alternative method of mining ⤵️ https://t.co/ZUmwlQINnx

— Binance (@binance) November 3, 2024

As retailers, we are more interested in the Leased Hash Power. Some advantages of Cloud Mining are:

• Lower costs and no hardware management.
• Ease of entry for beginners.
• Accessible passive income opportunities

This means we will consider Cloud Mining as a passive income. But is it worth it?

How to participate in Cloud Mining?

1) Choose a cloud mining company: The first step is to choose a reputable cloud mining company. It’s important to conduct thorough and diligent research as there are many scams in cloud mining.

2) Select a mining package: Cloud mining providers often offer various packages based on how much computing power you want to rent and for how long. The more power you rent, the higher your potential returns. But this also comes at a higher cost.

3) Choose a mining pool: Some cloud mining companies might also let you choose which mining pool to contribute. Here is a good example of how Bitcoin . Here is a good example:

$grass season 2 Airdrop
Cost: $0
Time: 10 min
Device: for both mobile and Pc
Potential: $3K

Everything you need to know about $grass to maximise your earnings (for both new and old members)
Detailed guide is in the 🧵🧵 pic.twitter.com/S9MOJipPne

— Emmanuel (@Emmanue61912441) November 2, 2024

4) Pay for the service: Once you’ve selected your package, you must pay for the service. This is typically done in crypto, although some services may accept fiat currency.

5) Start mining: Once you’ve paid, the cloud mining service will set up the mining hardware, maintain it, and start the mining process. Your share of the processing power will be put to work to mine crypto.

Rewards from the mining operation are shared among the users according to how much of the total processing power they own. For this step, you’ll need to set up a wallet that’s compatible with the cryptocurrency you’re mining.

Sup Miner

Coming back to the question, Is Sup Miner a reputable cloud mining company?

• Firstly, Sup Miner has been around since 2021, but their Twitter/X account has only been active since September this year. Sup Miner’s rates are absurdly high—E.G., Invest $10K and get $14K back in 20 days. No mining operation is that profitable that we know of, especially if it’s for $BTC.

What is the hash rate/cost per hash that can be achieved by Sup Miner’s pools?

• Sup Miner is not transparent about hash rates or the cost per hash data in its pools, so we cannot confirm whether the huge returns that they promise can be achieved.
• Also, there is no mention of the fees that they’ll charge on their pools, but they only show the returns.

See Sup Miner’s Pools page here . Furthermore, we have strong reasons to believe SupMiner is a scam.

Why? Here are 10 reasons:

1. Unrealistic Returns: The website promises high and fixed returns on mining contracts, which is not realistic.
2. Lack of Information: The website provides limited information about the company, its team, and the technology behind its cloud mining operations.
3. Impersonation Warning: The website itself warns about other platforms impersonating it, a common tactic used by scam websites to appear legitimate.
4. High Referral Earnings: The referral program promises high earnings for bringing in new clients, a common feature in pyramid schemes.
5. No Risk Disclosure: There is no clear disclosure of the risks involved in cryptocurrency investment, especially in cloud mining.
6. Lack of Transparency: The website does not provide detailed information about its mining facilities, which is crucial for assessing the legitimacy of a mining service.
7. No Regulatory Compliance: There is no mention of compliance with financial regulatory authorities, which is important for any legitimate investment platform.
8. Limited Payment Methods: The website only lists a few cryptocurrencies as payment methods, which is unusual for a legitimate cloud mining service.
9. Overemphasis on Affiliate Program: The website heavily promotes its affiliate program, which is a common strategy in pyramid and Ponzi schemes.
10. No Independent Reviews: There are no independent, verifiable reviews of the platform’s performance and legitimacy.

What is a Good Alternative?

See an example of BitDeer (listed on NASDAQ), a cloud miner that is more realistic on returns, transparent on data, and more established.

As of now, we are not recommending mining because the hash power required to mine is insanely high. The risk-reward is not quite right. However, you can consider BitDeer as a safe alternative.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.