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Cloud mining is an advanced strategy that takes cryptocurrency investments to the next level! That means you have to invest a little more – but the returns could be much higher! (Remember, as with all forms of investment, you may not get back what you invested. And always seek professional financial advice before parting with your money.).
Let’s take a look at what cloud mining is – and how you can start investing with it!
- What is cryptocurrency?
- How is cloud mining different from buying crypto?
- Where do I start cloud mining?
- More investment tips
What is cryptocurrency?
Cryptocurrency is a hot topic these days! You’ve probably heard of BitCoin – but did you know that there are many other cryptocurrencies out there too?
The idea is that the currency is not a national currency like a pound sterling or a US dollar. Instead, it is digital and international – and can (theoretically) be issued wherever this crypto is used as a means of payment. It uses blockchain technology to mine the currency. Blockchain uses many different computers to mine and manage the currency – which increases the security of the cryptocurrency.
There are THOUSANDS of different cryptocurrencies – you can check them all out on CoinMarketCap.com to learn more about each of them.
Crypto is popular because it is taking central banks off the shelf. That is, it is independent of the inflation-controlled depreciation of money, which is controlled by the central banks. Other people invest in crypto not because they want to spend it at some point – but because they want to sell it when the price goes up! We’ve all seen BitCoin go up significantly lately, and if you invested in this currency ten years ago, you could be very rich now!
You can invest in cryptocurrencies by searching for the ones you want and setting up a wallet, e.g. B. with CoinBase. Transfer your real money to this wallet and you can buy cryptocurrency there. Alternatively, you can also invest through a trading platform like eToro. Please see our guide to cryptocurrency investing for more information.
How is cloud mining different from buying crypto?
Cloud mining is the next step in investing in cryptocurrency. Instead of just buying the cryptocurrency equivalent (like you would with stocks), you are part of the creation process!
Computer servers promote the currency using blockchain technology. This is how the cryptocurrency is “made” – and you can use this process with a little skill. You can make more in your cryptocurrency without putting any money into the currency – instead, 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 skill. If you don’t really know what you’re doing, it can seem too complicated to start mining. However, there is 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 rent a server that has already been set up to do it for you!
This takes all of your technical know-how out of the situation. So you only benefit from the results of mining without having to get involved in the specifics of blockchain technology.
Shamining is one of the most popular places to do this. According to their website, all you have to do is sign up to Shamining, choose the contract type, and wait for your miners to work. You can choose between a lite plan and a high performance 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 more powerful ASIC miners are more expensive, but you can get a higher return on investment – just like any investment, a higher risk can mean a higher reward!).
Shamining mines BitCoin, an established cryptocurrency that is trusted worldwide. Once you are signed up, you can start getting money into your account with daily withdrawals. BitCoin has a corresponding dollar value. So by using shamining, you can earn BitCoin which you can transfer to your online wallet for real money.
More investment tips
If cryptocurrency isn’t for you – or you want to learn how to diversify your portfolio using other investment strategies, try these articles out next!