What is Cloud Mining?

If you have an underpowered PC offering low hash rates then Cloud Mining offers the route to much higher mining power at affordable levels. You are therefore effectively buying hardware for an un-limited time subject to the price of either of the two coins dropping by between 50-60% after purchasing a contract.

Bitcoin (BTC) and Monero (XMR) are the two coins offered with a possible addition to come. BTC starts at 20 GH/s for 0.000312 BTC and a maximum 1000000 GH/s at 15.6 BTC. XMR begins at 10 H/s for 0.0287267420 XMR with a maximum of 361.9569492 XMR. The maintenance fee for all contracts are pegged and remain at the same level for the duration of the contract term.

Example Contract Set Up

Setting up a 1,000 GH/s contract

I am using this as the ideal entry level or you can start with a lower amount,  but will find your gain will be slower as a result so bear that in mind when selecting your contract.  All contracts will profit but for maximum benefit the higher the entry level the better the potential return.

Click the Cloud Mining menu option to begin the process taking you to the BUY page – click the Blue Button to BUY -

You will now see the GH/s selector screen for BTC use the slider or put the cursor into the numeric entry box to specify a 1,000 GH/s purchase. Click BUY again if you are satisfied all is OK.

You will then see confirmation of the contract price, maintenance fee and the wallet address for sending funds to. Once confirmation is received your account status will reflect on the page to provide your Reward commencement date in 24-48 hours from the receipt of funds.

If you feel that the amount is greater than you would like simply click to cancel the order and start over with a smaller amount. With the 1,000 GH/s contract the maintenance fee is equivalent to 60% of the profit and so at .33 per day the profit at current values is around .22 per day meaning every 30 days you could purchase an additional 40 GH/s from earnings. This is the method of building your account to maximize the earning potential of your contract.

Cloud Mining Strategy
You have the option to start with less than 1000 GH/s but for the best outcome I recommend starting with that amount and the daily earning will provide the most productive amount to build the account up to accelerate the break even point. In addition purchasing a single contract will result in a much longer period before you see the benefits of mining.

I have calculated the projected cost of the following contracts giving the current values at the date of publication and by using a compounding methodology through the use of your daily earnings you will see immediate improvements in your daily payouts,  with a gradual acceleration of the daily amount thus reducing the time before break even is achieved for the starting contract..

Hash Rate GH/s       Contract Cost       Earnings         Maintenance

1000                         $144                     $0.22              $0.33

2000                         $288                     $0.44              $0.66

3000                         $433                     $0.66              $0.99

5000                         $722                     $1.10              $1.65

10000                       $1446                   $2.20              $3.30

Earnings will vary as per the market value of BTC and the break even based on the current values is around 656 days without any re-buys.  Based on the values above as per the 1000 GH/s you will have earnings of $6.60 per 30 days and may then buy an additional contract of 45-50 GH/s which will add to your monthly earnings.  So you can see the advantages of applying this methodology as long as we have buoyant market to keep improving but have the safety net in terms of the margin by which prices can fall before a contract terminates.

Contract Benefits

  • No equipment to set up and maintain.
  • Daily Payout to your account
  • Runs 24/7
  • Lifetime contract

Contract Drawbacks

  • Up front payment
  • Manual re-buys
  • Contract Terminates if profit isn't enough to pay maintenance fee.

Managing and Tracking Your Cloud Contract

Now that you have decided to proceed with a Contract you can view the progress via the Cloud Mining Page where you made the purchase here.

Each contract you have is listed from most recent to the first with a Contract Reference Number #0001.  It displays the Price Paid in USD,  Hash Power, Start Date,  Status,  Earnings and the Maintenance Fee.

To view the individual contracts click on the #0001 and this will then display the entries for each payout as shown below.

Those are your contract management tools so you can calculate re-buys and also refer to the Balance via the Dashboard to know when you have enough funds to BUY another contract.

All of the principles apply to the XMR contracts in the same manner.

As with all types of financial projects never risk money you cannot afford to lose.

Afterthought

Thanks for visiting this "short" Tutorial on Cloud Mining.

Visit MinerGate's Blog on Cloud Mining.

Are you an Author with advice or helpful hints on Cryptocurrency Mining?

Start writing on Private Locker and share your knowledge.

Social Media: Facebook, Twitter, Google

Connect with MinerGate Miners