How Can You Get Into Bitcoin Mining Easily And Profit From It? Assessing Hashflare.io Cloud Mining Opportunity

In Investmentsby Shlomo FreundLeave a Comment

Article updated April 26th, 2018

After we got our first bitcoin payment about 9-10 months ago, I was exposed to more of this world and the opportunities and risks around it. So far I looked at Bitcoin trading (I tried bitcoin trading and arbitrage which was too complicated and not too lucrative), bitcoin mining (couldn’t find the right opportunity yet) and cloud mining.

I’ll show you everything I learned about cloud mining now, so you can see for yourself if this is something you’d like to get into and assess yourselves.

Here is my little mining operation working hard.

So let’s start….

 

Are you also contemplating where this whole Bitcoin and cryptocurrency craze is going? Me too.

Is this an amazing opportunity to make a profit and ride the wave of amazing technology just started? I don’t know.

Is this a flop that will disappear in a few years (Or maybe tomorrow?). I don’t know.

So, what should you do?

 

There is no one size fits all answer here. Some would say, there is no way I’m going into this. Some would say, we are just starting. And nobody really knows where this is going right now (Yes, even crypto experts!)

What I also learned over the years is that there are opportunities worth trying. risks are inherited trait in an opportunity.

So, I decided to take on the opportunity of a Bitcoin cloud mining.

What is Bitcoin cloud mining?

Think of Bitcoin cloud mining as joining a group of people mining together but instead of you holding a specific server, you are holding part (a tiny part probably) of the mining power of many many servers.

What’s so good about cloud mining vs. regular mining?

Regular mining is a lot of hassle. Here is what you need to go through to mine cryptocurrency yourself:

  1. Buy a machine – You need to buy a machine to mine your currency. It’s around $1500-2000 minimum (You can’t buy 0.5% of a machine of course).
  2. Shipping – You then need to ship the machine from the manufacturer to a hosting facility or to your own place. Think of dealing with shipping companies, customs…
  3. Setup and maintenance – Then you need to have the technical knowledge of how to set up the machines in order to mine (not to mention you need to decide which coin is best to currently mine).

So, there is a lot of work there.

So, why people still mine by themselves?

The reward is that it’s very profitable and the return on the investment of the hassle and the expenses is pretty quick (currently 2-3 months). Which is crazy fast.

 

Cloud mining takes all this hassle away.

  1. Very low minimum to start out – You can put in (I’m very careful with the word ‘invest’ in this context) as much money as you wish. No need to buy a machine for $~1500 USD, you can start with as little as $2.2.
  2. No Shipping – No need to ship any machine to anyway. The machine is already there and will start operating for you once you buy your ‘part’ on the server (it’s called ‘hash power’).
  3. No setup – No technical knowledge is needed, as you don’t do any setup there.
  4. Reinvesting option – If you wish to reinvest what the coins you just mined, it’s very easy when reaing the balance to do it. So you do get a compounding effect as well.

So, I see this as a great opportunity to take part in a mining operation which is scaled to each person’s risk and ability to put in money.

However, it’s important to note, there is a minimum currently of around $800-900 to withdraw your earnings.

How I found this opportunity?

Just to put things in context. I’m not a cryptocurrency expert. But as you see, I think there is an opportunity to earn a nice upside on the money you put in there. So, I decided to join in.

I’m still very careful about this opportunity and this is how I mitigated the risks.

  1. Spoke with someone I trust – I heard about this opportunity from a friend I trust very very much and he is very involved in cryptocurrency mining for quite a while, so he knows what he is doing.  He knows of other people who are doing cloud mining with this service I use for a while now and happy with it. “Why he doesn’t go into cloud mining himself?” You’d ask.  It’s because he is into mining by himself and he buys his own machines to mine. He knows how to do this and as I said it’s more profitable than cloud mining.
  2. Money I can lose – I put in money that I can afford to lose. Yes, if this all turns to dust, it will be a shame but there will be no change in my lifestyle and it won’t influence my family.  So, it’s a relatively small amount.
  3. Diversification – This is not my only investment. I diversify where I put my money and this joins to other things I invest in like the stock market and real estate. So, if this is lost, there are other places where I still make a profit.

It’s important for me to lay the risks for you as well. Here is what can happen:

  1. The company disappears – Although there are people that are happy with it. Things happen in life. They might be managing their company very poorly and have to close down. There might decide that they want to steal all their client’s money and exit. a tiny chance, but it’s there.
  2. Bitcoin crashes – Bitcoin and other cryptocurrencies are still in their infancy and there is a harsh competition between them. On the longer run some of those cryptocurrencies will disappear. Will this be Bitcoin? I don’t know. So investing a small amount or something that you can risk and won’t affect you is crucial here.
  3. Difficulty to cashout – As more and more people are using Bitcoin the transactions are getting slower and transaction fees are getting higher. This is one of the problems of bitcoin that the bitcoin community is trying to solve. I transferred Bitcoin to go into this investment and it took more than 24 hours for the transaction to happen and the fee to transfer was relatively high (around $12 at the rate then). So, take that into account when you’d want to withdraw your mined bitcoin.

So, What’s the opportunity?

Hashflare is the company that offers this opportunity called cloud mining. They have a facility with mining machines. People like you and me can buy a share of the computing power and mine Bitcoin themselves.

Hashflare.io website

How much does it cost?

The cost depends on which currency you wish to mine and how much mining power (called ‘hashpower’) you wish to buy. The price starts at $2.2 $0.6. The contract lasts for one year.

 

How do you fund your account?

There is a way to fund your account with them with Bitcoin like I did. After doing that I discovered that their rate for Bitcoin purchases is expensive. I, therefore, recommend not using this method and just use a credit card to make your purchase.

what’s the expected earning from this opportunity?

This is hard to tell as mining difficulty is varying all the time and Bitcoin value also fluctuates. So, Hashflare links to a few calculators on their website to show what’s the currently expected gain. At the time of writing, the expected Bitcoin I’ll mine will be worth $1,761.88 after a year. But Hashflare also deducts electricity and manitenance costs of $278.49 in a year. This means that the profit will be 1483.38 (That’s 1761.88 – 278.49). Not bad for about $500 investment.

This is the expected earning of my 2.18T/H that I bought on hashflare.io

Keep in mind, if the value of Bitcoin drops this value drops as well. But nobody can really tell what is going to happen. This is speculative.

To sum up

This is a highly risky speculative investment. I support putting some money in it in order not to lose the opportunity, but not an amount that will keep you awake at night or that you can’t afford to lose.

If after all I said this still sounds like something you’d like to go into, go ahead and register with Hashflare.

Please be aware that this is done on your own liability.

Please add any questions you might have in the comment or send directly to me, I’m glad to answer those.

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