The cloud mining as a service is provided on specialized equipment- ASICs. The profitability of cloud mining is determined by the quantity of mined coins and their market price. Therefore, at the end of the contract or during the contract period, you will receive cryptocurrency payments or equivalent payments in Fiat on your wallet, proportional to the quantity of hashing power you lease.
In order to provide Icsia.biz users information about the opportunities and profitability of cloud mining investments, we have developed a specialized mining monitoring. We regularly buy test contracts and conduct accounting of the costs&benefits, which makes it possible to understand what websites are most profitable.
There are several types of cloud mining:
Dedicated server Mining (Lease dedicated server)
Placing or leasing equipment from specialized hosting websites. You pay for maintenance, internet access, electricity and cooling. Usually, the equipment can be rented directly from the host. The equipment is not ASIC. It's a powerful dedicated server for CPU mining. After rent, you need to download their software and configure it for a particular cryptocurrency.
Dedicated ASIC Mining (Placement of ASICs in racks)
The placement of leased or purchased equipment in data centers. In the end, the equipment you bought is located in the data center, and you only pay for the maintenance, electricity, etc. The con of this alternative is the high entry level in this type of investment
Leased Mining (Renting Hashing power from miners)
Lease mining rig for a certain period of time. Virtual platforms on which sellers and buyers meet and close deals. Sellers post their hashing power for sale at different prices. Customers are able to choose the mining rig they need for a good price. Typically, such websites allow you to set the pool for your hashing power. This kind of cloud mining has the most extensive customization features, a wide range of algorithms, hashing power, pools and working time. It requires knowledge of what, where and how to mine and you have to have experience with setting miner software.
Virtual Hosted Mining (Mining on virtual servers)
The user rents virtual machines in cloud services offered by Amazon, Microsoft, etc. and sets the mining software there. It's very similar to Hosted Mining, but you can get much more processing power though you need to know some specific settings.
Mining as a Service (Purchase of shares of equipment)
The provider offers redemption of the purchased and configured equipment in the form of shares denominated in GH/s or MH/s for a limited or unlimited period. A share is also called «Contract».
In essence, in this kind of cloud mining the company buys equipment and sells shares consisting of hashing power to its customers. The risks of investing in cloud mining are distributed between the owner of the equipment and his customers. There are companies that do not have their own equipment or do not disclose information about their equipment for commercial reasons. In such cases, the risks of not returning their investments are higher, but the profitability is usually also increased compared to other types of mining.
Investment (Management of your funds)
You get income from your funds which are further invested in the turnover. Usually, these type of websites do not disclose how they use your funds. You won't be able to find out what they mine and if they mine something. They advertize a certain percentage and regular payments and that's it. Since the number of such websites is constantly increasing and the audience needs reviews and feedback on them, we've added them to the general list. Investments in these websites are high-risk and usually the higher the expected return, the higher the risk of loss.