Is Bitcoin Cloud Mining Profitable in 2020?

Is Bitcoin Cloud Mining Profitable in 2020?

World business and financial news Full list of stories by category Cryptocurrencies – 2020-07-29 Cryptocurrency is presented as embodying the economic model of the future, allowing us to break free from the classic banking system that we all know. In this context, the Coinbase platform aims to make the buying and selling of cryptocurrencies as easy as possible. It also allows instant payments. On its presentation page, the platform …

By Contributing Author

The popularity of cryptocurrencies has grown drastically throughout its short history of existence. People did know much about Bitcoin when it got released in 2009. Moreover, Bitcoin has experienced some ups and downs since its release; that’s why it is known for its volatile nature. In 2017 Bitcoin reached almost $20,000, and then just recently, in 2020, it went to nearly as low as $3000 due to coronavirus pandemic.

Mining Bitcoin used to be easier ten years ago. Back then, all you needed was a reasonably powerful computer and a stable internet connection. The way Bitcoin is mined has changed, and for most people, it is easier to trade Bitcoin. Buying Bitcoin on an exchange is simpler. You can buy a fraction of cryptocurrencies, but some individuals prefer to mine their coins. It all depends on the circumstances and your preferences.

Mining profitability 

The way Bitcoin is mined has evolved. As mentioned above, mining Bitcoin used to be easier, but now it has become more complicated. It has become harder for smaller miners to compete as serious miners have built huge arrays to mine. An easy way for an individual to be more effective is joining a Bitcoin mining pool, although that comes with a fee, which reduces profits.

If you decide to build a mining rig, it won’t be easy as it comes with a lot of costs. You need to have a nice graphics card and set up a sophisticated computer system. One could build a simple mining rig with $4000, but some people spend $8000 or more than $10,000 to make a nice mining rig. 

When deciding to build the rig, you have to take into account the amount of energy you will need to run it. Depending on where you live, but there are chances that the amount of energy spent will cost more than your profits. Therefore a mining rig that spends less energy should be your goal, although it can take longer to recoup your original investment and become profitable. 

Is cloud mining a good idea?

Cloud mining is actually the most preferred way nowadays. It is way cheaper than building a rig to mine. With cloud mining, you don’t have to install any hardware. With cloud mining, you can lease mining capacity in remote data centers and earn bitcoin as the miners generate them. Basically, it is like purchasing time on someone else’s rig. There are companies such as Hashflare or Genesis Mining that charge you based on the hash rate. Depending on what firm you choose, you might pay a monthly fee, or you will have to pay according to the hashrate. There is also the option to sign a yearly contract with the company. Some of them charge maintenance fees also.

If you are interested in bitcoin cloud mining, here is a free detailed guide for the best Bitcoin cloud mining sites in 2020.

Conclusion

Building a Bitcoin mining rig is costly but profitable. So if you cannot start a hardware mining operation, it is best to go with cloud mining as it does not require a lot of money to invest. There is no hassle to install hardware, and it avoids all the electric costs. Trading Bitcoin through an exchange is a great idea and is the preferable way by most. 

Source: jewishbusinessnews.com

Author: Contributing Author


Full list of stories by category Cryptocurrencies - 2020-07-29

Full list of stories by category Cryptocurrencies – 2020-07-29

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  • Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
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    How to use Coinbase? - Cryptocurrencies

    How to use Coinbase? – Cryptocurrencies

    Cryptocurrency is presented as embodying the economic model of the future, allowing us to break free from the classic banking system that we all know. In this context, the Coinbase platform aims to make the buying and selling of cryptocurrencies as easy as possible. It also allows instant payments. On its presentation page, the platform shares with us its desire to allow anyone to access cryptocurrencies, no matter where they are.

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    Recognized today as the benchmark platform for beginners, Coinbase is seen as a simple and clean site. The main information is written in a legible way and allows newbies to take their first steps in the world of investing.

    Do you want to invest in the cryptocurrency of tomorrow? Then let us walk you through how to use Coinbase, from signing up to the platform to completing your first transaction.

    Note: To start with the foot and benefit from $ 10 welcome for $ 100 of purchase of Bitcoin and crypto, you can go through this link.

    Coinbase is a secure online platform that allows the buying and selling of digital currencies. She has a good reputation and has the advantage of being particularly secure. It is also appreciated for its practicality.

    The platform aims to create a financial system with openness to the whole world. It also aims to be the first global platform allowing the conversion of any local currency into digital currency, and vice versa.

    Coinbase makes selling or buying digital currencies much easier. With the platform, it is also possible to receive or send cryptocurrency, whether to merchants, friends or relatives. In addition, it allows you to transfer your cryptocurrencies to another platform.

    Apart from simplifying exchanges, Coinbase also provides backup and security at the level of your account and your cryptoassets. Thus, even beginners who still have little knowledge of cryptocurrency can use the platform without fear. Likewise, as investors do not have much time to devote to cryptocurrency mining can rely on Coinbase.

    Note: If you don’t know what “mine” means, you can learn more about this essential concept by clicking here.

    Coinbase was founded in June 2012 by Fred ehrsam and Brian armstrong. Its head office is located in the United States, California. The site saw rapid success, as by 2014, when the cryptocurrency was still relatively unknown, it had already registered one million registered users.

    Success therefore remained constant, and the growing interest in this new economic model enabled the site to rise, the March 29, 2016, at # 2 in the Richtopia ranking of the 100 most influential blockchain organizations.

    A license allowing the expansion of its services was granted to Coinbase by the New York Financial Services Regulatory Authority (DFS) on March 22, 2017. The site then integrates two new virtual currencies, Litecoin and Ethereum. Since then, new currencies have been added over time, including Bitcoin Cash (BCH) in December 2017, or the0x (ZRX) in October 2018, which allowed the latter to see its price explode.

    As of 2018, Coinbase is already a major company claiming more than 35,000,000 users in over 100 countries at the time of writing.

    In 2019, it offers a new CoinbaseCard payment card that allows users to spend their bitcoins stored in the platform in stores or to make ATM withdrawals. If originally this was only reserved for the United Kingdom, it quickly became democratized, and since June 12, 2019, it is offered in 6 other European countries, namely France, Spain, Germany, Italy, Ireland and the Netherlands.

    Since its inception, Coinbase has continued to grow. Thus, like other successful platforms such as eToro or Binance, it has been able to develop a whole ecosystem of different websites offering specific services. Among these are for example:

    • Coinbase Pro, which is designed for more advanced trade between traders;
    • Coinbase Earn, allowing users to earn money while learning about cryptocurrencies;
    • Coinbase Custody, a cold storage platform geared towards businesses;
    • Coinbase Wallet, the platform’s main secure wallet.

    To know : By creating an account on Coinbase, the user also has access to all of these Coinbase products.

    Coinbase offers you to scan hundreds of cryptocurrencies in order to consult their Classes and also obtain additional information on these. However, only around twenty of these are available for purchase and sale at the time of writing. Among these cryptocurrencies are the classics Bitcoin, Tether, Bitcoin Cash, Litecoin and Ethereum. However, other cryptocurrencies less known are available, such as:

    Since Coinbase is growing very quickly, it is sure that more cryptocurrencies will be added as the platform grows.

    Transactions made on Coinbase are highly reliable, and this security aspect is the most important point for investors. The proof is that since its creation in 2012, Coinbase has not yet experienced any major problems.

    Signing up to the Coinbase platform is a bit more tedious than on other platforms that do not require as much process. Let’s see what to do in creating your account on Coinbase.

    To create your Coinbase account, head to the main page of the site then click on the sidebar “Start” lying in top right.

    You will have a welcome gift of 10 euros for 100 euros of Bitcoin or other currencies purchased on the platform through this link.

    The platform will then ask you to enter various classic information about you, namely:

    • Last name ;
    • First name;
    • E-mail ;
    • Password to define.

    In addition, you must tick a box. This concerns the fact that you certify being of legal age and that you accept the User Agreement of the platform as well as privacy policy. We advise you to read these last two before checking the box. Finally, all you need to do is click on ” Create an account “.

    Once the account creation step is complete, the platform tells you that an email has been sent to the address provided. It contains a clickable link. By clicking on this link, you validate your address and your account.

    Purchase or exchange platforms must respect the rules of the country in which they sit. Thus, many of them prefer to settle or move where the regulations are more slight.

    This is not the case with Coinbase. The platform being at San Francisco, she preferred to stay where she is and obey federal and California laws. This way, we can make sure that Coinbase is a healthy platform. However, this involves additional steps when you register. In fact, when you log on to the platform for the first time, you will need to provide additional information about you, in particular according to KYC and AML regulations. If you don’t know these terms, click here.

    Thus, the platform asks you to provide your phone number to secure your account. You will then receive by SMS a Verification code to return for the validation of your number.

    Then you will need to prove your identity. For this, Coinbase asks you to provide an identification document (identity card, passport or driver’s license). The platform offers you two methods for importing your document :

    • Identity document using your computer’s webcam;
    • Identity card with your smartphone.

    If you choose the second option, Coinbase will will forward a link via SMS and you will just have to follow the different steps.

    Your account is now created and you can finally browse the platform while logged in. However, before starting your trading activity, we advise you to do one last thing: secure your Coinbase account.

    Indeed, even if the platform is healthy and transparent at the regulatory level, nothing prevents a hacker attempt to gain access to your account in order to steal your balance. Thus, optimize your user experience by making your account as less accessible as possible.

    For this, the platform offers you to set up two-factor authentication, also called “2FA” (for “Two-Factor Authentication”). By activating this system, you will need two factors to connect to the platform: your password and a unique code generated in particular by a application. Namely that the transferred code is ephemeral, and that’a new is generated for each connection.

    To take advantage of the benefits of two-factor authentication, start by choosing your two-factor authentication method. You have the choice between the SMS, or the Google Authenticator or Authy applications.

    Taking Google Authenticator as an example, which is the most used way, download the application on your mobile (compatible iOS or Android). Once done, head into ” Settings “ on Coinbase, then go to ” Security “. Then click on “Activate the authentication application”. You will see a QR code and a secret code. First of all, write down the secret code somewhere and keep it safe, because this is what will allow you to recover your account if you lose access to your Google Authenticator.

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    Then scan the QR code using the “+” of the application. A 2FA code will be displayed on your phone for you to report on the site. And There you go ! Your account is finally protected!

    Now that your account is created and secure, it’s time to take a look at what interests us the most: buy cryptocurrency. Coinbase being a platform with a simple and smooth interface, this part shouldn’t be a problem. The steps are similar to other platforms such as eToro or Binance. You will need to first add a payment method, possibly make a deposit of funds, and then buy your cryptocurrencies.

    First and foremost, head into “Tools”, then in “Addresses”. Then select the Wallet associated with the cryptocurrency you want to buy and click on “Create a new address”. This will correspond to your Coinbase wallet dedicated to this cryptocurrency.

    Note : You will need to create an address for each cryptoasset you want to buy. Also, use the wallet ONLY for the associated cryptocurrency.

    To be able to buy cryptocurrency on Coinbase, you must first add a payment method to your account. The platform gives you the choice between:

    • The bank transfer ;
    • Credit card.

    By going on ” Settings “, then in “Linked accounts”, you can click on “Adding a method of payment”. This will allow you to add the payment method that interests you the most between the bank account and the credit card.

    If you have decided to add a bank card, note that you cannot use only Visa, MasterCard and Maestro cards with 3D Secure authentication support. To add this payment method, you must first select the bank card as the payment method, then enter your card details.

    To add a bank account by transfer, select “Bank account (SEPA)”, then you will have several information to provide to the platform:

    • The name of your bank ;
    • Your IBAN ;
    • The SWIFT / BIC.

    Then click on ” Add “, a summary is displayed. Check everything, then if everything is in order, click ” OKAY “. You will then need to register Coinbase as a new beneficiary.

    Note : Remember to contact your bank for authorization to make European transfers.

    The credit card and the bank transfer are two payment methods that will be useful to you in their own way. Each has its advantages and disadvantages.

    Bank transfer allows you to pay less transaction fees. Only note that operations may take several days before doing so. For example, the first deposit can take up to 5 days. However, another advantage is in favor of the bank transfer: the deposit limit per week is wider than by credit card (€ 9,000 per week against € 500).

    Conversely, the bank card allows a transaction immediate, but involves fresh a lot higher than the bank transfer. Indeed, they are of 3.99% per transaction, against 1.49% for the bank transfer. Another detail: the bank transfer allows you to already have an account for the withdrawal of your funds in euros.

    Thus, where the bank card will be more used for instantaneousness in order to seize an opportune moment, the bank transfer is more suitable for situations calm. In general, we recommend that you use the bank transfer for your transactions.

    advice : When opting for bank transfer, remember to make a small transfer to the Coinbase account to verify that everything is in order.

    Now that you’ve added your payment method and possibly made your first deposit, it’s time to focus on the purchase of your cryptocurrency. As a reminder, Coinbase allows you to invest in a twenty cryptocurrencies, including the main ones, namely Bitcoin, Ethereum, Bitcoin Cash, Litecoin or even Tether.

    Before starting to buy your cryptocurrency, know that you can first of all consult on the platform different information concerning her. For example, by going to this page, you will be able to see the current course Bitcoin, its ceiling or his volume within 24 h. Also, by going a little further down the page, you will find a little explanation of what cryptocurrency is.

    To make your purchase, go to the section ” Buy Sell “, then select your cryptocurrency. Then fill in your amount, your payment method, then confirm your transaction. And There you go ! You have just completed your first purchase on Coinbase!

    Once your trading activity is completed, we recommend that you withdraw your funds from the platform as a precaution. Indeed, even if we saw earlier how to protect your account, nothing prevents a hacker from directly attacking the platform, or even it from closing permanently. Even though these chances are weak, the proverb says “prevention is better than cure”, right?

    Start with sell your cryptocurrency by going to the tab ” Buy Sell “ and selecting the tab of sale. Regarding the first box, choose the cryptocurrency to sell, then select your deposit address. You can choose between the coinbase wallet, your Bank account, or your PayPal address (if you have added an account). Then choose the amount and click on the blue box confirming the transaction.

    You will notice on the right that the platform shows you several information. So you can see when your account will be credited (knowing that this varies depending on the deposit address), and also consult the deposit details, with the applied fees. If you have decided to credit your PayPal or bank account, all you have to do is withdraw the money from your Coinbase account.

    If you have deposited the money from your sale in the Coinbase wallet or if you still have money left in it, we will see in this part how withdraw your balance.

    First of all, know that you will need link a bank account to the platform. As a reminder, you can do this by going to ” Settings “, “Linked accounts” and “Adding a method of payment”.

    Then go to ” Accounts “, then click on the box “Withdrawal” associated with the portfolio “EUR Wallet” to open the withdrawal page. All you need to do is enter the amount, select the newly added account, and confirm your process.

    Note : A withdrawal involves a fee of 0.15 euro per transaction. These remain fixed, regardless of the amount to be withdrawn and the frequency of withdrawals.

    If you use or want to use a platform other than Coinbase, maybe you would be interested in transfer your cryptocurrencies to the latter? This can be rather useful if you want to do migrate your trading activity, or if you wish to withdraw your cryptocurrency otherwise. In addition, transferring cryptocurrencies can be useful if you opt for a platform with a how Coinbase works, such as Binance, which specializes in trading cryptocurrencies. You can also learn to use this platform through our tutorial.

    To transfer your cryptocurrency, you must first have an account on the platform that interests you. On Coinbase, head into the game ” Accounts “. Choose the cryptocurrency wallet to transfer and click on its box ” To send “ (or “Send”). Copy the crypto address of your new platform, then paste it in the first box on the open page of Coinbase. Then select your amount, add a note (optional) and confirm your transfer.

    In addition to the platform’s wallet, Coinbase offers its users to protect their cryptoassets through two products : the Coinbase Wallet and the safe (Coinbase Vault). Note that in both cases, the storage is managed by the platform.

    This is the core portfolio offered by the platform. It comes in the form of a application to download, compatible with Android or iOS. The purpose of this application is also to simplify exchanges. Many cryptocurrencies can be deposited, withdrawn and sent there. In addition, Coinbase Wallet allows users to take advantage of the universe of decentralized applications, or DApps. If you don’t know what it is, click here.

    Coinbase continues to develop its application and add new features, such as sending crypto to addresses with a.

    It’s a alternative interesting to secure larger amounts of cryptocurrency. These are kept in a “safe” account (“Vault” in English) associated with your Coinbase account. And who says safe, says security: 98% cryptocurrencies are stored there in offline.

    This is a high end security that the platform offers, with additional features.

    First, using the Coinbase vault, the withdrawals see themselves deferred. Indeed, a period of 48 h must elapse between the withdrawal request and the transaction. Thus, if a request does not come from you, this gives you time to cancel it.

    Also, it is possible to set up a multisignature system. You have two options: add a second email address, or select third party approvers. For the first option, when you want to make a withdrawal, you will then have to confirm the process via your two email addresses. For the second option, you choose trusted people who will be responsible for validate your requests via an email that will be sent to them.

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    Coinbase is one of the best known buying platforms. Its users are particularly attracted by the great ease of use of the platform, combined with increased security and efficiency, when it comes to buying and securing various cryptocurrencies. Ideally designed for beginners, it is a platform that gets straight to the point, while respecting the many regulations imposed by the country of its headquarters. Unifying simplicity and security, Coinbase is a platform that can only be recommended to people wanting to get started in the world of trading. If you want to get a little taster of Coinbase’s strength, don’t hesitate to read this article.

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    Source: personal-financial.com


    Is Bitcoin Cloud Mining Profitable in 2020?


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