9 Best Cloud Mining Sites for 2023

If you’re looking to generate passive income from cryptocurrencies, cloud mining could be worth exploring. In simple terms, you can help mine cryptocurrencies without needing to spend thousands of dollars on mining equipment and electricity consumption. Instead, you’ll be renting hashing power from a cloud mining provider.

This guide ranks and reviews the 9 best cloud mining sites in 2023. Our methodology covers the most important considerations, such as safety, minimum investment requirements, supported mining coins, fees, and expected yields.

The Top Bitcoin Cloud Mining Sites Ranked

Listed below are the 9 best cloud mining sites for 2023, with a brief description of each service:

  1. Bitcoin Minetrix: This is the top Bitcoin cloud mining platform we have found. It offers a new way to earn BTC rewards, as ERC20 tokens are staked in return for mining credits, which are burned. The more burned, the more earned. Also comes with a unified dash to oversee mining operations, and raised over $100k within hours of launching.
  2. ECOS: We rank ECOS as one of the best cloud mining sites for 2023. This established cloud mining provider was launched in 2017 and is now used by over 400,000 investors. It supports Bitcoin cloud mining contracts from $500 – durations range from 30-60 months. Payouts are distributed daily. Mining and maintenance fees are displayed when creating your custom contract.
  3. Binance Cloud Mining: The world’s largest crypto exchange, Binance, offers a popular cloud mining service.  Contract durations are often just 90 days, which will appeal to short-term investors. For every 1 TH purchased, Binance charges fees of $5.76. Cloud mining rewards are distributed daily. Currently, Binance only supports Bitcoin cloud mining.
  4. Bitdeer: Founded in 2013, Bitdeer is an established cloud mining operation with data centers around the world. This includes North America, Southeast Asia, and Europe. Bitdeer supports multiple mining coins, including Bitcoin, Filecoin, ZCash, Litecoin, and Dogecoin. Minimum contract durations start from 30 days, but this varies depending on the mining network.
  5. Hashmart: Hashmart is a popular cloud mining operation that was established in 2018. Based in Cyprus, Hashmart currently offers 12-month Bitcoin mining contracts. Prices start from $52.40 for every 500 Gh.s purchased, which includes maintenance fees. Payouts are made daily. Although Hashmart also supports open-ended Bitcoin contracts, these are currently sold out.
  6. Hashing24: This cloud mining provider has been operational for over a decade. It supports three Bitcoin contract durations; 12, 18, and 24 months. The minimum investment is 1 TH, which is currently priced at $50.30. Discounts are available on larger contract purchases.
  7. F2Hash: F2Hash is a relatively new cloud mining provider that was launched in 2021. It offers a wide range of mining contracts – many are aimed at large-scale investors seeking high yields. For instance, it offers a $15,000 contract purchase with daily rewards of $450. Minimum contract durations start at 30 days.
  8. StormGain: StormGain is a popular cryptocurrency trading platform that offers leverage products. That said, it’s also developed a cloud mining tool within the platform. You’ll automatically mine Bitcoin depending on how much you trade. There are seven tiers, with VIP3 members earning $235 per day.
  9. CoinMiningFarm: This provider leverages cheap, green energy sources to fuel its mining farm. It claims to have over 21,000 users and there are multiple contract durations to choose from. This ranges from seven days to one year. The minimum contract purchase is $50 and only Bitcoin can be mined.

Best Cloud Mining Sites Reviewed

Now let’s move on to our comprehensive reviews of the 8 best cloud mining sites. We cover everything you need to know in this section – including supported networks, reputation, payout speeds, deposit methods, expected yields, and customer support.

1. Bitcoin Minetrix – Top Bitcoin Cloud Mining Site Raises $100,000 Within Hours of Launch

Bitcoin Minetrix ($BTCMTX) is a brand new presale targeting the Bitcoin cloud mining industry. Its presale is set in 10 stages, with prices increasing at each stage. The overall hard cap is $32 million with a starting price of $0.011 a minimum amount of $10. The price will increase with each presale stage. 

This is the first stake-to-earn ERC20 token – in other words, it’s an Ethereum project used to mine Bitcoin through burned cloud credits. It provides tokenized cloud mining that offers income generation via staking and burning.

It offers a much more sustainable way to mine Bitcoin as compared to Bitcoin’s Proof-Of-Work model. It’s also far more cost-efficient. Tokens can be unstaked or sold at any time, allowing for increased flexibility. 

Instead of needing expensive ASIC software which is harmful to the environment, users can simply use Bitcoin Minetrix to harvest rewards from the world’s largest cryptocurrency, in a decentralized manner. The process is also quite simple, so anybody can do it – just stake $BTCMTX tokens to earn cloud mining credits, and you can use these to mine bitcoin (BTC).

Bitcoin Minetrix will also be available as a mobile application, meaning people can earn on the fly. What’s great about Bitcoin Minetrix is that it offers a neat dashboard to calculate daily, weekly, and monthly rewards, with other metrics such as ‘mining power bought’ and ‘mining power earned’. This makes it easier to gauge the overall economics of what you are engaged in.  

In sum, Bitcoin Minetrix offers a fast, easy, and convenient way to mine Bitcoin, without needing to purchase expensive software or learn about complex mining mechanics. It puts all the power back in the hands of users. 

For more information, consult the Twitter and Telegram accounts. USDT, BNB, and ETH are acceptable means of payment for this Bitcoin cloud mining presale.

The project has already proven quite popular, with over $100k raised within hours of launch. 

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Ethereum $10 None Daily

Pros pros

  • Minimum $10 deposit
  • Eco-friendly project
  • A new paradigm in Bitcoin mining
  • No upfront hardware costs
  • No mining knowledge required

Cons cons

  • Unknown yields

2. ECOS – Overall Best Cloud Mining Site in 2023

We rank ECOS as the overall best cloud mining provider. Launched in 2017, ECOS has a comprehensive mining farm based in Armenia. It has a farming capacity of 60 MBt and has successfully mined over 6,000 Bitcoins. ECOS is now used by over 400,00 clients globally. Its cloud mining service supports Bitcoin and there is a minimum contract amount of $500.

When purchasing a cloud mining contract, you can choose from four durations – 30, 40, 50, or 60 months. Therefore, ECOS will only be suitable if you’re happy to invest long-term. ECOS charges $1.02 per 1 TH, per month. That said, it’s currently offering a 20% discount, which brings the price down to $0.81. Although ECOS doesn’t provide estimated yields, it does offer a handy cloud mining calculator.

ECOS cloud mining rewiew

This allows you to assess your potential return on investment based on what you think Bitcoin will be worth when the contract expires. In terms of payouts, ECOS makes distributions every day. This enables you to reinvest your mining rewards and benefit from compound growth. ECOS is also one of the best Bitcoin cloud mining sites for mobile users.

It has a native Bitcoin cloud mining app for iOS and Android, allowing you to keep tabs on your cloud mining rewards. However, the ECOS app is rated just 2.8/5 on Google Play. And on iOS, ECOS is rated 3.9/5. Some users report that the ECOS app often crashes and needs to be restarted. Nevertheless, we like that ECOS also offers demo accounts. This enables you to view how your cloud mining investments perform in live market conditions.

ECOS cloud mining rewiew

To get started with ECOS, it takes seconds to register and there is no KYC. Accepted payment methods include debit/credit cards, bank wires, and selected cryptocurrencies. If you need assistance, ECOS offers live chat support 24/7.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin $500 30 months Daily

Pros pros

  • Registered mining operation based in Armenia that was founded in 2017
  • Mining payouts are paid daily
  • Fully-fledged mining app for iOS and Android
  • Fast sign-up process without KYC
  • 24/7 customer support

Cons cons

  • Minimum contract purchase of $500
  • Minimum contract duration is 30 months

3. Binance Cloud Mining – Bitcoin Mining Contract Durations of 90 Days and Daily Payouts

Binance is one of the best cloud mining sites if you’re looking for a short-term agreement – each contract lasts for just 90 days. It currently supports Bitcoin mining contracts and the minimum purchase amount is 1 TH. In terms of fees, Binance charges $1.80 for hash rates and $3.96 for every 1 TH purchased. Binance provides an estimated output of 0.00000218 BTC per 1 TH.

However, this will vary depending on the Bitcoin mining difficulty during the contract agreement. Although the setup process is simple, each contract comes with limited availability. You’ll need to have a Binance account to get started, which takes less than a minute to open. Binance cloud mining rewards are distributed daily – paid directly to your Binance account.

Binance cloud mining

You can withdraw the funds instantly or reinvest them into other yield products. This includes staking, dual investments, and yield farming. To deposit funds into Binance, you can use a debit/credit card or cryptocurrencies. Binance also supports peer-to-peer deposits with local payment methods.

In terms of safety, you’ll be cloud mining cryptocurrencies with the world’s largest exchange. Therefore, you can be sure that you’re using a legitimate provider. The main drawback of Binance is that cloud mining minimums and estimated outputs are displayed in Bitcoin. This makes it difficult to know exactly how much you’ll be required to invest and what you can expect to make.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin 1 TH 90 days Daily

Pros pros

  • Trusted cloud mining provider backed by one of the best crypto exchanges
  • Minimum contract duration of just 90 days
  • Get started with a minimum purchase of 1 TH
  • Payouts are made daily

Cons cons

  • Only supports Bitcoin cloud mining
  • Minimum requirements are not shown in fiat money

4. Bitdeer – Established Cloud Mining Operation Supporting Multiple Coins 

Bitdeer is one of the best cloud mining sites for asset diversity. In addition to Bitcoin, it supports a wide range of other mining coins. This includes some of the best altcoins, such as Filecoin, Zcash, Dash, and Ethereum Classic. It’s also possible to purchase joint mining contracts for Litecoin and Dogecoin. This allows you to mine both cryptocurrencies simultaneously.

That said, some mining contracts are often sold out, as availability is limited. For instance, Bitdeer is currently only offering contracts on Bitcoin, Bitcoin Cash, and Filecoin. Availability changes daily, so you’ll need to regularly check the Bitdeer website. Nonetheless, we like that Bitdeer offers Bitcoin mining contract durations from just 30 days.

Bitdeer review

However, some mining contracts have a much higher minimum. For example, some Filecoin contracts require at least 540 days. We like that selected mining plans allow you to get started with less than $2. This makes Bitdeer one of the best cloud mining sites for those on a budget. Fees vary depending on the chosen mining coin and contract type.

Bitdeer clearly displays what fees you’ll pay after setting up a contract. We also like that Bitdeer offers estimated revenue rates for each mining agreement. For example, The Antminer S19Pro Plan is estimated to yield 69.94% over the contract duration. Bitdeer distributes mining payments daily, as long as the minimum rewards have been covered. The minimum varies depending on the contract.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin, Bitcoin Cash, Filecoin, Dogecoin, Litecoin, Dash, Ethereum Classic $1.63 30 days Daily

Pros pros

  • Supports some of the best cryptocurrencies – including Bitcoin, Dogecoin, and Litecoin
  • Small minimum investment requirements
  • Contract durations start from just 30 days
  • Fees are clearly displayed when choosing a contract

Cons cons

  • Some mining contracts are often sold out
  • Only supports cryptocurrencies for payment

5. Hashmart – Established Cloud Mining Operation Supporting Multiple Coins 

Launched in 2018 Hashmart is a cloud mining operation registered in Cyprus. This established provider specializes in Bitcoin mining. Currently, it’s offering 12-month contracts and the minimum purchase is 500 Gh/s. This is priced at just $52.40, so casual investors are catered for. Moreover, this price includes maintenance fees, so you know exactly how much you’re paying.

Hashmart also offers open-ended cloud Bitcoin mining contracts. This offers flexible terms, as you can start and stop whenever you see fit. This costs $80.40 for every 500 Gh/s purchased, which is a lot more expensive than the 12-month contract price. Plus, you’ll pay $0.18 per TH in maintenance fees each day.

Hashmart review

That said, open-ended contracts are clearly popular as they’re currently sold out. Hashmart accepts payment in Visa, MasterCard, and cryptocurrencies. All mining contracts offer daily payouts. We also like that Hashmart offers the best cloud mining app for Android users. An iOS app is currently being worked on and will be released in the near future.

Another benefit is that Hashmart offers 24/7 customer support. This is offered via live chat and email. A drawback that should be considered is the location of Hashmart’s mining farms. It claims to have operations in the ‘Asian region’ but doesn’t state the specific country. The reasons for this opaqueness are unknown.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin $52.40 12 months. Also offers open-ended contracts but these are currently sold out Daily

Pros pros

  • 12-month Bitcoin mining contracts start from just $52.40
  • Maintenance fees are built into the contract value
  • Established in 2018
  • One of the best cloud mining apps for Android
  • 24/7 customer support via live chat and email

Cons cons

  • Does not state the country that its mining farms are located
  • iOS app is yet to be launched

6. Hashing24 – 12-Month Bitcoin Contacts From 1 TH and Active Farms in 4 Countries 

Hashing24 is another established cloud mining website, with the provider operational for over a decade. It has active mining farms in four different countries – Canada, Georgia, Norway, and Iceland. Hashing24 specializes in Bitcoin mining and it offers three contract durations. Your options include 12, 18, and 24 months.

We like that Hashing24 is user-friendly and that all contract terms are displayed in US dollars or euros. This makes it easier to assess your potential return on investment. The minimum contract value is just 1 TH, which is currently priced at $50.30 for 12 months. Fees are built into the contract value.

Hashing24 review

There are discounts available when you purchase larger contract amounts. For example, you’ll get a 5% discount on a 100 TH contract. Hashing24 also offers estimated returns based on the contract you select. For instance, if you purchase 5 TH on a 24-month contract at $497.97 – the estimated profit is $223.37.

All mining contract purchases come with daily payouts, which you can withdraw straight away.  You can pay for your chosen contract with Visa, MasterCard, or Maestro. Cryptocurrencies are also supported. Hashing24 also offers a free demo account, enabling you to test its features before making a financial commitment. Customer support is offered 24/7 via live chat.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin $50.30 12 months Daily

Pros pros

  • Established cloud mining provider with over 10 years of experience
  • Active mining farms in four different countries
  • Get started with a minimum outlay of just $50.30
  • Accepts instant payments via debit/credit cards

Cons cons

  • Minimum contract duration is 12 months
  • Does not support altcoin mining

7. F2Hash – New Bitcoin Mining Provider Aimed at Large-Scale Investors  

F2Hash is one of the best cloud mining sites for large-scale investors. It offers many different plans that come with some of the highest yields available. For example, the Enterprise Flash Plan gives you access to Antminer Pro+ and S19 Racks. Costing $15,000 for a 300-day contract, this yields an estimated daily return of $450.

Another popular option is the Pro Flash Plan, costing $9,400. This yields an estimated return of $215 per day or $6,450 over the 30-day duration. If you’re looking to invest small amounts, F2Hash is also suitable. Its Explorer plan, which offers access to Canaan AvalonMiner 1166 hardware, costs $200 for a 12-month contract.

F2Hash review

This yields $2.80 in daily rewards or $1,022 over the contract duration. There’s also an entry-level plan for just $5. All that being said, F2Hash was only launched in 2021 and it has a limited track record in this space. Moreover, some of its estimated yields are on the high side. Nonetheless, F2Hash is registered in Cyprus and its mining farms are based in Brazil.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin $5 30 days Daily

Pros pros

  • Claims to offer high cloud mining yields on larger investments
  • Entry-level plans start from just $5
  • Payouts are processed daily

Cons cons

  • Launched as recently as 2021
  • Some of its estimated yields are questionable
  • Very basic website

8. StormGain – Popular Cryptocurrency Trading Platform With an In-Built Cloud Mining Tool   

StormGain does things differently from the other cloud mining providers discussed so far. Primarily, StormGain is a cryptocurrency trading platform that supports leveraged products. It also supports high-level trading features, such as technical indicators and drawing tools. That said, StormGain has also developed an in-house cloud mining tool.

There’s no need to invest any capital, as you’ll automatically mine Bitcoin as a registered user. The amount of Bitcoin you can mine depends on your account tier. For example, standard accounts will earn just $0.25 per day in mining rewards.

StormGain Bitcoin mining

After reaching a minimum trading volume of $150,000, you’ll increase this to $0.50 per day. The highest tier VIP3, yields over $235 in daily mining rewards. However, this requires over $75 million in trading volumes. Moreover, when you cash out your Bitcoin mining rewards, the funds are paid as trading credits. This means you can’t withdraw the rewards directly.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin No purchase required N/A Credited after the first $10 is earned

Pros pros

  • Free Bitcoin cloud mining for registered traders
  • Higher rewards are paid when you increase your trading volumes
  • VIP3 members can earn $235 in daily mining rewards
  • Access your mining rewards after earning $10

Cons cons

  • Standard accounts receive just $0.25 per day
  • Minimum trading volume of $75 million to get the highest mining rewards

9. CoinMiningFarm – Green Energy Mining Farms With Minimum Contracts of Just 7 Days   

If you’re looking for the best cloud mining sites for green energy, CoinMiningFarm could be worth considering. It claims that 90% of its mining energy supplies come from natural sources, This is fueled by geothermal energy, wind turbines, and hydroelectric dams.

Although CoinMiningFarm only offers Bitcoin mining agreements, it has plenty of contract durations to choose from. If you’re just getting started, you might consider the 7-day plan. This requires a minimum purchase amount of $500. There’s also a $50 plan but this requires a 365-day contract.

CoinMiningFarm reivew

Then there’s the diamond plan, which is popular with experienced investors. This is a 365-day plan offering daily rewards of 1.10%. The minimum and maximum purchase on this plan is $1,200 and $5,499, respectively. CoinMiningFarm only accepts payments in Bitcoin.

Supported Coins Minimum Contract Purchase Minimum Contract Duration Payout Frequency
Bitcoin $50 7 days Daily

Pros pros

  • Contract durations start from just 7 days
  • Minimum contract purchase of $50
  • Utilized green energy sources
  • Support team is available 24/7

Cons cons

  • Limited track record in the cloud mining industry
  • Bitcoin is the only accepted payment method

Our Methodology When Ranking the Best Cloud Mining Sites

It’s always wise to question how the best cloud mining platforms are ranked in guides like ours. We have a transparency methodology that enables us to rate providers based on the most important metrics.

This includes:

  • Safety and Reputation: We research the safety and reputation of a cloud mining provider extensively. For instance, how long the provider has been operating, where its mining rigs are located, and whether it’s a registered company. We also assess reviews from the public domain. We look at how current and past customers view the cloud mining provider and whether overall sentiment is positive, natural, or negative.
  • Supported Mining Coins: Our methodology also explores what mining coins the cloud provider supports. While most support automatic Bitcoin cloud mining, you might also be interested in other cryptocurrencies.
  • Set-up Costs and Other Fees: You’ll need to pay upfront fees when cloud mining cryptocurrencies. This includes paying for a mining contract in full. Minimum purchase amounts vary depending on the cloud mining provider, so we assess this during the research process. We also explore what ongoing fees apply, such as maintenance and profit-sharing commissions.
  • Estimated Yields: Our research found that cloud mining websites rarely offer estimated yields. This is because it’s challenging to assess how much can be made when mining cryptocurrencies, as there are many variables at play. For instance, the mining difficulty rate, market conditions, and broader competition.
  • Payout Frequency and Minimum Withdrawals: When researching the best cloud mining sites, we also assessed payout frequencies. Some payout mining rewards daily while others are less frequent. We also explored whether there is a minimum withdrawal amount – as some providers have unfavorable requirements.

Ultimately, while our cloud mining website reviews are impartial and transparent, you are advised to do your own research. This will ensure you’re able to make an informed decision before proceeding.

What is Cloud Mining?

Cloud mining is a passive earning tool that allows you to mine cryptocurrencies remotely. This will appeal to those who want to benefit from crypto mining without spending a significant sum on hardware. This is especially the case when mining Bitcoin, which now requires ultra-specialist hardware rigs. After all, market leaders in this space have mining set-ups worth many millions of dollars.

Without a comprehensive setup in place, you simply won’t be able to compete. Even if you do have the resources, you’ll also need to consider the energy consumption demands that mining requires. According to the Harvard Business Review, Bitcoin mining consumes 110 Terawatt Hours annually. This translates to the same energy demands as the entire population of Malaysia – a country with over 33 million inhabitants.

Cloud mining farm

Fortunately, cloud mining removes the need to worry about expensive rigs or electricity bills. Instead, you can often get started with just a few dollars. This is because cloud mining providers already have the required set-up in place. In other words, all of the equipment has been purchased.

Here’s how it works:

  • You join a cloud mining website and choose which cryptocurrency you want to mine.
  • You buy a contract, which represents an amount of hashing power.
  • Thereon – you will receive a share of the mining rewards. This is proportionate to the amount of hashing power you purchased, less fees charged by the cloud mining website.
  • You will continue to receive mining rewards until your purchase contract expires.

Although cloud mining is cost-effective and completely passive, you also need to consider the risks. For a start, there’s no guarantee that you’ll generate a return on investment. This will be determined by the rig set-up of the cloud mining provider and whether it can compete with other miners. Moreover, some cloud mining websites are scams, so you’ll need to do your due diligence.

How Does Bitcoin Cloud Mining Work?

If you’re still not sure how cloud mining works, we’ll now break the process down.

Cloud Mining Providers

Cloud mining services are offered by fully-fledged providers. In other words, you’ll be using a company that has a full mining farm in place. Depending on the provider, this could be a multi-million dollar operation.

The mining farm might contain hundreds of individual hardware devices, each connected to a centralized rig. This ensures that the cloud mining provider can generate enough hashing power to compete with other miners. After all, each newly mined block will only have one successful miner.

It’s a technological race based on who can generate the most hashing power in the fastest time. As such, when choosing a cloud mining provider, you’ll need to ensure it has the technical capabilities to generate sufficient rewards for your investment outlay.

Hashing Power Contracts 

Once you’ve selected a cloud mining provider, you’ll be presented with a range of investment options. This will vary depending on the type of cryptocurrency you want to mine and how long you want the agreement to last. In most cases, you’ll be purchasing a specific amount of hashing power on a contract basis

What is Hashing Power?

  • When exploring the best cloud mining sites, you’ll often come across the term ‘hashing power’.
  • In basic terms, this measures the capabilities of a mining device.
  • The more hashing power the device can produce, the more powerful its capabilities when solving mining puzzles.
  • When investing in a cloud mining contract, you’ll be given a specific amount of hashing power.
  • This represents your share in the mining contract and ultimately – the percentage of rewards that you receive.
  • The world’s most popular cryptocurrency – Bitcoin, requires a significant amount of hashing power to succeed in mining. Not only because of its proof-of-work mechanism but competition is extremely fierce.

The amount of hashing power you purchase will determine your share in the mining agreement.

Let’s look at a very simplified example to illustrate how hashing power investments work:

  • Suppose you invest $1,000 into your cloud mining venture. This gets you hashing power worth 10 TH/s
  • We’ll say that the cloud mining contract generates 200 TH/s worth of power in one day, which nets $100 in mining rewards.
  • Your share of the 200 TH/s contract is 10 TH/s or 5%. This means you receive 5% of the $100 daily mining reward, which is $5.
  • We’ll say that you earn the same $5 reward every day. After 365 days, your total income is $1,825.
  • On your original investment of $1,000 – you made mining rewards of $825.

As lucrative as cloud mining might appear, there are many considerations to make. First and foremost, mining rewards can vary widely depending on network conditions.

Cloud mining rewards

You might earn more when there is less competition – and visa-versa. What’s more, your mining rewards are paid in the respective cryptocurrency and not fiat money. Therefore, your return on investment will also be dictated by the value of the cryptocurrency.

Mining Rewards are Paid in Crypto

Leading on from the above point, you should remember that you’ll be receiving your mining rewards in cryptocurrencies. This can mean one of two things:

  • If the value of the cryptocurrency you’re mining increases, this will amplify your profits.
  • If the value of the cryptocurrency you’re mining decreases, this will eat away your profits.

Put otherwise, if you’re mining cryptocurrencies and their value continues to decline – you could be making a loss.

For example, suppose you are mining Bitcoin. We’ll say that in week one, you earn 0.00038 BTC each day. At the time, this amounts to $10 per day, or $70 over the course of the week.

Your chosen cloud mining website doesn’t settle payments until the end of the month. When the payment is made, you’ll receive 0.00266 BTC (0.00038 BTC x 7 days). However, Bitcoin has since declined by 30%.

So, in real terms, although you’re still receiving 0.00038 BTC – you’re not getting $70 back. Instead, you’re only getting $49. You’d also need to factor in mining fees too.

What Should I Do With My Cloud Mining Rewards?

  • Although cloud mining is a passive way to earn cryptocurrencies, you also need to have a solid strategy in place.
  • This includes deciding what to do with your cloud mining rewards when receiving a payment.
  • For example, some cloud mining investors will immediately sell their earnings for fiat money. Others, however, might hold their cryptocurrencies until market prices are more favorable.
  • You’ll also need to consider the tax implications. According to the IRS, any cryptocurrency sales are treated as an asset disposal.
  • We explain how to avoid crypto taxes legally in this comprehensive guide.

Cloud Mining Fees

Cloud mining websites are in business to make money. Therefore, you’ll need to pay fees. After all, the cloud mining provider not only needs to cover the cost of its hardware set-up, electricity consumption, taxes, and staff – but it also needs to make a profit.

First, you’ll pay an upfront cost to purchase the hashing power contract. This is usually a non-refundable purchase, meaning you won’t get the money back at the end of the contract term. As such, you’re taking a risk that you’ll be generating more cloud mining rewards than the contract purchase.

Second, there are usually maintenance fees to cover. This covers the core mining operation – such as hardware repairs, energy, and other daily expenses. This is usually deducted from the mining rewards that you are paid.

Third, some cloud mining websites also take a percentage of the rewards they generate. For instance, suppose you earn the equivalent of $100 in month one. If the mining provider takes a 10% cut, this will leave you with $90.

Cloud Mining vs Traditional Mining

The fundamentals of cloud mining and traditional mining are the same. The objective is to solve complex cryptographic equations to earn blockchain mining rewards. That said, traditional mining removes the need to go through a third party. Instead, you’ll be connecting a specialist hardware device to your own local network. You’ll then connect your network to a cryptocurrency mining client.

Traditional mining comes with both benefits and drawbacks. Without going through an intermediary, you’ll keep 100% of your mining rewards. You won’t need to invest money into a contract either, as traditional mining is completely flexible. You can start or stop mining at any given time. However, there are severe cost implications associated with traditional mining.

  • For a start, if you’re looking to mine Bitcoin – you’ll need a significant capital outlay.
  • Before you even start mining, this means buying specialist hardware devices.
  • Not one – but enough devices to generate sufficient levels of hashing power.
  • If you fall short in this department, you’ll never be successful in mining a single Bitcoin block.

Once you’ve covered the initial set-up costs, you then need to think about energy. After all, Bitcoin mining operations need to run 24/7 for maximum efficiency. The NY Times explains that a Bitcoin mining operation in Austin uses the same energy output as 6,500 homes. Therefore, you should be prepared for a substantial energy bill when mining on your own. The more likely outcome is that you’re cut off from the grid for excessive usage.

In contrast, you won’t need to worry about energy costs when cloud mining. This is taken care of by the provider and deducted from your return on investment. You also won’t need to invest significant sums in buying an entire mining rig. Instead, you’ll simply need to cover the cost of the hashing power contract.

This is your overall upfront investment. As long as you cover the original investment before the end of the contract, anything above this can be viewed as profit (after fees and taxes).

Is Cloud Mining Crypto Profitable?

If you’re wondering is Bitcoin mining profitable in 2023 then you’re in the right place. Like many crypto income streams, cloud mining can be profitable and is a better alternative to traditional mining. Whether or not you’re able to make money will depend largely on your chosen provider. Just remember – cryptocurrency mining (and Bitcoin in particular) is very competitive. For example, while new Bitcoin mining rewards are released every 10 minutes – only one miner will be successful.

To stand a chance of success, the cloud mining provider must have a sufficient set-up in place. This means having access to enough hashing power that can realistically compete with other miners. If it does, then there is every chance that you can make an acceptable return on your cloud mining investment. But you’ll also need to consider external factors too.

Is Cloud Mining Crypto Profitable?

For example, when the mining difficulty rate increases, this is usually because there’s more competition. This often happens when the price of Bitcoin increases, as mining becomes more lucrative. While the rewards are higher, increased competition makes it less likely that your chosen provider will be successful. So it’s a double-edged sword. High energy prices will also have an impact on your cloud mining profits, as this increases costs for the provider.

Your ability to make a profit from cloud mining also depends on market prices. For example, if the value of cryptocurrencies declines, then your return on investment is lower. You could make a loss if your mined cryptocurrencies decline by a significant amount. You’ll also need to factor in taxes, which are often levied twice when crypto mining. Once when you receive the mining rewards (income tax) and again when you sell them (capital gains tax).

Benefits of Cloud Mining Bitcoin and Other Cryptocurrencies

We’ll now explore why cloud mining remains popular with cryptocurrency investors.

Passive Income

The primary objective of cloud mining is to earn passive income. As soon as you purchase your chosen mining contract – you can sit back and allow your money to work for you. There is no input required from you at all.

This is in stark contrast to mining on a DIY basis. For example, consider what happens if one of your cloud mining devices malfunctions. You’ll need to personally repair the device. In the meantime, you’ll need to factor in the opportunity cost, as your device won’t be earning you income while it’s broken.

No Knowledge or Expertise Required 

Make no mistake about it – cloud mining is a highly advanced technical field. If you decide to solo mine cryptocurrencies, you’ll need a solid understanding of hashing power, Application-Specific Integrated Circuit (ASIC) devices, and other technical aspects.

You’ll also need to feel comfortable estimating your return on investment, factoring in set-up costs, energy consumption, and varying cryptocurrency prices. And of course – you’ll need to have an idea of how to repair faulty mining operations.

This is why cloud mining is the best option for most people. While it’s wise to have a firm grasp of the basics, you won’t need any technical know-how. All you need to do is choose the best cloud mining site, make a deposit, and pay for your contract. Anything that goes wrong behind the scenes will be taken care of. Cloud mining is as passive as cryptocurrency investments come.

Super-Low Upfront Costs  

Cloud mining websites allow you to mine cryptocurrencies with very little upfront costs. As noted, you won’t need to buy any hardware devices yourself. In fact, you won’t need to make any purchases other than the mining contract.

How do Cloud mining websites work?

This makes cloud mining affordable for most budgets. However, do note that some cloud mining websites have high minimum purchases – so you’ll need to factor this in when choosing a provider.

Risk is Limited to Your Contract Value  

In addition to low upfront costs, cloud mining also enables you to limit your risk exposure. Put simply, the only capital you are risking is what you pay to purchase the mining contract. For example, suppose you invest $1,000 into a 12-month contract. If you get back less than $1,000 – you’ve made a loss. However, your losses can never exceed the initial outlay.

Now compare this to traditional cloud mining. Your risk is significant, considering how much money you need to spend on building a mining farm, paying for electricity, and any other operational costs.

What’s more, newer and more powerful mining devices are constantly being developed. If you have a sub-par mining operation, all of your equipment could become redundant. You won’t need to consider these equipment risks when opting for a cloud mining provider.

Potential Downsides of Crypto Cloud Mining

While cloud mining offers many benefits, you’ll also need to consider the following risks.

Some Cloud Mining Websites are Scams  

The first risk to consider is that some cloud mining websites have proven to be scams. One of the most infamous cloud mining scams was Hashflare.

Hashflare is just one example of cloud mining websites defrauding their customers.

As such, you’ll need to tread very carefully when choosing a cloud mining provider. After all, you’ll be required to purchase a cloud mining contract upfront. This means you’ll need to trust that the provider pays you what it owes.

You Might Not Generate Enough Mining Rewards to Yield a Profit  

There is no guarantee that you will make money when cloud mining cryptocurrencies. There are various factors that can determine whether you generate a profit on your investment. First, mining is a competitive arena. This is especially the case with Bitcoin.

  • The Bitcoin mining difficulty increases when there are more market participants.
  • This means that increased hashing power is needed to successfully mine a Bitcoin block reward.
  • If your chosen provider doesn’t have the required hardware to meet the mining difficulty, it won’t be able to compete.

In addition, you also need to consider the volatility of cryptocurrencies when cloud mining. Your mining rewards will be paid in digital assets, which rise and fall in value. If the markets go against you, your mining rewards might not cover your initial investment. In the meantime, you’ll still be paying ongoing fees to your cloud mining provider to cover maintenance, energy, and other costs.

Crypto Mining is Taxed as Income  

In most jurisdictions, crypto mining is viewed as income by tax authorities. In the US, for example, the IRS states that mining, staking, and similar activities should be reported in federal income returns. So what does this mean for you? Put simply, any cloud mining rewards that you receive must be reported as income.

The reporting process can be tricky, as you’ll see to assess the value of the rewards on the day they were received. Considering that crypto prices change as each second passes, you’ll need to ensure you keep adequate records. Many cloud mining companies payout rewards daily, which makes things even more complex.

For example, suppose you’re cloud mining Bitcoin. Every day, you receive 0.0011 BTC. On day one, Bitcoin might be worth $29,000. The next day, it could be worth $27,000 – and so on. Tax authorities are only interested in the local currency amount, not the specific mining reward. As such, you’ll need to ensure your calculations are as accurate as possible.

IRS crypto taxes

Nonetheless, each mining reward you will receive will be added to your total annual income, and taxed accordingly. Do note that crypto tax rules vary from one country to the next – so you’ll need to speak with a qualified advisor for more information.

Capital Gains Taxes on Cloud Mining Rewards

You’ll also need to consider capital gains tax when cloud mining cryptocurrencies. Once again, the reporting process can be complicated.

First, your cost price will be determined by the value of the mining rewards when you receive them. Next, your disposal price is based on the value when you sell the mining rewards. If there’s a positive difference between the two, that’s your capital gains.

  • For instance, suppose you receive 0.01 BTC in mining rewards when Bitcoin is valued at $30,000. This values the mining rewards at $300. This is your base price.
  • You sell your 0.01 BTC mining rewards when Bitcoin is valued at $35,000. This values the sale at $350.
  • You made capital gains of $50 on the disposal of your mining rewards, which could be liable for tax.

In many countries, you can also include capital losses in your annual tax report. This means if you sell your mining rewards at a lower price than when you received them, you can offset the losses.

Is Bitcoin Cloud Mining Legal?

In the vast majority of countries, Bitcoin cloud mining is completely legal. This is much the same as other cryptocurrency products, such as spot trading, staking, and yield farming.

However, there is a notable exception to this rule – China. According to CNBC, China once accounted for 65-75% of the global Bitcoin mining hashing power. However, the Chinese government outlawed Bitcoin mining in 2021 – so it’s no longer legal in the domestic market. That said, Bloomberg reports that Bitcoin mining is still prevalent in China, albeit covertly.

Just remember, you’ll likely need to report your cloud mining activities when filing your annual tax returns. As noted, mining rewards are viewed as income for tax purposes. What’s more, you’ll need to factor in any capital gains after selling your mining rewards.


In summary, cloud mining is worth considering if you’re looking to generate passive income from the cryptocurrency markets. But you’ll need to choose wisely when selecting a provider. Not only in terms of safety but also fees, expected yields, and payout frequencies.

Our research shows that Bitcoin Minetrix is the best way to cloud mine Bitcoin. It is the most simple and direct, with no upfront cost for either hardware or software. There is no real learning curve – it’s simply stake and burn for BTC mining rewards.



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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…