There are renewed calls for a $100,000 Bitcoin price by the end of 2022 after Bitcoin’s (BTC) rapid recovery above $46,000, while China’s crackdown on the mining industry is slowly beginning to fade as the Bitcoin network hash rate recovers.
The crackdown in China has had the unintended side effect of lowering the entry barriers to the Bitcoin mining industry, which has proven profitable in both bull and bear markets.
Investors who can’t afford the electricity and upkeep costs of running a mining operation are increasingly turning to Bitcoin mining as a viable alternative to buying BTC on the open market.
Ways To Earn Bitcoin From Cloud Mining
Cloud mining, crypto lending platforms, and centralized exchanges (CEX) are some of the BTC-acquiring options open to the average crypto stacker.
1. Cloud Mining Contracts
Those who want to mine Bitcoin but do not have the necessary space, equipment, or electricity can outsource their production to cloud mining companies that have been around since Bitcoin’s infancy.
Genesis Mining and HashNest were two well-known cloud mining providers, but the demand for their services far outstripped their capacity, and as a result, all of their Bitcoin mining contracts were sold out.
As of 2017, ECOS, an Armenian company born out of the Free Economic Zone in Hrazdan, allows customers more freedom in negotiating the terms of their mining contract. ECOS has been in business since 2017.
A 50-month contract for 9 terahashes per second currently costs $1,668 and is expected to result in a profit of 272.82 percent at a BTC price of $70,000, as shown in the graph above.
Notably, all cloud mining services provide notices about the high risks involved and the fact that no profit level can be guaranteed at all times. Bitcoin price volatility, fluctuating electricity costs, and technological advancements in mining have all contributed to the decline in the value of older mining equipment.
2. Crypto Lending Services
Lending services that offer a return on deposits are a more traditional option for holders to increase their Bitcoin holdings without making any additional investment, like mining.
Nexo and Celsius are two of the most well-known lending platforms that allow cryptocurrency users to borrow money against their cryptocurrency holdings or earn rewards for deposits
Users can earn 6.2% on deposits of Bitcoin with Celsius, while Nexo offers a 5% standard return on flexible-term deposits, while fixed-term deposits with a minimum of one month can earn a 6% annual percentage yield (APY).
It’s also worth noting that BlockFi, a cryptocurrency asset service provider that provides interest accounts and crypto-backed loans, has also recently launched an 8% Bitcoin rewards credit card as an additional option for customers.
3. Earn Bitcoin From Centralized Exchanges
There are also a few centralized exchanges that give Bitcoin owners a return on their BTC deposits, albeit at lower rates than the ones previously mentioned.
While third-place Huobi offers 1.32 percent APY, Binance is the largest CEX in the crypto ecosystem and offers 0.5 percent APY.
Gemini, a US-based CEX, offers the best yield on deposits, with a 1.65 percent rate of return.
A more free-market approach to BTC lending is offered by KuCoin, which allows lenders to choose between contract lengths of seven, 14, and 28 days, and to set their daily interest rates to compete with other lenders on the market.
For a seven-day contract, KuCoin’s lowest annual interest rate is 1.82 percent.
It can be seen from the data provided that there are numerous methods for increasing one’s Bitcoin stack, but they are becoming more and more rare as time goes on.
Because cloud mining facilities can’t keep up with demand as large institutions, energy companies, and governments build Bitcoin mining infrastructure, smaller market participants are being squeezed out.
Lend-back loans are a way for BTC holders to access the value of their tokens without having to sell and create a taxable event, while Bitcoin lending is becoming more and more prevalent.
Top Cloud Mining Platforms
With the ChickenFast cloud mining platform, even those without technical expertise or specialized equipment can participate in cryptocurrency mining and receive first-rate service and results. To mine Bitcoin in the cloud, this company uses a unique algorithm that automatically switches computer power to the most profitable digital currency.
- The AI feature enables users to choose the most profitable algorithm for their requirements automatically.
- It is the simplest mining method available.
- ChickenFast’s initial investment returns a fixed 12%.
Since 2018, BeMine has been storing mining equipment of the highest quality for clients all over the world. Customers can store their equipment in their partnered data centers without having to be present during the purchase, transportation, installation, configuration, and maintenance of the equipment.
New machines can be purchased, and coins can be withdrawn at any time. There is no waiting period for purchasing miners and contracts with your account.
- Cloud contracts and miner contracts are available for purchase.
- The ability to order and receive ASIC miners over time.
- They have partnered with a wide range of hotels around the world.
- Purchase equipment in any quantity that best suits your requirements.
You can easily invest in digital currency with StormGain, a cutting-edge Bitcoin mining program. It has an easy-to-use dashboard for keeping tabs on the value of your assets. Charting capabilities allow you to keep tabs on price changes and market trends.
- It safeguards your digital currency by storing it in a safe location on your computer.
- It is up to you to choose the payment method that best fits your financial situation.
- If you’d like to use it in another language besides English or French, StormGain has you covered.
- Cryptocurrency mining does not necessitate a large investment in specialized hardware.
- It is simple to sign up for.
- Interest rates of up to 12% are available on your savings.
ECOS is the industry’s most trusted cloud mining service. In 2017, it was established in the Free Trade Zone. It is the first company offering cloud mining services to do so legally. More than 100,000 people around the world use ECOS. In terms of digital asset products and tools, it is the first cryptocurrency investment platform to offer such a wide range of digital asset options.
- An easy-to-use mining contract calculator can be found on the website.
- Every day’s payments, with a full audit trail.
- For those who are looking for an all-in-one cloud mining platform and wallet, ECOS is a great option.
- To get the ECOS app, you can go to the App Store or Google Play and download it.
- Accessing your account and carrying out various tasks is made much easier with this method.
Although the costs of running a Bitcoin mine are high, people who do it are making a lot of money, considering the aforementioned ways of earning Bitcoin.