cloudmining.solutions

How to Profit from Cloud Mining and When It Makes Sense

Gunnar | cloudmining.solutions

There’s a lot of information about cloud mining online, but not all of it is accurate—some is misleading or overly biased. The key question is: Can you actually make a profit with cloud mining? The short answer: usually only if you’re solo mining and get a bit lucky. Let’s break down why this is the case and explore one important exception to the rule.

Solo Mining vs. Pool Mining

Solo Mining

With solo mining, you only earn a reward if you personally discover a block. This approach is riskier because there’s a chance you won’t find anything at all. However, if you do succeed, you get the full block reward. In Bitcoin’s case, that’s about $300,000 per block.

Traditional Pool Mining

In a mining pool, multiple miners combine their computing power to increase the chances of finding a block. If the pool successfully mines a block, the reward is divided among participants based on their contribution (hashrate). The two main payout models are:

  • PPS (Pay Per Share): You receive a fixed payout based on your contribution, regardless of whether the pool finds a block.

  • PPLNS (Pay Per Last N Shares): Your payout is based on the number of shares you contributed when a block was found.

Making Regular Mining Profitable

When mining in a pool, your earnings are more stable, but you need to ensure your income exceeds your costs. Key expenses include:

  • Electricity costs

  • Mining equipment (ASICs, GPUs, etc.)

For example, if you use an Antminer S19j Pro in an area with high electricity rates, your daily earnings after electricity costs might be as little as $0.30 per day (assuming electricity costs of $0.08 per kWh). If mining expenses exceed your earnings, the operation is unprofitable—unless Bitcoin’s price rises significantly and you hold onto your mined coins instead of selling immediately.

The Reality of Cloud Mining

Cloud mining involves renting mining power from a provider like Bitcoin-Cloudmining.io. Unlike traditional mining, where your expenses fluctuate based on electricity and hardware, cloud mining has fixed costs—but your earnings depend on several factors, including:

  • Mining pool performance

  • The duration and hashrate of your rental contract

  • Market conditions

To estimate potential profitability, you can use cloud mining profitability calculators.

How Solo Mining Can Be Profitable with Cloud Mining

The only scenario where cloud mining can be truly profitable is through solo mining—if you get lucky. Since solo mining doesn’t involve sharing rewards with others, discovering a block means you receive the full payout. However, the odds of finding a block are low, making this approach a high-risk, high-reward strategy. Certain cryptocurrencies, like Bitcoin Cash (BCH), offer a slightly better chance of mining success than Bitcoin due to their lower network difficulty.

The Exception: When normal pool mining with a cloud mining provider makes sense

There is one scenario where cloud mining can be a good choice for regular pool mining:

  • Sometimes, cloud mining providers lower their prices due to overcapacity or fear of falling crypto prices.

  • To avoid leaving their mining hardware idle, they may offer long-term rentals at rates close to the actual cost of running a personal mining rig.

  • If crypto prices rise unexpectedly during the rental period, the renter benefits because they locked in a low mining cost, while the provider cannot increase prices.

In such cases, cloud mining can generate a handsome profit, even through regular pool mining.

Conclusion

Cloud mining can be profitable, but usually only in the case of solo mining with luck. Traditional pool mining with cloud services is rarely worthwhile—unless special circumstances lead to significantly lower rental costs.

Before investing in cloud mining, always compare your costs with potential earnings to ensure profitability.

Got questions? Feel free to reach out!