What is your cloud mining contract portfolio strategy?

[Pairoducks]

For those of you who haven't become salty as a result of lower than expected profits from cloud mining contracts, what is your investment strategy? Do you purchase all bitcoin contracts, reinvest your earnings, diversify? We all know that the difficulty of mining any coin is constantly increasing. In the face of that what strategies can you employ in order to hedge your bets?

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[monkeydominicorobin]

For those of you who haven't become salty as a result of lower than expected profits from cloud mining contracts, what is your investment strategy? Do you purchase all bitcoin contracts, reinvest your earnings, diversify? We all know that the difficulty of mining any coin is constantly increasing. In the face of that what strategies can you employ in order to hedge your bets?

This is the strategy of "non-salty" investors.

1. Give away their Bitcoins. And call it investment.
2. Hope for the best.
3. World Peace.

Once you give away your Bitcoin don't expect it to come back. FYI you have no control over the Bitcoins which you have spent.

[HeRetiK]

For those of you who haven't become salty as a result of lower than expected profits from cloud mining contracts, what is your investment strategy? Do you purchase all bitcoin contracts, reinvest your earnings, diversify? We all know that the difficulty of mining any coin is constantly increasing. In the face of that what strategies can you employ in order to hedge your bets?

Good luck finding non-salty cloud mining investors as this would imply that there are people that actually made a profit -- apart from the people offering said services and possibly some pump-and-dumpers.

I think the last time people actually made money with mining contracts was in 2013. Every cloud mining venture since then has been a way to externalize mining risk and sell hashrate above market value at best.

[trecore4]

Don’t have any strategy because whatever I had I lost it in the past. Im honestly not happy with any cloud mining service up until now. Always whenever I put my money into their accounts they create uwanted changes to the site terms and investment becomes obsolete. Like in the case of hash flare they tried to cheat everyone by reducing terms of contract for SHA256 contract from lifetime free to 12 months limited one. That is unpleasant and I almost reinvested every dime of my earnings into hash flare but now see nothing in my hands. Cant believe anyone again for the future investment. Thats bullish trend of cloud miners taking heads up.

[Pairoducks]

But you aren't actually giving them away, you do receive a service. If you pay for this service with something like Paypal, you will receive purchase protection. If your service gets cut by the cloud mining company and in turn you lose your investment then there is some protection there. It all comes down to how you pay for the service.

Time will only tell, personally I have had some luck with CCG. I have made close to 5% of my investment back in the last couple weeks. If the mining difficulty doesnt jump too high or the bitcoin value too low I should be in good shape.

@trecore4 Thats really unfortunate, I'm sorry that happened. You arent the first to have a negative experience while using hashflare. Genesis seems like the current "gold standard". On the other side I have seen some awful scams. That said I do think there are legitimate cloud mining companies out there. But you as the customer/investor need to do your due diligence purchase the services with some form of purchase protection, keep track of the current mining difficulty and bitcoin value, and lastly dont go all in, at least not into one currency.

 

[pixie85]

Time will only tell, personally I have had some luck with CCG. I have made close to 5% of my investment back in the last couple weeks. If the mining difficulty doesnt jump too high or the bitcoin value too low I should be in good shape.

Is that why you started this thread? To promote a cloud mining company and get some hits on your affiliate link?

Cloud mining is disliked here due to their shady operations. Most of them don't show profits, don't tell which pools they're using and what coins they're mining. You can choose a coin to mine but it's all done in the api. They are doing whatever they want behind your back and calculating your profits through their software. You're not participating in their profits in a way a real investor would.

[swogerino]

We had a lot of so called non-salty projects and many people lost a lot of money with them. I will remind you the only one which did a great deal of damage yet it seems to be forgotten here. It was called hashocean and stole from user about 5.2 million dollars in bitcoin at the time they left the scene, now this amount with the actual price of bitcoin is a lot more than 5.2 million . It looks like people never learn or they want to believe empty tales like making money from cloud mining.

[HeRetiK]

[...]

Time will only tell, personally I have had some luck with CCG. I have made close to 5% of my investment back in the last couple weeks. If the mining difficulty doesnt jump too high or the bitcoin value too low I should be in good shape.

[...]

Good luck getting your remaining 95% back, and I mean it. If it already took a couple of weeks to get 5% of your investment back, it will take you more than year to reach ROI which in Bitcoin mining time equals probably never.

Mining difficulty will hit your yield hard. The Bitcoin price itself is pretty much irrelevant because if a mining contract doesn't beat a simple buy-and-hold strategy it's a waste of both time and money.

[Bitcoinsummoner]

For those of you who haven't become salty as a result of lower than expected profits from cloud mining contracts, what is your investment strategy? Do you purchase all bitcoin contracts, reinvest your earnings, diversify? We all know that the difficulty of mining any coin is constantly increasing. In the face of that what strategies can you employ in order to hedge your bets?

Honestly im not investing in cloud mining because i know all cloud mining are scam i invested my bitcoin before but when getting profit or ROI and i withdrawn my bitcoin my bitcoin was stuck and always pending never  receive it..
So i stop investing to cloud mining site and i learn a lot.. Its just the same as investing site.

[Fidemoga]

No, I don't reinveat anymore, because even hasflare is running out its services. Best way to profit is to build a portfolio of altcoins , ICO and Bitcoin.

[alani123]

There is not much point in building a portfolio for cliud mining. As there is no tangible lroof that mining is occurring then it is not to be considered an investment. Cloud mining is more like a ponzi scheme scam.

[monkeydominicorobin]

But you aren't actually giving them away, you do receive a service. If you pay for this service with something like Paypal, you will receive purchase protection. If your service gets cut by the cloud mining company and in turn you lose your investment then there is some protection there. It all comes down to how you pay for the service.

Time will only tell, personally I have had some luck with CCG. I have made close to 5% of my investment back in the last couple weeks. If the mining difficulty doesnt jump too high or the bitcoin value too low I should be in good shape.

@trecore4 Thats really unfortunate, I'm sorry that happened. You arent the first to have a negative experience while using hashflare. Genesis seems like the current "gold standard". On the other side I have seen some awful scams. That said I do think there are legitimate cloud mining companies out there. But you as the customer/investor need to do your due diligence purchase the services with some form of purchase protection, keep track of the current mining difficulty and bitcoin value, and lastly dont go all in, at least not into one currency.

 

Purchase protection? Paypal? And then they will freeze your hard earned money and without an attorney you can never ever recover it. Well even with an attorney you will never be able to unfreeze it. Purchase protection? You will not be able to avail of the services of ccgminining or any 'cloud mining' with paypal serving as escrow. Since you are from California. We understand the beauty of "cloud mining". But you should just learn how to mine with your machine. Don't be lazy like most Californians. Studying is not illegal. Study mining.

[Pairoducks]

@monkeydominicorobin you make a good point, I should study mining on my machine, although I would have to buy a serious rig, my laptop is pretty weak lol. I'm curious, what is you opinion of renting/leasing a rig? I have seen many sites that offer this as a service, CCG definitely does.

In regards to cloud mining sites holding your money, does the customer service not assist you? Or am I being naive, so far my experience with customer service on the sites that I have used, mainly CCG, has been very good.

@HeRetiK If 5% in a couple weeks is too low, what would be an acceptable ROI from a mining contract?

[coolcoinz]

There is not much point in building a portfolio for cliud mining. As there is no tangible lroof that mining is occurring then it is not to be considered an investment. Cloud mining is more like a ponzi scheme scam.

You need to write slower, you're mashing the wrong buttons

Some cloud mining companies are open to viewers and have invited reporters to see their mines. The mining is occurring but we don't know what and at what rate is being mined. They can be getting the amount of coins worth 1 million USD a month and sharing only 10% of their revenue with investors.

[Pairoducks]

You make a good point. That said you are paying for a contract based on their terms, which on one hand can be viewed as giving away control of your bitcoin so to speak on the other it allows less experienced individuals to get some skin in the game by investing small amounts and seeing returns. Personally actually investing some of my money in services offered by CCG, has pushed me to read, learn, and research more about bitcoin and crypto currency in general.

So to broaden this topic, how can a newcomer utilize cloud mining contracts in order to build a small portfolio of coins and in turn learn more about this market? And investing in currency/assets/tokens/services as a whole?

[HeRetiK]

[...]

@HeRetiK If 5% in a couple weeks is too low, what would be an acceptable ROI from a mining contract?

Anything that takes longer than 8-10 months to reach ROI is unlikely to ever make a profit. Being pessimistic I'd even draw the line at 6-8 months.

Keep in mind that the first few weeks of mining is when you see the most of your profits. Mining revenue declines exponentially.

[Pairoducks]

Mining revenues depend on at least two factors, mining difficulty which you are right does increase over time and bitcoin value. Since the beginning of 2017 bitcoin has been extremely bullish. Cloud mining revenues do not decrease exponentially, at least not in this market.

[HeRetiK]

Mining revenues depend on at least two factors, mining difficulty which you are right does increase over time and bitcoin value. Since the beginning of 2017 bitcoin has been extremely bullish. Cloud mining revenues do not decrease exponentially, at least not in this market.

Well of course if you invest USD 100,- in a mining contract and BTC rises then you will make a profit in USD terms.

Point being, if you use the same USD 100,- to simply buy BTC instead of a mining contract you will have made more profit in USD terms than with a mining contract -- at a much lesser risk and without wasting your time on cloud mining.

Of course if BTC tanks you're losing in either case, but that's the risk of handling crypto.

So yes, in BTC terms cloud mining revenues decrease exponentially due to the ever increasing difficulty. To quote myself from above:

The Bitcoin price itself is pretty much irrelevant because if a mining contract doesn't beat a simple buy-and-hold strategy it's a waste of both time and money.

[Pairoducks]

This again assumes that the value of bitcoin does not exponentially increase at a high enough rate to cover the difficulty increase. During the past few months this has not been the case. Bitcoin's value has increased exponentially, as has the difficulty. Now the same increase will happen with other coins, the question is when. Both strategies, buying+holding and cloud mining offer the advantage of giving you a coin at a "reduced" value, however one is riskier than the other and can potentially offer higher gains.

I don't argue with you that cloud mining is risky and many companies are scams, what I do want to emphasize in this post that cloud mining contracts(not specifically BTC contracts), at least to some extent, should have a place in all cryptocurrency portfolios.

[monkeydominicorobin]

This again assumes that the value of bitcoin does not exponentially increase at a high enough rate to cover the difficulty increase. During the past few months this has not been the case. Bitcoin's value has increased exponentially, as has the difficulty. Now the same increase will happen with other coins, the question is when. Both strategies, buying+holding and cloud mining offer the advantage of giving you a coin at a "reduced" value, however one is riskier than the other and can potentially offer higher gains.

I don't argue with you that cloud mining is risky and many companies are scams, what I do want to emphasize in this post that cloud mining contracts(not specifically BTC contracts), at least to some extent, should have a place in all cryptocurrency portfolios.

Strategies again. It is obvious that you are watching too many trevon james videos. Strategies to counter difficulty by purchasing more contracts. And then you will ask us for strategies. Typical Californian.Since you are always using difficulty and electricity as an excuse to shy away from real mining. Why don't you device  a plan to counter all those obstacles. You said it yourself the value of Bitcoin could potentially increase. Even if real mining is not profitable by the standards of moronic number crunchers. The bitcoins which you earned from real mining will exceed the cost of your operation.