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Cloud Mining vs Traditional Mining: How to Maximize Returns

Cloud Mining vs Traditional Mining: How to Maximize Returns

Bitcoin has quickly become the most popular cryptocurrency used as an alternative to traditional payment systems. All Bitcoin transactions must be verified by miners, in a process called mining.

Mining is done by a software that accesses the CPU’s processing capacity to solve transaction-related algorithms. in the beginning, Bitcoin mining was conducted on the CPU's of individual computers, such as a laptop or desktop which later evolved into mining specific equipment. Nowadays, to have enough processing power to be competitive, people invest large sums of money into hardware and join mining pools in order to make a profit.

Not everyone could invest in large amounts of equipment and space, obviously, and this led to a rise in popularity of an alternative method to traditional mining, called cloud mining.

Cloud mining allows users, instead of using their own machines, to buy mining power of the hardware placed in remote data centers. This can make mining a whole lot easier for people on a budget but does raise some eyebrows when you begin to look at the downside.

Here are some of the pros and cons of purchasing a cloud mining contract,

Pros of cloud mining

  • Time-saving - You don't have to set up the mining part yourself.
  • No explicit knowledge - You buy a contract which is as easy as buying anything online. You don't need to have any particular knowledge about the mining process.
  • No extra space at home - You don't run the miners at home, so you don't waste space at home.
  • No additional costs - You pay the contract and all the maintenance fees are included or deducted automatically from the profit. You don't have to worry about repair costs or higher electricity prices.

Cons of cloud mining:

  • The risk of fraud - There has been and still are a lot of cloud miner scams on the internet.
  • Lower payouts - It´s a bit lower payout than running the miners yourself. Contacts could have the potential to lock you into a low rate of return for as little as six months because you can't change to a coin that is more profitable. 
  • No control - You don't have the control over your mining equipment. You pay someone else to have control over it. This can be bad if the company for some reasons runs into problems you're left waiting for a 3rd party to get your revenue flowing again. 


Traditional Mining

Pros of using a mining rig

  • No additional fees - You don't have to pay a maintenance fee for anyone, only electricity bill. Hence, higher profit.
  • Mining freedom -When the miners become unprofitable, you are free to do anything with them: either sell them or leave them there and wait until they become profitable again.
  • Mining flexibility - You can choose which pool to mine, and how to configure the miners. For example, you can install Classic software to support Bitcoin Classic in the current block size debate.

Cons of using a mining rig

  • Heat and noise - You have to deal with both heat and noise generated by the miners.
  • General knowledge required - You have to be vigilant to make sure the miners are all working as expected.


At Mining Dudes, we strongly believe people should stick with traditional miners, presuming you have space to host a rig. The flexibility and freedom of not being locked into a contract for any predetermined amount of time could save you hundreds if not thousands of dollars. If a coin is no longer profitable you can easily switch to another type of coin at any time. Mining Dudes product's come with dedicated support, to allow for maximum ROI on your mining rig. 

Interested in building your own rig? Take a look at our how to build your own mining rig section. We will be releasing a video on this shortly. We also have preconfigured rigs in our mining rig shop. The prebuilt rigs come plug and play ready with the coin of your choice.



*At current Zcash prices and difficulty rate, MD mining rigs are expected to pay for themselves within the first eight months. If we also include the mining rig as an asset, you can sleep easy knowing you will be able to be liquidated at any time. 

For any questions feel free to drop us a message by using our Contact Us page Here.