When Satoshi Nakamoto created the bitcoin ecosystem a way to ensure that there would be enough resources devoted to the confirmation of transactions was required. That’s how bitcoin mining was created. Miners invest their computing power to solve encryption calculations and confirm transactions in the Bitcoin Network, and get paid in bitcoin for their efforts.

Most of the older cryptocurrencies copied bitcoin’s method, so it is possible to mine a variety of coins, such as Bitcoin, Ethereum, Litecoin, Dogecoin. In the beginning it was possible to mine bitcoin on a standard home computer, but as the blockchain became more and more complex so did the required arithmetical calculations, and increasingly more powerful processors were required. Nowadays bitcoin mining is done in mining farms using dedica­­ted processors.

This complexity gave rise to the concept of cloud mining, where individuals purchase computing power in a mining farm and receive part of the mining reward in return.

Now BUYER BEWARE, cloud mining is a field that is full of scammers and fraudulent sites trying to take advantage of the naivity of people who are not quite familiar with cryptocurrencies and they way they work. As I rule of thumb, I just disregard any site promising to double or triple your investment in a short time, that just isn’t possible with crypto mining.

One of the oldest and more established cloud mining firms online is Genesis Mining. You can purchase computing power (measured in hashrate) to mine Bitcoin or Dash, and distribute it to Zcash, Litecoin, Ethereum and Monero. They only receive payment in FIAT currency.

Another well established mining operator is Dualmine, they are running a promotion right now where you can get 100 GH/s free when you sign up. You can apply that hashpower to mine Bitcoin, Ethereum, Cryptonit, Litecoin, Bitcoin Cash, Dogecoin ZCash, Dash or Monero.

Now, there is another way you can get into the mining game without investing any money. With Cryptotab you can turn your browser into a mining platform. You just install the Cryptotab browser and set up you mining preferences, the program will use your computer to mine for bitcoins while you do your normal work online.

Now, as with all things crypto there are many sites coming online constantly. The resources listed here are all sites that I have used or have researched fully so that I can endorse them confidently.

You can follow this guidelines to check if a mining site is a real opportunity or scam:

1. Is the profit realistic? Beware of sites that guarantee profits, or returns exceeding 1% daily as that is not the norm for mining operations.
2. Does the company have good customer reviews? Check independent review sites.
3. Social media is another way to confirm the company’s reputation and popularity. Check the comments and posts, be wary of any prefabricated posts.

Next week we’ll be looking into STAKING, as we continue to look for Passive Income opportunities.

It must be noted that even though all the sites mentioned in this article have been proven to be reliable, there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.