A cryptocurrency mining contract is an agreement between you and a mining company. This agreement gives you the opportunity to mine coins after paying some amount of money. It is synonymous like paying for an investment opportunity to make a profit from the short or long run. Most times, it is quite difficult choosing a mining contract especially when we are left to consider profitability and its legibility. When looking for the best cryptocurrency mining contract, the following steps can help you choose.
Profitability within the contract period
This is one of the most important factors to consider before agreeing on a cryptocurrency mining contract. You do not want to invest in an asset that only gives you a little return. When agreeing on a cryptocurrency mining contract, you should be watchful of the returns you are to derive from such a contract. A lot of contracts aren’t profitable with the present market rate. They might want to lure you into a contract agreement with other benefits.
Most contract profitability is calculated based on the number of days the contract takes to pay back the money invested initially. That means the contract agreement should be able to give you a daily report on your scale of profitability to show how your investment is doing. So, if you are signing a contract agreement for one year, the mining company should be able to give you your expected returns at the end of the year. You also should be very careful on measuring the length the contract last because some contract might extend above to your desired contract length.
Taking note of their proof of mining
Every industry is full of scam today. So, falling into the hands of a scam when agreeing on a mining contract can be a big loss. Cryptocompare is very helpful online platform that helps to detect scams in regards to cryptocurrency mining for bitcoin and Ethereum. They help to reduce the difficulty in sourcing for legitimate cryptocurrency mining company. They verify and test all company offering cryptocurrency services by listing only tested and trusted company in their website and also give a list of all fraudulent cryptocurrency company that has existed. Apart from using Cryptocompare, you can as well trace their true identity by;
- The domain they use; Look out for unregistered and fake domains. A short lifespan of operation; they usually don’t operate for long because of little money invested for payout to investors.
- Registration location; Their registration is mainly registered as a foreign company because they don’t want to leave any trace.
- Hesitation with proof of mining; And most importantly they find it difficult to give you a proof of mining whenever you ask. They remain mute or find an alternative to avoid such request.
Check for reviews and feedback
Transparency is a key attribute that any company that is centered around finance needs to present to its customers. Good reviews from other cryptocurrency miners and other cryptocurrency sites are one good way that can help you agree on a cryptocurrency contract. Most contractors even went as far as posting feedbacks from other miners in order to bring trust to any new clients. The feedback from other miners will help you to know how genuine the contract company is and, profitable they can be.
Go through their terms and conditions thoroughly
Every cryptocurrency contract has terms and conditions just like buying an asset. If it takes you days to understand their contract terms the better it is. Because investing in a mining company without prior understanding of their contract terms can be detrimental in case of any eventuality.
You will likely see some important clauses in some mining contract like;
Daily entitlement of daily payouts or fixed or flexible buy power in regards to maintenance fee and power supply. Also, the contract can be an open-ended contract which can allow you to run lifetime contracts. Some contract terms are so flexible to allow deduction of maintenance fees in different installment. Some mining contracts also have a contract term to accept or reject the contract and refund any money paid by the client. Other contract terms might have fixed maintenance fees that help for the mining process of your investment while others may not.
Compare between different cryptocurrency mining contracts
Services, policies, and terms differ from different contractors. Some might be very strong in the value offered to customers in terms of an update but smaller in profits of mining. While others, their terms, and policies might not be so flexible. You can also make a comparison of different cryptocurrency to check the strength of different miners against different coins. Taking time to compare these points can be very helpful in choosing a cryptocurrency mining contracts.
Contact your cryptocurrency merchant
Cryptocurrency merchants in the industry that has stayed a donkey number of years have what it takes when it comes to mining process and contracts. They know the ins and the outs of all processes and also protocols on getting a valid contract term that will not make you spill cash like you own all the cryptocurrency coins. Cryptocurrency merchants can source on the best contract that might be difficult for you to get across to. They also can provide insightful services like knowing how to check your mining data and calculate profits that might be difficult for you if you are a beginner.
Join online cryptocurrency forum groups
Since the release of cryptocurrency different expert groups on cryptocurrency have emerged. So there is no price we have to pay for ignorance. Joining cryptocurrency forums online is a way of getting all the details on cryptocurrency and mining contracts. Some groups address a daily report on the different discussion and different pitfalls of the industry as a way to keep investors on track and to avoid scam. These online forums are kept alive by different contributors as to the latest trends of the industry and also to leverage every opportunity on cryptocurrency mining.