What is cryptocurrency cloud mining?

When it comes to Bitcoin and other cryptocurrency, mining is not about tunneling into the ground and hauling out ore. It's actually a computerized method for verifying the legitimacy of cryptocurrency transactions and entering new cryptocurrency into circulation.

How does cloud mining work?

Each participant earns a pro-rata share of the profits in proportion to the amount of hashing power rented. Cloud mining involves mining for cryptocurrencies by leasing or purchasing mining equipment from a third-party cloud provider, who is responsible for maintaining the equipment.

What are the different types of cloud mining?

Popular models for cloud mining include hosted mining and leased hash power. The advantages of cloud mining are that they reduce overall costs associated with mining and allow everyday investors, who may lack sufficient technical knowledge, to mine cryptocurrencies.

How does crypto mining work?

In a way, crypto mining is really just solving these incredibly complicated mathematical puzzles. Do it fast enough, and the reward is a coin. If you’re slower than the competition, you don’t get one. This method is called “proof of work.” However, hashes are, by their very nature, incredibly complicated puzzles to solve.