Cloud Mining is the process of bitcoin (or any other mineable cryptocurrency) mining utilizing a remote datacenter with shared processing power.
This type of mining allows users to mine bitcoins or alternative cryptocurrencies without having to manage their own hardware.
If you want to invest in bitcoin mining without the hassle of managing your own hardware, there is an alternative. You can use the cloud to earn your coins.
Put very simply, cloud mining means using (generally) shared processing power run from remote data centres. One only needs a home computer for communications, optional local bitcoin wallets and so on.
However, there are certain risks associated with cloud mining that investors need to understand prior to purchase.
Here’s why you might want to consider cloud mining:
- A quiet, cooler home – no constantly humming fans
- No added electricity costs
- No equipment to sell when mining ceases to be profitable
- No ventilation problems with hot equipment
- Reduced chance of being let down by mining equipment suppliers
Here’s why you might not want to consider cloud mining:
- Risk of fraud
- Opaque mining operations
- Less fun (if you’re a geek who likes system building!)
- Lower profits – the operators have to cover their costs after all
- Contractual warnings that mining operations may cease depending on the price of bitcoin
- Lack of control and flexibility
Types of cloud mining
In general, there are three forms of remote mining available at the moment:
- Hosted mining
Lease a mining machine that is hosted by the provider
- Virtual hosted mining
Create a (general purpose) virtual private server and install your own mining software
- Leased hashing power
Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)
Cloud mining services, that I use myself
So far everything worked out smoothly with these cloud mining services and I haven’t heared anyone complaining about them either, so I recommend using them: