Cloud mining is an online version of regular cryptocurrency mining that uses cloud computing. It allows everyone, regardless of their technical background or available funds, to be able to benefit from the crypto mining industry without the hassle of maintaining physical hardware and maintenance.
In this article, you will learn about the basics of cryptocurrency mining and how cloud computing technology is taking this industry to the next level.
Cloud mining refers to the use of cloud computing to mine PoW cryptocurrencies such as Bitcoin.
Cloud computing allows everyone to be able to buy or rent computing resources over the internet without getting involved in the maintenance of the equipment. This computing power can be used for anything: running a server or mining Bitcoin.
There are two main ways that you can use cloud mining: using a hosting service or leasing hash power from an existing mining site.
In this model, you can buy some cryptocurrency mining hardware from a crypto mining farm. The maintenance is operated by the company, however, you would need to pay for the fees including the electricity bills.
The main benefit of this model is that you won’t have to worry about the technical side of things and you would be able to enjoy better electricity options as these mining farms are located in areas with cheap electricity and maintenance costs.
This model is mainly suitable for institutional investors as the costs may go up to thousands of dollars each month.
By leasing, you will directly lease the hashing power from an existing crypto mining farm.
This model is more suitable for retail users as you won’t need to pay any maintenance or electricity costs. All you have to do is buy an existing plan which specifies the hashing power you will get and an estimate of the revenue you can make.