Cloud Mining

 is the process of bitcoin mining utilizing a remote datacenter with shared processing power. This type of cloud mining enables users to mine bitcoins or alternative cryptocurrencies without managing the hardware.Simply said, you buy yourself some shares of mining power – like a mining pool – and profit together with the pool. This means that you only need a contract with someone who offers Cloud Mining Services and a bitcoin wallet.

Advantages of Cloud Mining

    No fans murmuring to cool down hardware
    Not necessary to buy additional hardware
    No high electricity usage
    No ventilation issues, with heated hardware
    Less chance of mining hardware failure

Disadvantages of Cloud Mining

    Risk of mismanagement
    Risk of fraud
    Lack of transparency in mining operations
    Lack of hardware control
    Less profits, after paying for cloud services
    Mining services might stop depending on Bitcoin value

Types of Bitcoin Cloud Mining

There are three types of cloud mining using remote services available;

    Leased Hashing Mining

This is when you lease hashing power from a service provider. Leased Hashing is the option used by many users. The bitcoin rewards are shared with the hashing power provider. The Bitcoin value depends on the mining difficulty, demand and supply factors.

    Hosted Mining

In hosted mining, you rent remote hardware from a hardware provider. Rent is paid according to the agreement you have with the vendor during the contract period. You can define the specifications you require for your remote machine.

    Virtual Hosted Mining

Virtual hosted mining allows you to install your own mining software in a remote virtual private server. You can either purchase or hire the power to run your software within the server.