What is Cloud Mining?

Cryptocurrency mining refers to the use of computer hardware to solve the complex mathematical equations necessary to process blockchain transactions, add transactions to blockchains, and maintain the blockchain integrity. Miners get rewarded for this work through payments in form of newly minted tokens of the blockchain they mine.

Because blockchain mining requires a massive amount of computing power, miners have to compete to successfully mine a block of information and earnt he rewards. This makes it important for miners to have efficient mining rigs with some of the highest computing power, measured in units of hash per second (H/s, GH/s, and TH/s). The greater the hashpower, the more chances a miner has of mining a block.

But there are several challenges to this.

First is the electricity efficiency of mining machines such as ASICs and GPUs. Machines that consume more electricity for equal or less amount of computing work are less efficient, and may cause a loss in mining profits due to the increased electricity costs.

Cooling is another crucial factor to consider when mining. Crypto mining machines generally produce massive heat due to the work they do and miners must provide effective cooling for optimal working conditions. Cooling costs may also reduce the mining profits.

The third consideration is the technical and engineering skills needed to assemble, build, and maintain mining rigs. Although regular maintenance is relatively easier once the rig goes live, the technical skills needed may be more that the regular miner have, making it difficult to maintain and keep mining rigs in optimal working conditions.

What's the solution? Cloud mining.

What does the cloud crypto mining mean?

What is cloud bitcoin mining? Cloud mining allows miners to rent private servers set up by cloud mining companies in locations where the natural climate and energy costs favor lower mining costs.

Clients can do altcoin cloud mining, cloud mining crypto from anywhere in the world just by renting servers through cloud mining contracts provided by those companies.

Cloud mining allows small-scale and private miners to mine cryptocurrencies easily without having huge startup funds, technical, or hard engineering skills to build their personal mining rigs.

Clients can easily rent computing hashpower at different rates and choose the coins they prefer to mine. The mining profits typically accrue based on the hashpower rented and can be found on the online dashboard hosted on mining companies' portals.

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