Cloud mining is the method of mining cryptocurrencies using cloud computing power. In this approach, you pay third-party contractors to perform all of the jobs for you. In short, you do not need to purchase or maintain specialised mining equipment, nor do you need to host a blockchain node.
Participants in cloud mining often lease mining equipment or rent hash power. It is also a measure of a mining rig’s power and is generally expressed in Gh/s and Th/s. The cloud mining provider owns and runs a facility or farm full of mining machines, and customers may purchase or rent a portion of the hash power it generates.
The cloud mining service should have invested in high-quality mining technology and, ideally, built its farm in a place with low-cost power and a cooler climate. This method guarantees that the farm’s overhead expenditures are managed at a manageable level.
Such a method is great for those who do not want to get involved in the technical aspects of crypto mining. In most situations, participants may use their cellphones to monitor their hash rate and cloud mining money. Some cloud mining setups even automatically divert produced hash power to the most lucrative mineable currency within a certain time period.