What is cloud mining?
The mechanism of such type of mining includes a number of ASIC-farms and main device to monitor their processes. The mining of tokens is accomplished by solving complex calculations. The complication of these calculations is permanently rising.
In contradistinction to hardware mining that requires buying of costly equipment and paying huge electricity fees, cloud mining gives an opportunity to get passive profit without digging into technical part of the process.
Moreover, due to the constant growing of complication of algorithms, personal mining is getting irrational. Consequently, plenty of clients have started using the services of huge cloud mining services that may provide steady earnings.
Cloud mining is really useful for those who aren’t technically minded and don’t want to run their own software or hardware.
If you have very high cost electricity too – for example in Germany – then it’s a good idea to outsource your mining to somewhere where electricity costs are much lower as they are in America.
How does it work?
Miners, who are connected to the "cloud", accelerate the production of cryptocurrency and earn on it. Services that rent equipment make money on commissions and on rent.
The essence of transactions has not changed. The operation is confirmed when it becomes part of the unit. The search for one unit takes 10 minutes – thanks to the enormous power and the whole group of people who are pooled together.
Cloud mining is a complex service that sells the powerful device, ensured by enterprises that own mighty data centers. It’s kind of investment of money for mining of crypto money with help of powerful blocks forming blockchain.
Types of cloud mining
These days there are three most widely used cloud mining methods:
Hosting – platform where owner provides equipment to rent for cryptocurrency miners.
Virtual hosting – renting of area on the server with following installation of tenant’s software for cryptocoins mining.
Leased hashing power – leasing computing capacity of the server without opportunity to regulate its operation.
